Thank you, Mr. Levesque.
Good morning, everyone. Thank you for having us here today.
In terms of what we expect from Build Canada Homes, we have three main messages for you today.
First, we really want Build Canada Homes to implement a true portfolio approach to funding. Both the industry and the government realize that we can't emerge from the crisis on a project‑by‑project basis. Build Canada Homes has announced its intention to shift to a portfolio approach to funding. In our view, for this to work, Build Canada Homes must establish partnerships with housing developers in order to fund a number of projects at once. The accountability structure must shift from a system where a funding agreement is established for each project to a system where accountability is reported across all units.
This means that a housing developer would enter into a partnership with Build Canada Homes with unit targets across the entire portfolio. There could also be affordability targets and location targets. This would give us, the housing developers, both predictable funding and the flexibility to optimize public contributions. That way, if a project needs less funding than expected because things are going better than anticipated, we could transfer the money to another project to increase affordability in other areas. This might prevent a project from stalling owing to unforeseen circumstances and a shortfall of one or two million dollars. This would really mark a turning point for housing developers if Build Canada Homes were to implement a true portfolio approach to funding.
Second, there's an urgent need to align the CMHC's programs with Build Canada Homes' programs. As far as we know, Build Canada Homes has no intention of handling major mortgages. This means that all non‑profit housing projects must still go through the CMHC, even with the implementation of Build Canada Homes.
The CMHC programs, such as the apartment construction loan program, weren't designed with non‑profit housing developers in mind. As a result, certain challenges arise when it comes to implementing the loans. It's extremely important to tie them in with the Build Canada Homes programs to ensure the prompt implementation of the projects funded by Build Canada Homes.
Lastly, the final point concerns modern construction methods. We know that Build Canada Homes is geared towards modern construction methods. However, we currently lack a clear idea of the expectations. Needless to say, changing construction methods later in the project to comply with the Build Canada Homes requirements entails considerable costs. We want to say that we're ready to adopt modern construction methods. That said, please tell us quickly exactly what you want so that we can develop projects accordingly.
In short, we're keen to continue working with Build Canada Homes and our current federal partners, such as the CMHC. This will give us the opportunity to build more housing and above all to optimize the use of public funds.
Thank you.