Key Issues

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1. 2024-25 Main Estimates – Portfolio
2. 2024-25 Departmental Plan
3. Department of Housing, Infrastructure and Communities Act
4. Budget 2024 – Impacts for the INFC Portfolio

2024-25 Main Estimates – Portfolio

Issue / question

What is the Housing, Infrastructure and Communities portfolio seeking in the Main Estimates 2024-25?

Suggested response

• The Housing, Infrastructure and Communities portfolio is seeking $15 billion in funding for housing, public transit, major infrastructure projects, green, rural and northern infrastructure across the country.
• The decrease of $731.7 million from the previous year’s Main Estimates is primarily attributable to:
  • Infrastructure Canada realigned funds into future years under the Investing in Canada Infrastructure Program to better align with the construction activities and planned project spending; and
• Canada Mortgage and Housing Corporation sunsetting funding for the Rapid Housing Initiative, offset by new funding for the Housing Accelerator Fund as announced in Budget 2022.
• As part of the Budget 2023 commitment to reduce government spending, the Housing, Infrastructure and Communities portfolio is implementing spending reductions of $416.5 million over five years and $12.8 million ongoing

Background

• The Main Estimates process is the means to access funding for the upcoming fiscal year for initiatives approved up to January 2024, to support the Government of Canada’s priorities. It identifies the spending authorities (votes) and the amounts to be included in subsequent appropriation bills that Parliament will be asked to approve to enable the government to proceed with its spending plans.
• The 2024-25 Main Estimates would result in a net decrease of $731.7 million for the portfolio compared to the previous year. The decrease is explained as follows:
  • Infrastructure Canada’s (INFC) proposed Main Estimates represent a net decrease of $1.4 billion when compared to the previous year, primarily related to:
    • Green and Inclusive Community Buildings Program (decrease of $135.7 million);
    • Investing in Canada Infrastructure Program (decrease of $1,836.3 million);
    • New Building Canada Fund – Provincial-Territorial Infrastructure Component – National and Regional Projects (increase of $350.3 million); and
    • Public Transit Program (increase of $367.3 million).
• Canada Mortgage and Housing Corporation (CMHC) is seeking a net increase of $522.6 million primarily related to:
  • New funding for the Housing Accelerator Fund (increase of $1,014.7 million) as announced in Budget 2022 to support local governments by incentivizing actions that remove barriers to, and accelerate the growth of, new housing supply;
  • Sunsetting funding for the Rapid Housing initiative (decrease of $901.4 million); and
  • New funding for the Affordable Housing Fund (increase of $268.6 million) as announced in Budget 2022 to improve affordable housing for communities.
• The Jacques Cartier and Champlain Bridges Incorporated (JCCBI) is seeking an increase of $118.3 million primarily related to:
  • New funding announced in Budget 2023 for Supporting Transportation Infrastructure in Montréal to operate, maintain and repair its infrastructure in the Greater Montréal Area; and
  • New funding for the Redevelopment of the Bonaventure Expressway.
• Windsor-Detroit Bridge Authority (WDBA) is seeking a net increase of $66.5 million primarily related to:
  • New funding for the Gordie Howe International Bridge mid-project obligations; and
  • A decrease related to the project beginning to transition from the design-build phase to the operations phase.
• To meet the Government of Canada’s Budget 2023 commitment to reduce government spending, the Housing, Infrastructure and Communities portfolio is implementing spending reductions of $416.5 million over five years and $12.8 million ongoing starting in fiscal year 2029-30.This will be achieved by the following:
  • CMHC is contributing $244.9 million over five years by reducing expenditures under the First-Time Home Buyer Incentive and Shared Equity Mortgage Providers Fund, as well as under the Affordable Housing Innovation Fund and Rent-to-Own Stream of the Affordable Housing Innovation Fund;
• INFC is contributing $165.7 million over five years and $11.3 million ongoing by reducing expenditures under the Public Transit Program, the Smart Cities Challenge and Operating budgets including professional services and travel; and
• JCCBI is contributing $6.0 million over five years and $1.5 million ongoing by optimizing professional services related to construction costs.
• To ensure that departments have sufficient spending authority until such time as the Main Estimates receive Royal Assent in June 2024, interim supplies are provided for the first quarter of the year. INFC, CMHC and JCCBI are seeking the standard three twelfths whereas WDBA is seeking an additional twelfth (four twelfths total) for amounts related to legal obligations for the Gordie Howe International Bridge project.

