Thank you.
We acknowledge the government's efforts to respond to the housing crisis. However, we believe that eliminating the GST on new purpose-built rental buildings, as proposed in the bill, is still not enough.
Our initial concerns were assuaged by the measures in the 2023 fall economic statement. The elimination of the GST was extended to include purpose-built rental housing cooperatives. The government also expanded construction programs and access to credit for affordable housing.
The economic statement also tackles the problem of short-term rentals by denying tax deductions for units that do not comply with municipal bylaws. In addition, it strengthens protection for mortgage holders by introducing a mortgage charter.
These initiatives illustrate the federal government's desire to adopt a multi-faceted approach in order to stimulate the housing supply. Nonetheless, these measures could still be improved.
We suggest that the eligibility criteria for the excise tax rebate be specified. This would mean clearly defining what constitutes an affordable housing unit and prioritizing non-market housing. It is also crucial that the procedure for accessing financing initiatives be standardized, taking the agreement between the Quebec and federal governments as a model, to ensure consistency in the response to the housing crisis, while respecting provincial jurisdictions.
Optimizing the mortgage charter and toughening regulation of short-term rentals would be wise. Revising the mortgage structure to provide better protection for landlords from interest rate fluctuations and enacting more stringent legislation regarding temporary rentals, as Japan has done, would provide the benefit of stabilizing the rental market in the long term.
Thank you.
We will be happy to answer your questions.