Bill C-26

An Act to authorize certain payments to be made out of the Consolidated Revenue Fund for the purpose of improving housing supply

This enactment authorizes payments to be made out of the Consolidated Revenue Fund to the provinces and territories for the purpose of improving housing supply.

An Act to Authorize Certain Payments to be Made out of the Consolidated Revenue Fund

[Gregor Robertson, Liberal, Vancouver Fraserview—South Burnaby, BC]

moved that Bill C-26, An Act to authorize certain payments to be made out of the Consolidated Revenue Fund for the purpose of improving housing supply, be read the second time and referred to a committee.

[Jennifer McKelvie, Liberal, Parliamentary Secretary to the Minister of Housing and Infrastructure]

Mr. Speaker, I am delighted to say that I will be sharing my time with the member of Parliament for Trois-Rivières whom I have the great honour of working with in our shared roles as parliamentary secretaries to the Minister of Infrastructure and Housing.

I am thankful for the great privilege to speak today to Bill C-26, an act to authorize certain payments to be made out of the consolidated revenue fund for the purpose of improving housing supply.

Over the past year, Canadians have navigated a rapidly changing and increasingly fragmented world, and Canada is not immune to the economic uncertainty that this has caused. We are dealing with a new reality that is more complex, more volatile, and for many people, more costly and unpredictable. In response, our government remains focused on solutions and on doing the hard work to support our communities, our industries and Canadians.

The current government was elected on a strong mandate to build, and a key area of focus for the Prime Minister and our whole caucus is easing the housing crisis. Put simply, far too many Canadians are struggling to find a home they can afford. Bill C-26 is an important part of our comprehensive plan to address this decades-old issue, which is why we need to get it passed and to get it passed quickly.

The legislation would authorize the Minister of Finance to make immediate payments to provinces and territories to support measures to increase housing supply. The proposed funding, totalling just over $1.7 billion, would help make housing more attainable for Canadians. These federal funds would be transferred to provinces and territories to be used exclusively for measures that increase housing supply, including but not limited to reducing development fees or levies on new home construction and making incremental investments in provincial and territorial programming already in place to spur housing development.

Across the country, far too many Canadians are struggling to find a home they can afford. That is why we are taking action on multiple fronts to tackle the housing crisis. We are cutting red tape, investing in housing-enabling infrastructure and modernizing the homebuilding sector. Bill C-26 is part of that broader approach.

We have seen encouraging signs of progress in many parts of the country, and the Canada Mortgage and Housing Corporation confirmed that there is cause for optimism. Its “Spring 2026 Housing Supply Report” showed that housing starts increased by 6% in 2025, driven by record levels of rental construction, construction completions and growing activity in missing middle housing. These are encouraging signs, but we know we have more work to do.

We have implemented several federal initiatives to increase housing supply. Last week, the House passed legislation to establish Build Canada Homes as a Crown corporation with the mandate to scale up the supply of affordable housing nationwide. In less than a year, Build Canada Homes has already advanced thousands of projects across the country to increase Canada's affordable housing supply. Soon, Build Canada Homes will have even more tools to get housing built across the country.

Other measures, including targeted tax relief such as removing the 5% GST on new purpose-built rental construction, are lowering upfront costs and helping projects move forward. Programs such as the apartment construction loan program and CMHC's mortgage loan insurance projects help builders secure the capital they require to keep building, while the housing accelerator fund helps to unlock supply by cutting red tape and speeding up approvals.

We are also investing in the infrastructure that makes housing possible. The Canada housing infrastructure fund and the new build communities strong fund support housing-enabling infrastructure, including water and waste-water systems, because homes cannot be built without the underlying systems that support them. A tangible example of this is a recent agreement with the Province of Ontario that reflects our commitment to help municipalities reduce development charges by 30% to 50% or more. These types of costs directly affect whether housing projects move forward. They have a direct impact on the economics that determine whether a project proponent moves forward with construction now or waits until another construction season.

When we talk about thousands of units across the country, we are talking about real places that people will be able to call home. Whether it is families or young people getting their first start, seniors, or individuals who find themselves in need, thanks to the work of the government, these individuals will have the stability, the opportunity and the safety that having their own home provides.

