Achi news desk-
Last summer — around the same time public support for the governing Liberals began to seriously erode — Prime Minister Justin Trudeau made the mistake of publicly acknowledge Canada’s constitutional division of powers.
“Housing is not a primary federal responsibility,” he said. “It’s not something we ship directly.”
It wasn’t wrong. He also said that his government was willing to do its part. But he was quickly mocked and chastised for appearing to shirk responsibility for a serious and widespread problem.
Trudeau seems to have learned the obvious lesson from that episode: in the current climate, there is nothing to be gained by deferring to other levels of government. Just as there are no atheists in foxholes, there are probably no constitutionalists in a housing crisis.
Six weeks after his comments about responsibility, Trudeau was in London, Ont. to announce the first agreement under the Housing Accelerator Fund – an idea first sketched out in the government’s 2022 budget. In exchange for the city’s promise to enact zoning and permitting reforms, the federal government would provide $74 million in housing funding.
One hundred and seventy-eight municipalities and the province of Quebec have since made similar deals, totaling $4.4 billion in federal funds.
Prime Minister Justin Trudeau says he wants to work with provinces on housing – but if a province doesn’t step up ‘with ambition’ on needed infrastructure, Ottawa will work directly with municipalities that want to ramp up the work of building houses.
Last week, in anticipation of this year’s federal budget, Trudeau announced that the federal government would work with the provinces to create a “bill of rights” for renters and fund provincial legal assistance programs for tenants. This week, he announced a new round of infrastructure funding for states and municipalities with significant housing conditions attached and a loan program that will provide assistance for rental housing if states agree to meet a series of benchmarks.
All these moves may or may not solve the Liberal Party’s profound political challenges. But the federal measures shift some of the pressure to the levels of government whose laws and bylaws tend to decide what gets built where. The full set of policies also provides a Liberal response to Conservative Leader Pierre Poilievre’s own pledge to take on “NIMBYism” and “the gatekeepers of the great city.”
The federal spending power — now for housing
On one level, just another example of what the Liberals are doing federal spending power at work. Although the federal government is limited in what it can do directly, it can still use its considerable fiscal resources to encourage or compel provincial governments to take certain actions. Any number of national programs—from medical care to child care—are owed to the federal government using its financial muscle.
In this case, the federal government is using money promised for housing and infrastructure to encourage municipalities and states to embrace policies that it believes will lead to more homes being built. In his own way, Poilievre says he would do the same.
Trudeau’s announcement on Tuesday leaned on the model created by the Housing Accelerator Fund.
In addition to adding $400 million to that program, the prime minister announced $6 billion for housing-related infrastructure, including wastewater and stormwater infrastructure. Of that $6 billion, $1 billion will go directly to municipalities. The rest would be directed to provincial governments.
But to access their share of that $5 billion, provincial governments will have to agree to pursue a number of reforms, including changes to make it easier to build four-unit houses in residential neighbourhoods. And states only have until January 1, 2025 to agree to those terms. If they don’t, the federal government will again deal directly with municipalities.
Those terms are an interesting challenge for Ontario Premier Doug Ford.
In November, Ford complaining that his government was not included when the federal government announced Housing Accelerator Fund agreements with cities in Ontario. But last month, Ford said he was against making it easier to build quadruplexes across the state.
With its announcement this week, the federal government is effectively asking the premier to make a choice: if he wants to participate in the photo ops, he will have to accept more housing density.
Asked about the federal proposal Wednesday, Ford said zoning decisions are best left to municipalities.
“I don’t believe in forcing municipalities,” said the premier. “I believe in working with municipalities.”
The City of Toronto may be surprised to learn that Ford believes so strongly in municipal sovereignty. But Ford might prefer Poilievre’s proposed approach.
The new bipartisan consensus on housing
According to the legislation laid down by the federal leader of the Conservatives, under the Poilievre government, municipalities would receive more or less federal funding depending on whether they meet housing targets set by Ottawa. Poilievre’s plan does not specify any specific policy changes – it would also apply to only 14 municipalities across the country.
Poilievre’s plan also has its critics. One expert has written that some cities will find Poilievre’s targets easy to achieve, while others will find it impossible.
Drew Dilkens, the mayor of Windsor, Ont., has already refused to agree to the terms of the federal government under the Housing Accelerator Fund, especially as they apply to zoning rules for quadruplexes. But Dilkens by the National Post earlier this year that Poilievre’s approach would unfairly hold him accountable for things he cannot directly control—namely, the housing market and developers who ultimately decide whether to proceed with construction.
Municipal and provincial politicians probably have more reason to fear that suburban homeowners will blame them when a quadruplex goes up next door. But the multi-level tendency to point fingers and resist solutions also likely helps explain how the Canadian housing market ended up in this state.
It’s probably not surprising that Poilievre — a populist who is constantly looking for someone or something to be seen fighting — is quick to focus on how municipalities can stand in the way of new construction. Since becoming Conservative leader, he has taken that a step further directly attack specific mayors.
But given the amount of accountability and media coverage that now falls disproportionately on the federal government, it’s probably only a matter of time before someone in Ottawa decides to stop waiting for other levels of government to solve the problem on their own.
The result is that the Liberals and Conservatives now have competing plans that aim to use the federal spending power to directly or indirectly shape municipal policies.
Strict constitutionalists – and supporters of “open federalism” – perhaps a murmur. But voters will probably only care if it becomes easier to find an affordable place to live.
- Just Asking want to know: What questions do you have about the federal government’s proposed renters’ bill of rights? What would you have liked to see in it? Complete the details on this form and send your questions before their show on April 6.
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