Summary#

This bill ties some federal money for cities to homebuilding results and faster permits. It sets a national goal to grow housing completions by 15% each year and rewards or penalizes “high‑cost cities” based on how many homes they finish. It also offers a 100% GST rebate for new below‑market rental buildings for three years, speeds federal housing program approvals, and orders the sale of some federal land and buildings for housing use.

• Links federal infrastructure transfers to each high‑cost city’s completions versus a 15%‑per‑year target; payments can go up or down (Bill s. 6(1)–(2)).
• Sets aside up to CAD $100 million for cities that “greatly exceed” targets (Bill s. 7(1)).
• Holds federal transit funds in trust until dense housing is built and occupied on “available land” around stations, as defined by regulation (Bill s. 8(1)–(2), s. 12(d)–(e)).
• Requires high‑cost cities to avoid undue permit delays; average permit time over six months triggers a presumption of delay and possible funding cuts (Bill s. 10, s. 11).
• Creates a 100% GST rebate for new rental projects with average rents below market; includes clawbacks if conditions are not met; repeals after three years (Bill s. 19, Repeal).
• Sets a 60‑day average decision standard for federal housing funding applications and ties CMHC executive pay and bonuses to meeting targets and timelines (CMHC Act/National Housing Act amendments).

What it means for you#

• Households and renters
  • More rental projects may aim for below‑market rent to qualify for the 100% GST rebate; the rebate ends three years after Royal Assent and can be clawed back if average rents are not below market for five continuous years (Bill s. 19(1)(iii.1), (3), (11), Repeal).
  • In listed high‑cost cities, missed targets or slow permits could reduce federal transfers for infrastructure or transit, which may affect city budgets and services (Bill s. 6(2), s. 10–11).
• Homebuyers
  • No direct tax relief. Indirect effects depend on whether cities increase approvals and completions to meet the 15% annual growth target (Bill s. 5–6).
• Builders, developers, and landlords
  • Can seek a full GST rebate on new rental buildings if the project’s average rent is below a regulated market benchmark for the area; must keep average rents below market for five years to avoid clawback; application deadlines apply (Bill s. 19(1), (7), (11)).
  • Federal housing program applications must be approved or rejected in an average of 60 days; this standard is backed by pay consequences for CMHC executives (National Housing Act, new s. 4 [60‑day standard]; CMHC Act s. 9(3)–(5), s. 13(2.2)–(2.4)).
• Local governments (listed “high‑cost cities”)
  • Infrastructure and municipal GST‑rebate transfers are scaled by your completions relative to your 2023 base grown by 15% per year; the rule starts April 1, 2025 (Bill s. 6(2), Coming into Force).
  • You may receive extra federal payments if you greatly exceed targets (up to CAD $100 million total across municipalities) (Bill s. 7(1)).
  • Federal transit funding goes into a trust and is released only after a prescribed number of high‑density units are built and substantially occupied on all “available land” within a prescribed zone around stations (Bill s. 8(1)–(2)).
  • You must provide prescribed data and keep average permit decisions at or under six months to avoid presumed delay; the Minister can reduce funding proportionally and must give written reasons within 30 days (Bill s. 9–11).
• Transit users
  • New housing is required around stations before federal transit funds are released; this could delay or phase project cash flows if housing does not materialize as prescribed (Bill s. 8(1)–(2)).
• Federal property near you
  • The Minister must list all federal buildings and land, flag sites suitable for housing, and put at least 15% of buildings and all suitable land on the market within 12 months of tabling the report, with defined exceptions (e.g., parks, security) (Bill s. 21–22).

Expenses#

Estimated net cost: Data unavailable.

• Key fiscal elements from the bill:
  • Up to CAD $100 million in extra payments to cities that greatly exceed targets (Bill s. 7(1)).
  • 100% GST rebate for new below‑market rental housing for three years; total revenue loss depends on uptake; includes clawbacks in some cases (Bill s. 19, (10)–(11), Repeal).
  • Scaling of Canada Community‑Building Fund and municipal GST rebates up or down based on completions versus target; net effect across cities unknown (Bill s. 6(1)–(2)).
  • Reallocation plan for CAD $1.3 billion from the Housing Accelerator Fund to offset the above payments and rebates (Bill, Report on reallocation).
  • Transit funds held in trust until housing conditions are met; this affects timing, not the authorized amount (Bill s. 8(1)–(2)).
  • Possible one‑time revenues from sales of federal buildings and land; amounts and timing unknown (Bill s. 21–22).

Proponents' View#

• Ties money to results. Scaling transfers by completions versus a 15%‑per‑year target pushes cities to approve more homes and reduce barriers (Bill s. 5–6).
• Rewards strong performers. Up to CAD $100 million goes to municipalities that greatly exceed their share of the national target (Bill s. 7(1)).
• Delivers transit‑oriented housing. Holding transit funds in trust until dense housing is built near stations aims to ensure ridership and value around federally funded projects (Bill s. 8(1)–(2)).
• Cuts approval delays. A 60‑day federal decision standard, with executive pay at risk, is intended to speed federal support for new construction (National Housing Act, 60‑day standard; CMHC Act s. 9(3)–(5), s. 13(2.2)–(2.4)).
• Lowers costs for affordable rentals. A 100% GST rebate for below‑market rental projects reduces project costs and is guarded by 5‑year below‑market requirements and clawbacks (Bill s. 19(1), (3), (11)).
• Unlocks public land. A fast inventory and sale of at least 15% of federal buildings and all suitable land is meant to add sites for housing quickly, with environmental and security exceptions (Bill s. 21–22).

Opponents' View#

• Penalizes cities for factors they do not control. Completions depend on market conditions, labour, materials, and interest rates. Only a few exceptions allow relief (national emergency, natural disaster, serious recession, war/terror) (Bill s. 6(3)).
• Targets may be unrealistic. A 15% compound annual increase in completions can be hard to meet; missing it reduces key federal transfers, pressuring local budgets (Bill s. 6(2)).
• Transit funding could be frozen. Requiring housing on “all available land” within prescribed zones before releasing funds may be impractical and delay projects; many details are left to regulation (Bill s. 8(2), s. 12(d)–(e)).
• GST rebate is narrow and risky. The “below‑market” test depends on a regulatory benchmark; developers face a 5‑year clawback risk that could complicate financing (Bill s. 19(1)(iii.1), (11)).
• Cuts to the Housing Accelerator Fund. Reallocating CAD $1.3 billion away from HAF could undermine ongoing municipal zoning and permit modernization efforts it funds (Bill, Report on reallocation).
• Potential for rushed public asset sales. The 12‑month timeline to market properties could force sales at weak prices or of sites with limited housing potential; exceptions narrow what is “appropriate” (Bill s. 21–22).
• Enforcement may have side effects. Tying CMHC executive pay and jobs to a 60‑day average may encourage quick denials or superficial reviews rather than sound decisions (CMHC Act s. 9(3)–(5), s. 13(2.2)–(2.4); National Housing Act 60‑day standard).