Municipalities all over Canada are eagerly waiting to hear whether they will receive a portion of the federal government’s $4-billion Housing Accelerator Fund (HAF). However, as they wait, there is a growing demand for a “wartime” effort to construct more homes, along with concerns about the adequacy of the fund’s budget.
Halifax Mayor Michael Savage comments on how $4 billion, which may have seemed like a substantial amount five years ago, now appears to be far less when considering the substantial amounts of money committed by both federal and provincial governments. Nevertheless, he recognizes that $4 billion is not insignificant.
The deadline for applications to the HAF was originally set for August 18, with the aim of helping municipalities expedite the process of building new homes and adding 100,000 new housing units nationwide over the next three years. However, the application stream for small, northern, and Indigenous communities has been extended until September 29.
Municipalities were required to submit “action plans” to increase their housing supply growth target by at least 10%. Calgary Coun. Courtney Walcott reveals that his city is aiming to build an additional 3,000 housing units annually, but acknowledges that this goal cannot be achieved without support from both levels of government. He emphasizes that a much larger amount of funding will be necessary to tackle Canada’s housing crisis, referring to it as a national crisis that requires a wartime spending effort.
Several action plans submitted to the Housing Accelerator Fund propose strategies such as expediting project approvals, incentivizing affordable housing, and changing zoning rules to allow for more density. Ottawa’s plans also center around densification, which Prime Minister Justin Trudeau identifies as part of the solution. He rejects the idea of building on conserved land, favoring partnerships with provinces instead.
City of Ottawa Coun. Jeff Leiper highlights that over half of the city’s projected growth will occur in already serviced areas. While he acknowledges that these developments often face opposition from residents, he underscores the need for transparency regarding the city’s planning process and the reasoning behind it.
Halifax is experiencing a significant housing crunch caused by a rapidly growing population, high construction costs, a shortage of skilled labor, and high interest rates that hinder development. The city had to revise its growth plan as its population grew by 64,000 over the last six years, surpassing initial projections. Maple Ridge, British Columbia, also faces a similar issue, with Mayor Dan Ruimy expecting a substantial increase in residents over the next decade.
An analysis by Desjardins suggests that while the Housing Accelerator Fund is a positive step, it is insufficient to address the housing crisis. The report calls for more targeted transfers and considers GST/HST exemptions on purpose-built rental housing as potential policies to accompany the fund.
The Canada Mortgage and Housing Corporation plans to begin processing and assessing applications later this year, and successful applicants will receive an advance to kickstart their action plan, followed by three annual payments. Halifax Mayor Michael Savage, who also serves as the chair of Canada’s Big City Mayors Caucus, emphasizes the universal nature of the housing problem and the need for all levels of government to collaborate.
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