Human Resources Committee on May 25th, 2026

[The Chair (Robert Morrissey (Egmont, Lib.)), Liberal, Bobby Morrissey]

Good afternoon, committee members.

The clerk has advised me that we have a quorum and we have respected the time allocation to get from the chamber to committee following the last vote.

With that, I welcome you to meeting number 37 of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

The committee is meeting on main estimates 2026-27 for the first hour, pursuant to the motion adopted on Thursday, April 23, 2026, and on housing starts in relation to federal programs for the second hour, pursuant to the motion adopted on Thursday, February 5, 2026.

The meeting is taking place in a hybrid format, meaning that there could be witnesses or members appearing virtually.

If you are appearing virtually, you have the option—as do those in the room—of participating in the official language of your choice. If you're in the room, please make sure you select the channel on the headset that gives you the language in which you wish to participate. As well, please silence your devices before we begin, and please refrain from tapping the microphone boom, for the benefit of the interpreters. If you are appearing virtually, click on the globe icon at the bottom of the Surface and choose the official language of your choice.

If there is an interruption in interpretation services, please get my attention. We'll suspend while it is being corrected.

Before I welcome our first witnesses, I have one item to deal with. I need agreement to adopt a budget of $500 for the meeting on BDM that took place on Thursday, May 7. That was on the software technology. Do we have agreement for the $500?

[Some hon. members]

Agreed.

[The Chair, Liberal, Bobby Morrissey]

I am seeing consensus, Mr. Clerk.

Pursuant to Standing Order 81(4), I will now call vote 1 under the Canada Mortgage and Housing Corporation.

I would like to welcome our witness, the Honourable Gregor Robertson, Minister of Housing and Infrastructure. With him, from the Department of Housing, Infrastructure and Communities, we have Paul Halucha, deputy minister, and Michelle Baron, assistant deputy minister and chief financial officer, corporate management sector.

Minister, you have five minutes for an opening statement if you choose. Do you have an opening statement?

[Gregor Robertson, Liberal, Minister of Housing and Infrastructure]

Thank you, Mr. Chair and committee members, for the invitation to speak here today about the 2026-27 main estimates for the Housing, Infrastructure and Communities Canada portfolio.

I am happy to be here to provide an overview and to cover the progress we've been making in building complete, connected and resilient communities. That is our mission.

I'm joined today, as the chair mentioned, by Paul Halucha, our deputy minister, and Michelle Baron, our assistant deputy minister and CFO.

I'll dive right in to talking about HICC, Housing, Infrastructure and Communities Canada, its partners and how we work closely together to invest in the critical infrastructure that makes a real difference in communities big and small. Together, we take action to build stronger communities, with good neighbourhoods and the homes that people can afford.

For the 2026‑27 main estimates, HICC is seeking just over $17 billion in funding, representing a net increase of $9,076 compared to the previous year’s main estimates. This increase for 2026‑27 is primarily influenced by the continued delivery of the investing in Canada infrastructure program and the Canada public transit fund. These two programs are providing long-term, stable federal investments that build connected communities, support economic growth and create good jobs.

While the Canada public transit fund, CPTF, and the investing in Canada infrastructure program, ICIP, continue to advance, it's also important that we look ahead and highlight the progress we are making to support community infrastructure, invest in major projects and improve housing affordability. Through the new $51-billion build communities strong fund, the department is making generational investments that will modernize Canada's infrastructure and will unlock housing supply and support economic growth. This includes funding for housing-enabling infrastructure, health infrastructure and infrastructure at colleges and universities.

We are moving quickly. In March, we announced the Canada-Ontario partnership to build, which will reduce development charges and increase housing affordability. Just last week, I announced a comprehensive agreement to deliver approximately—

[The Chair, Liberal, Bobby Morrissey]

We do not have video. I must suspend while this is being corrected.

We're suspended.

[The Chair, Liberal, Bobby Morrissey]

Thank you, committee members. The technical issue has been resolved.

Minister, you had the floor. You were partway through your opening comments. I go back to you.

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

Thanks, Mr. Chair.

I'll dive back in and recount an announcement, made last week with Yukon, that will deliver approximately $350 million in housing and infrastructure investments under the build communities strong fund and with Build Canada Homes, in partnership with the Yukon territorial government. We're making good progress, but there's certainly lots more to come.

HICC is also taking a leadership role to support the most vulnerable Canadians through Reaching Home, the veteran homelessness program and the unsheltered homelessness and encampments initiative. Our government is providing targeted funding to support the reduction and prevention of homelessness.

In September 2025, Build Canada Homes was created to build more homes across our country and to build more affordable homes faster. Since its launch, Build Canada Homes has moved quickly to get housing projects off the ground. It has already advanced six direct-build projects in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg and Edmonton, with commitments to get shovels in the ground this year. In addition, there are now six major partnerships already secured with provincial and community partners. We're just getting rolling. There's a lot more to come.

CMHC and the Canada Infrastructure Bank are important partners that will continue to play a vital role in building Canada strong. Looking forward, CMHC will focus on its core role as Canada's primary market-oriented housing finance institution, emphasizing its responsibilities for mortgage loan insurance, securitization and rental construction financing to support housing supply. There's been big uptake of the apartment construction loan program, which is building record levels of rental housing across the country.

The Canada Infrastructure Bank will continue to play a central role in advancing our infrastructure agenda as it accelerates investments in high-impact projects that align with national priorities. The main estimates before you today will support the housing, infrastructure and communities portfolio in delivering on our ambitious commitments to Canadians—commitments that help grow our economy, and support Canadian workers, jobs and industries.

