The federal budget is taking affordable housing seriously, with a new National Housing Strategy that wants to tackle Canada’s housing crisis.
The 2017 budget proposes to spend $11.2 billion over 11 years and will build safe and affordable housing across the country. In cities with high prices and a severe lack of affordable housing, like Toronto and Vancouver, this funding cannot come soon enough. The government’s proposed housing fund will be run by the Canada Mortgage and Housing Corporation (CMHC) — the country’s public insurance program for mortgages. The CMHC will receive $5 billion over 11 years to work on several projects related to housing. Another $3.2 billion will be dedicated to affordable housing specifically and will use a multilateral investment framework, relying on private and public funding to get affordable housing projects up and running across the country.
Out of the $11.2 billion, $3 billion will be spent in the next three years and $20 million for this year.
The money budgeted falls short of what the big city mayors caucus asked for at their meeting in late 2016. They asked for a pledge of $12.6 billion, spread over eight years to solve the affordable housing crisis that are growing in Canada’s largest cities. Toronto specifically has $2.6 billion in repairs needed for Toronto Community Housing units on the brink of being closed down.
Mayor John Tory is asking that the province pitch in to the housing fund as well and fill the gap that the federal government cannot commit to. Affordable housing in Toronto needs a huge investment to repair current community housing units as well as provide more. There are 82,414 households on the waitlist in the city, most consisting of families and seniors, and with rising house costs people are desperate for somewhere to live.
All three levels of government ultimately need to work together to tackle the affordable housing crises popping up across Canada. The National Housing Strategy is a brave step and the commitment of billions of dollars will make headway to giving vulnerable parts of the population somewhere safe and healthy to live. Without a home, it is nearly impossible to escape the throes of poverty — finally it seems that Canada is realizing the importance of shelter in the Great White North. Let’s hope that investment is maintained!