'Housing is a solvable problem,' Trudeau says, unveiling first funding under program pledged years ago

Prime Minister Justin Trudeau announced the "first of many" municipal agreements under the federal government's Housing Accelerator Fund on Wednesday, a small-scale step that the Liberals are framing as an example of how they plan to tackle the issue that's become so pressing for many Canadians.

The $74-million deal with London, Ont. will fast-track the creation of more than 2,000 housing units over the next three years, and build thousands more in the years following. The Liberals say it is part of a promised multi-pronged housing strategy to be illuminated in the months ahead.

These housing units will include high-density development without the need for re-zoning, and clear the way for more development of duplexes, triplexes, and small apartment buildings close to public transit on city land, according to the government. 

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Through the Housing Accelerator Fund, the government is targeting the creation of 100,000 net new housing units across Canada by incentivizing municipalities to cut red tape by updating their zoning and permit systems to allow for speedier construction of residential properties. 

Describing Wednesday's announcement as the "first of many," Trudeau said that as similar deals are struck with other cities, thousands of more affordable homes will come onto the market.

"Housing is a solvable problem, and we're all going to solve it if we work together. Canada has done it before, and we're going to do it again," Trudeau said.

The $4-billion Housing Accelerator Fund was first promised in the 2021 federal election, and the money was earmarked in the 2022 federal budget as part of a $10-billion housing-focused package.

Trudeau officially launched the fund in March of this year.

Asked by CTV News why it took this long for money to start flowing, Trudeau said briefly the responsibility for housing is shared jurisdiction, before passing the question off to Minister of Housing, Infrastructure and Communities Sean Fraser. His response was now that the tap is turned on, expect more local announcements in short order.

Prior to the announcement—which took place prior to the entire Liberal caucus gathering in the southwestern Ontario city—the two federal policymakers visited an affordable housing site.

"Sean, I'm pretty sure this is our first housing announcement together since you began your new role…. But I look forward to many more just like this one," Trudeau said, issuing a challenge to other mayors to "step up" with proposals to access some of the multi-billion dollar fund.

Asked whether him saying housing prices are too high right now means Trudeau wants to see housing prices come down, the prime minister said he just thinks prices "cannot continue to go up."   

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On Wednesday, the Canada Mortgage and Housing Corporation (CMHC) released an update to its estimate of how much housing Canada will need by 2030.

It showed that Canada still needs 3.5 million additional housing units by 2030 to restore affordability above what's already planned, which was consistent with what the federal housing body projected last year. 

In an interview on the Vassy Kapelos Show, the CMHC's deputy chief economist Aled ab Iorwerth said he doesn't think it's actually possible to build that many more homes in the next six or so years. Faced with these statistics, Trudeau and Fraser were undeterred. 

"We're facing a shortage of housing right now, and that's why prices of homes have become far too high… Housing in big cities around the world has already become out of reach for many... Places like New York, Paris, London, San Francisco, but we're not going to follow those examples," Trudeau said.

FRASER SAYS STRATEGY SHIFTING 

Fraser—who took on the new role as part of a massive cabinet shuffle in July—recently told CTV News' Chief Political Correspondent Vassy Kapelos that the government would have new measures announced "over the next few months" that will "help address housing affordability across Canada." 

Fraser said at the time he wouldn't be bound by waiting for a certain date, such as the upcoming fall economic update, to start rolling out new measures.

Fraser said while there is no "silver bullet," the cabinet is taking an "all hands on deck" approach in trying to work with the other levels of government and the private sector to come up with measures to change the myriad of issues plaguing the housing sector, from permit lags to rising building costs.

However, on Wednesday, the minister made it clear that if mayors or municipalities want the federal government to pony up federal dollars for their projects they have to give a reason.

"A new standard has been set and we have new expectations. We want you to build houses near transit, we want you to build houses near campuses, we want you to build houses so families can access the services that they need…. It's not too much to ask," he said. 

