The federal government has announced a new $6 billion fund aimed at accelerating housing construction and upgrading essential infrastructure, such as waste and water systems, to support the building of more homes. Prime Minister Justin Trudeau, along with Housing Minister Sean Fraser, revealed the “Canada Housing Infrastructure Fund” in Dartmouth, amidst protests. The fund includes $1 billion for urgent needs like improving wastewater and solid waste systems, with the remaining $5 billion reserved for agreements with provinces and territories.
To access this funding, provinces and territories must commit to actions that increase Canada’s housing supply. These actions include allowing more “missing middle” homes, implementing a three-year freeze on development charges for larger municipalities, adopting changes to the National Building Code, and permitting “as-of-right” construction. Provinces have until January 1, 2025, and territories until April 1, 2025, to secure an agreement with the federal government, or their funds will be redirected to municipalities.
Additionally, Trudeau announced a $400 million top-up to the existing $4 billion “Housing Accelerator Fund,” which aims to reduce red tape and speed up construction. This funding is expected to facilitate the building of 12,000 new homes over the next three years. Municipalities seeking access to long-term public transit funds will also need to take action to increase housing supply, such as removing parking requirements near transit lines and allowing high-density housing near post-secondary schools. With housing affordability as a key focus, the upcoming federal budget on April 16 is anticipated to include measures for renters and young Canadians entering the housing market.