The new Minister of Housing, France-Élaine Duranceau, wants to think outside the box by asking the private sector to help increase the supply of affordable housing in Quebec. To those who might see it as an abandonment of public programs, she retorts that “everyone must do their part”.
“We want to find other ways of doing things. Because if we continue to do as before, if we don’t develop new approaches, we will end up in the same situation, “she said in an in-depth interview with the To have tothe first since joining the Council of Ministers.
As a good CAQ candidate, she repeated throughout the election campaign that the party would deliver 11,700 affordable housing units in four years if re-elected.
However, this commitment, apparently prudent, promises to be difficult to respect while the government is still struggling to deliver the 15,000 apartments promised in the previous mandate.
Coming from a real estate background myself, I am meeting a lot of actors, people who were not necessarily present in the field of housing and who certainly did not think about social and affordable housing before .
“We are not going to change the situation with 22 units,” dropped the new minister on Friday, shortly after announcing the creation of 48 new social housing units in an HLM for the elderly in Drummondville. .
“Coming from a real estate background myself, I am meeting a lot of actors, people who were not necessarily present in the field of housing and who, certainly, were not thinking about social and affordable housing. before,” explains the former vice-president of Cushman & Wakefield, an international commercial real estate consulting firm. “But there, given the market conditions, there are private companies who understand that they have to take this into account in their housing supply and are at the table to see how they can contribute too. »
In search of patient capital
Who are we talking about here? “Large foundations”, “builders” whose activities could be slowed down in the coming months by the rise in interest rates.
“There, the market is tighter. There is a rate hike. We know that next year, there are many projects that are put on hold. […] Can a project that was purely private include affordable units? We are seeing funding that would be beneficial. To encourage builders to get into it. »
Quebec has already taken several steps on this path. In June, the Société d’habitation du Québec (SHQ), which manages the government’s social housing programs, reached an agreement with the Fonds de solidarité FTQ and the Mouvement Desjardins.
Investments of 350 million were granted to these two partners in exchange for a promise to deliver 2,000 affordable and social housing units in three years, with the guarantee that the majority of the apartments would remain affordable for 35 years. Another $45 million agreement with Fondaction should allow for the creation of 1,000 affordable condominiums on the market.
The Minister expects the delivery to be made on time. “According to the information we have, things are progressing very well,” she said. These people have patient capital and are willing to make less return to contribute to society. We are hopeful that this will allow the projects to move forward quickly. »
Mme Duranceau also took note of Ivanhoé Cambridge’s long-term plans. Recently, the real estate arm of the Caisse de depot et placement du Québec (CDPQ) has also shown interest in investing in affordable housing.
Affordability that requires an increased offer
Like all government ministers, Mr.me Duranceau was asked by Prime Minister François Legault to present him with three main priorities for his mandate. The first: to sort through the thousands of promised and undelivered homes in recent years.
“We have to fix this,” she said. Why is it not progressing? Because they lack money, because the costs have increased? Because the land is no longer available? That the city didn’t issue the permit? What are the needs by region? »
We will not be surprised: the Minister also has as a priority the fulfillment of the promise of 11,700 new affordable housing units. Finally, she says she wants to work on “affordability”.
In this regard, France-Élaine Duranceau does not seem to place much hope on government programs. “Affordability will go through the housing stock we already have,” she says. Because, “given the construction costs we have today”, it is “illusory” to believe that the new housing units built will be affordable. “Unless they are subsidized. But there, we are not going to subsidize 100% of the constructions. »
Words that are likely to make tenant associations and social housing activists jump. Although a certain mistrust would already be present since the entry of Mme Duranceau to the Council of Ministers.
“We are also taking advantage of this appointment to emphasize that the role of a Minister of Housing is not reduced to accommodating developers and real estate companies,” wrote the Regroupement des committees logement et associations de tenants du Québec (RCLALQ) at the time. ) in his congratulations to the new portfolio holder.
When asked about this alleged bias, France-Élaine Duranceau does not lose her smile and repeats that the central issue is the lack of supply on the market. “It’s economical: if your supply is low then you have a big demand, it puts pressure on costs. I respond to those who are worried [du fait] that it is necessary to work on the offer in general. […] We need everyone. Yes, we need more community-based traditional groups […] But we also need the private sector to get involved to speed things up and above all increase supply. »
However, the Minister is aware that certain words may have a negative connotation with some people. Three times during the interview, she launched that she saw herself “as a developer” before changing her mind. “People aren’t going to like it, say ‘catalyst’ instead. »
From homeless to first-time buyers
She considers that her role as Minister of Housing must be seen in a “global” way. That she will seek to help everyone, “from the homeless to the aspiring owners”.
And precisely: what does it have to say to aspiring owners who are in the process of mourning their dream of one day buying a house?
The minister says she wants to do something, but has not yet found the right formula. “There again, I want to work on the offer. And we are looking at what are the avenues in terms of the programs we can offer. […] We look at what is the right way because it’s easy to give money, but that’s not what will be structuring. And at the limit, it can just increase prices. »
What about people who are unable to find an apartment within their means? “It is sure that it will not be reduced because we have a Minister of Housing”, she answers first, before mentioning that the municipal housing offices (OMH) offer support services .
The government also expanded access to the Allocation-logement (PAL) program during the economic update, she reports. “Depending on the level of income, it can be up to $170 that can be allocated to pay the rent. There are programs to help. You have to take advantage of it. »