All members of this committee know that, in this critical moment in our country's history, now is the time to invest in ourselves, to strengthen ourselves and to build ourselves up. We are taking action to increase housing affordability and to build generational infrastructure and strong communities today and into the future.

Thank you, and I look forward to answering any questions you may have.

[The Chair, Liberal, Bobby Morrissey]

Thank you, Minister.

For members' clarification, we will still have our full one hour with the minister on this.

We'll begin with Mr. Aitchison for six minutes.

Mr. Aitchison, go ahead.

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

Thank you, Mr. Chair.

Thanks for being here, Minister. I appreciate your time.

The first thing I want to ask about is this: We've talked a bit before, in past appearances at the committee and certainly in the House of Commons, about the creation of Build Canada Homes—the fourth federal housing agency and the third Crown corporation.

Can you tell us how much has been spent to date on establishing the new bureaucracy around Build Canada Homes?

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

Through the chair, the allocation to Build Canada Homes in budget 2025 was $13 billion, and a small fraction of that has been invested in the start-up and administration of Build Canada Homes.

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

That's specifically what I'm asking, though. How much of that $13 billion has been spent creating the new thing?

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

I don't have it at hand. I could ask my deputy minister if he has those figures.

[Paul Halucha, Deputy Minister, Department of Housing, Infrastructure and Communities]

I'm glad to do it.

During the first year, which was a start-up year, the expenditures were around $6 million or $7 million, and they were absorbed through the department. For operating next year, $44 million has been approved.

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

Can you tell me, Minister or Mr. Halucha, how much has been spent so far to restructure the Canada Lands Company? I understand that the development arm of Canada Lands is now going to be under the responsibility of Build Canada Homes, and Canada Lands will focus on operating only tourism infrastructure again.

I'm sure there's been some expenditure related to that too. Has there been...?

[Paul Halucha]

At this point, there is work ongoing, so we don't have a final number on that. There is a contract we went to in the department in order to provide contracting services overall for Build Canada Homes. I think it was about $3 million or $4 million. That was the upper end. They have to build all the elements of a Crown corporation. Inside of CLC, they haven't moved yet. They're in the process of moving, so there would be due diligence costs at this point. I could get back to you on that.

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

Maybe what I need is some clarification. The new Crown corporation, Build Canada Homes, will be taking over part of the other Crown corporation's responsibilities. Is that what's happening?

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

Yes, that's correct.

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

Okay.

Were any costs incurred from removing certain programs delivered by the first Crown corporation, Canada Mortgage and Housing Corporation, and moving programs from there over to Build Canada Homes? Have there been any costs related to that?

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

As the deputy minister mentioned, there have been some smaller administrative costs with respect to restructuring, but the whole purpose is around efficiency. Build Canada Homes is the agency for affordable housing in Canada. The affordable housing activity, the housing activity in Canada Lands Company and the affordable housing activity in CMHC are all being consolidated in one agency that can focus and specialize in these; therefore, the responsibilities of CMHC and CLC are reduced.

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

That's great. I want to move on now. You've covered it. Thank you.

Thank you, Mr. Halucha, for helping with it.

My next question is for you directly, Minister. It's pretty simple. What changed your mind on HST and on removing the GST on all new homes under $1 million?

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

Well, there are a few factors in terms of giving a GST break. The market challenges in Toronto and Vancouver have been very significant, with pre-sales evaporating and many of the builders having real challenges—their equity stuck in projects and homes that were not selling. The market is clearly affected by global uncertainty right now. People are choosing, particularly in those markets, not to buy homes, and new homes in particular.

We started with the first-time homebuyer break on GST. That didn't move the needle enough to make a difference with the supply that was sitting on the market in Vancouver and Toronto in particular. At that point, we went to the next level of offering a time-limited reduction in GST. In Ontario's case, they offered their provincial sales tax, so the HST is reduced across the board.

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

Okay. That's great. Thank you. That's for Ontario specifically. I guess the government hasn't actually cut the GST. They're giving Ontario the money to somehow rebate it. We still don't know how that will work. I've asked the Ontario government, and they don't know. I guess the CRA will administer this or something. I don't know how that works.

I guess that begs the next question. Since you've raised it, and I asked you when you were last here about British Columbia, the GST will be rebated on all new homes under $1 million in Ontario for a year. Will you be doing the exact same thing with British Columbia—where, as you mentioned, they have the same challenges as the GTA in Ontario?

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

Before Parliament is a housing supply act that is offering funding to all provinces to apply toward increasing housing supply. Some provinces will choose different routes to use that funding. Ontario is choosing to go forward with that HST reduction. We are working with the Province of B.C. right now on a number of fronts, including reducing the development charges as part of the infrastructure funding with the build communities strong fund. They have access to housing supply funding as well. It is hoped that there will be a reduction in taxes for homebuyers in B.C. as well.

[The Chair, Liberal, Bobby Morrissey]

Thank you, Mr. Aitchison.

We now go to Mr. Joseph for six minutes.

[Natilien Joseph, Liberal, Longueuil—Saint-Hubert, QC]

Thank you, Mr. Chair.

I'd like to tip my hat to the minister for honouring us with this visit today. We realize how much he has on his plate. When it comes to tackling homelessness, he is giving his all and then some. We can see that.

Thank you very much, Minister.

Before I ask my question, I want to say that everyone at the table understands that homelessness is an issue that mustn't be taken lightly. You illustrated that. No province can turn things around on its own. Neither the federal government nor municipalities can do it alone either.

How do we strengthen our co-operation with Quebec, in particular, to permanently reduce homelessness?

We can talk about the other provinces as well. It's clear that Quebec has shown itself to be very flexible when working with the federal government. That's why I mentioned Quebec in the first place.