Frequently Asked Questions
Less need for rent supplements because more dedicated housing units become available sooner.
Lower emergency shelter costs because fewer people need shelter for as long.
Lower redevelopment and relocation costs in community and non-profit housing, with fewer tenant disruptions and shorter periods of support during moves.
Shorter wait lists because people are housed sooner.
Better results in other District programs because people are more stable once they have housing.
Customer (the District or other municipal non-market housing provider) identifies site, funding, obtains planning approvals and collaborates with the factory on building design.
Customer procures contractor to construct the foundation at site and places order with factory.
Wall, roof, and floor panels are constructed at the factory, packed, and shipped to site. Factory crews assemble the building on the foundation.
The building is turned over to the customer in closed-in condition. The insulation, plumbing, electrical, and mechanical work as well as interior and exterior finishes are completed by the customer’s procured contractor.
Phase 1: Designs are received and become manufacturing-ready using advanced automated framing software
Phase 2: Walls, floors, roof components, stairs and other assemblies are constructed in the factory by robots and automation
Phase 3: Prefabricated components are delivered to the site and assembled on time and quickly and then inspected
Construction costs: Robotic production dramatically reduces time to construct, minimizes waste, and generates margin for cost-recovery
Soft costs: Replicable designs, collaborative approvals, and pre-approved drawings could reduce design expenses
Profit: The municipally owned MSC would operate as a non-profit, and therefore housing produced through the factory would not be subject to the profit margin markup charged by the private sector
Land costs: Units could be built on surplus lands owned by customer municipalities
Development charges: As non-profits developing non-market/affordable housing products, development charges could be discounted/waived
Site servicing: Through external funding and leveraging municipal borrowing capacity, site service costs can be financed at below private-market rates
Faster time to occupancy: Rent would be generated faster than through traditional building techniques and costs for temporary housing or shelters reduced
What does the need for housing look like in Muskoka?
The District faces an urgent need for affordable housing with increases in housing prices that have far outpaced incomes, low vacancy rates, lengthy community housing waitlists, and a homelessness emergency.
The need for housing is not just a local issue. It is a national crisis. Ontario alone must build 1.5 million new homes by 2031 to meet projected demand.
In Muskoka, as in many other areas of the country, the situation is acute. Despite strong collaboration among community and development partners, traditional approaches are not generating the needed housing supply.
What is non-market housing?
Non-market housing refers to housing delivered outside the private market. It is typically government, non-profit, or cooperative-owned and/or operated. Rent is set to meet community need rather than maximize profit and is typically at least 20% below average market rents.
What is the District of Muskoka proposing?
The District is proposing to create a municipally-owned housing production factory that uses robotic construction to rapidly deliver non-market housing.
Built on an all-Canadian supply chain, the initiative is proposing to establish a Municipal Services Corporation (MSC) dedicated to housing production which would own and operate the robotic factory.
What is a Municipal Services Corporation (MSC)?
A Municipal Services Corporation (MSC) is created by a municipality to manage specific services or assets.
For the proposed housing production factory, the MSC will have highly skilled and professional staff and a skills-based Board of Directors and will allow the factory to operate more independently, with the flexibility to make business decisions more quickly, similar to how private companies operate.
What can you tell me about the proposed MSC and factory?
The District is proposing to create an MSC to own and operate a robotic housing production factory in Muskoka to build high-quality, affordable housing for public providers.
The robotic factory will reduce the impact of labour shortages on housing production, save costs, reduce waste, and increase the speed of high-quality multi-residential rental housing.
The system can produce single and multi-storey buildings. Housing components produced within the factory environment include walls (complete with windows and doors), floors, roof, and stairs. These components are then shipped on transport trucks and are assembled on site.
What does the District know about setting up a factory?
The District is proposing to partner with a reputable Canadian artificial intelligence (AI)-driven, factory-based housing production company. The District will leverage this company and its robotic systems to design, set up and help operate the facility in its early stages.
This full-service operational model will ensure the success of the new factory in producing high-quality, energy-efficient multi-residential rental housing with greater speed and precision and reduced waste and cost. This model also makes it possible to operate a highly sophisticated manufacturing facility without needing to invent every component of the process.
With the establishment of the MSC, a skills-based Board of Directors will be recruited to govern the professional manufacturing team that will manage factory operations.
How would the partner work with the District?
Through a Factory As A Service (FaaS) arrangement, partner would provide the technology, expertise, and design for the factory, as well as supporting the operations as the factory begins production.
Are other municipalities proposing this approach to tackle the affordable housing issue?
Municipalities do not typically own or operate housing production factories, however in the face of a national housing crisis, bold new approaches are urgently needed.
The District sees a clear opportunity to think differently and act boldly to make meaningful progress toward addressing the housing crisis. The time to act is now.
The District is interested in partnering with other municipalities. With municipalities as customers, this will increase demand for the factory and allow the District to recover its investment more quickly.
Why is it important for the District to build housing faster?
