In the first Liberal budget of the new Trudeau government, federal finance minister Bill Morneau pledged spend $2.3 billion dollars on “social infrastructure” over the next two years and to double the current federal funding under the Investment in Affordable Housing initiative.
This will amount to $504.4 million over two years, starting in 2016-17, to be matched by provinces and territories and invested in the “construction of new affordable housing units, the renovation and repair of existing affordable housing, measures to support housing affordability such as rent supplements, and measures to foster safe, independent living,” according to the Budget document.
The Budget document said that “this increased support is expected to benefit more than 100,000 Canadian households.”
It added that the 2016 Budget proposes to invest $208.3 million over five years, starting in 2016-17, in an Affordable Rental Housing Innovation Fund designed to find new models for affordable rental housing projects, which would be administered by the Canada Mortgage and Housing Corporation. The report said, “Funding would be used to test innovative business approaches – such as housing models with a mix of rental and home ownership – to lower the costs and risks of financing affordable rental housing projects. This investment is expected to support the construction of up to 4,000 new affordable housing rental units over five years, and is being made over and above investments in affordable housing under the Government’s social infrastructure commitment.”
Additional housing initiatives included:
- Homelessness: $112 million over two years to be invested in the federal Homeslessness Strategy
- Shelter home construction: 3,000 shelter spaces or transition homes for victims of violence to be constructed – “the largest single contribution to victims of violence in our country’s history,” said Morneau
- Seniors’ housing: $200.7 million over two years, starting in 2016-17, to support the construction, repair and adaption of affordable housing for seniors
- Energy and water retrofits to social housing: $573.9 million over two years, starting in 2016-17
- First Nations: 739 million for First Nations, Inuit and northern housing
- Federal social housing: $30 million over two years, starting in 2016-17, to help providers of federally funded social housing maintain geared-to-income rent for households living in social housing.
Federal Budget 2016 housing timeline table
The Budget introduced no specific measures to cool Canada's housing market, with the document stating that “stable and secure housing markets protect the greatest investment of many middle class Canadian families. On December 11, 2015, the government announced coordinated actions to strengthen the resiliency of Canada’s housing finance system, increase market discipline in residential lending, and promote long-term stability and balanced economic growth. The government will continue to closely monitor vulnerabilities related to housing and consumer debt and is prepared to implement further measures, should they be needed.”
Dr. Sherry Cooper, chief economist at Dominion Lending Centres, approved of the budget’s housing measures. She said, “This is all good – [there is] no messing around with the housing market in this year’s budget, but reasserting a watchful eye on excesses and potential bubbles.”
The finance minister also pledged to invest up to $3.4 billion in expanding and improving public transit over three years, starting in 2016-17, through a new Public Transit Infrastructure Fund.
BC’s share of this, weighted by its share of the national transit ridership, will be $460,490,000 – the third-highest share in the country after Ontario and Quebec.
Federal Budget 2016 provincial transit table
The prime minister sent out the below tweets during the announcement.
Our plan to invest in affordable housing will help the middle class and those working to join it. #elxn42 pic.twitter.com/zRXUAsakSf
— Justin Trudeau (@JustinTrudeau) September 9, 2015
Our historic investments in public transit will cut your commute time. Until then, leave plenty of time to vote! pic.twitter.com/N312LSUovA
— Justin Trudeau (@JustinTrudeau) October 19, 2015
