Prime
Minister Justin Trudeau has announced the official launch of the Housing
Accelerator Fund, a $4B initiative to help bolster housing supply across
Canada.
The
incentive, outlined in the Federal Government’s 2022 budget, will provide
funding for local governments to fast
track the creation of 100K new middle class homes across Canada by 2024-2025.
“Canada has
the fastest growing population in the G7, but our housing supply hasn’t kept up
with demand,” Trudeau said. “The Housing Accelerator Fund will help local
governments cut red tape and backlogs, build the housing we need, and give more
people in Canada a safe and affordable place to call home.”
To access
funding, municipal and Indigenous governments are required to submit an action
plan that details their commitment to a housing supply growth target, outlines
the specific initiatives they will undertake in order to increase housing
supply and speed up approvals, and aligns with the fed’s priorities of creating
danse, affordable, inclusive, and diverse communities.
The
application portal will open in June, and local government are encouraged to begin
preparing their action plans now. There will be one intake window in 2023, with
the HAF running until 2026-2027.
Eligible
initiative include fixing outdated permitting systems, introducing zoning
reforms to build more density, and incentivizing development close to public
transit. Funding will be provided both upfront to support implementation as
well as upon the delivery of results.
“We
recognize that the key to increasing housing affordability is to boost the
supply of homes available to Canadians,” said Ahmed Hussen, Minister of Housing
and Diversity and Inclusion. “By partnering with local governments, this fund
will enable us to create long-term systemic changes in our housing system and
make a tangible impact in increasing housing supply.”
The HFA is
part of Canada’s $82B National Housing Strategy (NHS). Other NHS initiatives
include the new Tax-Free First Home Saving Account, which allows Canadians to
save up to $40K tax-free to help them buy their first home, and a third round
of the Rapid Housing Initiative, which will create 4,500 affordable housing
units.
Source By:
STOREYS