Harper outlines plan to increase supply of affordable housing

January 12, 2006

HALIFAX – Conservative Leader Stephen Harper today released a plan to encourage the construction of new affordable housing.

“We believe that all Canadians should have a fair chance to own or rent their own home,” Harper said.

Harper announced that a new Conservative government will work with the provinces and municipalities to develop tax incentives for private-sector builders so that low-income city dwellers will have improved access to affordable housing.

On an experimental basis, a new government will establish a tax credit to encourage developers to build or refurbish affordable rental units for low-income Canadians. Details of the plan include the following:

We will set aside $200 million annually in the form of federal tax credits to encourage developers to build or refurbish affordable rental units;

Affordable units are defined as those in which at least 40 per cent of the occupants earn less than 60 per cent of the local median income;

The funding will be distributed among the provinces on a per capita basis, but smaller provinces will be guaranteed a minimum amount of funding; and

The credits will be administered by the Canadian Mortgage and Housing Corporation (CMHC).

“This program will help to address the shortage of affordable housing, particularly in our urban centres,” Harper said. “This is not a phoney promise of a quick fix. It is a genuine, practical plan to do something to increase the supply of affordable housing.”

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