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2024-25 Departmental Plan

Issue / question

The 2024-25 Departmental Plan was tabled in Parliament on February 29, 2024.

Suggested response

• Infrastructure Canada plans to spend $8.2 billion in 2024-25 to continue its support of economic growth, affordability, and the health and well-being of Canadians through housing and infrastructure programs.
• Infrastructure Canada will meet various community needs and foster more inclusive and sustainable communities by:
  • Supporting solutions that increase the housing supply across Canada;
  • Supporting efforts to prevent and reduce chronic homelessness;
  • Continuing Public Transit Program funding;
  • Continuing work to support core municipal and green infrastructure; and
  • Supporting climate resilient infrastructure and communities as they consider low-carbon resilience in infrastructure projects.
• The Departmental Plan outlines the work Infrastructure Canada does with all orders of government, Indigenous communities, and other stakeholders to invest in vital infrastructure projects across Canada.
• The department’s investments help to build accessible and resilient communities, support homeless individuals find affordable housing, address climate change, support climate resilience, and grow the economy.

Background

• Infrastructure Canada’s (INFC) 2024-25 Departmental Plan lays out the department’s work over the next year to boost the economy and create jobs, strive toward a cleaner and healthier environment, and support more inclusive, accessible, and sustainable communities that meet the diverse needs of all Canadians and improve quality of life.
• The department is committed to developing solutions that address the housing challenges that Canadians are facing. To that end, the department will continue to build up internal housing policy capacity and collaborate closely with colleagues at Canada Mortgage and Housing Corporation to support program development and strengthen the Government of Canada’s overall ability to provide advice and support on housing and homelessness issues.
• The department will foster inclusion for all Canadians in communities and take measured steps to respond to the homelessness crisis. Under Reaching Home: Canada’s Homelessness Strategy and the Veteran Homelessness Program, INFC will continue to support Canadians, including veterans and Indigenous communities, to accelerate the Government of Canada’s commitment to end chronic homelessness.
• As the Canadian environment changes, so do our climate resilience efforts and requirements. To help communities better prepare and withstand the impacts of climate events, as part of the National Adaptation Strategy, the Government of Canada Adaptation Action Plan is providing additional support through the Disaster Mitigation and Adaptation Fund. Further, it will advance several initiatives including open-access climate toolkits, resilience requirements for funding programs, and guidance, standards, and codes for climate resilient and low-carbon infrastructure, using the same channels.
• Additionally, the department is working to ensure Canadians have resilient, climate-smart, accessible, and inclusive public infrastructure. As such, INFC is investing in green and inclusive community buildings and sustainable water and wastewater solutions. In 2024-25, INFC is continuing to support retrofits of existing and the construction of new community buildings and outdoor facilities, to ensure Canadians can gather safely in their communities, including in rural, northern, and Indigenous communities.
• Continued funding for Canada’s public transit systems, and the design of new programs set to launch in 2026-27, will allow INFC to support sustainable transit and help municipalities and transit authorities with predictable, long-term planning. Our transit investments will encourage the alignment of transit and housing in communities that will improve the line of sight on our investment priorities and continue providing people with cleaner and more affordable access to jobs, services and recreation, and supporting housing priorities.
• INFC will work in close collaboration with other federal departments, provinces, territories, municipalities, Indigenous communities, and other stakeholders to continue progressing on shared priorities to make investments and build strong partnerships toward a resilient and inclusive economic future while advancing reconciliation.

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Department of Housing, Infrastructure and Communities Act

Issue / question

How will the Department of Housing, Infrastructure and Communities Act help advance federal priorities related to housing and infrastructure?

Suggested response

• Aligning housing, homelessness, and infrastructure under one portfolio will help the government get more value out of every dollar we spend. This Act will have no fiscal cost.
• The Department of Housing, Infrastructure and Communities Act will formalize the current mandate and structure of Infrastructure Canada, which includes housing and homelessness.
• By integrating housing and infrastructure, the Department is equipped to deliver on its broadened mandate to advance housing outcomes, reduce and prevent homelessness, and support and promote public infrastructure.
• Canadian communities need affordable homes supported by quality infrastructure such as public transit and modern water and wastewater systems.

