Supports for Housing Developers

Various programs exist to incentivize the construction of market rental units, which also supports available units across the housing continuum.

Below is a list of programs eligible developers, non-profits, and community service organizations are encouraged to apply to. 

Creation of housing

• The Affordable Housing Development Program is open to non-profit corporations, private entrepreneurs, development corporations, housing cooperatives, or municipalities. The program will provide forgivable loans of up to $55,000 per unit to increase the number of affordable housing options in the province.
• The Housing Development Challenge Fund is designed to invite developers/contractors/landlords to submit proposals for new residential development projects on PEI including infrastructure. This new loan program is intended to assist approved developers/contractors/landlords increase the housing inventory on PEI. Applications have closed for this round.
• The Multi-Unit Residential Loan Program provides a financing program for property developers which will assist in the construction of multi-unit residential developments on PEI. A multi-unit development consists of two or more units. Applications have closed for this round.
• The Residential Unit Development Incentive (RUDI) for multi-unit residential buildings announced by the Province of PEI will provide financial support to encourage the development of newly constructed rental units by providing a diminishing property tax rebate for a period up to five (5) years. 
• The Community Housing Fund is a collaboration between the Canadian Mental Health Association, PEI Division (CMHA-PEI) and the Province of Prince Edward Island to support housing developments whether they are targeting affordability, vulnerable populations, assisted living, or those that require increased support. Funding under this program can be used to provide additional resources and support to develop solutions to PEI’s housing shortage.
• HST Rebate for New Rental Housing Construction provides a full rebate on the provincial portion of the HST (10%) on rental housing projects started and completed by the end of 2028, to a maximum of $35,000 per unit. Projects that are completed after 2028 will qualify for the rebate with a declining rate of one per cent per year over the next seven years. 
• Energy efficiency new home construction incentives. 
• The Municipal Infrastructure Fund supports the extension of existing municipal central water or wastewater services, public roads, or sidewalks, so more property is available to develop housing. The fund will also help increase population in rural areas.
• For projects approved through the Municipal Infrastructure Fund, the Subdivision Development Financing Program (SDFP) is a financing support pilot program that will help qualified developers offset infrastructure costs for long-term residential housing developments. 
• Development projects requiring new or upgraded roadway access may be eligible for provincial funding for roadway preparation (excluding paving). The Building Acceleration Grant will provide up to $25,000 per eligible project (Maximum 50% of the total development cost). 
• The Community Housing Expansion Pilot will provide funding to the non-profit and co-operative housing sector towards capacity building, operation development, and the creation of affordable housing units in the rental market. The pilot aims to support 120 units for acquisition in 2024-25, while building a pipeline for new construction and acquisition projects in future years. Applications have now closed.

Improving energy efficiency of existing units

• The Multi-Unit Residential Buildings Rebate Program through efficiencyPEI will support rental properties to become more energy efficient through greater access and increased amounts of rebate options.
• The Rental Property Heating Program will offer lending options to property owners to convert oil heating systems to energy efficient options at zero percent for the borrower.