Canada and Quebec announce a major agreement to support accelerated housing construction

2023 November 9

We’ve heard Canadians and we’re working hard to build more housing, faster. The agreement announced today is historic and supports Quebec’s efforts to ensure that all Quebecers have a safe and affordable place to live. Together with our provincial and municipal partners, we will continue to cut red tape and build the safe, affordable communities that Canadians need and deserve, from coast to coast to coast.

The Right Hon.. Justin Trudeau, Prime Minister of Canada

The Prime Minister of Canada, Justin Trudeau, and Quebec Premier François Legault today announced an agreement through the Housing Accelerator Fund (HAF), under which Canada will provide Quebec with a total contribution of $900 million to accelerate the construction of residential units in the province.

The agreement confirms that the governments of Canada and Quebec share the common goal of ensuring all Quebec residents have a place to call home that meets their needs. In this context, Canada’s financial contribution will support Quebec’s initiatives to accelerate the construction of residential units to meet the province’s housing needs.

Quebec is committed to using Canada’s $900 million contribution to increase the supply of residential units in the province. The contribution corresponds to nearly 23 per cent of the total federal funding, the aim of which is to add at least 100,000 residential units over and above historical averages across Canada, over four years. In its November 7 economic and financial update, the Quebec government announced that it will also invest $900 million, bringing the combined total of the two governments’ contribution to $1.8 billion in new funding for housing construction. This investment will directly create 8,000 social and affordable housing units, 500 of which will be earmarked for clients who are homeless or at risk of homelessness.

This agreement will result in the creation of tens of thousands of additional housing units over the next few years in Quebec, and will also bring about regulatory reforms, which is excellent news.

Quebec is resolutely committed to pursuing its efforts to accelerate the construction of residential units in the province, based on the Act respecting land use planning and development and other provisions. The Quebec government will also set up an interdepartmental project acceleration unit in co-operation with Quebec municipalities, and will adopt new government policies for land use planning, with housing construction indicators on which municipalities will have to base their targets. The province intends to propose legislative amendments – these are currently in the drafting phase and will be subject to adoption by the National Assembly – to improve urban densification and facilitate the authorization of residential building construction, thus reducing related delays.