Social Policy in Ontario

Justin Trudeau offers provinces billions of dollars for housing — but with strings attached

Posted on April 2, 2024 in Governance Policy Context

Source: TheStar.com — Authors: Tonda MacCharles

TheStar.com – Federal Politics
April 2, 2024.   By Tonda MacCharles, Ottawa Bureau Chief

The federal Liberals will provide $6 billion in new funding for critical water, waste and storm sewer systems and other supports for new housing construction, as long as provinces meet federal requirements for ramping up housing densification, the government says.

OTTAWA — The federal Liberals will provide $6 billion in new funding for critical water, waste and storm sewer systems and other supports for new housing construction, as long as provinces meet federal requirements for ramping up housing densification, the government says.

Prime Minister Justin Trudeau travelled to Halifax on Tuesday to announce what were billed as new measures in the upcoming federal budget that would “cut red tape, build more homes and help communities grow.”

However, most of the new funding — $5 billion — will be tied to provinces promising to meet certain conditions, among them to allow multiplex townhouses and multi-unit apartments. That has been a non-starter in Ontario, according to Premier Doug Ford, who recently said his government would not override municipal prohibitions on fourplexes.

“It’s off the table for us,” Ford said last month. “We’re going to build homes, single-dwelling homes, townhomes, that’s what we’re focused on.”

Other conditions that the Trudeau government will demand in federal-provincial agreements to be struck by next year include promises to freeze municipal development fees where local populations are greater than 300,000. Provinces will also be required to implement proposed federal guidelines on protections for homebuyers and renters (which in the latter case were just announced last week). For example, Ottawa’s has proposed a so-called “bill of rights” that would ban blind bidding in housing purchases or would require transparency on rental pricing histories.

There are other conditions for premiers to access the new funding, among them a requirement that provinces to adopt “forthcoming changes to the National Building Code to support more accessible, affordable, and climate-friendly housing options.”

The remaining $1 billion of the $6-billion infusion for housing infrastructure is to be directed to municipalities to address “urgent” infrastructure needs that directly create new housing, according to a federal government news release.

In addition, the Trudeau government says it will top up an existing $4.4-billion housing accelerator fund — which has been nearly spent or committed — by another $400 million. That money is available to municipalities who agree to fast-track zoning and new home construction.

A week ago, the 13 provincial and territorial leaders wrote Trudeau to demand more money and a co-ordinated approach to infrastructure funding.

Their letter insisted that provinces and territories, not Ottawa, are best placed to understand their “unique regional, municipal and local infrastructure needs.”

A news release that accompanied Tuesday’s announcement said, “No single player can fill Canada’s housing shortage on its own. More must be done and all of Team Canada — the federal government, provinces and territories, Indigenous partners, cities and towns, the private sector, labour, and non-profits — must work together to ensure everyone has an affordable place to call home.”

Halifax Mayor Mike Savage, a former Liberal MP, welcomed the announcement alongside Trudeau on Tuesday, and thanked Trudeau for his “continued support of local government.”

Tonda MacCharles is Ottawa Bureau Chief and a senior reporter covering federal politics. 

https://www.thestar.com/politics/federal/justin-trudeau-offers-provinces-billions-of-dollars-for-housing-but-with-strings-attached/article_fa73ddac-f102-11ee-a002-4f1eb0290c5e.html?source=newsletter&utm_source=ts_nl&utm_medium=email&utm_email=0C810E7AE4E7C3CEB3816076F6F9881B&utm_campaign=bn_211525

Tags: budget, economy, featured, housing, jurisdiction

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