Trudeau creates fund for nonprofits to buy apartment buildings

Prime Minister Justin Trudeau's government is taking proactive steps to address Canada's housing crisis with the creation of a $1.5 billion program. The initiative aims to support Canadian nonprofit organizations in purchasing affordable apartment buildings and maintaining reasonable rental rates.

This move comes amidst a series of announcements focusing on housing and affordability ahead of the budget release, signaling Trudeau's commitment to tackling the pressing issue and improving his popularity ratings.

The newly unveiled fund, announced on Thursday, will allocate $1 billion in loans and $470 million in grants to nonprofit entities for the acquisition of existing rental properties. By facilitating the involvement of nonprofit organizations and community housing providers, the government aims to prevent these properties from being acquired by speculators or individuals seeking to profit from escalating rental prices.

According to Trudeau's office, the initiative will enable Canadians to reside in their preferred communities while ensuring rental prices remain within their financial reach.

This announcement closely follows Wednesday's unveiling of a $15 billion augmentation to an existing apartment construction loan program. With a total budget of $55 billion, this program seeks to finance the construction of over 131,000 new apartments within the next decade, further contributing to alleviating the housing shortage.

Earlier in the week, Trudeau outlined a $6 billion infrastructure fund accessible to provinces and municipalities. However, access to this fund is contingent upon the removal of specific barriers to homebuilding, such as the suspension of municipal development charges and the allowance of up to four units on each lot.

The comprehensive approach adopted by Trudeau's government underscores the urgency of the housing situation in Canada. By addressing both the supply and affordability aspects of housing, these initiatives aim to create a more sustainable and equitable housing market for Canadians.

With the budget set to be published on April 16, these recent announcements serve as a preview of the government's broader strategy to address housing challenges and improve the overall well-being of Canadians.