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Feds take steps to fulfill real estate promises before cabinet reshuffle

The Federal Government of Canada has recently added 56 properties to a new public land bank that are suitable for long-term leasing to developers to build homes, a housing minister has announced. The move aims to help increase the supply of homes in the country, as Canadian Home Builders‘ Association CEO Kevin Lee stated that the properties will be made available for developers to build homes at affordable prices.

The properties included in the public land bank consist of former military bases, Canada Post sites, and federal office buildings, many of which were previously reserved for sale but are no longer in use. The new initiative aims to keep land in the hands of the public and provide long-term leases to ensure that most of them are developed into housing units.

Currently, there are 28 properties in 7 provinces listed, but through ongoing reviews of unused federal land and buildings, the inventory is expected to grow. The first five properties identified in the budget of April are now in the development phase, and the government is seeking interest or proposals from developers.

Among the properties are four in Calgary, Edmonton, Toronto, and Ottawa, including the former military base in Calgary and the former National Film Board building in Montreal. Sustainable housing advocates have criticized the latest plan as a repeat of promises made by Liberals since 2015 to provide more public land for affordable housing.

Scott Aitchison, a conservative housing critic, highlighted the government’s commitment to providing more properties for affordable housing in its 2015 Liberal platform and 2017 federal budget. He emphasized that the promise was not just for Prime Minister Justin Trudeau to build homes on federal land but to identify parcels of land that he would develop.

In a video statement shared on social media, Prime Minister Justin Trudeau criticized Pierre Poilievre’s comments on the use of federal land, stating, „Conservative Party leaders want to sell everything quickly for quick money. It doesn’t help you at all.“

The housing plan includes selling 15% of all federal buildings to be converted into housing units. Fraser mentioned that construction of housing could begin in the first half of 2025 on the first five properties.

Housing affordability will be a primary concern post-election as Canadians struggle with high costs and limited affordability. The upcoming annual Cabinet retreat will be the last event before the return to Parliament for the final session before the next election.

The government’s final opportunity to appeal to voters for another term may come before the next election. The next election is scheduled for October 2025, but it could happen at any time. The NDP leader Jagmeet Singh will update the Cabinet on the status of the supply and confidence agreement with Prime Minister Justin Trudeau.

The agreement has helped the Liberals stay in power with NDP support since 2022, as the Liberals have been careful not to upset the balance with the NDP’s leverage and have initiated a national pharmaceutical care program.

The agreement is expected to be permanent until next spring, but the NDP faces pressure to abandon it, especially after the recent decision by the Canadian Industrial Relations Board to initiate mandatory arbitration between the unions and two major national unions. The country’s rail companies, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), have both locked out their workers early Thursday morning, leaving thousands of unionized workers in a state of deadlock. During the work stoppage, all freight trains and some commuter traffic have come to a halt.

Trains are expected to return to normal schedules on Monday, but it will take time to restore normal service. The Teamsters Union has pledged to fight the decision in court and President Paul Boucher said on Sunday that he would „protest this decision at the Liberal caucus retreat.“

The conflict between the Liberals and the unions, including the rail, rail, and airline industries, has been the most recent due to supply chain disruptions caused by COVID-19, which have exacerbated high inflation rates and rapid urbanization, driving up average home prices and rents over the past five years.

The housing crisis in Canada, high interest rates, and rapid urbanization driven by rapid immigration have exacerbated housing supply issues, driving up average home prices and rents. The previous Liberal Chief of Staff, Marcy Saracusa, now Chief Strategy Officer at the government relations firm Compass Rose, said housing would be the focus of post-election and temporary foreign workers, electric car markets, industrial skills, childcare, and Canada-US relations will also be discussed.

The two-day retreat will include discussions on Canada-US relations, as the upcoming presidential election will be crucial for Canada, which relies heavily on American trade for its economic stability. Canadian Ambassador to the US, Kirsten Hillman, former Ambassador Frank McKenna, and David MacIntyre will speak at the Cabinet on Tuesday about Canada-US relations.

This report was first published in the Canadian press on August 25, 2024.

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