Canada Mortgage and Housing Corporation : Early federal government involvement in housing took the form of it constructing a small amount of housing for First World War veterans in the 1920s. The groundwork for a federal housing agency was not established until 1935, however, with the passing of the Dominion Housing Act (25-26 Geo. V, c. 58). Initially administered by the Department of Finance, by 1938 the legislation had helped finance the construction of nearly 5,000 housing units. In that year, the National Housing Act (2 Geo. VI, c. 49) replaced the Dominion Housing Act. The new legislation encouraged lending companies to expand outside urban centres.
During the Second World War, the Wartime Housing Corporation (established in 1941) built 46,000 units and helped repair and modernize thousands of existing units, primarily to accommodate war-industry workers. At the end of the conflict, the demobilization of more than one million Canadians in the armed forces created a housing demand that the private sector could not meet. In response, the federal government created a crown corporation, the Central Mortgage and Housing Corporation (CMHC) in 1945 (9-10 Geo. VI, c. 15). At the time of CMHC's creation, the National Housing Administration in the Department of Finance and the Emergency Shelter Administration of the Wartime Prices and Trades Board were transferred to the new agency. In addition to CMHC's Ottawa headquarters, five regional offices were established at Halifax, Montreal, Toronto, Winnipeg and Vancouver. CMHC constructed thousands of housing units for veterans, but from the beginning its primary mandate was to improve housing for all Canadians.
In 1948 the development of Ajax, Ontario (a large industrial complex created during the Second World War) into a balanced industrial community was turned over to CMHC. Revisions to the National Housing Act in 1949 authorized the federal government to enter into agreements with the provinces for the provision of housing under federal-provincial ownership and management. In 1950, CMHC undertook the planning and development of Deep River, Ontario, for Atomic Energy of Canada, Ltd.
In 1954 CMHC began insuring mortgage loans made by private investors. The Bank Act was amended to allow Canada's chartered banks to lend money for mortgages, which resulted in an increase in the amount of available mortgage funds.
Over the ensuing years a number of initiatives and programs were undertaken by CMHC. To cite a few examples, in 1965 an agreement was reached between the federal government and Saskatchewan for a joint program to provide housing for Metis and enfranchised Indians in sparsely-settled regions of Saskatchewan. In 1968 hostel and dormitory accommodation for nearly 15,000 persons was financed under the National Housing Act. From 1969 to 1972 low rental housing and residences for senior citizens were priorities for CMHC.
Central Mortgage and Housing Corporation was renamed Canada Mortgage and Housing Corporation in 1979. At present, its affairs are managed by a board of directors consisting of the chair, the CMHC president, five members from the public at large and two members of the public service, all of whom are appointed by the Governor-in-Council. Reporting to Parliament through the Minister of Public Works and Government Services, CMHC has authority to act for the Government of Canada in all matters prescribed under federal housing legislation, primarily the National Housing Act. To accomplish these goals, CMHC insures loans so that the lender is protected in the event that home-owners cannot keep up with mortgage payments; provides grants, loans and subsidies to assist in the construction of new homes and the improvement of existing ones; conducts and supports research in housing-related matters; and provides advice to mortgage lenders, real estate agents, and the housing industry.
