Ottawa, ON —The Federation of Canadian Municipalities (FCM) welcomes the new $6-billion Canada Housing Infrastructure Fund announced today by the federal government to meet the needs of Canadian communities, especially those experiencing record growth.
This significant investment, most notably with $1 billion dedicated towards urgent community infrastructure needs including for water and wastewater management, signals the federal government is responding to FCM’s ongoing advocacy for more investments in community infrastructure. FCM has been clear that for every new home built, there must be a corresponding investment in infrastructure.
“Today’s announcement represents a vital stepping stone towards supporting the ambitious number of new homes Canada needs to build over the next decade,” said FCM President Scott Pearce.
“It also represents clear recognition from the federal government that investing in infrastructure must be part of a plan for growth. There is no doubt Canada’s housing challenge is also an infrastructure challenge. To build the 5.8 million housing units that CMHC says we need by 2030, existing infrastructure must be renewed, and new infrastructure needs to be built.”
Halifax Mayor and Chair of FCM's Big City Mayors' Caucus Mike Savage also noted that Canada’s cities and communities know effective growth is tied to infrastructure.
“Even as we are responsible for most of the infrastructure people rely on every day, municipalities still only collect one-tenth of every tax dollar,” he said.
“Indeed, funding models for municipalities have not changed since confederation; our property tax system is simply not designed to meet this extraordinary growth. Wherever housing is built, it should be part of a complete community – this may mean water and wastewater, emergency services, parks and playgrounds, recreation centres, and transit connectivity.”
FCM and its members look forward to collaborating with the federal government and our partners in provincial and territorial associations to fully analyze and ensure the success of this newly announced funding arrangement.
Today’s announcement is timely in the context of ongoing re-negotiations of the Canada Community Building Fund (CCBF), which remains a crucial funding program for Canadian communities of all sizes.
Additionally, FCM welcomes the government’s $400-million top-up to the Housing Accelerator Fund (HAF), which will encourage local initiatives to build more homes faster across the country. With Canada’s cities and communities leading on the ground, the HAF is on track to support the delivery of well over 750,0000 new homes in the next decade, with this top-up set to further facilitate many new housing builds.
While today’s announcements represent upfront investment in urgent needs, a serious conversation is needed on supporting long-term funding for municipalities.
As governments of proximity, municipalities must be directly engaged in the growth of this country. FCM urges the federal government to convene all orders of government and discuss how a new Municipal Growth Framework would better support communities in the long-term.
In addition, FCM looks forward to additional details on the housing front, as referenced today by Housing, Infrastructure and Communities Minister Sean Fraser. FCM continues to call for a holistic approach to end chronic homelessness in Canada, including through long-term investments in supportive housing and the associated wraparound health and social supports.
The Federation of Canadian Municipalities is the national voice of municipal governments, with over 2,100 members representing more than 92 per cent of the Canadian population.
For more information please contact:
FCM Media Relations, (613) 907-6395, media@fcm.ca