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Montreal Mayor Valérie Plante welcomed new spending commitments from Ottawa in this week’s federal budget, especially those that will help alleviate the housing crisis.
In its budget tabled Tuesday, the federal government pledged to increase the capital cost allowance rate for apartments from four to 10 per cent, allowing builders larger tax writeoffs, and to extend the mortgage amortization period to 30 years for first-time homebuyers purchasing new builds.
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The government also promised to make more public lands available for home construction, including Canada Post and National Defence properties, while leasing lands to developers; and to spend $250 million over two years to address the “urgent issue” of encampments and a shortage of shelter space for the unhoused.
“I’m satisfied with the political will to address the issue of housing,” Plante told reporters Wednesday morning. “In the last few weeks, we have seen the federal government making announcements of different measures, and to me it demonstrates that there isn’t just one solution to the crisis. There have to be many solutions, so the fact the federal government is putting a lot of energy and money into not solving, but at least addressing this in a very concrete way is good news.”
There seems to be momentum building among the provincial and federal governments to pour more money into housing, but Plante said these announcements should just be the starting point. It will take sustained efforts over a number of years to yield a significant improvement, she added.
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She hailed the federal and provincial government’s recent deal for a combined $1.8 billion in housing construction, including 763 units that were announced last week, “but we’re in catch-up mode,” she said. “In previous years, the provincial government didn’t put in as much.”
Plante said she hopes to soon make major announcements about thousands of units that will be reserved for those living on the margins or those with lower means.
While she didn’t name specific neighbourhoods, the city has hopes of building social and affordable housing units in the Namur-Hippodrome area, which could accommodate 6,000 new units; Lachine East and Bridge-Bonaventure, each of which could hold nearly 8,000; as well as slated developments of the former Molson brewery and the CBC/Radio-Canada tower, to name a few.
“I’m very interested in: How can we build more and bigger together (with the provincial and federal governments)?” Plante said. “How can we build an entire neighbourhood within the city, fast, and in a way that will respond to the needs? Because the needs are huge.”
Moving fast on these projects is important, but Plante said her administration’s commitment to ensuring a mix of affordable, social and family housing units is also crucial.
“If we don’t address the housing crisis, it could stop the economic development of Montreal and the country, to be honest. When I talk to mayors of other cities, we’re all in the same boat. We all want to build more, fast.”
The Canadian Press contributed to this report.
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