Here Housing Minister Sean Fraser about what kind of plan we will see announced today. The measures will work within existing funding structure. Measures will be across spectrum not just directed at low income bracket pic.twitter.com/d5dJePogZz

— Judy Trinh (@judyatrinh) September 13, 2023

He said the dynamic has "fundamentally shifted" from when the Liberals took office, from a housing landscape where the need was greatest for publicly-funded social housing for low-income families, to homes for middle-class Canadians.

"People who are going to school deserve to have a place near their classes. People who are going to work deserve to have a home near where they go to work, and everybody deserves to be able to have a home they can afford near the services they need to access," Fraser said.

"Canadians want to see what we're going to be coming up with over the next number of months… and they should expect to see a renewed focus that's looking to build homes, not just for low-income Canadians and affordable housing projects, but across the housing spectrum." 

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Treasury Board President Anita Anand said Wednesday morning that the effort she is leading to cut $15 billion in government spending "should not impact our priorities on housing, on affordability, on vulnerable Canadians."

FIRST STEP AMID SLUMPING POLLS 

Wednesday's housing announcement comes as a survey conducted by Nanos Research for CTV News Channel's Power Play indicated that Pierre Poilievre's Conservatives and Jagmeet Singh's NDP were more trusted than the federal Liberals when it comes to addressing housing affordability.

Last month the prime minister said that heading into the fall, the rising cost of housing will be one of the minority Liberal government's "core" priorities, however faced criticism for wrapping his cabinet strategy session in Charlottetown, without announcing any concrete actions on that front. 

With overall horse race polls suggesting Poilievre's cost-of-living message was resonating with Canadians feeling the pinch of inflation, as Liberal MPs began to trickle into town for the caucus retreat to strategize ahead of the fall House of Commons sitting, the need to act on housing and better communicate their policies were the common themes.

"I'm 32 years old, I'm a member of Parliament. I haven't been able to purchase a home," said London West, Ont. MP Arielle Kayabaga. "So, it's not just a fight of… politicking. These are personal fights for some people, and they matter, and we need to see more housing for Canadians." 

Pouncing on this comment from Kayabaga, the Conservatives noted that even with a salary of nearly $195,000, Trudeau MPs are finding home ownership out of reach.

"It appears that members of the Liberal caucus are just now starting to notice what their constituents have been facing for the past eight years," said a statement issued by Poilievre's office.

Paul Kershaw, the founder of Generation Squeeze, a think-tank focused on advocating for young Canadians struggling to get ahead in the current economic climate, briefed cabinet during its retreat on what more the Liberals could be doing to tap into this demographic on the housing file. 

Speaking to CTV News on Wednesday about Trudeau's announcement, Kershaw said it was a good first move, but he's excited to see how the competition between the Liberals and Conservatives on the issue of housing, will "drive better policy" in the months ahead.

"That is desperately what a younger demographic deserves, and newcomers of any age. We need these two parties not only to be competing over the rhetoric of who is being trapped in whose basement, but they need to be competing over the solutions," he said. 

NDP SAYS IT'S A 'GOOD START'

A senior government source that CTV News spoke to ahead of Wednesday's housing announcement framed it as giving Liberal MPs an example of "tangible" action they can point to when they speak with constituents, but the Liberals also have to try to keep their confidence-and-supply deal partners, the NDP, happy.

On Wednesday, Singh took credit for the announcement, noting enhancing efforts to launch the Housing Accelerator Fund, was a commitment stitched into their two-party deal. While calling it "a good start," Singh wants the government to go further, faster.

"For eight years Justin Trudeau has been promising help but he's let people down and disappointed them at every turn. And now today, when the Liberals finally acted, they’re offering support we made them put in over a year and a half ago," Singh said.

"The federal government has the resources, the land and the power to build more affordable housing units in cities across the country. They just need the will to do it." 

Heavy security is in place around the convention centre hosting the meeting, on account for the dozen anti-Trudeau protesters convened out front. 

With files from CTV News' Judy Trinh and Rachel Hanes