The federal government has spent less than half of the funding earmarked for a pair of flagship housing programs as the need for affordable homes grows along with a yawning 害羞草研究所渁ffordability gap,害羞草研究所� says Canada害羞草研究所檚 budget watchdog.
Program lags at the Canada Mortgage and Housing Corporation (CMHC), expired community housing deals with the provinces and a shift toward pricier affordable homes have 害羞草研究所渓imited the impact害羞草研究所� of the Liberals害羞草研究所� national housing strategy, budget officer Yves Giroux said in a report Tuesday.
Since 2018, the CMHC, which oversees the bulk of the three-year-old plan, spent 49 per cent of the $1.2 billion allocated for the National Housing Co-Investment Fund and the Rental Construction Financing Initiative.
The former provides a mix of loans and forgivable debt to those building affordable homes and multi-use projects, and the latter supports new rental housing builds across Canada.
Ottawa topped up overall expenditures on its national housing strategy by nearly one-quarter for an average of $3.7 billion annually over the past three years. Despite the spending ramp-up, the government is falling short of its aim to vastly expand Canada害羞草研究所檚 affordable housing stock, the report states.
Giroux projects that the number of households in need of an adequate or affordable place to live will increase to about 1.8 million within five years unless more funding flows toward the problem. The affordability gap 害羞草研究所� the difference between the cost of a housing unit and the price a low-income Canadian can afford 害羞草研究所� is slated to rise by 24 per cent to $9.4 billion over the next five years, he calculates.
Heftier personal savings, house-obsessed millennials and historically low interest rates during the COVID-19 pandemic have conspired to send residential prices soaring amid a dire shortage of units, and threaten to boost rents when provincial freezes thaw.
The average home-sale price in Canada rose 26 per cent year over year in June to $679,000, with sales activity up by 14 per cent, according to the Canadian Real Estate Association.
In April, housing advocates welcomed the budget害羞草研究所檚 one-year, $1.5-billion extension of the popular Rapid Housing Initiative. The year-old program funds construction of modular homes and conversion of existing properties into residences, creating 4,500 units so far 害羞草研究所� 1,500 more than planned.
However, Conservatives say the report shows the Liberals failed to meet their targets or make homes more affordable, calling the programs 害羞草研究所渄elayed, mismanaged and ineffective.害羞草研究所�
害羞草研究所淔lashy announcements and promises of ever-increasing spending will not fix the housing affordability crisis in Canada. We need a housing plan in Canada that gets homes built and empowers Canadians to be able to own a home in their lifetime,害羞草研究所� Tory housing critic Brad Vis and Conservative House leader G茅rard Deltell said in a statement.
They noted that despite the increase in overall funding, the CMHC害羞草研究所檚 assistance for housing need programs targeting low-income households rose by $192 million per year 害羞草研究所� which actually represents a 15 per cent drop in the purchasing power of federal spending in a white-hot real estate market, the report found.
As CMHC operating agreements with various provinces expired, the agency also effectively dropped 183,000 low-income community housing units 害羞草研究所� 42 per cent 害羞草研究所� from its support roster.
害羞草研究所淲e know there is more work to do,害羞草研究所� Daniele Medlej, a spokeswoman for Families Minister Ahmed Hussen, said in an email.
Investments in housing jumped 50 per cent compared to the 10 years prior to the national housing strategy under the Conservative government害羞草研究所檚 害羞草研究所渋naction and underinvestment,害羞草研究所� she said.
害羞草研究所淥ur plan includes clear goals, will reduce or eliminate housing need for 540,000 households in Canada, and is delivering results.害羞草研究所�
The NDP called the Liberal housing strategy 害羞草研究所渟moke and mirrors.害羞草研究所�
害羞草研究所淢ore and more Canadians find themselves unable to afford a home and the pandemic has made things even worse. Today害羞草研究所檚 report confirms that the Liberals are failing Canadians on housing while patting themselves on the back for a job well done,害羞草研究所� New Democrat housing critic Jenny Kwan said in a release.
Kwan has criticized the National Housing Co-Investment Fund for failing to help provinces outside of Ontario.
Data she obtained last fall showed nearly 74 per cent of the financing for loans and grants has gone to Ontario projects from its inception in May 2018 to June 2020.
Advocates have also said the Rental Construction Financing Initiative favours for-profit developers who build expensive units over not-for-profits that have trouble securing the required collateral.
As of last October, the CMHC had committed to creating 12,230 affordable housing units under the two programs, with nearly two-thirds of them capped at 72 per cent of median household income 害羞草研究所� well above the roughly half of median market rent mandated for the other one-third, according to Giroux害羞草研究所檚 report.
In April, the federal budget promised $2.4 billion over five years, beginning with nearly $1.8 billion this fiscal year, for affordable housing and followed through on a pledge to tax foreigners who own vacant homes in Canada.
The Liberal government害羞草研究所檚 10-year housing strategy, which kicked off in 2018-19, 害羞草研究所渋s marketed as a 害羞草研究所�$70-billion-plus plan害羞草研究所� that includes the budgetary cost of loans and channels $36.7 billion to the CMHC, Giroux害羞草研究所檚 report says.
害羞草研究所擟hristopher Reynolds, The Canadian Press