These projects would also mean thousands of jobs for labourers, carpenters, plumbers, framers and other workers across the country. They would mean opportunities for local suppliers and local businesses. At a time when our economy faces the risks of an uncertain world, the government is making the choice to invest in ourselves and to strengthen Canada. Bill C-26 would help to further address these pressures.

The $1.7 billion proposed in the legislation would give provinces and territories the flexibility to take targeted action to unlock housing supply quickly and effectively where the communities need it most. This funding could and would make a real difference. Ontario's recent HST rebate announcement on new homes is a key example of how these transfers would improve supply.

As part of tax relief efforts, the Ontario government, thanks to federal support tied to the bill, plans to rebate the full 13% harmonized sales tax on new homes valued up to $1 million, saving buyers up to $130,000. This has already had a positive impact on home sales, as the low-rise sector surpassed its 10-year average for the first time in three years, according to BILD, the Building Industry and Land Development Association. With the passage of this legislation, we could continue to make a positive impact across the country based on the local needs and priorities of the provinces and territories.

Addressing Canada's housing crisis requires more than a one-size-fits-all approach. It demands a unified, all-hands-on-deck effort rooted in partnership, flexibility and immediate action. Bill C-26 would help bridge the gap between national ambition and local delivery, with targeted funding for provinces and territories to accelerate housing starts. By empowering our partners, we can build more homes faster and help ensure that every Canadian has a place to call home.

Bill C-26 has been designed to unlock new housing supply across the country. Its passage would ensure that the needed funds contained in the legislation would get to the provinces and territories more quickly. I urge all members of this great House to support the legislation.

[Greg McLean, Conservative, Calgary Centre, AB]

Mr. Speaker, I am going to ask the member if she can just tell us what the $1.7 billion would accomplish, because we have already thrown a lot of money at the situation. We have empty condos now that do not suit the market in Toronto. Now we would give the development industry more money when there are empty lots to be developed once the actual economics make sense. We keep aiming for these problems that we are creating, yet what the government suggests is a crisis is something of its own making. How is it going to square this by just throwing another $1.7 billion of taxpayer money at it, thinking it would solve everything that the government's last few billion dollars thrown at it has not solved so far?

[Jennifer McKelvie, Liberal, Ajax, ON]

Mr. Speaker, we have a comprehensive approach to addressing housing in this country, and with this bill we would help provinces and territories remove barriers that are holding back homebuilding. This includes measures such as lowering development charges, fees, levies or sales taxes on new homes. It would also support efforts to harmonize rules, improve internal trade and increase productivity in the residential construction sector.

The bill would build on the work we are doing with Build Canada Homes to catalyze a new industry of modern methods of construction, accelerate the construction of affordable housing and build on the work we are doing with the provinces to lower development charges.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Mr. Speaker, as things stand, conversations about housing are, naturally, conversations about Build Canada Homes. However, for the past year, Build Canada Homes has been having a lot of trouble getting its programs up and running.

We have been told a number of times that the CMHC no longer exists and that people have to contact Build Canada Homes instead. Build Canada Homes' own standards dictate that it must provide responses within 30 days. However, Build Canada Homes is not meeting that deadline. I think this is a very serious problem.

Now, people are being told to contact the CMHC, which is no longer supposed to have any files. Can someone set the record straight? Who is in charge now? Is it the CMHC or is it Build Canada Homes? When can we expect useful answers?

[Jennifer McKelvie, Liberal, Ajax, ON]

Mr. Speaker, I am so excited that the legislation for Build Canada Homes has passed through the House. It will enable them to increase the tools that are available to them for financing affordable housing across this great country.

They will have new tools that they did not have before. They will be able to go beyond grants and beyond loans. They will be able to really look forward at things like guarantees and equity and a whole bunch of different financial tools that were not available to them before. We all look forward to the ramping up of this great new agency and building affordable homes across the country.

[Dominique O'Rourke, Liberal, Guelph, ON]

Mr. Speaker, first, I just want to celebrate the Guelph & District Multicultural Festival, which celebrated its 40th anniversary this weekend. I congratulate Anu Saxena, their chair, and also Cinthuja Leon, who is their executive director. It was another amazing weekend.

When I am out at these community events, people really want to know how soon we can see the waiver of the HST on new homes in Ontario.

My hon. colleague was a municipal councillor, as I was. What is the urgency in passing the legislation and getting the money flowing?

