Lowering Prices and Increasing Supply

Recommendation 1

The federal government could consider providing a 100% Goods and Services Tax/Harmonized Sales Tax rebate on all new housing valued below $1 million, with the rebate phased out for houses between $1 million and $1.5 million. Furthermore, the $1 million price threshold should be indexed annually to inflation.

Recommendation 2

Where permitted by provincial/territorial legislation, the federal government require as a condition for providing infrastructure funding:

• equivalent reductions in municipal fees where appropriate; and
• provisions to ensure compliance and oversight such as performance metrics for municipal approval processes as well as assurances that services built by developers are not included in development charges.

Recommendation 3

The federal government work with provinces/territories and municipalities to ensure that all taxes, levies and charges are directly levied on purchasers and fully itemized to promote transparency and eliminate any “tax-on-tax.”

Recommendation 4

The federal government play a leadership role and work with provinces/territories and municipalities in developing best practices with respect to municipal approval processes and that financial incentives be used to ensure provinces/territories and municipalities adopt these best practices.

Cultivating a Robust Housing Sector

Recommendation 5

The federal government work with provinces/territories and municipalities to reduce reliance on development charges and explore alternative municipal funding models, such as allowing for:

• the removal from development charges any capital works installed by the builder that could be substituted by fees;
• the charging of fees by municipalities over time for repayment of infrastructure expenditures on revenue earning services such as water, wastewater, and electrical;
• the use of tax-free municipal bonds; and
• a more equitable distribution of costs among the different levels of government.

Recommendation 6

The federal government provide more regular, reliable, detailed and advanced population and immigration forecasts to provinces/territories and municipalities.

Recommendation 7

The federal government invest in a national housing data and accountability framework to track approvals, development charges, construction timelines, number of housing completions, fees, renovation outcomes, and affordability targets.

Recommendation 8

The federal government provide support to small and medium-sized enterprises in their efforts to modernize Canada’s construction sector, with particular focus on their participation in modular and factory-built housing. It should also consider offering subsidies to create a demand for modular and factory-built housing in Canada.

Improving Access to Housing for All Canadians

Recommendation 9

The federal government explore whether renters should benefit from similar tax benefits as homeowners.

Recommendation 10

The federal government should consider a national home renovation tax credit to help update older homes, improve energy efficiency and accessibility, and support the creation of secondary or multi-unit suites to expand rental supply.

Recommendation 11

The federal government study whether regulation should be introduced to restrict the acquisition of residential rental housing by institutional investors.

Recommendation 12

In order to support the growth of the non-market housing sector, the federal government:

• expand federal investment in the sector through direct funding, low-cost financing and partnerships with non-profits organizations, cooperatives and Indigenous housing providers;
• implement a federal liquidity guarantee for non-profit and cooperative housing developers for deeply affordable units; and
• facilitate the transfer of for-profit rental buildings to non-profit ownership through tax incentives, such as capital gains exemptions.