The plan will add 500 new housing options to the market
Newfoundland and Labrador premier Andrew Furey has announced new measures that will tackle the ongoing housing crisis in the province.
“Anytime anyone doesn't have a home or a place to lay their head at night, it is a crisis for them and should reflect as a crisis in society," said Furey in unveiling the five-point plan.
The proposals introduced by Furey aim to provide incentives to the private sector in order to build more affordable housing. Specifically, it included the following:
- Removal of the GST/HST on new rental housing builds, something that was already announced last month.
- A low-interest financing program to help construct rental housing, or convert non-residential buildings into rentals.
- Using available provincial government-owned land and buildings for construction or conversion to rental housing.
- A home ownership assistance program that would help first-time homebuyers get the required downpayment to purchase a home, when they have already qualified for a mortgage but don't have enough cash on hand.
- A pilot project to help homeowners convert part of their home into apartments for rental use, by providing a forgivable loan of 50% of the cost of renovations, up to a maximum of $40,000 over five years.
The premier said that the targeted actions, which totalled to more than $65 million, will add 500 new options to the housing market. Separately, the province announced that it also had $3 million dedicated for the repairs and renovation of around 143 vacant Newfoundland and Labrador Housing Corporation units.
"Whenever there's acute crisis, there has to be an acute crisis response, of course. And seeing some things today like the 143 [NLHC units that will be repaired], certainly that will help, but you can't just snap your fingers and houses are built overnight," said Furey.
"So, it's a response to a growing housing crisis that's happening across the country. We think this is a package that helps deal with some of the immediate needs,” he said further.
As the waitlist for social housing units has doubled in number since 2021, reaching to more than 2,800 applications in queue, Furey said that the development of affordable housing and the continued incentivising of affordable housing will help take the pressure off the system.
PC Opposition Leader Tony Wakeham questioned Furey about why it took so long to fix the housing crisis in the province, citing eight years where promises were made but to no avail. The premier replied that his government was taking the issue very seriously.
Jim Dinn, leader of NDP, criticized the announcement, telling reporters that he felt that it was cobbled together and that there was no plan.
"I've got to wonder if those who are vulnerable really matter to this government," he said.