How important is that money, in terms of ensuring that people can buy their home now, a new home that would be built in the future, in terms of smoothing out the construction, so that, in fact, we are seeding builds for the next several years?

[Jennifer McKelvie, Liberal, Ajax, ON]

Mr. Speaker, there is good news for Ontario residents and for the residents of Guelph. The deal that we have made with the Province of Ontario will be backdated to April 1 of this year. All new homes purchased since then will have a waiver of the HST. As I mentioned, that is the equivalent of saving $130,000 on a $1-million home. We are not stopping there. We also have affordable housing projects that are under way, from coast to coast to coast, including in Guelph. We look forward to working with the member so that we can have shovels in the ground in her community.

[Caroline Desrochers, Liberal, Parliamentary Secretary to the Minister of Housing and Infrastructure]

Mr. Speaker, I want to begin by thanking my excellent colleague, the parliamentary secretary, and Minister Robertson, of course. It is a pleasure to work with them.

[The Deputy Speaker, Tom Kmiec]

I must interrupt the parliamentary secretary. Ministers are not to be referred to by name in the House. They should referred to by their title.

I invite the parliamentary secretary to continue her speech.

[Caroline Desrochers, Liberal, Trois-Rivières, QC]

Mr. Speaker, I rise today in support of Bill C-26, an act to authorize certain payments to be made out of the consolidated revenue fund for the purpose of improving housing supply.

This bill would authorize the Minister of Finance to make immediate payments to the provinces and territories to support measures aimed at increasing the housing supply. The proposed funding of more than $1.7 billion would help make housing more affordable for all Canadians. This federal funding would be transferred to the provinces and territories and used exclusively for measures aimed at increasing the housing supply, such as reducing development and new home construction fees, as well as for additional investments in existing provincial and territorial housing creation programs. Because we know that the housing market varies from one province or territory to another, we believe that they are in the best position to ensure that the funds are invested where they will have the greatest impact for Canadians.

Unfortunately, after calling for such measures for months, the Conservatives are once again trying to throw a wrench in the works and stall this bill in order to prevent the provinces and territories from accessing these funds. Earlier today, the Conservatives moved to adjourn the House instead of allowing this bill to move forward. This is the third time that the Conservatives have moved such motions to adjourn in recent days. Why are they doing this? They know full well that the measures that we are proposing, such as Bill C‑26, will have a positive impact on the housing market. We know that they do not like good news.

I am a new MP, and I never thought that elected officials could take satisfaction in the headwinds we are facing, with the tariff war affecting businesses and the geopolitical turbulence that brings new challenges every day. However, we on this side of the House are rising to the challenge. The Conservatives know that Bill C‑26 is part of a series of concrete measures that our government is creating to make a difference and fix the housing crisis. They heard this from many experts, developers, non-profits and government officials who appeared before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities to testify about the importance of lowering building costs and increasing the supply of affordable housing in order to ease the pressure on rents. This is part of what Bill C-26 proposes. They know that this bill complements Build Canada Homes, the new investment agency working to increase the supply of affordable housing across Canada. Since its launch last fall, Build Canada Homes has already reached agreements to build over 11,400 units, most of which is affordable housing.

I am tired of hearing them mislead Canadians day after day by saying that Build Canada Homes has not done anything yet. I will provide a few examples.

In Nova Scotia, there is a partnership worth up to $300 million to build up to 1,430 affordable housing units.

In Manitoba, Naawi-Oodena, a historic redevelopment project carried out in partnership with Treaty 1 first nations and the Canada Lands Company, will see 320 affordable homes built. A total of 2,100 units could be built on the entire site.

In Quebec, our governments announced in April a joint investment of nearly $200 million to build 865 new affordable housing units across Quebec. This is on top of the 1,055 units that had already been announced in Longueuil in December 2025.

In the north, we have reached an agreement in principle with the Government of Nunavut and Nunavut Tunngavik Incorporated to build 750 units, including affordable public housing with support services.

In Ontario, we partnered with the City of Ottawa to build up to 3,000 affordable homes for mixed-income households.

To sum up, the number of agreements and projects that are shovel ready far exceeds the time I have to speak.

These projects also mean thousands of jobs for construction workers, electricians, plumbers, carpenters and many local businesses across the country. In an uncertain economic environment, our government is choosing to invest in Canada and Canadians. Last week, the House of Commons passed the bill to make Build Canada Homes a Crown corporation. We now hope that it will be passed quickly by the Senate so that this new agency can have all the tools it needs to speed up housing construction.

