New federal measures could be a big boost to helping Delta create more affordable housing options.
Last week, Prime Minister Justin Trudeau announced a series of initiatives to ease the burden on the middle class over the rising living costs amid global inflation.
Trudeau also called on provincial governments that currently impose the provincial portion of HST on rental housing to collaborate by matching the federal rebate for new rental housing. This approach could provide consistent relief and further drive down housing costs.
Delta Coun. Dylan Kruger said these federal measures single positive changes to Delta’s housing issues, as he had not seen a single purpose-built rental project or market rental project built in the five years he has been on council.
“We need additional tools to incentivize this type of development,” said Kruger. “Municipalities have been calling for a long time to see GST exemptions or rebates for purpose-built rental projects.”
Kruger noted that most of Delta’s rental stocks were built 40 to 60 years ago and are rapidly aging. The removal of GST could greatly contribute to Delta achieving its housing targets.
“The province has said that Delta has not done enough to build the right type of housing to address housing demands today and in the future,” he said. “We are not going to meet those targets unless we can incentivize. We have very limited tools in municipal government.
“We can do free waivers, but that’s about it. To have those deeper incentives like the GST rebate that the federal government is now implementing will make a substantial difference on projects that are already going through the pipeline.”
Delta North MLA and Minister of Housing Ravi Kahlon that this move by the federal government could be a step towards creating the conditions necessary to construct housing that aligns with Canadians’ needs.
“These measures are crucial to addressing the rising challenges posed by historic interest rates and rising construction costs, which threaten our ability to meet the increasing housing needs of our rapidly growing population,” Kahlon said.
