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49. 2023 Fall Economic Statement/Departmental Legislation

2023 Fall Economic Statement/Departmental Legislation

Issue / question

What is the impact of the 2023 Fall Economic Statement on housing and infrastructure priorities?

Suggested response

• The 2023 Fall Economic Statement was clear: Canada does not have enough homes and we need to build more of them, fast. Building the homes that Canada needs will require a national effort – an effort that the federal government is leading.
• This is why the 2023 Fall Economic Statement announced a range of measures to address the housing crisis, including:
  • An additional $15 billion in new loan funding for the Apartment Construction Loan Program, which will support more than 30,000 additional new homes across Canada.
  • An additional $1 billion over three years for the Affordable Housing Fund to support non-profit, co-op, and public housing providers to build more than 7,000 new homes.
  • Cracking down on non-compliant short-term rentals and introducing a Canadian Mortgage Charter to support borrowers through difficult times.
• Finally, it announced our intention to introduce legislation to establish the department of Housing, Infrastructure and Communities as the federal lead for improving housing outcomes and enhancing public infrastructure.

Background

Building on the significant action the government has already taken, the 2023 Fall Economic Statement (FES) announced the following in support of initiatives and priorities for the housing and infrastructure portfolio:

• $15 billion in new loan funding for the Apartment Construction Loan Program (previously the Rental Construction Financing Initiative) bringing the program's total to over $40 billion in loan funding. This will support more than 30,000 additional new homes, bringing the program's total to over 101,000 new homes supported by 2031-32.
• An additional $1 billion for the Affordable Housing Fund (previously the National Housing Co-Investment Fund) over three years to support non-profit, co‑op, and public housing providers to build more than 7,000 new homes by 2028.
• Reaffirmed housing conditionality to tie access to federal infrastructure funding to actions by provinces, territories, and municipalities to increase housing supply where it makes sense to do so.
• Leveraging the Canada Infrastructure Bank to support more housing to support communities seeking to develop infrastructure to grow and build more homes. Details of this work will be announced by Budget 2024.
• In recognition of the link between housing and infrastructure, the government has introduced legislation to establish the Department of Housing, Infrastructure and Communities to clarify the department's powers, duties, and functions as the federal lead for improving housing outcomes and enhancing public infrastructure.

Furthermore, the FES announced other key initiatives that will complement the priorities of the portfolio, including:

• Cracking down on non-compliant short-term rentals which includes denying income tax deductions for expenses incurred to earn short-term rental income, including interest expenses, in provinces and municipalities that have prohibited short-term rentals, and proposing $50 million over three years to support municipal enforcement of restrictions on short-term rentals. We expect the latter to be delivered within the portfolio.
• Continue federal work to remove the barriers to internal labour mobility, including by leveraging federal transfers, and other funding, to encourage provinces and territories to cut the red tape that impedes the movement of workers within Canada.

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