Ottawa reaches $92 million deal with Quebec on housing construction

Construction workers work on a home in Deux-Montagnes, Que. on Monday, April 20, 2020. (Ryan Remiorz/The Canadian Press)

Ottawa — The federal government announced on Monday that it has reached an agreement with Quebec to provide an additional $92 million for housing construction, part of an increase that was promised last spring as part of a Canada-wide fund.

The funding is slated to be allocated through the Accelerated Housing Fund, which Conservative leader Pierre Poilievre has vowed to cut if he becomes prime minister in order to finance one of his promises.

Quebec has already been allocated $900 million of the $4 billion initially earmarked by Ottawa for the program.

Quebec Premier François Legault's government says it is matching the investment, also allocating $900 million to housing construction.

The Housing Accelerator Fund aims to cut red tape and update local zoning policies. The initiative, overseen by the Canada Mortgage and Housing Corporation (CMHC), is scheduled to run until 2026-2027.

In Quebec, Ottawa can't enter into agreements directly with municipalities.

Under provincial law, an agreement must first be reached with the Quebec government, which is what happened for the $900 million, and now for the $92 million.

-- This report by The Canadian Press was first published in French on Nov. 18, 2024.