Quebec City hoping to see 80,000 new homes built by 2040

Quebec City wants to step up the pace of housing construction and see 5,000 new units added per year, with an end goal of 80,000 units by 2040 — double its previous target — by encouraging private developers and upping its social housing fund.

It plans to invest $605 million over the next three years to tackle the housing crisis. It is also changing policies to create conditions that entice developers to build new housing units and densify Quebec City's neighbourhoods — and it's hoping the province will pick up $348 million of the tab.

"We're in a crisis situation where people can't live in cities, and Quebec City is not doing better than other cities in Canada or Quebec. We're facing a major crisis and we have to act," said Mayor Bruno Marchand.

The city says it wants to fundamentally shift its housing sector — currently experiencing a crisis as low supply, rising rents and slow construction make finding a home increasingly difficult. The city also anticipates more people will need a place to live in the coming years, as it expects an influx of immigrants, temporary workers and refugees.

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Marchand says the city said it will encourage investment in housing of all types but will prioritize social and affordable projects, with nearly 80 per cent of the $605 million earmarked for such developments, but wasn't clear on how the money will be used.

500 social and affordable units per year

Quebec City wants to expand the territory on which it can exercise its pre-emptive right to acquire land for new social and affordable housing projects. It aims to take 50 housing units a year from the speculative market to ensure affordable housing remains affordable by avoiding renovations.

The city is maintaining its target of 500 new social and affordable housing units per year. It would like 20 per cent of new housing units to be used to help vulnerable people like the homeless, young people or people with disabilities.

A city-wide moratorium was also put in place to prevent the conversion of housing units to condos. The vacancy rate is below three per cent everywhere in Quebec City.

"We saw it homelessness situation that some [people] are getting pushed to the streets because they don't know where to live, they don't know where they can have a place of their own," said Marchand.

"So that's a huge issue as a city."

'Soft densification'

To attract developers, Quebec City will simplify its permit application process, adjust zoning to allow more densification, add a tax on vacant lots and large parking lots and abolish minimum parking requirements for construction projects, particularly along arteries served by public transit.

It will allow "soft" densification by permitting tiny homes or the addition of a second dwelling — for example when converting a garage or basement — or by building on vacant lots. It will also modify certain provisions of its Accès Famille program to make it easier for young families to buy their first home.

Short-term rental accommodations like Airbnb will also be limited, with restrictions on zones where it will be permitted.

Marchand said he doesn't want to drastically change Quebec City but to make it easier for people to find a place to live.

"Our neighbourhoods have colour. They have a soul, they have their own way of living. We don't want to disturb that," he said.

"We won't become New York…. Our goal is to be the best Quebec City could be. We need densification, but we need soft densification. We need to do it with citizens."

Municipal councillor and leader of Transition Quebec Jackie Smith said her party is happy with the announcement as it has been pushing for some of the proposed changes "for a long time."

But, she said she worries building housing will come at the detriment of green space as it's "easier to completely tear down a forest and drain a wetland than it is to build it on a parking lot."

Mayor Marchand said the city is warning developers they will have to meet standards before they get any funding or help with permits.

"This is not going to be an all-you-can-eat buffet," Marchand said. "If you're building housing, we're not going to say 'sure, sure, whatever you propose, even if it's poor quality, even if it's in a woodland or a wetland.' That is not what we are saying."

Smith said she hopes the new regulations will encourage developers to build on vacant parking lots, and contaminated or abandoned lots.

To invest $605 million into housing over the next three years, the city will have to rely on the financial support of its partners. It is asking the provincial government to foot half the bill — $348 million — and is also hoping for a boost from Ottawa. Projects totalling $110 million have been submitted to the federal Housing Acceleration Fund.