Indigenous Housing:
Codes, Land, Tax and Funding
On reserve, the province is not the one checking the building, the land cannot be mortgaged the ordinary way, and sales tax depends on how the home arrives. Here is how each of those works for a First Nation, a housing authority or an Indigenous housing provider buying factory-built homes.
Rules checked · drawn from ISC, CMHC, CRA, Ontario and Justice Canada published material
Where the Rules Differ
The same home is approved, financed and taxed differently depending on whether it sits on reserve land. Knowing which column you are in comes before the order.
| Question | On reserve | Off reserve |
|---|---|---|
| Building code | The National Building Code, required by ISC and CMHC as a condition of funding | The Ontario Building Code |
| Who approves and inspects | The First Nation is the authority having jurisdiction; funded projects need inspections by a qualified inspector | The municipality’s building department |
| Land and mortgages | Reserve property cannot be mortgaged to a non-member lender, so loans are secured by a ministerial loan guarantee | Ordinary mortgage financing |
| GST/HST on the home | Relieved for status Indians, bands and band-empowered entities when the vendor or its carrier delivers to the reserve | Status card holders and Ontario bands can get the 8% provincial part relieved at the point of sale |
| Main funding | ISC housing funding, CMHC Section 95, ministerial loan guarantees, the First Nations Market Housing Fund | Indigenous housing delivered through Build Canada Homes, NICHI, OAHS and CMHC rental programs |
How a Home Gets Signed Off
Provincial building inspectors do not issue permits on reserve. Funding bodies set the standard instead, and the First Nation carries out or arranges the inspections.
- ISC makes building code compliance a condition of the housing it funds
- ISC contribution agreements call for a final completion report signed by a qualified inspector confirming compliance with the National Building Code
- A qualified inspector can be a journeyman carpenter, electrician or plumber, a certified housing inspector or a professional engineer
- CMHC requires a certificate of building code compliance at three stages: before backfill, before drywall, and at completion
- For ready-to-move units, CMHC’s form provides for a manufacturer’s certification that the units meet the National Building Code
- The First Nation pays for the inspections, and the cost is eligible under the program
- Under section 81 of the Indian Act, a band council can make by-laws regulating the construction, repair and use of buildings on reserve
- Councils can also zone the reserve and restrict classes of buildings by zone
- Ask your housing department whether a building by-law or zoning applies to the lots you are using
- ISC funds the First Nations National Building Officers Association to train First Nations housing staff
- The association offers remote building inspections for sites that are hard to reach
- ISC supports virtual inspections to help clear inspection backlogs
Why Reserve Land Changes the Loan
Section 89 of the Indian Act says the property of a First Nation or its members on reserve cannot be mortgaged or seized by anyone other than a First Nation or a member. That protects the land, and it is why on-reserve lending runs through guarantees.
- ISC issues guarantees so lenders have security for on-reserve housing loans; about 80% of the loans they back are from CMHC
- A First Nation can apply for a guarantee on behalf of an individual member
- Guarantees are not given on designated lands, where long-term leases can be mortgaged
- All First Nations are eligible for the On-Reserve Non-Profit Housing Program
- It provides low-cost loans of up to 100% of eligible capital cost, plus a subsidy toward the gap between costs and rental revenue, for up to 25 years
- Proposal development funding of up to $75,000 is available as an interest-free repayable loan to prepare a project
- The Fund does not lend; it backs housing loans a First Nation guarantees, covering 10% of the principal disbursed up to the community’s approved limit
- The lender needs an agreement with the First Nation, and the facility is not available on designated land
- The Fund also offers capacity development: training, advice and coaching on market-based housing
- Where a First Nation has a land code under the Framework Agreement on First Nation Land Management, the Indian Act’s land management sections no longer apply
- Interests and licences on that land are then granted under the land code
- Confirm how your land code treats leases and financing with your lands office before you approach a lender
How the Home Arrives Matters
Under section 87 of the Indian Act, the personal property of a status Indian or a band on reserve is exempt from tax. For goods bought off reserve, the relief depends on who delivers them.
- No GST/HST is payable on goods bought off reserve when the vendor, or a carrier acting for the vendor, delivers them to a reserve
- Delivery by the purchaser, or by a carrier the purchaser hires, does not qualify
- The vendor keeps proof of delivery to the reserve, such as a waybill or freight bill, and proof of status or band certification
- Off reserve, status card holders resident in Ontario and Ontario First Nation bands can have the 8% provincial part of the HST relieved
- Vendors can credit it at the point of sale, so only the 5% federal part is charged; otherwise it is claimed from the Ontario Ministry of Finance within four years
- Bands certify, on band letterhead, that goods are for the band’s use
- ISC counts more than 30 Ontario First Nations that are reachable only by air year-round or by winter road for much of the year
- Ontario’s winter road network gives seasonal access for about three months a year, from around mid-January until spring thaw, depending on ice and weather
- For a winter road community, the delivery window sets the production schedule, so plan the order back from it
- A housing plan can be released in phases as funding is confirmed, with the same models and finishes repeated across every phase
- The delivery route and crane access are confirmed before manufacturing starts
- An exterior-finished shell keeps interior finishing for local trades, where the community wants that work kept local
What Goes Into Your Submission
EpicMod is the manufacturer. The homes or panels, the drawings and the warranty come from the factory; site work, foundations and connections stay with your own contractors or your community’s crew. Off reserve, URN funding is now delivered through Build Canada Homes and distinctions-based agreements, and Ontario’s Indigenous Supportive Housing Program runs through Ontario Aboriginal Housing Services and Miziwe Biik.
- The engineering drawing set and unit specifications your funder, lender and inspector ask for; confirm with them which code the inspections are made against
- Single-storey homes from studio to three bedrooms, including senior-friendly single-level layouts with barrier-free options, engineered for northern Ontario climate conditions
- Two finish levels: an exterior-finished shell for local trades to complete, or fully finished plug and play
- Unit pricing fixed at contract, with the exclusions listed in full; ask how delivery to the reserve is arranged, since GST/HST relief depends on it
- GST/HST, transportation and crane
- Site clearing and servicing, foundations, utility connections, and permit or approval fees
- Interior finishing on an exterior-finished shell. Site work is the property owner’s responsibility, handled by your own trades or your dealer’s crew
- First Nations, tribal councils and housing authorities with 10 or more units a year can be supplied directly by EpicMod, at EpicMod’s discretion
- Smaller orders go through the dealer for the area
- See Indigenous community housing
Indigenous Housing FAQ
Plan Your Community Housing
Send the number of homes, the community, the funding route and the delivery window. You get unit pricing, the exclusions in full, the drawing set and a schedule your funder, lender and inspector can work from.
Rules and amounts are drawn from each government body’s published material on the date shown. Programs and regulations change. Confirm with the administering body, your municipality and your own accountant or lawyer before making a decision. EpicMod does not provide tax, legal or planning advice.