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Ottawa promises to continue to replenish the bank
Published August 27, 2024 • Last updated 1 day ago • 4 minutes reading time
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Federal Housing Minister Sean Fraser. Photo by Darren Calabrese/The Canadian Press
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The Canadian federal government has expanded its public land inventory by 56 properties to increase the supply of affordable housing across Canada.
The initiative, announced in Halifax on Sunday by Housing Minister Sean Fraser and Public Services and Procurement Minister Jean-Yves Duclos, builds on a strategy introduced in Budget 2024 in which the government committed to releasing unused federal land for housing development as part of its broader efforts to address the affordable housing crisis.
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Fraser highlighted the potential impact of this strategy on the housing market, stating: “Providing public land for housing will reduce construction costs and, in turn, reduce the cost of living.”
The expanded Canada Public Land Bank's lands – including former military bases, Canada Post sites and federal buildings – were previously slated for sale. But under the new plan, they will be leased to developers on a long-term basis. The approach is designed to keep the lands in public ownership while ensuring that the housing built on them remains affordable over the long term, according to a press release on Canada.ca.
Duclos stressed the government's determination to ensure that public land is used effectively to address the housing crisis.
“By partnering with the housing industry and communities and using long-term leases rather than sales, we are ensuring that public lands remain public while providing the affordable housing that Canadians desperately need,” said Duclos.
Nicholas Gefucia, senior vice president of EllisDon Community Builders, one of the developers interested in the new leasing opportunities, expressed optimism about the government's approach.
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“It is encouraging that the government is now adopting delivery models that have been successfully implemented across Canada to deliver critical social infrastructure,” said Gefucia.
He noted that incorporating surplus federal lands is critical to solving the affordable housing crisis. “Long-term leases could enable a more targeted approach to land development and use,” he added.
Justin Sherwood, senior vice president of stakeholder relations and communications at the Building Industry and Land Development Association (BILD), also welcomed the announcement.
“The Building Industry and Land Development Association (BILD) welcomes the federal government's announcement to make surplus federal real estate available for housing purposes. Land is a critical asset in addressing the current housing supply and affordability crisis facing the GTA and many Canadian cities – particularly land that is already developed or can be easily equipped with housing-supportive infrastructure. Yesterday's announcement is a welcome step in the right direction,” said Sherwood.
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The Canadian Home Builders' Association (CHBA), which has long advocated the use of public lands for housing and smart subsidies, also commented on the news.
“CHBA calls for the release of public lands for housing and smart means of subsidising affordable housing without driving up the price of market-rate housing. However, leasing land rather than selling it, while potentially innovative, needs to be carefully crafted to be successful,” a spokesperson said.
Under the new Public Lands for Homes plan, the federal government will work with municipalities and housing stakeholders to create housing on every suitable piece of land in the federal portfolio, which currently amounts to 305 hectares across Canada.
Gefucia also stressed the importance of involving various stakeholders early in the development process.
“I am particularly encouraged by the prospect of a development approach that enables governments, developers, operators and other societal stakeholders to be at the table right from the start of a project to ensure sustainable and responsible development,” he said.
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He believes that this method of collaboration “can enable nonprofits to optimize their operational capacity, while world-class builders can deliver true excellence and create the housing that Canada desperately needs to make it more affordable again.”
The Canada Lands Company, in collaboration with the Canada Mortgage and Housing Corporation, has already launched a call for tenders from housing providers for some of the land plots in major cities. The land plots will be offered on a long-term lease basis at a reduced price.
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The public land bank now includes properties in 28 communities across seven provinces. More properties are expected to be added as the government continues its review of underused or vacant federal lands. Five properties identified in the April budget have moved to the development phase and the government is now seeking proposals from developers. They include former military bases in Calgary, Edmonton, Toronto and Ottawa, and a former National Film Board site in Montreal.
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