Federal government pledges $6B for housing in new infrastructure fund
The federal government is pledging billions of dollars in new money to tackle Canada's housing crisis, but much of it will be ac‐ cessible only to provinces and territories that agree to certain conditions, Prime Minister Justin Trudeau announced Tues‐ day.
Speaking in Dartmouth, N.S., Trudeau announced the federal government is creat‐ ing a new $6-billion Canada Housing Infrastructure Fund.
"We're taking the chal‐ lenge of building more homes, faster, in this country head-on … This is how we'll address the shortage of housing options for Canadi‐ ans," he said. "This is how we will make it fairer for younger generations who feel like they are falling behind be‐ cause housing costs are too high."
The money will be dedi‐ cated to the construction and upgrading of water, waste‐ water, stormwater and solid waste infrastructure, some‐ thing cities have said is criti‐ cal to building more housing.
Of the $6 billion in the fund, $1 billion will go di‐ rectly to municipalities for "urgent infrastructure needs," the Prime Minister's Office said in a news release.
Commitments for 'miss‐ ing middle' homes re‐ quired
The other $5 billion will be set aside for provinces and territories - but they can only access the money if they make certain commitments.
Those include allowing more "missing middle" homes, including duplexes, triplexes, townhouses and multi-unit buildings, and im‐ posing a three-year freeze on development charges for cities with more than 300,000 people.
WATCH | New federal housing infrastructure fund is conditional, says minister:
The money won't flow all at once, Housing Minister Sean Fraser said later in a media briefing.
"The first $1 billion will be for shovel-ready projects that are ready to go and that money will flow immedi‐ ately," he said. "When it comes to the additional $5 billion, that is going to be spread out over a longer pe‐ riod of time and the exact flow of money will be subject to negotiations with our provincial and territorial part‐ ners."
The government has not yet responded to a request from CBC News for a break‐ down of how much money it is budgeting for each year and how much it is allocating to each province.
The federal government said the provinces will have until Jan. 1 to secure agree‐ ments. Territories will have until April 1.
If agreements aren't reached, the money will flow directly to cities.
Fraser defended the deci‐ sion to attach strings to the federal money.
"When we put federal money on the table, provinci‐ al governments are going to have a choice," he said. "Do you want support to expand infrastructure and make the decisions that will make it easier to build homes? Or do you want to go it alone and adopt measures that restrict housing supply, knowing that a consequence will be a lack of federal infrastructure funding?"
Negotiations could prove more difficult with some provinces than with others.
One of the conditions at‐ tached to the money would allow fourplexes to be built "as of right." Ontario Premier Doug Ford has rejected the idea of allowing fourplexes to be built automatically across the province.
"I'm not sure what Pre‐ mier Ford's next move may be, but we wanted to incen‐ tivize the kinds of changes that are needed to actually solve the national housing crisis," said Fraser.
Quebec could also present its own distinct chal‐ lenges. The province has long maintained that municipali‐ ties fall under provincial juris‐ diction and that any money destined for cities and towns has to flow through the Que‐ bec government.
Quebec has often pushed back on strings attached to federal funding.
Fraser said he has had good experiences negotiating with Quebec and is optimistic a deal can be reached.
"I'm very much looking forward to the discussions that we will have with the provincial government as we mutually work toward secur‐ ing investments in Quebec that will build infrastructure that make it easier to build homes," he said.
British Columbia Premier David Eby welcomed the prospect of money for hous‐ ing infrastructure and called on the federal government to hold firm to the conditions it set for provinces to receive funding.
"Here in British Columbia we are taking the steps to build the housing that people need and deserve. The feder‐ al government says that it is going to tie that infrastruc‐ ture funding to it," he said.
"We're building the homes and therefore we should get the funding. If provinces don't step up, if they don't do this, the money should come to the provinces who are doing the work."
The federal government is also topping up its housing accelerator fund with an ad‐ ditional $400 million over three years, which it says will help build another 12,000 homes, Trudeau announced Tuesday.
Conservative housing critic Scott Aitchison dismis‐ sed the federal announce‐ ment as "a $4 billion dollar photo op fund."
"This is the same fund that [Trudeau's] own housing minister admits hasn't built a single home," he said in a media statement. "After eight years of Trudeau, rents and mortgages have doubled, middle class Canadians are forced to live in tent encamp‐ ments in nearly every city across the country, and his inflationary taxes and spend‐ ing have driven up interest rates, causing more hurt for Canadians."
The housing announce‐ ment is the latest in a series
of announcements from the federal government as Trudeau and his ministers fan out across the country ahead of the April 16 federal budget.
On Monday, Trudeau an‐ nounced $1 billion for a na‐ tional school food program. Last week, he announced new measures for renters, in‐ cluding a renters' bill of rights.
Fraser said Tuesday's an‐ nouncement is part of a larger suite of housing policy announcements that the gov‐ ernment plans to reveal in the coming days.
The announcements are expected to continue until Fi‐ nance Minister Chrystia Free‐ land tables the budget on April 16.
What issues would you want to see addressed in the next federal budget? Let us know in an email to ask@cbc.ca.