QUESTION PERIOD — Canada Mortgage and Housing Corporation
National Housing Strategy
June 16, 2021
Honourable senators, my question is for the Government Representative in the Senate and has to do with affordable housing.
The Canadian Real Estate Association recently revised its home price forecast and is now predicting that the average selling price will increase by 19% in 2021, even as resales declined and price increases slowed in May. There is no doubt that affordable housing has become a major concern in Canada. Last week at the Finance Committee we were reminded that Budget 2021 proposes to provide $1.5 billion for the Rapid Housing Initiative to address the urgent housing needs of vulnerable Canadians.
To my surprise, I noted that $1.5 billion in Budget 2021 is expected to provide 4,500 new affordable units, while the $1 billion announced in the Fall Economic Statement will provide 4,700 units.
I appreciate inflation is an issue, but it seems, six months later, we are paying considerably more for fewer units. How can you explain this discrepancy? It’s important that the government adequately optimize resources. Can you reassure us that these units will all be built and occupied by the end of the fiscal year? We were told in committee that the goal is to create housing within a 12-month period.
Thank you for your question, senator. The government understands the value of wise and prudent fiscal management. To your question, I’ve been advised that the commitment in Budget 2021 will go towards “ . . . a minimum of 4,500 new affordable units . . .” rather than a fixed amount.
Perhaps, more significantly, colleague, I’ve been advised that when the Fall Economic Statement was announced in September 2020, the government had expected some 3,000 units, but the government managed to do better cost-wise and it was able to increase the number, which is the 4,700 that you noted under the Fall Economic Statement.
