The federal government says a new housing legislation package will help increase the supply of homes across Canada and address affordability pressures facing Canadians after Bill C-26, the Improving Housing Supply Act, received Royal Assent.
The legislation will provide $1.7 billion in funding to provinces and territories to support efforts aimed at removing barriers to residential construction and encouraging the development of more homes.
According to the federal government, the funding will help provinces and territories implement measures that could reduce obstacles to homebuilding, including lowering development fees associated with new housing projects and strengthening existing programs designed to support construction.
The government said provinces and territories will have flexibility in determining how to use the funding based on their specific housing needs and challenges.
Ontario, for example, plans to use its allocation to launch a temporary program that would provide relief equivalent to the 5 per cent federal portion of the HST on eligible new home purchases. The move follows Ontario’s own decision to provide relief on its provincial portion of the HST through temporary enhancements to existing housing rebate programs.
Beyond increasing housing supply, the federal government said the legislation also supports efforts to improve productivity in the construction sector by encouraging better coordination between provinces and territories, including reducing regulatory barriers and improving internal trade.
The funding is also connected to broader federal housing initiatives, including requirements under the provincial and territorial stream of the Build Communities Strong Fund, which links funding support to actions that reduce development charges and other costs that can slow down housing construction.
Federal officials said the legislation is part of a larger plan to create a more efficient homebuilding sector, reduce red tape, and help builders deliver homes at a scale needed to meet growing demand.
“We know Canada needs to build more homes—and quickly. With Bill C-26, we are increasing housing supply and making housing more attainable for Canadians. This legislation also strengthens our essential partnerships with provinces, territories, and municipalities to boost homebuilding. It will help keep projects moving forward, support construction workers, and deliver more homes when Canada needs them most,” said The Honourable François-Philippe Champagne, Minister of Finance and National Revenue.
Housing Minister The Honourable Gregor Robertson said affordability remains one of the biggest concerns for Canadians and emphasized the importance of increasing housing availability.
“Housing affordability is a top concern for Canadians and our government is working tirelessly to address this challenge. The legislation passed yesterday will help increase Canada’s housing supply. Bill C-26 is a key component of our government’s drive to make our country more affordable for Canadians,” Robertson said.
The federal government says the legislation represents a major step in its effort to work with provinces, territories, and municipalities to increase housing construction and make homeownership and housing options more attainable for Canadians.
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