Could Barrie’s share of federal housing money — pegged at $25.68 million — be in jeopardy if the Conservatives form the next Canadian government?
Conservative Leader Pierre Poilievre announced Monday he would abolish the housing accelerator fund program, the source of Barrie’s $25.68 million, and instead use the fund to pay for his plan to scrap the federal sales tax on new homes sold for less than $1 million, The Canadian Press (CP) has reported.
Poilievre attacked the housing accelerator fund during a news conference, calling it a “disastrous program that has led to less homebuilding and more local bureaucracies,” CP reported.
It was announced March 14, 2024 that Barrie is getting $25.68 million in federal funding to not only fast-track more than 680 housing units during the next three years, but help spur construction of 4,100 homes in the next decade.
Federal Liberal Housing, Infrastructure and Communities Minister Sean Fraser, along with Barrie Mayor Alex Nuttall, made the announcement that day.
But now Fraser says there’s a problem.
In an Oct. 30 letter to Nuttall, the minister said “the leader of the Official Opposition (Poilievre) announced that if the Conservative Party were to form government, he would cut this program.”
Nuttall said Barrie needs funding from the federal and provincial governments in order to make housing more affordable.
“Cities like Barrie can’t do this alone,” he said. “The leader of the Official Opposition (Poilievre) had pledged to honour committed funding. I think we all acknowledge that this housing crisis needs all hands on deck.'
Matthew Dillon-Leitch, Fraser’s communications director, disputes Nuttall’s position on Poilievre’s commitment.
“Mr. Poilievre stated that the remaining funds in the housing accelerator fund would be cut, meaning the future allotments Barrie and the Government (of) Canada agreed to are at risk,” said Dillon-Leitch.
Nuttall praised the Conservative housing incentives.
“The removal of the GST on new housing under $1 million is a bold proposal that I think could make a real difference in sparking housing across the country,” Nuttall added. “The City of Barrie is committed to doing our part to get housing built and we are going to make sure we do just that, regardless of who’s in power.”
Barrie has received the first of four equal payments of its housing accelerator fund money — $6,466,246.50.
On March 15, Premier Doug Ford visited to announce Barrie is receiving $6.34 million from Ontario’s Building Faster Fund, as the city has exceeded its 2023 housing target, breaking ground on a total of 1,716 new housing units last year.
Fraser went on to say in his letter that these funds went to Barrie based on its commitments to make it easier and faster to build homes.
Across Canada, Fraser said, some of those commitments include zoning reform, development cost waivers for affordable housing, backyard suite programs, adopting e-permitting and expediting housing approvals.
“Homebuilders have told us that the faster they can obtain approvals, the faster they can build homes,” Fraser said in his letter. “I am interested in learning more about the impact of the Official Opposition’s plan to cut $25,684,990 from Barrie.
“I would also encourage you to take this opportunity to inform members of your community about the impact this cut would have to your plans to build more homes,” he wrote to Nuttall.
Fraser also asked Nuttall to respond to him in writing with the mayor’s feedback by Nov. 8.
John Brassard, Conservative MP for Barrie-Innisfil, and Doug Shipley, Conservative MP for Barrie-Springwater-Oro-
“We’re not surprised Minister Fraser is using scare tactics on municipal leaders so soon after Pierre Poilievre’s transformative housing announcement earlier this week that has been universally seen as a game-changer,” the local MPs said in their statement. “Fear-mongering is all the Liberals do at this point as they near the end of their failed, costly coalition government.”
More than a year ago, Poilievre announced the Conservative plan of ‘Building Homes, not Bureaucracy.’ The plan is to reward cities that are removing barriers to get homes built by providing a building bonus for municipalities that exceed a 15 per cent increase in housing completions, proportional to the degree to which they exceed this target and provide a ‘super bonus’ to any municipality that has greatly exceeded its housing targets.
“The City of Barrie is well positioned to receive significant support from a future Conservative government for housing because Mayor Nuttall and council have set the standard to reduce the planning and permit processing and get homes built to meet the housing affordability and attainability crisis,” Shipley and Brassard said in their statement.
Poilievre has criticized the housing accelerator fund since the federal government began signing agreements with municipalities, saying it adds more bureaucracy without building any homes.
In a statement to The Canadian Press, Poilievre spokesman Sebastian Skamski said the Conservative plan to eliminate the GST on new homes under $1 million would "spark 30,000 extra homes per year," reduce purchase prices by up to $50,000 and cut mortgage payments by almost $3,000 a year.
“Unlike their multibillion-dollar so-called ‘housing accelerator’ photo-op fund, this common-sense policy benefits all Canadians without bureaucratic applications and costly photo-ops designed for Liberal political gain,” the statement reads.
The next federal election is scheduled to be held before October of 2025.
— With files from The Canadian Press
