Thank you, Madam Chair.
I would like to thank the committee members for having me here today.
My name is Isabelle Melançon. I'm the chief executive officer of the Institut de développement urbain du Québec, or IDU. The IDU is a non‑profit organization that represents Quebec's major real estate developers and owners. I'm here to make a simple point. To overcome the current housing crisis, we need to increase the supply of all types of housing. If we really want to do this, we need to tackle the structural barriers blocking projects, and we need to do it now.
Our first message concerns water infrastructure. Across Quebec, municipalities are struggling to authorize new housing as a result of saturated or aging water and sewer systems. A number of municipalities have resorted to imposing development charges on developers to try to fund the necessary repairs to current infrastructure or the construction of new infrastructure. In so doing, they drive up the cost of residential projects. In the end, future owners or tenants are the ones who end up paying more for their housing.
Other municipalities must impose moratoria on their land, thereby cutting themselves off from much‑needed housing. This isn't a secondary challenge. It's a direct hindrance to new housing construction.
A study carried out by Aviseo Conseil for the housing‑related water infrastructure task force, of which the IDU is a member, shows that Quebec's water infrastructure asset maintenance deficit could exceed $42.5 billion by 2031. We're calling on the federal government to heavily invest in water infrastructure. It has done so today, particularly through subsidized transfers and low‑interest loans. Until this shortcoming is addressed, we'll never find a solution to the housing crisis.
My second message concerns the current federal levers. With Build Canada Homes, Ottawa has created a new tool to speed up the large‑scale construction of affordable housing. However, we must ensure that the projects supported by Build Canada Homes in Quebec aren't slowed down by negotiations between Ottawa and Quebec. When the needs are urgent, the implementation must be as well.
Given the creation of Build Canada Homes, it seems obvious to us that the mandate of the Canada Mortgage and Housing Corporation, or CMHC, will change. I would like to remind you that, without CMHC's involvement over the past few years, few projects would have come to fruition in Quebec. However, a hasty withdrawal or unannounced changes to the rules of the game will undoubtedly create uncertainty for developers and affect the ability of a number of them to launch projects. The message coming from the ground is that CMHC must remain active in the market until Build Canada Homes is fully deployed.
Lastly, our third message concerns programs that can support the rental supply more quickly. For example, the apartment construction loan program is a popular tool. However, a number of players on the ground are telling us that CMHC's review of the financial capacity of large borrowers is a long, complex and murky process, and that these borrowers now lack the predictability to pursue their growth and start up major projects.
The same goes for MLI Select. This CMHC product is quite effective and popular with developers. However, we find it hard to understand why the affordability criteria are still determined by the median income of tenants in 2019, meaning before the pandemic. You'll agree that the situation has changed considerably since 2019. A pandemic, a historic inflationary surge and the election of an American president who particularly fancies tariffs for all can change a life.
Remember that the median salary of tenants in 2019 was $40,900. To qualify for MLI Select, the average monthly rent can't exceed $1,023. Yet the reality today is that the median salary of tenants in Quebec has exceeded $53,300. Today, we're talking about an average monthly rent not exceeding $1,330. That's why we're asking that the MLI Select affordability thresholds be updated to better reflect the reality.
Quebec is ready to build. Now it needs the resources to do so.
I look forward to answering any questions you may have.