Mayor hopes to capitalize on housing funds

Mayor Matthew Shoemaker says he hopes Sault Ste. Marie can capitalize on additional funds pegged in the federal budget for the housing accelerator fund.

The fund is part of Canada's national housing strategy designed to remove barriers to encourage local efforts to build more homes and build them faster. It's designed to increase Canada's housing supply and support the development of communities.

After all, Shoemaker says, Sault Ste. Marie has opened the door and created the playing field that doesn't only allow new four-plexes to be created in the city, but instead has passed a bylaw that encourages as many units as possible on a property, providing that it meets the back, front and side yard setbacks.

“I think our municipality's bylaws

are more ambitions that many others, including higher levels of government, and we will be watching and applying for these funds when they become available,” he said following the release of the federal budget late Tuesday. “I certainly believe our application warrants funding.”

It was the housing file that tweaked Shoemaker's interest in Tuesday's federal budget.

Finance Minister Chrystia Freeland released the federal budget, totalling $480.5 billion.

As expected, billions of dollars will be spent on programs designed to ease Canada's housing crisis – both to improve the supply of housing units available and to help make them more affordable for all.

Senior ministers have been crossing the country for several weeks, releasing key housing measures designed to get – or keep – Canadian's support and show Canadians that the Trudeau Liberal government is still working for Canadians.

The $23-billion addition for housing will see $8 billion in spending and $15 billion more used to help create more homes.

The government's plan is to create 3.9 million homes across Canada by 2031.

To help do that, it is also making more public land available for construction and helping potential buyers by allowing mortgage amortizations for 30 years.

Shoemaker said unlocking federal lands for housing also has the potential to create more units in the Sault and muses at what could happen with the existing federal building at 22 Bay St. (at Gore).

“It's a chunk of land with ample parking,” he said.

Another fund to enable the development of underutilized lands may be a third option the city will examine, he said.

The north end of Peoples Road needs infrastructure upgrades and, if funding is provided, that may also better assist with more housing starts, Shoemaker said.

“If (the federal government) wants houses built, then ambitious municipalities like ours who have overshot their targets and created the bylaws to ensure we are setting up for growth should be rewarded,” he said.

Sault Ste. Marie Chamber of Commerce CEO Rory Ring isn't so sure the government's housing plan will produce the number of housing units it is striving for, nor keep them affordable for those who need it most.

“We have seen our interest rates increase over the past year, our cost of living has increased and there are labour shortages in the construction industry. The expectation to produce two times more houses over 10 years is a stretch,” Ring said.

Ring said he had hoped to see more focus on helping small business.

While the budget calls for a new carbon rebate for businesses – valued at $2.5 billion and expected to help 600,000 businesses – Ring said the government hasn't distributed the first fund of $2.1 billion of carbon tax collected.

“I think they should be distributing the first round before they talk about a second round,” he said.

While Sault Ste. Marie has been able to avoid an economic storm with massive industrial projects underway, small businesses are still struggling to payback CEBA loans, facing higher operating costs and, later this fall, shouldering Ontario's increased minimum wage.

“What we needed to see is some fiscal prudence and how we're going to reduce the deficit,” Ring said. “It's certainly not coming from a wealth tax.”

The budget calls for higher capital gains tax on wage earners over $250,000 and large companies, but that money will be used on the new $52.9 billion of new spending over the next five years, Freeland said.

Ring said the federal government's plan is not sending the right message to investors.

“It sends the signal to the global economy that if you come to Canada to increase your wealth, (the government) will redirect your wealth for you. That's not a positive signal,” Ring said.

Data show there has been a decrease in entrepreneurs by slightly more than five per cent, and that doesn't help job growth or the economy.

“That's not a positive signal and not targeted to create prosperity,” he said.

The Ontario Chamber of Commerce called it “two big steps forward, one step back.”

“We welcome historic commitments in housing and artificial intelligence, as well as the government's support for advancing economic reconciliation and interprovincial trade,” said Daniel Tisch, President and CEO of the Ontario Chamber of Commerce. “At the same time, Canada should take measures that make it easier — not harder — to attract private sector investments and drive productivity growth. By making big-ticket investments while raising capital gains taxes, the budget takes two big steps forward, but also one step back.”

Building more resilient supply chains, bolstering Canada's life sciences ecosystem, co-ordinating broadband investments with the private sector and implementing broader Employment Insurance reform to reflect the needs of today's workforce, need more action, the chamber notes.

For communities, the federal government is also launching an emergency substance use and addiction crisis fund.

The $150-million fund is geared to help municipalities rapidly respond to the opioid crisis.

Shoemaker is hoping the funding can help community programs, such as the downtown ambassador program, or help municipalities reduce spending to aid in the crisis.

For families, previously introduced measures include the national school meal program, the youth mental health fund and a national pharmacare program which will roll out with free birth control and diabetes medicine.

A $6.1-billion, six-year, disability benefit will now tie eligibility to a family income but could only provide $200 per month for those eligible, and it won't come in effect until next July.

Post-secondary students will also continue to receive some benefit from the federal government.

The budget calls for increasing student grants and loans, continuing interest free loans and making it easier for adults to return to school for training or retraining.