The Federal Government has been increasing its attention on making it easier to build more housing, as the upcoming federal election is likely to focus heavily on housing availability and the rising cost of living. To consolidate these announcements the Federal Canada Housing Plan has been announced, with all of the announcements from the previous weeks (including infrastructure funding and the renters’ bill of rights), and several new proposals that may be of interest. The Federal Canada Housing Plan Announced contains all of the announcements from the previous weeks (including infrastructure funding and the renters’ bill of rights). However, there are several new proposals that may be of interest:
Introducing an accelerated Capital Cost Allowance for Apartments – the rate will be increased from 4% to 10% for eligible properties that begin construction on or after April 16 2024 and before January 2031.
Increasing the annual limit for Canada Mortgage Bonds from $40B to $60B.
Changing the Apartment Construction Loan Program to make it easier to use, including flexibility on affordability, energy efficiency accessibility requirements, extending terms of loans, etc.
Restrict the purchase and acquisition of existing single-family homes by very large, corporate investors - the government will consult on this and provide further details in the 2024 Fall Economic Statement.
Launching a Public Lands for Homes plan. This will unlock underused public land to build more housing instead of selling it off. A new mapping tool will be used to keep track of federal lands that can be used for housing.
Launching the Canada Green Buildings Strategy to support energy efficient retrofits. $903.5 million will go towards the Canada Greener Homes Affordability Program, renewing and improving existing energy efficiency programs, and continuing to develop national approaches to home energy labelling.
Increasing skilled trades by providing an additional $50 million in the Foreign Credential Recognition Program, with an additional $90 million for the Apprenticeship service.
As well as several other initiates in building code enhancements, increasing density around transit, affordable housing, and homelessness funding.
To read more about Canada's Housing Plan visit the Government of Canada website.
NAIOP and Campbell Strategies are analyzing these plans, providing responses, and discussing strategies to proactively incentivize more multi-family, commercial and industrial building. If you feel something in the Federal governments plans is missing the mark, or have an idea that could increase investment in Canadian real estate, email us at anand@naiopedmonton.com.