Provinces Raise Concerns Over Federal Government’s Housing Program Terms Totaling $6 Billion
Several provinces are questioning a $6 billion housing infrastructure investment recently announced by Prime Minister Justin Trudeau for the upcoming budget.
Mr. Trudeau unveiled the funds on April 2, but they come with conditions, such as requiring more duplexes, triplexes, and similar style homes. Provinces must also adopt the recently introduced renters’ bill of rights to be eligible for the funds. Additionally, a three-year freeze on development charges and the adoption of the National Building Code of Canada are prerequisites for receiving the funds.
Provinces have until January 2025 to apply for the funding, while territories have until April 1, 2025, before the federal government collaborates directly with municipalities.
He expressed confidence that the government could find willing “partners” who will comply with the stipulated conditions.
Alberta’s Premier Danielle Smith’s government has expressed serious reservations about the funding announcement, stating that it infringes on provincial jurisdiction.
“This announcement will increase the difficulty and cost of constructing homes and significantly restrict the types of homes that can be built,” said a joint statement from Seniors, Community, and Social Services Minister Jason Nixon and Municipal Affairs Minister Ric McIver. They added, “It is part of the Government of Canada’s punitive green agenda by aiming to eliminate natural gas by 2030 and federalize housing.”
Quebec, Ontario, Saskatchewan, and New Brunswick have also voiced similar concerns.
Ontario Premier Doug Ford believes that municipalities should have the authority to decide on the type of housing developed in their communities.
New Brunswick Premier Blaine Higgs expressed concerns about the conditions tied to the funding, describing it as a “take-it-or-leave-it” approach.
Infrastructure Fund
Mr. Trudeau mentioned that the infrastructure fund will expedite the construction and improvement of housing, including water, wastewater, stormwater, and solid waste infrastructure.
$5 billion will be allocated to provinces and territories, with the condition that they adhere to the specified requirements.
“If a province or territory fails to reach an agreement by the deadline, their funding will be transferred to the municipal stream,” the PMO release explained.
Chris Tomlinson contributed to this report.