(OTTAWA) The federal government has invested billions of dollars to quickly build affordable housing across the country, but construction delays suggest that many projects approved for funding are not meeting deadlines.
The Rapid Housing Initiative is a federal program launched in 2020 that provides funding to cities and nonprofits to build affordable housing for vulnerable Canadians, including those experiencing homelessness.
The federal government has offered $2.5 billion in the first two rounds of funding for the project, on the condition that approved units be built within 12 months, or within 18 months in northern or remote communities.
But a document prepared by the Canada Mortgage and Housing Corporation (CMHC) in response to a written question from an MP shows that the majority of approved units have yet to be built.
The first project call cycle closed at the end of March 2021 and resulted in the approval of 4,792 housing projects, while another 5,473 were given the green light in the second cycle, which was carried out a year later. .
The CMHC document, dated Nov. 30, says only 1,449 units have been completed.
Neither CMHC nor the office of Housing Minister Ahmed Hussen said how many projects had missed deadlines.
A CMHC spokesperson, however, acknowledged that some had been delayed. “Due to the unprecedented circumstances real estate developers have faced in recent years, including supply chain disruptions, rising costs and severe weather, some projects are expected to take longer, primarily due to due to infrastructure and construction issues,” said Leonard Catling.
Carolyn Whitzman, a housing policy expert and professor at the University of Ottawa, says the federal government has touted the Initiative as a success, as more units than expected have been approved for construction. The first two rounds of approvals exceeded the target, which was 2,600 units in total, she noted.
But the professor thinks that several obstacles stand in the way of many affordable housing projects, including opposition from residents and lack of support from provincial governments.
“In order to get supportive housing through a rapid housing initiative or any other program, you need very strong collaboration between all three levels of government,” she said. .
She also recalled that housing construction has also been influenced by rising costs and labor shortages.
In November, the federal government announced the Initiative’s third round of funding, which will provide an additional $1.5 billion.
The federal government has extended construction timelines for this round to 18 months for most homes and 24 months for projects in northern or remote communities.
Prime Minister Justin Trudeau’s government has made affordable housing a cornerstone of its agenda to support and grow the middle class. He announced his National Housing Strategy in 2017, a ten-year plan that invests tens of billions of dollars in affordable housing.
In a report released in November, Auditor General Karen Hogan found the government was not tracking its progress in reducing chronic homelessness, despite its goal to lower it by 50% by 2028.
The report of M.me Hogan revealed that there are gaps in data collection within the federal government, which makes it difficult to assess the success of various programs.
CMHC, as the leader of the national housing strategy, has spent $4.5 billion since 2018. But the report found society does not know who is benefiting.
The PD Whitzman argued that failure to track the success of his projects can lead to public distrust and skepticism about whether issues such as access to housing can be addressed by the federal government.
“If you’re going to invest billions of dollars in a program, you have to measure its effectiveness,” she said.