Quebec is set to receive a substantial financial boost from the federal government to accelerate housing construction after successful negotiations. Ottawa has pledged nearly $1 billion to the province for this purpose.
This funding will empower the Quebec government and municipalities to enhance and build necessary infrastructure for upcoming housing projects, such as water supply, sewage, and stormwater systems.
The allocation stems from the Canada Housing Infrastructure Fund, established in 2024 under the Trudeau administration. This initiative commits $6 billion over a decade.
After more than a year of discussions between Ottawa and Quebec, an agreement has been reached, as announced jointly by both levels of government.
Housing Minister Caroline Proulx expressed that the agreement is a significant advancement in housing, emphasizing that it respects Quebec’s jurisdiction and priorities as per their legislative framework.
Federal Housing and Infrastructure Minister Gregor Robertson highlighted the collaborative effort between Ottawa and Quebec in streamlining processes to accelerate housing construction and provide effective solutions for communities.
Quebec will have the flexibility to distribute the funding based on its unique priorities and local requirements.
In addition to bolstering water-related projects, the fund can also support waste diversion initiatives to reduce reliance on landfills.
The funding announcement has been eagerly awaited by Quebec municipalities. Municipal Affairs Minister Geneviève Guilbault stated that the agreement will enable numerous municipalities to undertake essential projects, ensuring reliable services throughout Quebec.
The Union des municipalités du Québec (UMQ) stressed the critical need for swift access to the funds to facilitate crucial investments that will pave the way for new housing developments.
The Quebec Professional Association of Construction and Housing (APCHQ) welcomed the funding news but raised concerns about the deal’s value being diminished due to inflation and market instability, as it covers only a small portion of the estimated municipal housing infrastructure deficit in Quebec.
Both the APCHQ and UMQ argue that the allocated amount falls short of Quebec’s proportional share, with suggestions that the province should have received a higher sum to address housing infrastructure needs adequately.
Furthermore, Quebec and Housing Canada have inked an additional agreement to support affordable housing initiatives in the province, committing to collaboration and streamlined processes to boost housing development aligned with mutual goals.