The factory’s ability to speed up construction is valuable for the District and other municipalities because it means people are housed faster.
When the District houses people faster, certain costs are avoided, such as:
Other benefits include:
What are the benefits of the District leading this initiative and owning the factory versus simply buying from another factory?
The factory is envisioned to function on a cost-recovery model. This means all the costs saved through automation will be passed down to the District, or other non-market housing providers, to develop much needed non-market and affordable housing.
This approach also helps accelerate solutions towards addressing the housing crisis in Muskoka, while reducing the impact of labour shortages.
Canada has under-invested in community housing for years. A lot of community housing is needed now and quickly. This is a way to build not just for Muskoka, but for the sector, and a way to build faster, cheaper, and better.
Muskoka is also uniquely positioned to host this innovation. Situated on the edge of northern Ontario, the factory is positioned to utilize local mills for Canadian lumber
and tap into northern markets. At the same time, because of location, a Muskoka factory can supply components throughout central and southern Ontario within a reasonable trucking distance. A 100% Canadian supply chain will maximize domestic economic impact.
Ownership will reside with the District, although there is potential for other municipalities or government agencies to be added as additional shareholders.
Who are the factory’s customers?
The mandate of the factory will be to produce non-market, affordable housing units for public housing providers. In addition to the District, customers can include municipalities and municipal services managers.
How will this all work?
Who is responsible for what in the building process?
A contractor, hired by the customer, will be responsible for preparing the site for assembly, including clearing the land and building the foundation.
The factory and its staff will build major parts of the homes indoors (walls, floors, roofs, and stairs), will ship these parts by truck and assemble these pieces on site.
Once the framing is in place, the contractor will complete the build, including connecting services and completing the final finishes.
What is the overall building process in the factory?
The building process will be streamlined by leveraging the factory and its technology.
Here is a high-level overview of the design, production and installation phase the factory is responsible for:
What type of model will the factory be built on?
The factory will be built on a non-for-profit, cost-recovery model, which means fees charged to the customer are set to cover the costs of production and assembly. This will help to ensure long-term affordability since its goal will be to produce affordable housing rather than profit from production.
If the District assumes all of the cost to set up the factory, the District will look to recoup its capital investment over a reasonable period of time, with a cost recovery charge on production and assembly.
What savings potentially exist under this factory model?
This factory model delivered through a municipal services corporation has the potential to eliminate a substantial portion of costs for the District and other municipalities acting as a developer for non-market affordable housing. Savings can include:
Additional savings for the District and other municipalities that extend beyond the factory model can include:
How many jobs will this factory create and how will you fill these jobs through a labour shortage?
The facility is expected to create 20 to 30 new local jobs in factory operations, sales and on-site assembly and will be led by a professional management team.
With robots handling much of the heavy lifting, many jobs will focus on operating equipment, quality checks, and assembly work indoors. This creates a safer workplace. These features also make the jobs attractive and open to a broader range of applicants.
Building more homes each year can also help local employers, because workers have a better chance of finding housing closer to where they work.
Will this non-market housing initiative take work away from the private sector?
Private developers and local contractors can benefit from this non-market housing initiative. By increasing housing production, more site preparation and building finishing work will be available.
This initiative also improves access to affordable housing for their own workforce, supporting recruitment and retention across the trades.
This initiative will focus solely on modest, non-market (affordable) housing production for the District and other municipalities.
Is this factory not just another modular manufacturer?
The use of modular housing can help accelerate construction and reduce costs. This modernized factory will also incorporate industrial robotic systems powered by AI software that manages the entire housing production lifecycle from robotic sequence planning to factory floor operations, scheduling, and logistics, offering guaranteed precision and quality, and increased opportunities for continuous improvement.
Will the use of artificial intelligence (AI) reduce jobs?
Not all work can be completed by robots in the factory. Upscaled positions are needed to work alongside the technology. The use of AI promotes flexibility, sustainability and growth, allows work to continue year-round compared to traditional, seasonal on-site construction and lowers the intensity of work which supports a diversified pool of workers.
Who will non-market housing benefit?
When there are not enough rentals, more people compete for the same units. This can drive rents up and make it harder to find a home.
Adding non-market housing creates more lower-cost options for people who are priced out of the market. This can reduce pressure on the rental system and help prevent overcrowding, long waitlists, and homelessness.
An additional supply of housing units in the District benefits everyone, at all segments of the housing spectrum.
How can I apply for a unit in these buildings?
The District encourages community members who are interested in living in affordable housing locations to apply for the affordable or market rent waiting lists maintained by the District.
It is anticipated that all rental units will be offered from the District’s maintained waiting lists.
Where will the factory be located?
The factory is anticipated to be established in Muskoka, in close proximity to transportation corridors. Evaluation of the preferred site is underway. Once District Council approval is received, more details will be shared.
Where can I learn more about this initiative and share my feedback?
Please visit www.engagemuskoka.ca/housing-faster to learn more, sign up for project updates and share your thoughts by completing our survey.