UDI Annual Report 2023-2024
UDI’s federal engagement continued to grow in 2023 and
2024 with the formation of a new committee focused on
federal advocacy, and a new willingness to listen from the
current Government.
Since the appointment of the Hon. Sean Fraser, as Minister
of Housing, Infrastructure and Communities, we’ve seen
a renewed focus on supply-side measures to accelerate
housing delivery across the country. These included a pivot
in the Federal government’s position on the application
of the GST – effectively removing the tax from new rental
housing – and an exemption for new rental housing from
the excessive interest and financing expenses limitation
(EIFEL) rules in the 2024 Budget. There was also a change
to the Capital Cost Allowance (CCA) rate from 4% to 10%
for new eligible rental projects, which will contribute to
project viability.
All of these changes were longstanding advocacy points
for UDI. Although we still believe that the EIFEL exemption
should apply to the real estate development sector more
broadly, as it does in the United States, we believe that it
represents an incremental gain, and like the removal of the
GST and change to the CCA, will support the development
of new rental housing. Despite these positive changes,
the 2024 Budget also included measures that we will be
watching closely, including the changes to the capital gains
tax, and the potential of a new vacancy tax.
The new direction released by the Federal Government
in April cemented the change in narrative that we had
observed over the past several months. Solving the
Housing Crisis: Canada’s Housing Plan borrows many
of its policies and programs from the B.C. Government’s
own efforts to increase housing development, shining a
spotlight on the generational changes taking place in this
province. While it’s too early to determine the success of
B.C.’s efforts, it’s clear that British Columbians won’t be
the only ones watching with anticipation now.
This Plan includes many positive directions, like tying Federal
funding to commitments by other levels of government to
reduce processing times and improve housing delivery,
particularly around transit. There was an acknowledgment
through the creation of the Canada Housing Infrastructure
Fund, that the Federal Government has a role to play in
supporting growth by making sure that there is funding
available to deliver the necessary infrastructure. While
the actual funding allocation will not be enough to affect
meaningful change, this is a step in the right direction.
UDI is also working collaboratively with other development
organizations across Canada, including other UDI chapters,
the Canadian Home Builders’ Association and BILD GTA.
We believe these collective efforts will continue to deliver
results on behalf of our members.
Federal Policy
FEDERAL
POLICY