The federal government is proposing a substantial $1.7 billion fund to assist provinces and territories in reducing the costs associated with homebuilding. This initiative aims to support provinces in cutting down on development fees and other charges related to new housing projects, with the goal of accelerating construction activities throughout Canada. Additionally, the allocated funds can be utilized to enhance efficiency in the construction sector and address internal trade barriers between provinces and territories, ultimately facilitating the construction of more residential properties.
Finance Minister François-Philippe Champagne and Housing Minister Gregor Robertson unveiled this funding plan on Thursday at Parliament Hill. The announcement aligns with Prime Minister Mark Carney’s ambitious objective of doubling the rate of homebuilding in the country. However, various regulatory frameworks, zoning constraints, and jurisdictional barriers at both provincial and municipal levels have hindered the scaling up of construction projects.
The implementation of this funding initiative is contingent upon the passage of legislation by the Liberal government in the House of Commons. This announcement follows Ontario’s recent collaboration with the federal government to temporarily exempt newly constructed homes from the harmonized sales tax for a period of one year, showcasing a coordinated effort to stimulate the housing market and address affordability challenges.