Big city mayors want $12.6B for housing

Liberals face push to fund affordable units

The mayors of Canada’s largest cities are making a billion-dollar push for federal housing money just as the Liberals are set to finalize a national strategy, and the minister responsible is trying to manage expectations.

The mayors want the federal Liberals to set aside $12.6 billion during the next decade to help build new affordable housing units and alleviate a growing need in such places as Toronto and Vancouver.

The lion’s share, about $7.7 billion, would go to repairing and maintaining existing units nationwide. A further $4.2 billion would go to building up to 10,000 new affordable housing units annually across the country. There is also approximately $700 million for a portable rental subsidy that wouldn’t be tied to a unit, but to a recipient.

It’s a major ask of the federal government as it works to finalize the second phase of its infrastructure program and allocate $17.7 billion for affordable housing, seniors’ homes, recreational facilities and child care — with each sector competing for cash.

“The highest need for most of us would be housing, and it’s not to say there aren’t pressing needs for seniors’ infrastructure, for culture and recreation infrastructure, and for childcare space infrastructure, but without adequate, safe and decent dignified housing for families, those other services are less relevant,” said Edmonton Mayor Don Iveson, chairman of the Federation of Canadian Municipalities’ big city mayors’ caucus.

The federal government is set to unveil its housing strategy in late November.

The federal minister in charge of crafting that strategy said Friday that the government plans to invest heavily to ease the housing crunch, but warned it may not be as much as everyone hopes.

Social Development Minister Jean-Yves Duclos said the government is looking to make the most efficient use of available funds, because no government can ever spend what stakeholders would like to see spent on affordable housing.

“I think we can make a real and tangible difference in the lives of Canadian families,” he said while unveiling details of a $208.3-million fund to help build 4,000 units nationwide over five years. Developers and groups can apply for cash through the program, which will test business models that may be too risky for some organizations to take on.

Duclos said details should be out by the end of the year about a promised five-year program that would make low-cost capital available to developers during the earliest, and riskiest, stages of development.