By Kevin Lee, CHBA CEO
Government advocacy-wise, this year has already been one of the best ever for the association.
After extensive advocacy by CHBA and provincial and local HBAs on behalf of members, the federal government put forth measures in this year’s federal budget that many seasoned veterans of the association noted is the most significant set of budget policy measures for our industry that they’ve seen in their lifetime.
Federal Housing Plan
Budget 2024 was largely focused on housing, with the first two chapters (almost 53 pages) specifically dedicated to housing affordability and supply. Between the budget and the Federal Housing Plan released a week earlier, many recommendations found in CHBA’s policy infoguide (chba.ca/recommendations2024) and its Sector Transition Strategy (chba.ca/sectortransition) were included.
In fact, the budget was so focused on CHBA recommendations that when Housing Minister Sean Fraser appeared on CBC’s Power and Politics and was asked about achieving the government’s housing supply targets, he specifically thanked CHBA for providing “invaluable advice that helped lead to the (new) policies that (the federal government) believes will help scale home building production.”
A key measure CHBA secured for members was 30-year amortization periods for first-time buyers on new construction homes. CHBA had been calling for a return to 30-year amortization periods for insured mortgages for more than a decade. Given concerns among policymakers over potential price escalation in the existing home market if applied more broadly, and the need to drive more housing supply, CHBA refined the ask this year to focus on new construction only, which turned out to be a game changer. This revised ask was CHBA’s primary recommendation during its annual Day on the Hill, during which members and staff from across the country come to Ottawa to meet with MPs. The policy, which will come into force on Aug. 1, 2024, will help spur homebuilding and enable the sector to respond to the government’s goal of getting 5.8 million homes built over the next decade.
Another big win for members in this year’s budget is the government’s intention to create an industrial strategy for homebuilding. This includes measures to develop a new Home Building Technology and Innovation Fund, as well as new funding to scale-up innovative housing solutions, such as modular and panelized construction, through Canada’s Regional Development Agencies. These measures, which came as a direct result of CHBA’s Sector Transition Strategy, are welcome first steps to help members boost their productivity.
CHBA recommendations
Moreover, significant infrastructure funding will be needed to support investments in homebuilding, which the budget set out to address. Per CHBA recommendations, those investments are being tied to housing outcomes. It proposed $6 billion over 10 years to launch a new Housing Infrastructure Fund that will accelerate the construction and upgrading of water, wastewater, stormwater and solid waste infrastructure that directly enables new housing supply and increased infill density. Further, this funding requires municipalities to adopt zoning that allows four units as-of-right and impose a three-year freeze on increasing development charges for municipalities with a population greater than 300,000.
Budget 2024 also included numerous other measures that CHBA recommended, including leveraging transit funding to build more homes, releasing public lands for residential development, and new programs to help both Canadians and newcomers consider a career in residential construction. These wins are just some examples of how the association works for members. CHBA looks forward to more consultations with government to help move these welcome measures to fruition.
While Budget 2024 represents one of the most successful ever for the homebuilding industry, many measures will require further refining to be more effective, and some are even potentially problematic, such as additional red tape being imposed in the form of newly required government filings. CHBA will continue to engage with government on items that are issues for the industry moving forward, and we look forward to those important discussions as well. Either way, there is no question CHBA continues to be a very effective “voice of Canada’s residential construction industry,” with thanks to our members who help make it so.
