Nesting Ground Secures $20 million in First Round of Investment for Canadian Affordable Housing Guarantee Pool

First-of-its-kind financing tool is a game-changer that allows non-profit housing providers to scale up affordable housing in Canada

TORONTO, Sept. 9, 2026 /CNW/ -- Nesting Ground, a Canadian non-profit organization accelerating affordable housing, has announced the closing of the first round of funding for its Affordable Housing Guarantee Pool ("AHGP") with $20 million in equity commitments from institutional and private investors. A second round is now open.

The initial round includes founding support from philanthropic and impact investors Realize Capital, The Atmospheric Fund, Ottawa Climate Action Fund and Northpine Foundation.

The first round of funding moves the Canadian financing model from concept to market validation, allowing private capital to flow towards non-profit affordable housing projects and secure construction financing. For the second round, Nesting Ground is targeting $50 million to expand the AHGP's capacity and accelerate the delivery of non-profit affordable housing in major cities across Canada.

"Everyone wants to scale non-profit housing, but to date that hasn't been possible due to very real financial barriers," said Graeme Hussey, President, Nesting Ground. "The vast majority of Canadian non-profits are unable to bear upfront construction costs and risks. The Affordable Housing Guarantee Pool gives private capital, banks and government comfort that large, non-profit affordable housing projects will get built. It means Canada can finally build up non-profit housing in a big and financially sustainable way."

Inspired by the success of affordable housing financial tools in the United States such as the national Community Investment Guarantee Pool, the AHGP leverages impact investment outside of direct lending or government grants.

The Affordable Housing Guarantee Pool de-risks non-profit housing for private capital and government. It addresses critical barriers to scaling non-profit housing in Canada by providing a financial backstop during construction. Every $1 invested in the AHGP unlocks up to $10 in potential housing loans, grants and subsidies, allowing non-profit providers to pursue projects beyond what their balance sheets would otherwise support.

"We invested in the Affordable Housing Guarantee Pool because it's a promising model for what social finance can deliver at scale. The Pool uses private capital to enable non-profit housing projects, unlocking construction financing that helps affordable housing get built. It pairs financial return with real progress on social equity, delivering long-term benefit to communities across Canada," explains Lars Boggild, Portfolio Manager, Realize Fund I, Realize Capital Partners. "Helping the Pool reach this first close is exactly the kind of catalytic role we want to play, and we're glad to support a social finance market that is stronger and more self-sustaining as a result."

Nesting Ground's pipeline includes 1,800 shovel-ready homes across Ottawa, Toronto and Guelph. The projects will use modern methods of construction and Nesting Ground's mixed-income non-profit housing model, with a minimum of 25% affordable housing.

Projects will also use the best sustainability practices, including Zero Carbon and LEED Platinum certification through the Canada Green Building Council, and the One Planet Living framework.

Build Canada Homes has committed to Nesting Ground's first two projects in Ottawa, where Windmill Developments is the development manager for both projects.

"There is a significant push to build affordable housing at a scale Canada hasn't seen before, but the country's financial infrastructure hasn't kept pace. That changes now," said Jeremy Reeds, CEO at Windmill Development Group. "The Affordable Housing Guarantee Pool is a made-in-Canada solution to meet our housing needs. It transforms non-profit, affordable housing into a sound financial investment. Working with Nesting Ground, we are pioneering a repeatable model that will grow Canada's non-profit real estate sector."

A New Solution to Scale Up Non-Profit Housing

Nesting Ground is an independent non-profit that partners with community housing organizations and private developers to build affordable housing at scale -- at less cost to government. Nesting Ground has pioneered a new model that bridges non-profit housing, private capital, and government that transforms federal dollars into an investment that delivers affordable housing multiple times over.

As Canada looks to significantly increase affordable housing supply, many non-profit providers face fundamental financing constraint. Organizations have viable projects and operational capacity but lack the balance sheets required by lenders and governments to guarantee major construction costs. This prevents most affordable non-profit housing projects from advancing in Canada.

Nesting Ground's pipeline comprises mixed-income rental developments with both market-rate and affordable housing. Revenues from market-rate units subsidize affordable units to sustain affordability in perpetuity. While the AHGP will initially support Nesting Ground's development pipeline, the intent is to expand and invite broader partnerships.

About Nesting Ground

Nesting Ground is an independent Canadian non-profit organization built to expand affordable housing delivery. Working with community housing providers, governments, social service organizations, development partners and mission-aligned investors, Nesting Ground brings together the partnerships, development capacity and financing tools needed to move projects from idea to thriving new communities. Its work spans partnership formation and project structuring, development coordination, financing strategy, sustainable and modern construction, and long-term stewardship. By combining non-profit leadership with experienced community, public- and private-sector partners, Nesting Ground advances practical, repeatable approaches to mixed-income rental housing that support long-term affordability, strong environmental performance and lasting community benefit. Nestingground.org

About Windmill Development Group

Windmill Development Group ("Windmill") is a Canadian for profit real estate developer guided by One Planet Living, the sustainability framework that has shaped its approach to development for more than 20 years. Founded in 2003, Windmill brings deep expertise across land, planning, financing, design, construction and sustainability, with a track record of delivering complex, high-performance communities and advancing better ways to build. Windmill has been an early adopter of approaches including geothermal heating and cooling, high-performance building systems and modern methods of construction, applying disciplined development expertise to turn emerging solutions into practical, proven approaches. Today, Windmill is focused on making those approaches increasingly repeatable and scalable.

windmilldevelopments.com

SOURCE Nesting Ground

MEDIA CONTACTS: Katarina Prystay, kg&a, [email protected]; Kevin Ritchie, kg&a, [email protected]