Madam Speaker, I will be splitting my time with the distinguished member for Kingston and the Islands.
Before I begin my speech, I would like to pay my respects to the four Canadians who were taken from their family and friends. This absolutely breaks my heart. I know all Canadians have their thoughts with this family and with the nine-year-old boy for whom we all wish a full recovery. May light overcome such darkness, and, yes, we must root out all forms of discrimination, including Islamophobia. It needs to be called out. It needs to be condemned. At this time, we all stand shoulder to shoulder with Muslim Canadians across this country.
I am pleased to contribute to this very important debate that we are having, as this issue impacts all Canadians from coast to coast. I would like to thank the hon. member for raising the issue of housing. It is a frustrating period for many Canadians who are trying to purchase their first home. High housing costs, especially in urban centres, continue to put financial pressure on many middle-class and low-income Canadians. COVID-19 has exacerbated existing housing affordability and homelessness issues and the public health risks of substandard and crowded living quarters.
This government knows that a long-term plan for a faster-growing Canadian economy must include housing that is affordable for Canadians, especially young families. Stable housing is critical for communities and for a strong middle class. Affordable housing is also essential for economic fairness and growth.
Investments to make housing more affordable for the most vulnerable, coupled with measures to limit foreign speculation in the housing market, will help ensure that our economic recovery is an inclusive one that helps more people join the middle class.
That is why the government has a plan as part of budget 2021 to invest $2.5 billion and reallocate $1.3 billion in existing funding to speed up the construction, repair or support of 35,000 affordable housing units.
Since 2015, this government has made historic investments to increase supply and make housing more affordable. For example, under Canada's first national housing strategy, we are on track to deliver over $70 billion in investments by 2027-28 that will support the construction of up to 160,000 affordable homes and increase Canada's housing supply.
We also introduced the rapid housing initiative to address urgent housing needs for vulnerable Canadians in all regions of Canada. The $1-billion program will be expanded with an additional $1.5-billion allocation from budget 2021.
At least 25% of that money will go towards women-focused housing projects. Overall, this new funding will add a minimum of 4,500 new affordable units to Canada's housing supply, building on the 4,700 units already funded.
The funding is available to municipalities, provinces and territories, indigenous governing bodies and organizations, and non-profit organizations. Funding will be used for the construction of modular housing as well as for the acquisition of land and for converting existing buildings into affordable housing units. Most recently, the federal government announced it is aligning the minimum qualifying rate for insured mortgages with that for uninsured mortgages, subject to review and periodic adjustment, that being the greater of the borrower's mortgage contract rate plus 2%, or 5.25%. This will apply to insured mortgages approved as of June 1, 2021.
The government also recently expanded access to the first-time home buyer incentive to make sure more middle-class Canadians in Toronto, Vancouver and Victoria and cities of the like can benefit from this support. The program reduces a first-time home buyer's mortgage payments to make buying a home more affordable.
Another factor contributing to unaffordable housing prices for many Canadians in some of our biggest cities is speculative demand from foreign non-resident investors. That is why on January 1, 2022, the government will introduce Canada's first national tax on vacant and under-used residential property owned by non-resident non-Canadians. Houses should not be a passive investment vehicle for offshore money. They should be homes for Canadian families, many of whom reside in my riding of Vaughan—Woodbridge.
The tax will require owners other than Canadian citizens or permanent residents of Canada to file a declaration as to the current use of the property, with significant penalties for failure to file. Revenues generated through this tax will help support the government's significant investments in making housing more affordable for all Canadians.
I would like to turn back to some of the other housing measures contained in the budget. Budget 2021 proposes $600 million over seven years to renew and expand the affordable housing innovation fund. To date, this program has committed funding to support the creation of over 17,600 units, including more than 16,300 affordable housing units and units for persons with accessibility challenges. This new funding would support the creation of up to 12,700 more units.
This is an investment of $315.4 million over seven years through the Canada housing benefit to increase direct financial assistance for low-income women and children fleeing violence to help with their rent payments.
The budget also proposes $118.2 million over seven years through the federal community housing initiative, to support community housing providers that deliver long-term housing to many of our most vulnerable.
Of the $1.3 billion of previously announced funding that has been reallocated, $750 million under the national housing co-investment fund will accelerate the creation of 3,400 units and the repair of 13,700 units. Some $250 million under this program will support the construction, repair and operating costs of an estimated 560 units of transitional housing and shelter spaces for women and children fleeing violence.
We are providing $300 million through the rental construction financing initiative, which will be allocated to support the conversion of vacant commercial property into housing. This funding will target the conversion of excess commercial property space into 800 units of market-based rental housing.
This government also recognizes that access to safe and sustainable housing can be particularly challenging in the north. Therefore, budget 2021 proposes to provide $25 million each to the governments of the Northwest Territories and Nunavut to address housing priorities.
Our government is focused on ensuring that Canadians are able to have an affordable and safe place to call home. The measures I have outlined will help Canadians find affordable housing, spur job creation and local economic recovery, alleviate cost pressures in the housing market overall and grow the middle class.