(Ottawa) Conservative Leader Pierre Poilievre introduced a private member’s bill in the House of Commons on Wednesday to resolve the national housing crisis.
The bill, which is unlikely to pass, focuses on using federal spending on infrastructure and mass transit to push cities to build more housing.
Mr. Poilievre proposes requiring that cities increase housing construction by 15% each year to receive their usual infrastructure transfers.
Cities that fail to meet this goal will see a reduction in the federal money they receive, while those that exceed it will receive additional money.
Funding for transit projects would also only be provided to cities when high-density housing is built and occupied around transit stations.
Housing experts, advocates and industry groups generally agree that municipalities place many barriers to new development, and that city councils are often influenced by anti-development sentiment.
Poilievre says tying federal funds to housing outcomes at the municipal level is the primary way to solve the housing crisis.
The Liberals also plan to use federal funds to push cities to build more housing through their recently launched Housing Acceleration Fund. This fund only gives cities additional money and does not involve withholding money if they do not meet established goals.
While introducing his bill in the House of Commons on Wednesday, Mr. Poilievre called the Liberal fund “more bureaucracy.”
He contrasts it with his own plan, which proposes a “simple mathematical formula” to reward — or punish — cities.
The Conservative proposal would reallocate $100 million from the Housing Acceleration Fund to give additional money to communities that are significantly exceeding housing goals.
The Conservatives explained that the bill would also give Canadians the opportunity to complain to the federal government about municipalities that block new developments, creating a new federal complaints process. The federal government would then refuse to fund more if the complaint is legitimate.
Murtaza Haider, a professor of data science and real estate management at Toronto Metropolitan University, said he generally likes the conservative approach of limiting government bureaucracy and designating cities as “gatekeepers” who block developments.
“What Pierre Poilievre is proposing reflects typical right-wing thinking that less government is better. And I am of the opinion that perhaps that is the preferred mode that we should be thinking about,” Mr. Haider said.
While applauding the idea of providing additional funding linked to housing outcomes, Mr. Haider was cautious about reducing infrastructure transfers for cities that do not meet targets.
“I find it troubling that they (withhold) infrastructure funding for municipalities (if) for whatever reason they are not able to meet the target,” Haider said. I think this goes a little too far. »
Haider said the denial of funding could lead to even greater housing shortages if cities are unable to move forward with needed infrastructure projects.
“I think at the end of the day, the federal government should always be there to provide the necessary infrastructure, regardless of what happened on the housing file,” he said.
Remove GST on rental housing estates
The bill also proposes to remove GST charges on rental developments that offer below-market rents, in contrast to the Liberals’ plan to remove the tax on all rental developments.
Carolyn Whitzman, a housing expert and assistant professor at the University of Ottawa, said she favors using carrots and sticks to get cities to build more housing.
But she said limiting the GST exemption to below-market rental developments would add an unnecessary layer of complexity.
“GST is not where I would add a layer of bureaucracy,” she said.
Mme Whitzman also highlighted the lack of a plan to address the need to significantly increase public housing stock.
Below-market rents, she said, would not necessarily be affordable enough for those who need very affordable housing.
“We haven’t heard anything about non-market housing. We haven’t heard anything about supportive housing, we haven’t heard anything about long-term care. We haven’t heard anything about the most in-demand type of housing we need right now,” M listedme Whitzman.
Other elements of the plan include the sale of 15% of federal buildings and land for housing development as well as the resumption of bonuses and compensation for Canada Mortgage and Housing Corporation executives for delayed approvals. and missed housing construction targets.