The Canadian federal government is introducing a $1.7 billion initiative aimed at aiding provinces and territories in reducing homebuilding costs. The proposed federal funding is designed to assist provinces in lowering development fees and other charges on new housing projects, with the goal of expediting construction activities throughout Canada. Additionally, the allocated funds can be utilized to enhance efficiency within the construction sector and address internal trade barriers among provinces and territories to facilitate increased housing development.
Finance Minister François-Philippe Champagne and Housing Minister Gregor Robertson unveiled the funding proposal on Thursday at Parliament Hill. Prime Minister Mark Carney’s Liberal government has set an ambitious target of doubling the speed of home construction in Canada. However, various regulations, zoning constraints, and jurisdictional barriers at provincial and municipal levels have hindered efforts to ramp up construction activities.
The implementation of this new funding initiative is contingent upon the Liberal government’s successful passage of relevant legislation 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 one-year period.