Debates of May 15th, 2023

Canada Mortgage and Housing Corporation—Main Estimates, 2023-24

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Chair, the chief economist is not happy with the way things are going right now. He does not think that the government is going about this strategy the right way. I am not sure what we are talking about here.

Let us talk about another gentleman, Steve Pomeroy, a professor at the School of Public Policy and Administration at Carleton University. He says:

With the new housing strategy, fewer than 16,000 housing units are going to be built and 64,000 are going to be lost, which means that for every one built, four are lost. We're still losing units a lot faster than we're creating new ones.

Those are not my words. Then there is Marie-Josée Houle, the federally appointed federal housing advocate, who said that “the situation has become so bad that, today, no one can deny there is a housing crisis”.

In one of the documents it released a few weeks ago, the National Housing Council, the organization responsible for overseeing this major national strategy, said that 115,000 housing units have been built or renovated since the strategy was launched, but that 550,000 affordable housing units have been lost in the past seven years. According to these figures, we are moving backwards, not forwards.

I would like my colleague to tell me whether anyone was remotely concerned about the loss of these 550,000 affordable housing units when the Liberals came to power in 2015. They likely cost about $750 a month to rent in Montreal.

Where are the 550,000 affordable housing units that have been lost?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Madam Chair, once again, I agree with my colleague that we need to do more. Doing more involves the co-operation of all levels of government and all stakeholders, including the private sector, because the private sector is currently producing 95% of housing.

We also need to work with the municipalities to ensure that we can increase the supply of affordable housing. That is why we put in place a rapid housing accelerator for the municipalities. It will give them the means to contribute to the goal of 100,000 housing units across the country in order to increase both the number of homes on the market and the number of affordable housing units.

With regard to the advocate, she is saying exactly the same thing. We need to increase the number of affordable housing units, but we also need to work on housing as a right. The only party in the House that is doing that right now is our party.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Chair, the member seems pleased. Suddenly, she is pleased, because she says it is happening. Who knows.

The CMHC projects a drop in housing starts in 2023. Is there a game plan? Are there any ideas for dealing with that?

The current situation is dire, and it is not easy. I think that everyone agrees with that. This is not going to get resolved in the next two or three years. If the market continues like this, the problem is not going to get resolved.

Does the party in power in Canada, in other words the Liberal Party, have any solutions for dealing with the drop in housing starts next year and in the coming years in Canada?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Madam Chair, that is why the national housing strategy must be used to work on projects and programs that support increasing supply across the country.

The private sector will be an integral part of this solution. Even though we are seeing a slowdown in housing starts, the private sector is at the table. It wants to contribute to solutions that will increase the housing supply.

There are these kinds of projects everywhere, especially in Montreal, Quebec City and Trois‑Rivières. The private sector is at the table because it wants to be part of the solution.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Chair, in last year's budget, the government invested $500 million in co-operatives. It was a significant investment, I must admit. There was $500 million in last year's budget to help build co-operatives.

However, we have heard that negotiations with the Canadian Co-operative Association are not progressing very well.

Could we have an update on those negotiations?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Madam Chair, what I can tell my colleague about the co-op program is that it was developed with the Canadian Co-operative Association. The program was jointly developed.

When we have more news, we will be happy to share it. One thing is certain: It has been more than 30 years since there has been a program for co-operatives. I am extremely proud of it.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Chair, there was a very interesting article in Le Devoir this morning. I am sure my colleague must have read it.

It talks about who is responsible for social housing in Quebec. In the article, community groups say that they “are concerned about the private sector managing the funding for housing”. We are not sure who they were talking about. They must have been talking about a government like this, but surely not the federal government here in Ottawa.

The Fédération des OSBL d'habitation de Montréal and other organization representatives expressed concern over the fact that, “in the long term, social housing financed by investment funds will be the victim of real estate market pressures”.

Is that something that my colleague is concerned about?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Madam Chair, we are very aware of the challenges of the market right now. What I can say to my colleague is that since 2015, in Quebec alone, the national housing co-investment fund has provided $348 million and 8,000 housing units. The national average rent paid for housing built with the national housing co-investment fund is $700.

As far as community housing is concerned, the national housing strategy has helped maintain 233,000 housing units. In my riding alone, 70 buildings totalling 700 housing units have been bought to maintain affordability.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Chair, I really enjoy my colleague's optimism. She spoke about 700 housing units in Quebec but today we learned that 360,000 households in greater Montreal do not earn enough to pay their rent.

What will we do with these people? What is the game plan for a little affordability for those people? We are talking about 360,000 households in Montreal alone. There must be some living in her riding. I do not believe that 700 housing units will be enough.

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Madam Chair, there is no such thing as a small project. Every home represents an individual, a family, a woman fleeing violence or someone who was homeless. There is no such thing as a small project or small housing.

