Column
Real Estate Developers Mobilize Against Homelessness

Jean Giguère
Author :
WikiResidence
Source :
04/12/25
Facing the growing housing and homelessness crisis, a notable initiative is emerging: real estate developers in the metropolitan area are getting involved in the fight.
Moving beyond purely profit-driven projects, these private actors are entering into public-private partnerships to offer social, affordable, and, most importantly, supported housing.
While praised for its potential, this movement also raises questions about the role of the State, the selection of beneficiaries, and the sustainability of funding. It is part of a Montreal landscape where other community and modular projects are also expanding the supply of temporary and permanent shelter.
The homelessness crisis in Montreal is no longer a marginal phenomenon. It is reflected in heavy statistics and social impact.
Faced with this challenge, the initiative by major real estate developers to get involved in creating housing for people experiencing homelessness marks a paradigm shift.
These projects aim to combine housing + adapted support, an approach recognized as essential for sustainable reintegration.
Economic Impact and Allocated Budgets
Although the details of the budgets allocated by the developers themselves are often private information, the commitment is colossal.
These initiatives are generally carried out through complex financial arrangements involving:
The Private Sector: Land donations, reduced-cost construction expertise, or initial financing by the developers.
The advantage is the speed of execution and the optimization of construction costs.
The Public Sector: Government subsidies (federal or provincial) through programs such as housing assistance or the Homelessness Partnering Strategy (HPS).
The federal goal of halving chronic homelessness by 2028 is based on significant funding, including $2.2 billion over 10 years for the "Reaching Home" program (2019 figure, re- evaluated since)
.
The Community Sector: Funding for support organizations for social assistance (Centraide, foundations, etc.), crucial for ensuring the stability of residents.
These non-profit private projects, often in collaboration with specialized non-profit organizations (NPOs), allow units to be unlocked quickly, where traditional HLM (low-rent housing) processes are slow (more than 160,000 households were on the waiting list for HLM in Montreal with an average delay of 5 years, according to FRAPRU).
Social Impact and Similar Projects in Greater Montreal
The social impact of these projects is twofold: they offer a way off the street, and they improve social coexistence by providing dignified living environments.
However, critics point to the risk of beneficiary selection favoring the "less complex" cases and the need for sustained community support to prevent relapse.
Beyond the developers' initiative mentioned, several other projects and programs illustrate the mobilization in Greater Montreal:
Modular Housing by the City of Montreal:
Description: Temporary housing projects with intensive social support for people experiencing homelessness.
Capacity: Each site can accommodate up to 30 people at a time (e.g., Ahuntsic-Cartierville, Côte-des-Neiges—Notre-Dame-de-Grâce).
Mandated Organization: Often recognized organizations like Old Brewery Mission, which provide 24/7 support.
Impact: Offering a supervised transition to permanent housing and employment.
Supported Housing Program (LSA):
Description: Over the years, the City of Montreal has contributed to the development of more than 600 social and community housing units with support, demonstrating a continuous effort for reintegration.
Partners: Housing NPOs, community organizations, and the Société d'habitation du Québec (SHQ).
Indigenous Projects:
Description: The fight against Indigenous homelessness is a crucial issue.
Projects are developed by organizations like Projets Autochtones du Québec (PAQ)to provide adapted housing and services.
Affordable Housing and Housing at Risk of Homelessness:
Description: Regular inauguration of small projects (like 15 new housing units announced in July 2024 by the Government of Quebec) specifically targeting people at risk of homelessness to prevent them from becoming street-involved.
The involvement of developers, combined with these existing efforts, is a breath of fresh air, but it must be seen as one link in a larger chain.
The sustainable solution will necessarily require strong state intervention, massive investments in social housing (NPOs and HLM), and, above all, permanent social support for the most vulnerable populations.
The "Shock" Project by Real Estate Developers (Groupe Mach, etc.)
The project was made public towards the end of 2025 (according to research results) and proposes a very large-scale initiative.
Feature | Confirmed Details (According to Developers) |
Project Scope | To offer 2,500 social housing units in Montreal to help resolve the homelessness crisis. |
Actors Involved | At least three major real estate developers, Groupe Mach, Cogir Immobilier and Devimco. |
Financing Model | The private sector proposes to act as consultant and executor to build the housing at much lower costs than traditional public construction. |
Cost Estimation | Developers estimate the total project cost at approximately $300 million (for 2,500 units), based on a construction cost of about $400 per square foot, whereas government costs can exceed $900 per square foot. |
Ownership | Developers do not intend to be owners. They want to build and transfer ownership to the government (provincial or municipal). |
Social Objective | The goal is to provide a rapid solution to house a significant portion of people experiencing visible homelessness. |
Main Criticism | The Front d'action populaire en réaménagement urbain (FRAPRU) raised concerns about beneficiary selection and the risk that the project might only target the "less complex" cases, leaving aside those requiring very intensive social support. |
2. Modular and Public Housing Initiatives in Montreal
These projects are concrete examples of public and community effort in Greater Montreal.
Project | Location(s) | Occupancy / Capacity | Funding / Budget |
Modular Housing (Temporary) | Ahuntsic-Cartierville (50-50 Louvain), Côte-des-Neiges—Notre-Dame-de-Grâce (Hippodrome), and soon Outremont (MIL). | Each site accommodates a maximum of 30 people (total of 90 beds including the expected site), with 24/7 support. | Part of the City and Quebec budgets. Operating costs (support) are significant. |
City of Montreal Support | Community organizations (Accueil Bonneau, Action-Réinsertion, etc.). | Not applicable (funding for organizations). | The City has announced an investment of over $25 million by 2028 for concrete homelessness measures. |
New Housing from the Government of Quebec | Various boroughs of Montreal. | E.g., 15 new housing units for people at risk of homelessness inaugurated in July 2024. | Financial arrangements combining federal aid (via SHQ) and provincial aid for social and affordable housing. |
3. Federal and Provincial Public Funding Programs
The budgets allocated to the fight against homelessness are shared between the two levels of government:
Government of Quebec (November 2023): Quebec granted an additional funding of over $9.7 million specifically for the Montreal region as part of the fight against homelessness.
Federal Government ("Reaching Home" Program): Significant amounts are released through the Canada-Quebec Agreement. $50 million in funding was announced to support 205 projects against homelessness across Quebec.
The direct involvement and offer of rapid construction at a reduced cost by the private sector could therefore potentially serve as a catalyst to accelerate the construction of social housing, something governments are not achieving at a sufficient pace.
The initiative by real estate developers to create social and affordable housing can be viewed very positively.
It demonstrates the solidarity, innovation, and capacity for action of the Montreal private sector in the face of a social challenge. It is a sign of the metropolitan area's maturity and social responsibility
