Federal government launches new housing strategy

Housing Minister Sean Fraser has announced what he’s calling an ambitious strategy to tackle Canada’s housing crisis.

Fraser said Friday the strategy — Canada’s Housing Plan — will build more homes, make renting or buying a home easier and do more to support those who can’t afford a place to live.

This is the Trudeau government’s second national housing strategy. In 2017, it launched a 10-year housing plan (new window) aimed at building 100,000 affordable housing units and repairing 300,000 affordable housing units.

Fraser said the new measures will supplement the 2017 plan.

Highlights of the new strategy include plans for the federal government to lease and build on underused public lands to make housing more available and affordable.

• Federal government to launch $1.5B fund to protect affordable rentals (new window)

• Federal government to launch $1.5B fund to protect affordable rentals (new window)

The strategy also promises a new mapping tool to track the inventory of public lands.

Where the public interest demands maintaining ownership of public land, the federal government will maintain ownership but make land available through long-term leases to ensure that land can be used for housing, Fraser said.

The strategy includes a new Canada Secondary Suite Loan Program to give homeowners access to low-interest loans of up to $40,000 to allow them to add secondary suites to their homes.

To prevent speculation and ensure that houses are being used as residences for Canadians, the government will be extending its ban on ownership of residential properties by foreign investors until Jan. 1, 2027.

It’s also extending the GST exemption on rentals to student residences built by public universities, colleges and school authorities.

The measure will apply to new student residences that started construction on or after Sept. 14, 2023, and before 2031, so long as they are built before 2036.

Much of the plan has been released already

Several initiatives listed in Canada’s Housing Plan are projects the government has already announced, such as the elimination of income tax deductions for short-term rentals that contravene provincial or municipal regulations.

On April 4, Prime Minister Justin Trudeau previewed some of the housing commitments in Budget 2024, saying $1.5 billion would go toward helping non-profit organizations acquire rental units and keep them affordable. That funding is part of the Co-operative Housing Development Program that will start this summer.

Another $15 billion will be allocated for the Apartment Construction Loan Program, bringing available funding to $55 billion. The program is meant to build 30,000 new rental apartments in big cities, towns and rural communities.

New Democrat critic for housing Alexandre Boulerice expressed frustration with the announcement, saying Trudeau disappointed Canadians by delaying measures to keep housing affordable during his eight years as government.

They’re facing sky-high grocery prices and rent. They’re seeing rich CEOs get richer off their backs while they scrimp and save, Boulerice said in a news release Friday. People can’t seem to get ahead.

CBC News

This article is republished from RCI.