Every home meets a specific need and that is exactly what the national housing strategy does.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Chair, one of the big problems we have not talked about yet this evening is the financialization of housing. It is a major problem that is hanging over us, but we are not really diving in to talk about it.

In 1993, just a few years after the federal government turned its back social housing, 0% of all rental housing in Canada was owned by large Canadian or international conglomerates. We know that these individuals do not care about the right to housing, just profits. All the advocacy organizations say that this is a problem.

Today, in 2023, 22% of Canada's rental stock is owned by such large conglomerates. These people are not here to help or to build social housing. What is the government going to do about this threat?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Madam Chair, we must also talk about the right to housing and working on market speculation, and that is exactly what we have done. We have imposed a 1% tax on the value of real estate belonging to non-resident Canadians. We have banned foreign ownership for two years by imposing a moratorium. We are committed to reviewing the tax treatment of real estate investments.

Of course, there is a lot of work to do and a lot of programs to put in place, but one thing is certain: On this side of the House, that is exactly what we are going to do.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Madam Chair, the government expects 500,000 new immigrants to arrive next year.

Did the government consult with housing organizations across the country when it decided on these new targets?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Madam Chair, of those 500,000 immigrants we want to bring to the country, we are hoping that one of the areas we can focus on is construction workers, who will enable us to build these units.

Yes, it is a great project. This is a good project for the future, to address the labour shortage in this country.

[Élisabeth Brière, Liberal, Parliamentary Secretary to the Minister of Mental Health and Addictions and Associate Minister of Health]

Madam Chair, I am thankful to have the opportunity to be part of the discussion about housing. To solve Canada's housing challenges, we need all hands on deck. It is great to see the interest from all sides of the House on this matter.

I talk to people in my riding and one of their main concerns is the cost of housing. Too many Canadians are having a hard time paying their rent or making their mortgage payments. Too many young people are worried that they will not be able to buy a house one day. They feel as though their dream of being a homeowner is getting farther and farther out of reach.

The Government of Canada is committed to creating a fair housing system that works for all Canadians. I would like to use my time today to talk about the measures we are taking to level the playing field and make home ownership more affordable, especially for first-time homebuyers.

Let us start by looking at the reasons why housing prices continue to climb. Recently, supply chains, global inflation and the rising interest rates needed to temper inflation have all played a role in driving up costs, but the major factor impacting affordability is a lack of supply. Canada's population continues to grow, and we need housing construction to keep pace.

The Canada Mortgage and Housing Corporation published a major report last year, showing that to reach affordability by 2030, Canada needs 22 million homes. We are only on track to create 19 million homes, meaning we need to build an additional 3.5 million homes. It is clear that we need more homes and we need them fast.

That is why our government, in budget 2022, adopted the most ambitious measures that Canada has ever taken to address this fundamental problem.

Budget 2023 builds on that. It continues our government's efforts to increase the housing supply. With these measures in place, Canada will double the number of new houses built in the country over the next 10 years.

As the Minister of Finance said when she announced the budget, this would take a national effort, with collaboration between provinces and territories, cities and towns, the private sector and non-profits, all working together with us to build the homes that Canadians need. The good news is that this is happening.

Take, for example, the housing accelerator fund. This initiative was developed to respond to the concerns we were hearing from the housing sector that too many construction projects were being delayed because of local administrative processes.

Mayors of cities and towns recognize this and want to clear this up, but they need funding support to do it. That is where the housing accelerator fund comes in. This five-year, $4-billion initiative would provide funding to encourage local governments to speed up housing development and approvals. It would help them to tackle barriers to development in ways that would provide immediate results and keep paying off for years to come.

We recently announced the details of the housing accelerator fund and will begin receiving applications from municipal governments over the summer.

In the meantime, we have been boosting supply through our other national housing strategy programs. Since the 10-year, $82-billion strategy was launched in 2017, it has supported the creation of more than 120,000 new housing units, supported the repair of more than 298,000 homes and maintained the affordability status of 234,000 community housing units across the country.

So far, the measures I have mentioned focus squarely on the challenge of boosting housing supply. After all, that is the top issue affecting housing affordability. However, the government is committed to tackling affordability from all angles, and we are investing in other measures to give young Canadians a leg-up onto the property ladder and a chance to reach their dreams of home ownership. That is why, last August, we extended our successful affordable housing innovation fund with a new rent-to-own stream.

This is a $450-million investment to create up to 6,000 affordable housing units over the next six years.

The rent-to-own stream will invest $200 million, as a pilot, to yield 1,300 new units. The rent-to-own stream acknowledges that one of the biggest barriers to home ownership is saving for a down payment, especially while still paying rent. There are a few options for people to leverage the rent they pay toward making a home purchase.

This new funding source will help landlords develop and test rent-to-own models and projects across the country. We are exploring innovative and affordable projects, with guarantees that allow Canadians to move from renting to owning within five years.

