Trudeau's new fund aids nonprofits in buying apartments, aiming to alleviate Canada's housing crisis
Prime Minister Justin Trudeau's government is introducing a $1.5bn program aimed at assisting Canadian nonprofit organizations in purchasing affordable apartment buildings to maintain low rental costs, as reported by BNN Bloomberg.
This initiative, announced as part of a series of housing and affordability measures ahead of the budget, seeks to address Canada's acute housing shortage while also looking to improve Trudeau's declining approval ratings.
The program, unveiled on Thursday, will allocate $1bn in loans and $470m in grants to nonprofit entities for the acquisition of existing rental accommodations.
Trudeau's office highlighted the program's intention to prevent apartments from being acquired by speculators or profit-seekers, ensuring they remain accessible and affordable for nonprofit organizations, community housing providers, and middle-class Canadians.
This move is aimed at enabling Canadians to reside in their preferred communities without being priced out.
This announcement comes on the heels of a $15bn enhancement to an existing apartment construction loan program disclosed on Wednesday. The augmented $55bn initiative is designed to support the development of over 131,000 new apartments over the coming decade.
Earlier in the same week, Trudeau presented a $6bn infrastructure fund available to provinces and municipalities, contingent upon the removal of specific obstacles to housing development.
These conditions include the halting of municipal development charges and the approval of up to four housing units per lot.
The announcements precede the publication of the federal budget, scheduled for April 16, outlining the government's financial plans and commitments.
