MONTRÉAL, June 14, 2024 /CNW/ – The governments of Canada and Quebec, together with the Fonds de solidarité FTQ, have announced the construction of 1,000 new social or affordable housing units over the next three years. These housing units will be created as part of the Fonds de solidarité FTQ-Quebec agreement.
The government funding for these 1,000 new units stems from the $900 million in federal funding provided to Quebec through the Canada-Quebec Agreement under the Housing Accelerator Fund (HAF) and the new $900 million in funding announced by Quebec in its fall 2023 economic update.
The Honourable Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec; France-Élaine Duranceau, Quebec Minister Responsible for Housing; Benoit Dorais, Vice-Chair of the City of Montréal Executive Committee, responsible for housing, real estate strategy, property assessment and legal affairs; and Janie C. Béïque, President and Chief Executive Officer of the Fonds de solidarité FTQ are proud to make this announcement at the FTQ’s head office.
In 2022, the Government of Quebec entrusted $175 million to the Fonds de solidarité FTQ, an amount to which the Fonds de solidarité FTQ added another $75 million, for the establishment of a mechanism that would allow the funding of 1,000 social or affordable housing projects. The organizations behind these projects (non-profits, co-operatives, and offices d’habitation) committed to delivering the units over a three-year period and to ensuring their affordability for up to 35 years.
The real estate arm of the Fonds de solidarité FTQ, which manages this agreement, quickly exceeded the objective. In view of this efficiency, and in response to market needs, Quebec added in December 2023 another $43.75 million to the initial amount, to build 250 additional affordable housing units.
The construction of the 1,000 new units announced today is in addition to the Fonds de solidarité FTQ’s roadmap, which now aims to create 2,250 social or affordable housing units by 2027. The projects will largely be new constructions, while a smaller share will be existing buildings acquired with the aim of renovating them and ensuring lasting rent affordability.
The management of these agreements has been taken on by the team of the Fonds immobilier de solidarité FTQ. The team has implemented a rigorous governance process for the analysis of projects, which includes determining project development costs and diligent auditing until projects receive approval by decision-making authorities, thereby allowing the project-leading organizations to receive a government subsidy and a patient capital loan from the Fonds de solidarité FTQ.
“Our government has committed to creating more afforable housing in Montréal and across the country. Through our collaboration with the Government of Quebec and the Fonds de solidarité FTQ, thousands of low-income Quebecers will be able to have a quality, affordable place to call home.”
The Honourable Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec and Member of Parliament for Hochelaga
“I’ve often said that we need to innovate to build more housing, more quickly, especially given the current housing crisis. This collaboration with the Fonds de solidarité FTQ is further proof that our government is taking concrete action, alongside the Government of Canada, municipalities and housing organizations, to better house Quebecers. I’m excited about this partnership, as it mobilizes stakeholder expertise to very quickly build quality affordable housing. We are determined to deliver results so that every Quebecer can have housing that meets their needs.”
France-Élaine Duranceau, Quebec Minister Responsible for Housing
“The housing shortage and affordability crisis directly affect Montrealers, who too often have difficulty finding adequate housing that’s within their means. That’s why the City of Montréal has implemented a robust series of measures to house more Montrealers more quickly. The 1,000 new affordable units announced today are further proof of the need to continue to mobilize all levels to reach our goal of having non-market units account for 20% of housing in Montréal by 2050.”
Valérie Plante, Mayor of the City of Montréal
“Over 30 years ago, the Fonds and the Fonds immobilier chose to support the development and maintenance of affordable, social and community housing. Since then, we have contributed to making more housing available to families across Quebec. That’s why, today, I’m very proud to announce our commitment to developing 1,000 new social or affordable units with the financial support of the governments of Canada and Quebec.”
Janie C. Béïque, President and Chief Executive Officer of the Fonds de solidarité FTQ
- Seniors who move into these units and are eligible may benefit from the Société d’habitation du Québec’s (SHQ) Rent Supplement Program, which would ensure that they don’t spend more than 25% of their income on housing. This financial assistance is covered by the SHQ (90%) and the municipality where the housing project is located (10%).
- The Housing Accelerator Fund (HAF) is a $4-billion Government of Canada initiative launched in March 2023 that includes $900 million for Quebec. Its goal is to speed up the construction of 100,000 housing units across the country.
- The HAF encourages local governments to implement sustainable initiatives that lower barriers to increasing housing supply and approving development projects. Its long-term goal is to make housing more affordable for people in Canada.
As a leader in housing, the SHQ’s mission is to meet the housing needs of Quebecers through its expertise and services to citizens. It does this by providing affordable and low-rental housing and offering a range of assistance programs to support the construction, renovation and adaptation of homes, and access to homeownership.
To find out more about its activities, visit www.habitation.gouv.qc.ca/english.
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SOURCE Canada Mortgage and Housing Corporation (CMHC)
Featured image: Deposit Photos © Maksymiv
