In a major move to address the country’s housing affordability crisis, the Canadian federal government has announced the launch of a new $1.5 billion “Canada Rental Protection Fund.” Prime Minister Justin Trudeau announced on Thursday, describing it as a crucial step to preserve affordable rent prices across the country.
The fund will provide $1 billion in loans and $470 million in direct contributions to non-profit organizations, community housing providers, and other partners. This funding will allow them to purchase affordable rental buildings that are at risk of being sold to speculators or developers who would raise rents.
“We need more affordable housing buildings just like this one, right across the country,” Trudeau said during the announcement in Winnipeg. “Unfortunately, too many of those places are under constant threat of being demolished to build condos, or sold to speculators and large corporations that will increase rents at turnover. People are being priced out of their communities, and that’s not okay so we have to help.”
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The new rental protection fund is part of a broader $25 billion in new federal spending and loan programs that the Liberals have unveiled in the lead-up to the 2024 budget. However, the Prime Minister stressed that the government remains committed to fiscal responsibility, stating “there are no plans to raise taxes on the middle class” to fund these initiatives.
While housing advocates welcomed the rental fund, some critics argued that it does not go far enough to address the scale of the affordable housing crisis.
NDP MP Jenny Kwan noted that Canada has lost 370,000 homes renting for under $1,000 per month since 2016, far outpacing new affordable unit construction. The government will need to build on this initial investment to truly make a dent in the problem, she said.
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