Majority of new housing funds will have to wait

OTTAWA— The federal government’s budget pledges more than $11 billion for affordable housing, but backloads almost all the spending until after the next election.

Just $20 million of the new money is slated for this year.

Investments in housing were touted as a signature item for the Trudeau government’s second budget, with the expected unveiling of a National Housing Strategy this year.

Mayors from cities across Canada, including Toronto’s John Tory, have pressed Ottawa for $12.6 billion for social housing over eight years.

The new budget falls short of that demand by offering $11.2 billion over 11 years. This money is billed as part of the second phase of the Liberal government’s “social infrastructure” spending. Last year’s budget pledged $2.3 billion for affordable housing construction and repair, with $500 million of that pegged for the 2017-18 fiscal year.

This year’s budget boasts that nearly 50,000 social housing units have been repaired with the first phase of the money.

“Our government has shown . . . national leadership on housing,” said Finance Minister Bill Morneau, according to prepared remarks on the 2017 budget.

He said the $11.2-billion housing spending is the “largest single commitment” in the budget, meant to “help ensure every Canadian has a safe and affordable place to call home.”

In Toronto, where thousands of people are on a waiting list for social housing, officials from Toronto Community Housing have warned that hundreds of units could close in the coming months without urgently needed funds for repairs.

Of the $11.2 billion in housing money detailed in Budget 2017, about $3 billion is slated for spending within five years.

The government also plans to push more money into its strategy to tackle homelessness, with $2.1 billion over 11 years. The new money doesn’t kick in until next year, with $54 million slated for spending in 2018-19.