The Liberal government celebrated National Housing Day yesterday with an announcement that the new National Housing Strategy would dedicate $40 billion to develop affordable housing across the country. The strategy is expected to:

  • build 100,000 new units
  • repair 300,000 units
  • provide 300,000 with financial assistance through the Canada Housing Benefit
  • decrease homelessness by 50%
  • protect 385,000 from losing their homes
  • remove 530,000 from housing need (1.7 million were in core housing need in 2016)

 

All of these programs, except the Canada Housing Benefit, will be funded with money set aside in the 2017 federal budget except for the Canada Housing Benefit, which will not begin until 2020 and will be half funded by the provinces and territories. One of the key strategies will provide $4.7 billion in financial contributions and $11.2 billion in low-interest loans to developers who agree to rent 30% of units at 80% of market rent for at least 20 years, achieve at least a 25% decrease in energy consumptions and emissions over national standards, and meet accessibility standards in at least 20% of units, among other criteria.

Most exceptional is the intention to introduce new legislation that will require the federal government to maintain a National Housing Strategy and report to parliament on targets and outcomes. This signals the Liberal government’s intention to recognize housing as a fundamental human right. A new federal housing advocate will advise the federal government, and crown corporation Canada Mortgage and Housing Corporation, on possible solutions to affordable housing challenges. A new national housing council and and national communications campaign are also in the works.

Widely being hailed as a breakthrough, “once-in-a-generation” plan, some are criticizing the government for waiting to implement one key element (the Canada Housing Benefit) until after the next election. Another missing element at this time is funding to maintain existing operating agreements for social housing provided by co-operatives and non-profit agencies, which the federal government has suggested is on the way.

There is a lot of excitement as provinces and municipalities determine how to integrate this funding into their own programs and policies in the coming months. Just eight months ago, the United Nations criticized Canada’s “persistent housing crisis”, including increasing levels of homelessness, social assistance benefits that are out of line with housing costs, lack of housing for people with disabilities, and stagnant social spending as a percentage of GDP. After years of waffling on housing priorities, failing to produce a strategy through proposed private members’ bills, and refusing to commit a steady stream of funding to provinces and municipalities, the federal government is back with a bang.

 

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