Minister touts $6B pledge for new homes
Freeland says 2024 federal budget will include fund to advance infrastructure and ‘turbocharge’ construction
The federal government will spend an additional $6 billion to get more homes built faster, Finance Minister Chrystia Freeland said Tuesday in Kitchener.
“We are going to turbocharge the construction of new homes,” she said.
To achieve this, Freeland said the 2024 federal budget will include a $6-billion fund to advance infrastructure related to water, sewer, drainage and garbage disposal.
As well, the government will add $400 million to an existing fund of $4 billion that municipalities such as Kitchener, Waterloo and Cambridge have accessed to help fasttrack housing projects.
Freeland promoted new spending after touring new rental apartments on Eighth Avenue in central Kitchener that are being built in part with funding from governments.
Prime Minister Justin Trudeau announced the new funding in Halifax, N.S. It will be part of the federal budget Freeland will introduce April 16. Freeland was asked: why should young people believe that the Liberal government can fix the housing crisis, after it let average rents in this region escalate following its election in 2015?
The average apartment in this region rented for $947 when the government was first elected in October 2015. Last October, average rent reached $1,574. After adjusting for shelter inflation, it’s a rent increase of one-third in real dollars.
“I think you are right to point to the fact we have a real housing crisis, particularly for young people, and it is a crisis that people are feeling in this region, in this city,” Freeland said.
“That is why we’re making today’s announcement. That is why we are committing not only more money, but money with strings attached that is going to help cut red tape, help create conditions for homes to be built faster. We need to do it.
“And we are acting today and will act tomorrow with the extreme urgency, with the energy and with the commitment to be sure that those homes get built, because the people of Kitchener need it. The young people of Kitchener need it.”
The infrastructure fund will include $1 billion for municipalities and $5 billion for provincial and territorial governments.
Provinces that want federal money must require municipalities to permit four dwelling units (sometimes called fourplexes) on residential lots.
Provinces must adopt upcoming changes to building codes, and must implement measures from a national bill of rights for home
buyers and for renters.
Ontario Premier Doug Ford has said he does not intend to compel municipalities to allow four dwellings on residential lots, pointing to neighbours who might push back. Freeland was asked if she is prepared to deny infrastructure funding to Ontario if Ford won’t budge.
“We are going to be very clear ... that we need to use the additional federal money we are providing to encourage other authorities and governments to help us in this shared task of getting more homes built faster,” she said.
“A big part of that answer is cutting red tape. A big part of that answer is zoning. A big part of that answer is gentle density. And we need to cut the red tape to get there. So we do need to give people more as-ofright authority to build that gentle density. And yes, we’re committed to it.”
Kitchener Centre MP Mike Morrice welcomed new infrastructure spending. He will continue to press the government to build more homes directly through public housing.
“The federal government has to realize there is no way out of this housing crisis that doesn’t include getting back into building affordable housing again,” said Morrice, a Green party member.
Local mayors welcomed new funding and said their municipalities will seek a share of it. Housing starts in this region peaked in 2021 and have declined for two years in a row.
“This kind of funding will allow us to match together opportunities to deliver on the kind of housing that is needed in our community,” Kitchener Mayor Berry Vrbanovic said.
Kitchener plans to approve four dwelling units on each residential lot. Waterloo is considering such permission.
“This is absolutely a great announcement,” Waterloo Mayor Dorothy McCabe said.