Justin Trudeau makes a housing announcement to address the current housing crisis in Canada

Federal Government Unveils Multi-Billion Dollar Plan to Accelerate Home Construction

April 2, 2024 Alwin Marshall-Squire

In a bid to tackle the pressing housing crisis gripping the nation, the Canadian government has announced a sweeping set of measures aimed at increasing the supply of affordable homes and accelerating construction across the country. Prime Minister Justin Trudeau, alongside Deputy Prime Minister and Minister of Finance Chrystia Freeland, revealed the ambitious plan during a press conference earlier today.

At the heart of the initiative is a substantial injection of funds into existing programs and the establishment of new initiatives designed to expedite the creation of much-needed housing units. The Housing Accelerator Fund, initially launched last year with a budget of $4 billion, will receive an additional $400 million, bringing its total to $4.4 billion. This fund is earmarked to reduce bureaucratic hurdles and fast-track the construction of homes, with a target of building 750,000 new residences over the next decade. The infusion of extra funding is expected to facilitate the construction of an additional 12,000 homes within the next three years alone.

In parallel, the government introduced the Canada Housing Infrastructure Fund, a groundbreaking $6 billion initiative aimed at bolstering critical housing infrastructure. This fund will focus on upgrading water, wastewater, stormwater, and solid waste infrastructure to support the construction of more homes. Of the total budget, $1 billion will be allocated to municipalities to address urgent infrastructure needs, while the remaining $5 billion will be reserved for long-term priorities.

Provinces and territories seeking access to the $5 billion funding from the Canada Housing Infrastructure Fund must commit to implementing specific measures to increase housing supply. These include adopting zoning reforms, implementing a freeze on development charges, incorporating changes to the National Building Code, and enacting provisions from the Home Buyers’ Bill of Rights and Renters’ Bill of Rights.

Furthermore, municipalities seeking federal funding for public transit projects will be required to take actions directly unlocking housing supply. These actions encompass eliminating mandatory minimum parking requirements near transit lines and permitting high-density housing in proximity to transit hubs and post-secondary institutions. Municipalities with populations exceeding 30,000 will also be mandated to conduct a comprehensive Housing Needs Assessment.

In emphasizing the collaborative nature of the initiative, Prime Minister Trudeau underscored the need for concerted efforts among federal, provincial, and municipal governments, alongside Indigenous partners, private sector entities, labor groups, and non-profit organizations. He reiterated the government’s commitment to ensuring equitable access to affordable housing for all Canadians.

The announcement comes amid mounting concerns over the soaring cost of housing, particularly impacting younger generations, and underscores the government’s resolve to address the issue head-on. As the nation grapples with the housing crisis, the federal government’s multi-billion dollar plan represents a significant step towards realizing the vision of accessible, affordable housing for all Canadians.