Canada Launches $6 Billion Housing Fund

In a bid to address the pressing issue of housing affordability and bolster construction efforts across the country, the Canadian federal government has unveiled a groundbreaking $6 billion “Canada Housing Infrastructure Fund.” Prime Minister Justin Trudeau made the announcement on Tuesday, flanked by Housing Minister Sean Fraser, against the backdrop of protesters voicing their concerns.

The remaining $5 billion will be reserved for forthcoming agreements with provinces and territories.

The newly introduced fund is earmarked to expedite the construction process and upgrade vital components essential for fostering increased home development, including waste and water infrastructure. Out of the total allocation, $1 billion will be designated for addressing urgent infrastructure needs, such as enhancing wastewater, stormwater, and solid waste systems. The remaining $5 billion will be reserved for forthcoming agreements with provinces and territories.

To access the funding, provinces and territories will be required to commit to a series of initiatives aimed at augmenting Canada’s housing supply. Municipalities will need to accommodate more “missing middle” homes, such as duplexes, triplexes, and townhouses, while implementing a freeze on development charges for three years in larger municipalities.

Nearly 180 agreements have been inked across Canada under this fund, facilitating the expedited construction of over 750,000 new homes.

Additionally, they must adopt forthcoming changes to the National Building Code to support accessible, affordable, and eco-friendly housing options. Furthermore, municipalities are urged to permit “as-of-right” construction based on the federal housing design catalogue.

Provinces have until January 1, 2025, and territories until April 1, 2025, to secure agreements with the federal government. Failure to meet these deadlines will result in the reallocation of funding to the municipal stream.

Apart from the newly established fund, Trudeau pledged to inject an additional $400 million into the existing $4 billion “Housing Accelerator Fund.” This top-up is aimed at enabling more municipalities to participate in initiatives designed to streamline construction processes and reduce bureaucratic hurdles.

Nearly 180 agreements have been inked across Canada under this fund, facilitating the expedited construction of over 750,000 new homes. The injection of additional funding is expected to further accelerate the construction of 12,000 new homes over the next three years.

Furthermore, municipalities have been alerted that accessing long-term public transit funding through a forthcoming fund will necessitate actions directly contributing to housing supply unlocking. This includes abolishing mandatory minimum parking requirements near high-frequency transit lines and allowing high-density housing in the vicinity. Similarly, municipalities are encouraged to permit high-density housing near post-secondary schools and conduct housing needs assessments for communities with populations exceeding 30,000.

Housing affordability has emerged as a central focus for the minority Liberal government, particularly in light of the ongoing housing crisis and mounting political pressure to address the issue. As preparations for the April 16 federal budget intensify, Trudeau and his administration remain committed to fostering fairness and equity, with housing initiatives poised to feature prominently in their agenda.