Thank you, Mr. Chair.
Ladies and gentlemen, thank you for this opportunity to comment on the current housing crisis, an issue that is critically important to our society. I am here today with Valérie Fortin, Policy Adviser to the Union des municipalités du Québec, the UMQ.
First, I would like to say that the UMQ brings the local governments of all regions of Quebec together to leverage municipal expertise, support its members in exercising their jurisdictions and promote municipal democracy. Our members represent more than 85% of the population of Quebec.
The housing crisis is a complex problem. The imbalance between housing supply and demand increases every year. Consequently, many tools must be brought to bear to address it. A major catch‑up effort must first be made to build the 130,000 units needed per year just to preserve housing affordability in Quebec, where housing starts currently lag more than anywhere else in the country. What is more, according to the Société d’habitation du Québec, 37,000 households are waiting for social housing in Quebec.
On the ground, UMQ members estimate that at least 4,500 social housing units and 12,400 affordable units must be built per year to meet Quebeckers' needs. I would note, however, that those estimates are based on clearly conservative demographic projections in a context of strong temporary immigration growth, which rose 46% in Quebec between July 2022 and July 2023. That represents an additional 150,000 persons who must also be housed.
In short, this is a major challenge. It is also the reason why additional efforts and investment will be required by all orders of government, including the federal government, to establish the conditions for increased housing supply and affordability in the next few years. The quality and safety of existing housing will also have to be maintained. Cities must take responsibility, of course, and that is what we are currently doing in Quebec, with strong commitment from the municipal sector to achieve these objectives. However, the Government of Canada must also take action in various areas to lower the cost of housing in Quebec and stimulate housing starts.
We therefore wish to comment on the various federal housing programs that have been established for the municipal sector and offer some constructive proposals to address the current housing challenges.
First of all, we welcome the agreement that was reached with the Quebec government on October 13, under which $900 million will be transferred to Quebec from the housing accelerator fund. In addition, the rapid housing initiative, or RHI, has proven to be effective in quickly providing housing for vulnerable households since it was introduced in 2020, and it must be maintained. However, the 2023‑2024 federal budget does not include any new money for this program.
It is also essential that the maximum contribution levels under the RHI be adjusted to current conditions in Quebec and that program requirements allow projects to close their financing by means of mortgages. The national housing co‑investment fund is very important for Quebec and is so popular that funding for the program is no longer available. New funding must be made available soon so that hundreds of pending units can be built.
With regard to homelessness, the Canada-Quebec agreement on implementation of the reaching home program, which will terminate in 2024, will have to be substantially improved to address the situation in Quebec, where the homeless population now numbers 10,000.
I would note that, according to the last progress report on the national housing strategy, Quebec has received only 13% of funding, whereas we obviously represent more than 20% of the population. I repeat that the largest decline in housing starts has occurred in Quebec.
However, to stimulate new housing starts, more solutions will have to be provided to enable private and social promoters to access enough capital financing and better loan conditions. The numbers simply don't add up for promoters any more. CMHC's programs providing access to lower-interest loans should be more flexible and afford promoters greater predictability through rapid response mechanisms. We also call on the federal government to urge the banks to play a greater social role in stimulating residential construction.
However, to maintain housing affordability, efforts must also be made to facilitate the acquisition and removal of existing units from the market. According to a study by Steve Pomeroy, at Carleton University, for every social or community housing unit built in greater Montreal, we lose from the private market more than 17 affordable units that rent out for roughly $750 a month, a figure that represents 30% of the income of a single person earning the minimum wage.
In short, the federal government must invest more in the acquisition and removal of existing units from the housing market. The best affordable housing unit is one that already exists.
I will conclude by saying a few words about infrastructure funding and programs. The federal government must play a key role in funding future municipal water infrastructure. Capacity issues are currently holding up many projects in our municipalities. It is also important that the federal government quickly come to an agreement with the Quebec government over the disbursement of funding provided under the Canada community-building fund.
Lastly, I would add that the flexibility and agility of federal programs, their fit with Quebec's problems and the speed with which the government reaches agreement with Quebec on funding transfers are critical factors in enabling Quebec municipalities to make a full contribution to resolving the housing crisis.