Trudeau Announces $1.5 Billion Rental Protection Fund

Trudeau Reveals $1.5 Billion Fund for Rental Protection

April 4, 2024 TruthUSA

Prime Minister Justin Trudeau has announced his government will introduce a $1.5 billion rental fund to assist non-profit organizations in purchasing rental units to maintain affordable prices for renters.

The Canada Rental Protection Fund will be included in the upcoming federal budget, scheduled to be presented on April 16.

During a press conference in Winnipeg on April 4, Mr. Trudeau stated, “People are being priced out of their communities, and that’s not okay. So we have to help nonprofits and community partners acquire units and preserve rents at a stable level.”

The fund comprises a $1 billion loan portion and $470 million for non-profit contributions. The prime minister explained that the loans for non-profits will be utilized to acquire, renovate, and maintain residential buildings, preventing them from falling into the hands of speculators or profiteers.

Mr. Trudeau referenced the B.C. Rental Protection Fund, which saw the provincial government invest $500 million to support community housing, as a successful example of the proposed initiative.

“They acknowledge that for every new affordable rental home built in their province, many more are lost to investors through conversions, demolitions, and rent hikes,” Mr. Trudeau remarked. “And this is happening in communities nationwide.”

Housing Affordability

Housing and rental affordability have been significant political issues in the past year, with the federal government introducing several initiatives to address the matter. The April 4 announcement is the most recent in a series of housing affordability initiatives the Liberals have announced ahead of the April 16 budget.

On March 27, Mr. Trudeau announced the introduction of a new “bill of rights” for renters by his government, which includes a national standard lease agreement and a requirement for landlords to disclose an apartment’s pricing history to tenants.

On April 3, the prime minister also declared that his government would allocate an additional $15 billion in the upcoming budget for the Apartment Construction Loan Program, aiming to construct a minimum of 30,000 new apartments within the next decade. This program, launched in 2017, has already contributed to the creation of over 48,000 homes.

According to a report from Rentals.ca, the average rent in Canada stood at $2,193 per month for all property types in February 2024, reflecting a 10.5 percent year-over-year increase. A report from the Canada Mortgage and Housing Corporation in 2023 predicted that Canada would need to construct 3.5 million new homes within seven years to restore affordability to homeownership.

With files from The Canadian Press.

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