We also launched a first-time homebuyer tax-free savings account to the tune of up to $40,000. Like an RRSP, it is tax-deductible. When used to buy a first home, it is also non-taxable, like a TFSA. In other words, it is tax-free in and tax-free out.

So far I have talked about how our government helps make ownership more accessible by building more housing. I also talked about measures to help first-time homebuyers build up a down payment.

I want to finish by touching on another factor driving up the cost of housing, that is, unfair practices in the housing market. Homes should not be commodities. Homes are meant to be a place where families can lay down roots, create memories and build a life together.

That is why we created new rules that will prohibit foreign investment in housing in Canada for a period of two years.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act came into effect on January 1. In March, we responded to feedback and introduced amendments. These enhance the flexibility of newcomers and businesses looking to add to Canada's housing supply, all the while ensuring that housing in Canada is owned by Canadians, for the benefit of everyone who lives in this country.

We are also taking measures to combat the resale of homes, real estate flipping, by ensuring that the resulting profits from the sale of a house held for less than 12 months are fully taxed. This measure will be implemented this year and it will include certain exceptions for unexpected life events. This measure will help ensure that investors who resell homes quickly pay their fair share and play a role in lowering housing prices for Canadians.

I am thankful for the chance to highlight just a few of the actions that our government is taking to make the dream of home ownership a reality for more young Canadians. These actions are part of a long-term, comprehensive strategy to give more Canadians a safe, stable and affordable place to call home.

I would like to ask the minister to elaborate on the initiatives we are undertaking to help first-time homebuyers, such as the first home savings account, and how these programs are designed to protect the dream of home ownership.

[Ahmed Hussen, Liberal, Minister of Housing and Diversity and Inclusion]

Madam Chair, the first-time homebuyer incentive, the first-time homebuyer tax-free savings account, measures to increase supply, and banning the foreign ownership of Canadian residential real estate are all measures meant to encourage continued access to the Canadian dream of home ownership.

We know that it is getting challenging for a number of Canadians to access their dream of home ownership, so we are doing our part to make sure that first-time homebuyers continue to have access to the dream of home ownership by introducing the first-time homebuyer tax-free savings account of up to $40,000.

[Élisabeth Brière, Liberal, Sherbrooke, QC]

Madam Chair, we hear the Conservative members opposite pay a lot of lip service to supporting the dream of home ownership, but I have yet to see any policies that will actually do just that. What are the minister's thoughts on this?

[Ahmed Hussen, Liberal, York South—Weston, ON]

Madam Chair, the hon. member is absolutely right. When we brought in the first-time homebuyer incentive, the Conservatives voted against it, even though they claim to care about first-time homebuyers. When it came to introducing the first-time homebuyer tax-free savings account, it was the same story, and the Conservatives voted against it.

[Élisabeth Brière, Liberal, Sherbrooke, QC]

Madam Chair, in my riding, Sherbrooke, a new 12-room house for women, Maison Margot, will soon open its doors and offer a home to women who are in crisis or in a period of transition. This wonderful project was developed by Habitations l'Équerre. It is a great example of collaboration between different organizations so that people in local neighbourhoods feel involved.

I would like the minister to comment on our overall approach to improving the housing situation in Canada.

[Soraya Martinez Ferrada, Liberal, Parliamentary Secretary to the Minister of Housing and Diversity and Inclusion (Housing)]

Madam Chair, I thank my colleague for telling us about a project in her riding. There are projects like that one right across the country. One thing we wanted to ensure was that we created shelters for women fleeing violence. These shelters are built in such a way as to provide safe and affordable housing and also the social safety net they need to to take back control over their lives.

[Élisabeth Brière, Liberal, Sherbrooke, QC]

Madam Chair, between May 1 and May 3, the minister and the parliamentary secretary held a series of round tables to gather stakeholder views and feedback on the national housing co-investment fund and the rental construction financing initiative.

Can they share with us the main points that have been raised by the various stakeholders in the housing sector?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Madam Chair, in terms of the national housing co-investment fund, we have listened to a number of people across the country. What we want is to make sure that this fund, which is primarily for community non-profits, is quick and easy to access because we want to increase the number of affordable housing units across the country.

[Élisabeth Brière, Liberal, Sherbrooke, QC]

Madam Chair, we talked earlier about housing co-operatives. I would like to know how the government intends to use housing co-operatives to help increase the housing supply. How much money has been allocated to support housing co-ops?

[Soraya Martinez Ferrada, Liberal, Hochelaga, QC]

Madam Chair, I am very pleased to answer that question because I have lived in a housing co-op myself. I have helped establish two housing co-ops in my lifetime, and I am a firm believer in that model. After 30 years, we finally have a program dedicated to co-operatives. The government has allocated $1.5 billion over five years for co-operatives across the country.

[Élisabeth Brière, Liberal, Sherbrooke, QC]

Madam Chair, how will prohibiting people who are not Canadian citizens or permanent residents from flipping homes help keep prices low for Canadians?