Canada Mortgage and Housing Corporation Backs $170M Kwasen Village Development With Musqueam Indian Band, Tsleil-Waututh Nation and Aquilini Development

The Canada Mortgage and Housing Corporation announced more than $170 million in combined funding on September 10, 2026, to support the construction of 355 rental homes at Kwasen Village in Burnaby, British Columbia. The project brings together the Musqueam Indian Band, Tsleil-Waututh Nation and Aquilini Development in a three-way Indigenous and private-sector partnership backed by federal financing.

Deal Structure and Financing

The federal government is contributing $131.9 million through the Apartment Construction Loan Program, a fully repayable low-interest loan facility. The remaining $38.4 million comes in the form of cash and land equity from Aquilini Development, the Musqueam Indian Band and the Tsleil-Waututh Nation. Together, the combined public and First Nations funding totals more than $170 million.

The Apartment Construction Loan Program is a $55 billion federal initiative designed to support the construction of more than 131,000 new rental homes across Canada by 2031–2032. As of June 2026, CMHC had committed $32 billion in loans through the program to support more than 81,918 rental homes nationwide.

Project Details: Two Buildings, 355 Rental Homes

Kwasen Village will be developed across two addresses in Burnaby: a low-rise apartment building at 3683 Willingdon Avenue containing 91 rental homes, and a high-rise apartment building at 4428 Kwasen Way containing 264 units. Combined, the two buildings will deliver 355 purpose-built rental homes to one of Metro Vancouver's fastest-growing communities.

Both buildings will include amenities such as a gym, a children's play area and a rooftop patio with a barbecue. The site is located near BCIT and Brentwood Mall.

An Indigenous and Private-Sector Partnership

The announcement was made by Wade Chang, Member of Parliament for Burnaby Central, on behalf of the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada. Chief Wayne Sparrow of the Musqueam Indian Band, Curtis Thomas Councillor Tsleil-Waututh Nation, and Ryan Seminoff, President Aquilini Development, also participated in the announcement.

"Kwasen Village is an important example of what can be achieved when First Nations, government and the private sector work together with a shared vision for the future," Chief Wayne Sparrow said. "For Musqueam, this partnership is about more than building homes. It is about creating long-term opportunities, strengthening our communities and ensuring our people are active participants in the growth taking place throughout our traditional territory."

Curtis Thomas highlighted the cultural dimension of the development. "Grounded in our Indigenous values of connection and environmental sustainability, k̓ʷasən Village will feature beautiful homes, vibrant green spaces, and community gathering areas," Thomas said. "This development delivers much-needed regional housing affordability while welcoming səlilwətaɬ and xʷməθkʷəy̓əm cultural presence back to this area."

Ryan Seminoff highlighted the role of CMHC financing in advancing the project. "CMHC's long-term financing has been instrumental in helping advance this project during a challenging development environment," Seminoff said. "Together, we are creating housing opportunities for present and future generations while demonstrating what can be achieved when Indigenous partners, government, and the private sector work together toward a common goal."

Market Context: Rental Supply in Metro Vancouver

The Kwasen Village announcement arrives against a Metro Vancouver rental market backdrop that has seen vacancy rates rise from historic lows. CMHC's 2025 Rental Market Report placed the region's purpose-built rental vacancy rate at 3.7% as of October 2025, the highest level since 1988 and more than double the prior year's rate of 1.6%. Despite the loosening conditions, the region continues to face structural housing demand, keeping long-duration, low-cost financing attractive for purpose-built rental development.

Metro Vancouver apartment cap rates were ranging from approximately 3.4% to 4.9% in early 2026, with stronger assets compressing toward or below 4.0%, reflecting continued investor confidence in the durability of institutional rental product even as rent growth has moderated.

The Kwasen Village project illustrates how the Apartment Construction Loan Program is functioning as a substitute for tighter conventional construction lending, enabling rental development to advance in a more challenging capital environment. CMHC has positioned the program as central to the federal government's Build Canada Homes initiative, which also targets transitional and supportive housing in partnership with provinces, territories, municipalities and Indigenous communities.

Sources

Canada Mortgage and Housing Corporation — Canada announces funding for 355 rental homes in Burnaby (September 10, 2026)