Background

• Infrastructure Canada has no enabling departmental legislation underpinning its mandate. Its role is currently set out in a 2004 Order in Council that allows for the Minister to enter into transfer payment agreements and contracts related to infrastructure initiatives in Canada.
• Since its creation, Infrastructure Canada’s mandate has expanded, most recently with the addition of housing and homelessness policy and program development in 2021.
• The Act establishes Infrastructure Canada as the Department of Housing, Infrastructure and Communities. It does not create new bureaucracy and is not a fiscal measure.
• The proposed legislation sets out a clear federal role and integrated mandate to advance national housing outcomes, reduce and prevent homelessness, and support and promote public infrastructure to foster inclusive, sustainable, and prosperous communities.
• The Act establishes a Minister of Infrastructure and Communities and a Minister of Housing, both supported by one Department and one Deputy Minister. It sets out authorities that enable the current functions and responsibilities of the Department, notably managing government programs, distributing funding, convening partners, conducting research, collecting and publishing data, and establishing and remunerating advisory committees or councils.
• Existing authorities assigned to other federal Ministers would not be impacted by this legislation, and the mandates and authorities of other federal departments and agencies will remain unchanged.
• The legislation will respect provincial and territorial jurisdiction with respect to housing, infrastructure, and communities. Legislation will help clarify the federal role in housing and infrastructure, while signaling the importance of greater collaboration with other levels of government.

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Budget 2024 – Impacts For The INFC Portfolio

Issue / question

What impact does Budget 2024 have on housing and infrastructure priorities?

Suggested response

• Solving the Housing Crisis: Canada’s Housing Plan is making housing more attainable and affordable for Canadians. Responding to this challenge demands a Team Canada approach. Every partner must work together to build the homes that Canadians need.
• This is why Budget 2024 announced a comprehensive suite of measures to support this Plan, including:
• Topping-up the Housing Accelerator Fund with $400 million in additional funds to help municipalities legalize housing and streamline approvals.
• An additional $1.3 billion for Reaching Home to continue accelerating community-level reductions in homelessness and address the urgent issue of encampments.
• Additionally, Budget 2024 emphasized the importance of continued infrastructure investment to unlock housing supply, including the new $6 billion Canada Housing Infrastructure Fund and housing conditions tied to the multi‑billion Permanent Public Transit Fund.

Background

• Building on the significant action the Government of Canada has already taken, Budget 2024 announced the following initiatives and priorities under the infrastructure and housing portfolio:
  • $6 billion for the Canada Housing Infrastructure Fund to accelerate the construction and upgrading of housing-enabling water, wastewater, stormwater, and solid waste infrastructure that will directly enable new housing supply and help improve densification.
  • $500 million to support more projects through the Green and Inclusive Community Buildings Program.
  • An additional $15 billion in loan funding for the Apartment Construction Loan Program bringing the program’s total to over $55 billion.
  • $976 million to launch a new Rapid Housing Stream under the Affordable Housing Fund to build deeply affordable housing, supportive housing, and shelters.
  • $11.6 million to support the development of a Housing Design Catalogue, a set of pre-approved housing designs which will reduce costs and timelines for home building.
  • $400 million to top-up the Housing Accelerator Fund, building on the success of the first 179 agreements signed with municipalities.
  • $409.6 million to launch a new Canada Secondary Suite Loan Program, which will offer low-cost loans to homeowners to add additional suites.
  • $477.2 million to launch a new Canada Rental Protection Fund to preserve and increase the stock of affordable homes.
  • A new Canadian Renters’ Bill of Rights, to be developed and implemented in partnership with provinces and territories.
  • $1.3 billion to Reaching Home to stabilize funding under the program and address urgent issues such as encampments.
• Infrastructure Canada will work with partners to deliver on several whole-of government initiatives included in Canada’s Housing Plan, including the Public Lands for Homes Plan, an Industrial Strategy for Homebuilding, the Child Care Expansion Loan Program, and the Canada Greener Homes Loan program.

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