Pushing the limits of the Fund’s framework in 2026

Press Release

May 28, 2026

Last February, this blog delivered numbers reflecting the First Nations Market Housing Fund’s (the Fund’s) impact on its clients’ on-reserve housing efforts. This year, the Fund expects modest growth from its current Credit Enhancement program and has set out its operational plan to implement significant changes to its current model.

To accomplish this goal, the First Nations Market Housing Fund (FNMHF) continues its work towards the Transfer of Care and Control (the transfer) of the trust to First Nations. As it stands, there are limitations to changes that can be made to how the Fund delivers its services. The 2026 Business Plan(opens in a new tab) outlines these ongoing efforts and the changes that may be implemented within the current Indenture of Trust and Funding Agreement.

Many pathways

The Fund recognizes multiple pathways to overcoming the barriers to securing financing arising from the Indian Act. The Fund’s current approach is to facilitate relationships between First Nations and select lenders to design loans and terms that meet communities’ distinct needs. They then use the fund to guarantee, or back, those loans. Learn more about the Credit Enhancement product and how it works here.

As the Fund is exclusively in First Nations hands, it will be faster to update the pathways available through the Fund.

Context for the First Nations-Canada fiscal relationship

Reinforcement of First Nations sovereignty has been recommended through multiple avenues. However, the Federal Government’s slow progress in restoring First Nations’ rights to self-governance continues to limit access to safe, sustainable on-reserve housing.

In 1996, the Royal Commission on Aboriginal Peoples(opens in a new tab) (RCAP) issued its final report recommending “the recognition of an Aboriginal order of government, subject to the Charter of Rights and Freedoms, with authority over matters related to the good government and welfare of Aboriginal peoples and their territories.”

In 1998, the Federal Government responded with a policy framework to strengthen Aboriginal governance by developing Aboriginal governance capacity and the “possible development of an Aboriginal governments recognition instrument.” Their perspective on developing a new fiscal relationship included “working toward greater stability, accountability and self-reliance [and] developing new financial standards with public account and audit systems that conform to accepted accounting principles.”

This response indicated that the Government believed First Nations lacked the capacity to manage ourselves and required their financial oversight. The desire for financial oversight was reflected in the Indenture of Trust and Funding Agreement that established the FNMHF by positioning the Canada Mortgage and Housing Trust Corporation (CMHC) as the Funder and Manager of the Fund.

The Calls to Action of the Truth and Reconciliation Commission(opens in a new tab) did not specifically address housing, but significantly increased the visibility of Indigenous Peoples and Canada and Canadians’ role in reconciliation. This 2012 documentation, which was the result of Survivors of Residential Schools taking the Government to court, represents a landmark in public awareness of gaps in health, education, and justice for Indigenous Peoples.

In 2007, the United Nations General Assembly adopted the United Nations Declaration on the Rights of Indigenous Peoples(opens in a new tab). Among the relevant rights outlined were:

• Self-determination, autonomy, self-government
• Ways for financing Indigenous Peoples’ autonomous functions
• Distinct economic institutions
• Developing and determining housing and other economic programmes
• Freely determine political status and freely pursue social and economic development

The supportive Canadian legislation(opens in a new tab), which came into force in 2021, led to The United Nations Declaration on the Rights of Indigenous Peoples Act 2023 Action Plan(opens in a new tab). This committed the Federal Government to “continue to explore options with First Nations on their proposal to exercise their jurisdiction over their housing and for Canada Mortgage and Housing Corporation to transfer the care and control of funding for on-reserve housing programs to First Nations.”

Canada may be ready to shed its long-held assumptions and surrender control of the economic riches generated by the colonization of First Nations lands and Peoples. For example, leveraging annual federal transfers(opens in a new tab) to build much-needed infrastructure and supporting other avenues to freeing up First Nations capital under First Nations care. There is still a long way to go.

Towards First Nations autonomy

All of the Fund’s Business Plans reintroduce the Fund and what it does, as it requires the approval of the Minister for CMHC. This role is currently fulfilled by Minister Gregor Robertson, Minister of Housing and Infrastructure. Each time the cabinet shuffles, the Fund must re-inform and align with the new Minister to obtain approval to proceed with its work. This can create a barrier, as Ministers have many files to manage and may not have the experience to support their understanding of First Nations rights and our excellent capabilities to lead ourselves.

When the transfer is complete, the Fund’s Board of Trustees will hold this responsibility without the imposition of non-Indigenous oversight. Free from an outdated and paternalistic agreement signed in 2008, the Trustees will have the flexibility to meet the needs of communities, informed by firsthand experience and deep professional expertise, community engagement, and Indigenous-led research. It will also support data sovereignty by eliminating the need for the Fund to share information on First Nations housing efforts. The Fund will need to inform only its First Nations rights holders, membership and partners as deemed appropriate.

Stretching educational funding

The 2026 business plan outlines the tension between the Fund’s intention to build financial literacy and homeownership capacity and the limitations of the current Funding Agreement. All educational activities, such as sessions on homeownership, rental, or other tenure forms, and supportive elements such as personal finance, budgeting, and home maintenance, fall within the Capacity Development (CD) product. These are crucial to the areas of housing literacy and client engagement.

The Funding Agreement sets out the following rules on CD expenditures:

• Not to exceed 50% of the immediately preceding year’s net income (defined as investment and other income less any expenses incurred during the year).
• The Fund can carry forward unexpended amounts to future years, with the Minister’s approval, to future years.
• A relatively small portion of the budget for fees, travel, and other related costs for external contractors, such as workshop content and facilitators, is paid up front.
• The rest of the budget is paid out when the activities are completed to the satisfaction of the First Nation and the Fund, which may take more than a year.

Although the Fund may generate sufficient revenue to support educational work reaching communities, delayed access to resources limits expenditures. These barriers are communicated in the plan to obtain approval from the Government of Canada, via the Minister, to make the proposed changes.

The 2026 Business Plan best expresses the Fund’s preparedness for autonomy. “The Trustees recognize the importance of maintaining strong, professional, and objective governance, encouraging complementary sources of funding, and ensuring self-sufficiency for future generations.”

Impacts in community

In communities, at conferences, and online, the Fund will continue to engage with First Nations and renew its 2025 focus on regional approaches. There will be jointly hosted regional conferences and workshops. There will also be regional financial literacy and homeownership education workshops designed specifically for youth. To build awareness and support the individual membership drive, more informational and training materials will be available.

Read more about the 2026 roadmap and other strategic directions in research, innovation, advocacy, strategic partnerships, governance, and streamlining processes.

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