On April 16th, the Federal Government tabled its 2024 Budget, including a suite of measures related to housing and development. Most of these were part of the newly released Housing Plan: Solving the Housing Crisis: Canada’s Housing Plan, which was teased in the prior weeks. 

Key initiatives include: 

• Increasing the capital cost allowance rate from 4% to 10% for eligible new purpose-built rental projects beginning construction on or after April 16, 2024, and before January 1, 2031, and that are ready for use by January 1, 2036; 
• Increasing the annual limit for Canada Mortgage Bonds from $40 billion to $60 billion, expanding the availability of programs including MLI Select; 
• An extra $15 billion in new loans for the Apartment Construction Loan Program (ACLP) (formerly RCFI) and reforming requirements. The ACLP will also have additional dedicated funding available to support specific types of developments, including mixed-use projects, and those using innovative building methods; 
• Launching Canada Builds – a partnership-based program modeled on BC Builds; 
• A $6 billion infrastructure program, divided across municipalities and provinces/territories, jurisdictions will be able to apply for funding to support critical infrastructure if certain conditions are met; 
• Making transit funding conditional on actions to accelerate housing delivery, especially in high-growth areas is something that UDI have advocated for. This measure proposes several specific requirements, similar to those already in-place in B.C.; 
• Initiating a Public Lands for Homes Plan to leverage underutilized public lands from multiple levels of government through leasing agreements; 
• A $400 million top-up for the Housing Accelerator Fund – this funding is available to municipalities to streamline their processes and remove barriers; 
• Several measures to support innovative technologies and approaches through funding and streamlining regulations, including the National Building Code; 
• Support for apprenticeship programs and a Skilled Trades Readiness and Awareness program and a commitment to streamline foreign credential recognition in the construction sector; 
• Creating a Canadian Renters’ Bill of Rights – in conjunction with provinces and territories, this would include the requirement to disclose previous rents for units; and 
• Measures to support home buyers including longer amortization periods for first-time buyers purchasing new construction starting later this year, changes to the Home Buyers’ Plan to permit larger withdrawals and temporarily extending repayment periods. 

The Budget also expanded the exemptions under the excessive interest and financing expenses limitation (EIFEL) rules to include certain interest and financing expenses related to building or acquiring eligible purpose-built rental temporarily. UDI had previously written to the Minister of Finance to request these changes, and while we believe there should be broader exemptions for the real estate sector as a while, this is a positive step. 

Several of the initiatives aim to replicate B.C.’s provincial housing programs, including launching “Canada Builds,” a national “Rental Protection Fund” and requiring the expansion of low-density multi-plex zoning. 

There were also three measures that we will be watching closely. These include potential new reporting requirements for rents, a future tax on vacant residentially zoned land, and potential restrictions on the purchase of single-family homes by corporations. 

Overall, the Budget and Housing Plan represents a shift in the Federal Government’s level of engagement on housing. UDI has been increasing its engagement on Federal issues and will continue to work on behalf of our members on these and other issues.