It is important to note that the Conservatives did not make any changes to this bill. However, they voted against it. They voted against the thousands of affordable housing units that will be built across Canada, in the ridings of all my colleagues here in the House. They voted against affordable housing for families struggling to make ends meet. They voted against better housing for seniors who need a bit of a break. Now, once again, they are opposing Bill C-26. I hope that the Canadians listening to us today take note of this and understand what it means, specifically that the Conservatives do not care about affordability.

Bill C-26 is part of a package of measures we are introducing to accelerate housing construction in partnership with provinces, territories, municipalities and indigenous communities. These include measures like the build communities strong fund, which will invest more than $51 billion in our communities, including in infrastructure that enables housing construction, such as water and sewer systems. Housing cannot be built without the underlying systems needed to support it, and the need is great across Canada.

Just two weeks ago, the Prime Minister, together with the Premier of Quebec, announced a historic agreement between Canada and Quebec for $10 billion in investments to build more housing across Quebec. That includes $2.6 billion for infrastructure. This is the kind of constructive federalism we support. Our goal on this side of the House is to work and serve Canadians, not to play political games.

Bill C‑26 includes other measures, among them targeted tax relief, such as the elimination of the 5% GST on new rental housing. Here again, the goal is to reduce upfront costs and move projects forward. Programs such as the apartment construction loan program and the CMHC's mortgage insurance products are available to help builders secure financing.

The proposed $1.7 billion in Bill C-26 would give the provinces and territories the flexibility they need to take targeted measures to increase the housing supply quickly and effectively where communities need it most. This flexibility is essential, because housing needs are not the same in Whitehorse, Montreal, Halifax, or Iqaluit. The provinces and territories are best positioned to determine the measures that will rapidly increase the housing supply in their communities. Collaboration with the provinces and territories is at the heart of this bill.

Solving Canada's housing crisis requires more than a one-size-fits-all approach. It requires a concerted effort in which everyone pitches in, an effort based on collaboration, flexibility, and immediate action. On this side of the House, we understand that. Bill C-26 will help turn our ambitions into meaningful results. We must act now. Canadians need more housing, communities need support, and our economy needs us to keep building. Above all, Canadians need the opposition to get to work. I therefore urge all members of Parliament to support Bill C-26.

[Jeff Kibble, Conservative, Cowichan—Malahat—Langford, BC]

Mr. Speaker, I heard from the member opposite that 11,000 homes were built. Of course, that is assuming agreements. I also heard "will allow” four times and "MOUs". The government's promise was 500,000 homes per year. Minus 11,000 homes, my calculation says that we are short 489,000 homes for $13 billion.

Would the member opposite agree with my mathematical calculation of 489,000 homes short this year?

[Caroline Desrochers, Liberal, Trois-Rivières, QC]

Mr. Speaker, my colleague knows full well that we never said the government was going to build 500,000 homes. Our job is to bring together the conditions needed for the market to build them. The homes themselves will be built by developers and builders.

We are working with the provinces to create a regulatory framework that will keep things moving quickly and put financial tools in place to get projects started. We are indeed very proud of the 11,400 housing units to be added to the 260,000 housing starts already made last year.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Mr. Speaker, on February 17, a technical briefing was held about Build Canada Homes. During that meeting, it was stated that Build Canada Homes would provide a response to the organizations within 30 days so that they would know what to expect. Unfortunately, what we are seeing today, several months later, is that Build Canada Homes is unable to meet these deadlines because it does not have the necessary staff. Worse still, it is referring organizations to the Canada Mortgage and Housing Corporation, which is no longer supposed to be accepting applications.

Will the parliamentary secretary commit to ensuring this 30-day deadline is met and to following up with her minister?

[Caroline Desrochers, Liberal, Trois-Rivières, QC]

Mr. Speaker, Build Canada Homes is not yet a Crown corporation. In fact, we are awaiting the Senate's approval of Bill C-20.

Yes, this remains one of Build Canada Homes' commitments. We are working very closely, in fact, with the Société d'habitation du Québec on all projects from Quebec that are submitted to Build Canada Homes. We work jointly and are in regular contact with all the organizations that submit projects. I myself meet with dozens of them every week.