Conservative Leader Pierre Poilievre has introduced a new bill that seeks to address Canada’s shortage of affordable housing by encouraging municipalities to build more homes. The legislation, although unlikely to pass in the current political climate, serves as a blueprint for a future Conservative housing plan. The bill proposes penalties for “high-cost” cities that fail to meet construction targets and incentives for those that exceed them.
Under the bill, federal cash would be withheld from municipalities that take longer than six months to approve housing building permits. In addition, transit funding would be placed in a trust until high-density residential housing is built around federally funded transit stations. Once these apartments and condos are substantially occupied, the funds would be released.
The bill defines a “high-cost” city as one with a population of 200,000 or more where the benchmark home price is five times the median household income. Some of the cities that currently meet this standard include Calgary, Halifax, Ottawa, Toronto, and Vancouver.
In an effort to increase efficiency and accountability, the bill also includes provisions to hold senior bureaucrats responsible for underperforming federal housing programs accountable. The head of the Canada Mortgage and Housing Corporation (CMHC) would be empowered to fire these officials.
While Poilievre’s bill signals a more punitive approach to housing construction, the Liberal government has taken a collaborative stance and relied on the CMHC to accelerate home building. However, there have been delays in the implementation of funding programs designed to incentivize cities to streamline their processes. The government’s Housing Accelerator Fund, which rewards cities that cut red tape and expedite construction, has only approved its first application recently.
Despite differing approaches, both parties recognize the urgent need for more affordable housing in Canada. The World Bank ranks Canada 64th in terms of ease of permitting for builders. To meet demand, the Liberal government has set a target of constructing 3.5 million new units by 2030 and has implemented measures such as dropping the GST on new housing construction.
Ultimately, the bill put forward by Poilievre aims to address the affordability crisis by encouraging municipalities to ramp up housing construction. While it may face political hurdles, its introduction highlights the importance of finding effective solutions to Canada’s housing shortage.
FAQs
1. How would the bill incentivize municipalities to build more homes?
The bill proposes penalties for cities that fail to meet construction targets and incentives for those that exceed them. Federal cash would be withheld from cities that take longer than six months to approve housing building permits, while transit funding would be released once high-density residential housing is built around federally funded transit stations.
2. What is defined as a “high-cost” city?
The bill defines a “high-cost” city as a municipality with a population of 200,000 or more where the benchmark home price is five times the median household income. Some cities that currently meet this standard include Calgary, Halifax, Ottawa, Toronto, and Vancouver.
3. How does the bill hold senior bureaucrats accountable?
The bill empowers the head of the Canada Mortgage and Housing Corporation (CMHC) to fire senior bureaucrats responsible for underperforming federal housing programs. This aims to increase efficiency and ensure accountability in the implementation of these programs.
4. What has been the government’s approach to housing construction?
The Liberal government has taken a collaborative stance and relied on the CMHC to accelerate home building. It has introduced programs like the Housing Accelerator Fund, which rewards cities that reduce red tape and expedite construction. However, there have been delays in the rollout of these funding programs.
5. What is the government’s target for new housing construction?
The government aims to construct 3.5 million new units by 2030 to address the shortage of affordable housing in Canada. Measures such as dropping the GST on new housing construction have been implemented to facilitate this goal.