Statement from Mayor Vrbanovic on the Government of Canada’s Fall Economic Statement

Late Tuesday, Finance Minister Chrystia Freeland, on behalf of the Government of Canada, delivered the Fall Economic Statement. The statement referenced a number of measures to boost housing supply over the next several years:

• An additional $1 billion over three years, starting in 2025-26, to the Affordable Housing Fund (formerly known as the National Housing Co-Investment Fund) to build more than 7,000 new affordable homes by 2028.
• An additional $15 billion in new loan funding, starting in 2025-26, to the Apartment Construction Loan Program, formerly known as the Rental Construction Financing Initiative, for the construction of more than 30,000 new rental homes across Canada.
• Extending eligibility for the removal of the GST on new rental housing to co-operative housing corporations that provide long-term rental accommodation.
• A new Canadian mortgage charter, which sets out expectations for how financial institutions are to work with Canadians to provide tailored relief and ensure payments are reasonable for borrowers.
• $50 million over the next three years to support municipalities in addressing the implications of a growing number of short-term rental accommodations within communities.

"The federal government, through yesterday's Fall Economic Statement, is underscoring its commitment to address the issues most important to residents living in Kitchener and other communities across the country," said City of Kitchener Mayor, Berry Vrbanovic. "Through Kitchener's recently adopted Strategic Plan, we have articulated a vision to be a community where we truly care for one another. Ensuring that we all have safe and affordable places to live is one of the fundamental ways that we demonstrate this kind of care."

The investments by the federal government announced Tuesday will build on the recent announcement by Minister of Housing, Infrastructure and Communities Sean Fraser of $42.4 million in funding that Canada is providing to Kitchener through the Housing Accelerator Fund.

"We are in the midst of a housing crisis which will require unprecedented action and collaboration across all orders of government. Through Kitchener's Housing For All Strategy, our community has demonstrated that we are willing to roll up our sleeves and partner with the other orders of government to tackle the housing challenges that our community is facing. We welcome Tuesday's Economic Statement and the ongoing commitment of the federal government to be a strong partner," said Mayor Vrbanovic.

In addition to investments in housing supply, the Federation of Canadian Municipalities (FCM), through their Advocacy Days in Ottawa this week, are calling on the federal government to make investments in several areas of municipal infrastructure which are critical to support ambitious new levels of housing including a doubling, with indexation, of the Canada Community Building Fund to $4.4 billion annually and establishing through legislation in 2024, a Permanent Public Transit Fund of $3 billion annually, with indexation beginning in 2026.

"New housing construction relies on core municipal infrastructure such as water and wastewater systems, roads, parks, libraries, recreation facilities and more," said Mayor Vrbanovic. "Municipalities across Canada are calling on the federal government to make targeted investments through the Canada Community-Building Fund and other funding initiatives to grow local infrastructure to meet the demands of Canada’s growing population."

The City of Kitchener joins FCM in their advocacy in Ottawa this week, calling on the federal government to convene a meeting of federal, provincial, territorial and municipal leaders to negotiate a new Municipal Growth Framework that recognizes that the 21^st century issues faced by Canada's cities and communities, like Kitchener, can no longer be tackled with a 19^th century legal and fiscal framework.

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For more information please contact:
Bethany Rowland
Director, Corporate Communications & Marketing
City of Kitchener
bethany.rowland@kitchener.ca