Program for an Affordable Metropolis - Developers

Last updated October 18, 2022

Are you developing real estate projects in Montréal? Through this program, you can fulfill your affordable housing obligations while offering attractive incentives to buyers.

How the program works

  • As a developer, you commit to offering a 10% discount on the market value of several housing units, based on the scale of your project and the terms of the by-law.
  • The city provides eligible purchasers with a subsidy equal to 10% of the value of the home.
  • This means that the buyer pays 80% of the value of the housing unit. In return, the buyer agrees to keep the home affordable in the case of resale, according to the terms of the program. This commitment is transferred to subsequent buyers, if any, for a 30-year period.

Circumstances in which the program can be offered

Agreement within the By-law for a diverse metropolis

If your project is located in an affordable housing zone, you can join the program to fulfill part of your obligations.

The city calculates the area of affordable housing required for your project, one-quarter of which must be family housing. You agree to sell that space under the terms of the program (or part of this area combined with an additional contribution).

Participation in the program is optional: Other forms of contribution are possible.

Projects proposed as part of a municipal call for projects

When certain lots that belong to the city are put up for sale, the city sets out criteria to create exemplary living environments with respect to social inclusion, mobility and sustainable development. Among these criteria are that proposed projects must include a substantial proportion of affordable housing and that affordable housing may be required as part of the program.

As a complement to the public call for bids, please consult this document (in French) to learn more about the terms and conditions of the program.

Projects that were put on the market by the SHDM

The program will eventually be offered as part of residential projects managed by the Société d’habitation et de développement de Montréal (SHDM) (in French).

Stages of a project that is submitted through the program

1. Permit applications

When you apply for a permit, you must submit a bank letter that guarantees you can meet your commitments.  If the project is to be carried out in several phases, the amount of the guarantee will be established in proportion to the area covered by each permit.

2. Property valuation and marketing

The market value of the projects in question must be determined. To this end, you agree that the city may hire an independent chartered appraiser at your expense.

You then market the homes at the price set by the appraiser, with a 10% discount. 

When buyers express interest in a home, refer them to the city to apply for a subsidy. Eligibility for the program must be confirmed by the city prior to the signing of the preliminary sales contract.

3. Qualification of the purchaser by the city

The potential buyer must apply for the subsidy on 
Eligible households must have been renting for at least five years (except for families with children aged 13 or under) and have a maximum income equal to the sale price of the home divided by 3.5.

4. Preliminary contract

Once eligibility for the program has been confirmed in writing, the purchaser has 3 months to sign the preliminary contract and to send the city a copy of the contract.

5. Payment of the subsidy

Upon receipt of the contract, the city will do standard checks and set aside the subsidy amount. This amount is deposited in the trust account of the notary in charge of the transaction.

6. Return of the bank guarantee

The city will return the bank guarantee associated with the permit to you once all the affordable housing units covered by the permit have been sold.

Submit a project

To propose a housing project for the program, contact us at [email protected].