Provinces Question Federal Government’s $6 Billion Housing Program Conditions

Minister of Housing, Infrastructure and Communities Sean Fraser responds to a question during a news conference, in Ottawa, on Jan. 29, 2024. The Canadian Press/Adrian Wyld

Several provinces are raising questions about a $6 billion housing infrastructure investment that Prime Minister Justin Trudeau announced will be part of the upcoming budget.

Mr. Trudeau announced the funds on April 2, but they come with conditions, including a requirement for more duplexes, triplexes, and similar style homes. Provinces will also need to adopt the recently announced renters’ bill of rights to access the funds. A three-year freeze on development charges and the adoption of the National Buiding Code of Canada are expected before funds are doled out.

Provinces have until January 2025 to apply for the funding, and territories have until April 1, 2025, when the federal government says it will start working directly with municipalities.

“If provinces don’t want to make some of the changes, they don’t have to accept the funding we’re putting on the table,” federal housing minister Sean Fraser said during an April 3 online media conference.

He said he was confident the government could find “partners” who are willing to comply with the conditions.

“We will be making these investments; who we deal with and on what timeline will be impacted through the discussions we have with the provinces,” Mr. Fraser said.

In Alberta, Premier Danielle Smith’s government said it has “deep concerns” about the funding announcement, saying the federal government is bypassing provincial jurisdiction.

“The announcement will only make it harder and more expensive to build homes and will also heavily limit the kinds of homes that can be built,” said a joint statement from Seniors, Community, and Social Services Minister Jason Nixon and Municipal Affairs Minister Ric McIver. “It is a continuation of the Government of Canada’s punitive green agenda by attempting to ban natural gas by 2030 and nationalize housing.”

Quebec, Ontario, Saskatchewan, and New Brunswick have expressed similar concerns.

Ontario Premier Doug Ford said it should be up to municipalities to decide what type of housing is built in communities.

“Let the municipalities, let the mayors and councillors decide where to build, what to build, how high to build. They know their communities better than anyone,” he told reporters during an unrelated media conference in Vaughan on April 3.

New Brunswick Premier Blaine Higgs said all levels of government want the same end goal, but he’s concerned about the conditions placed on the funding, calling it “a bit take-it-or-leave-it” approach.

“I think that any relationship we have should built on a rational discussion of what our program needs, not what the conditions are,” Mr. Higgs told reporters on April 2 at the New Brunswick legislature.

Quebec’s Minister of Canadian Affairs responded to the announcement on social media. “There is no question of Quebec complying with several conditions to simply obtain its fair share of this envelope,” Jean-F. Roberge said in a French-language post on X. “Quebec must be able to exercise its right of withdrawal with full compensation and without any conditions.”

Infrastructure Fund

Mr. Trudeau said the infrastructure fund will speed up the construction and upgrading of housing, including water, wastewater, stormwater, and solid waste infrastructure.

$1 billion will be available for municipalities to support “urgent infrastructure needs” and create more housing, a news release from the Prime Minister’s Office (PMO) said.

$5 billion will be available for provinces and territories, but only those that commit to the conditions.

“If a province or territory does not secure an agreement by their respective deadline, their funding allocation will be transferred to the municipal stream,” the PMO release said.

Chris Tomlinson contributed to this report.