Canada Announces New Housing Plan to Tackle Crisis Through Innovative Use of Public Lands

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Canada's Housing Minister Sean Fraser, has unveiled a comprehensive plan aimed at significantly boosting the nation's housing supply. The new strategy not only focuses on constructing more homes but also introduces an innovative approach to utilize under-used public lands for this purpose.

The initiative, outlined in the upcoming Budget 2024, includes a series of targeted measures designed to accelerate home construction, improve affordability, and support vulnerable populations. Central to this plan is the leasing of federal, provincial, territorial, and municipal public lands to build affordable housing, ensuring that these lands remain publicly owned while contributing to the housing stock.

Leasing Public Lands for Homes

Recognizing the high cost and scarcity of land as major barriers to new housing development, the federal government plans to transform how public lands are utilized. "We are committing to a historic shift by using public lands not just more effectively, but also more strategically," stated Fraser. The plan will focus on leasing rather than selling public lands, to maintain public ownership and ensure the long-term affordability of the homes built on these lands.

In addition to leasing, the government will identify and develop under-utilized public lands and integrate planning with shared federal and provincial priorities, such as access to public health care and affordable child care.

Boosting Construction and Reducing Costs

To tackle the slow pace of construction and high costs, the government proposes several incentives for homebuilders. This includes a temporary accelerated capital cost allowance tax measure and the expansion of a measure to remove the Goods and Services Tax (GST) for new rental projects and student residences. These steps aim to lower the barriers to new housing projects, encouraging faster and more economical building practices.

Supporting the Workforce and Modernizing Infrastructure

The plan also highlights the importance of growing and training the Canadian workforce to meet the demands of new home construction. Furthermore, the government will launch a new $6-billion Canada Housing Infrastructure Fund to support the construction and upgrading of essential infrastructure like water and waste management systems.

Encouraging Innovation and Efficiency

Emphasizing innovation, the government will promote new building technologies and techniques, including prefabricated housing and energy-efficient designs. This initiative is expected to reduce the lifetime cost of homes by lowering utility bills and insurance costs.

Comprehensive Support Across Government Levels

Fraser's announcement also serves as a call to action for other levels of government and stakeholders, emphasizing the need for a collaborative approach to resolve the housing crisis effectively. "This is about more than just building homes; it's about building communities," Fraser commented. The strategy aims to create a robust framework where municipalities, provinces, and territories work alongside the federal government to ensure that all Canadians have access to affordable housing.