The Building Homes Not Bureaucracy Act (Bill C-356) aims to increase the supply of new homes in Canada, especially in cities where housing is very expensive. It wants to make sure cities don't have too much red tape that slows down building.
The bill sets a national target for new homes, increasing 15% each year, and it ties some federal money for cities to how well they meet this target. If cities build a lot more homes than expected, they could get extra money. Also, some federal money for public transit will be held in trust until there are enough new homes built near transit stations.
The bill also changes how the Canada Mortgage and Housing Corporation (CMHC) works. It says that executives won't get bonuses if housing targets aren't met. Their pay could also be cut if it takes too long to approve funding for new housing. The bill also plans to give a full GST rebate for new rental properties with rents below the market rate.
Finally, the bill asks the government to find federal buildings and land that could be used for housing. The goal is to sell at least 15% of these buildings and all suitable land within a year to help create more housing options.
Inflation and Cost of Living
This bill addresses the rising cost of living by attempting to increase the supply of housing, particularly rental properties with below-market rents. By providing a 100% GST rebate on new residential rental properties with average rents below market rate, the bill seeks to incentivize the construction of more affordable housing options.
Taxation
The bill includes a provision for a 100% GST rebate on new residential rental property for which the average rent payable is below market rate. This is designed to encourage the development of more affordable housing. The bill also outlines a reallocation of $1.3 billion from the Housing Accelerator Fund to offset the costs of payments and rebates.
Spending
The bill focuses on reallocating existing funds and tying infrastructure and transit funding to housing targets. It allows for the reallocation of $100 million from the Housing Accelerator Fund to municipalities that significantly exceed housing targets. It mandates that federal transit funding be held in trust until high-density residential housing is substantially occupied on available land around federally funded transit projects’ stations. It also requires the Minister of Public Works to prepare a report that includes a plan to reallocate $1.3 billion from the Housing Accelerator Fund to offset certain payments and rebates.
Environmental Protection
The bill includes a provision that land certified by the Minister of the Environment as ecologically sensitive is not considered appropriate for housing construction, helping to protect Canada's environmental heritage.
Defense
The bill specifies that land certified by the Minister of National Defence as being essential for the purposes of national security is not appropriate for housing construction.