Short-Term Rental Enforcement Fund

Summary

The Short-Term Rental Enforcement Fund (STREF) is a targeted federal initiative designed to discourage non-compliant short-term rental listings and limit short-term rentals that take away long-term housing units, to support the housing needs of Canadians.

The program provides $50 million over three years (2024-25 to 2026-27) to help eligible municipalities, including Indigenous communities, enhance local enforcement capacity. Funding can be used to support the planning, implementation, and expansion of enforcement activities, including staff costs, legal support, licensing systems, and data-monitoring tools. These investments enable local governments to more effectively identify non-compliant rentals and improve adherence with local regulations, reducing the share of short-term rentals and increasing the availability of long-term housing. By targeting enforcement of short-term rental regulations, the fund addresses a specific and growing barrier to accessing housing, particularly in high-demand urban areas and tourism-driven markets.

Key findings from the strategic environmental and economic analysis

Since the objective of this program is to support the enforcement efforts of communities to identify non-compliant short-term rentals that take away from the long-term housing market, it will not have significant effects on greenhouse gas (GHG) emissions as no new housing units will be built.

Similarly, the program will have no significant impact on nature, biodiversity or other environmental effects, since it will not significantly affect land use, the connectivity of protected areas or conservation corridors, ecosystem health and services, or endangered species or migratory birds.

This program will not impact population, infrastructure, and will not contribute to the mitigation capacity of physical or natural infrastructure or support the ability of communities or property owners to plan for and recover from extreme weather events. This program will therefore have no impact on climate change adaptation or climate resilience other than by supporting long-term housing, which is expected to contribute positively to an improved quality of life and resilience of Canadian communities. This program is not expected to have a significant impact on the economy or housing affordability. It may reduce the number of non-compliant short-term rentals, which could increase the number of housing units available on the long-term market.

By restricting short-term rentals through enforcement and compliance activities, communities with high tourism levels, such as resort communities where there is a large amount of short-term rental activity, could see an increase in housing options in their areas.

Key findings from the cross-cutting considerations

Implications for Indigenous Peoples

The STREF supports Indigenous communities with short-term rental restrictions that meet the program criteria, reinforcing the government's commitment to Indigenous self-determination. The program supports Indigenous-led solutions by funding local enforcement of local regulations and recognizing Indigenous governments as decision-makers in managing the housing supply in their communities.

Federal Sustainable Development Strategy (FSDS)

The STREF is expected to positively impact Goal 11: Improve access to affordable housing, clean air, transportation, parks, and green spaces, as well as cultural heritage in Canada. The program aims to better protect existing and new long-term housing supply, and aligns with Canada’s broader sustainable development goals by protecting existing housing and making more efficient use of the current housing stock.