Furey floats 5-point housing plan as 'acute crisis' grips province
New pot of $3M also announced to fix 143 vacant NLHC units
Sheltered, a CBC Investigates series, examines the housing crisis in Newfoundland and Labrador — telling the stories of the people living it, while scrutinizing the policies and politics behind it.
Hours before MHAs reconvened in the legislature for the fall session, the Newfoundland and Labrador government rolled out new measures aimed at tackling what Premier Andrew Furey described as an "acute crisis" in housing.
"Making housing more affordable for hard-working people in Newfoundland and Labrador is a key," Furey said at a news conference Monday morning.
Furey announced "targeted actions" totalling more than $65 million to add 500 new housing options to the market.
The five-point plan provides incentives to the private sector to build more affordable housing.
It includes:
- Removal of the GST/HST on new rental housing builds, something that was already announced last month.
- A low-interest financing program to help construct rental housing, or convert non-residential buildings into rentals.
- Using available provincial government-owned land and buildings for construction or conversion to rental housing.
- A home ownership assistance program that would help first-time homebuyers get the required down payment to purchase a home, when they have already qualified for a mortgage but don't have enough cash on hand.
- A pilot project to help homeowners convert part of their home into apartments for rental use, by providing a forgivable loan of 50 per cent of the cost of renovations, up to a maximum of $40,000 over five years.
The initiatives got plaudits from industry officials at Monday's news conference.
"This funding and project will positively impact our growing construction industry and local economy," said Stephen Short, vice-chair and executive member of the Newfoundland and Labrador Construction Association.
"It means job opportunities for our valued skilled workers, contracts for construction firms, and financial security for families throughout Newfoundland and Labrador."
Alexis Foster, executive officer of the Newfoundland and Labrador branch of the Canadian Home Builders' Association, said it's "heartening" to see the province making efforts like those announced Monday.
"Housing supply, especially affordable housing, is a crisis facing all Canadians which impacts everyone's quality of life," Foster said.
"Collaboration between all levels of government, as well as the public and private sectors, are necessary to address this crisis."
In a separate announcement, the province also came up with a new pot of $3 million to repair and renovate about 143 vacant Newfoundland and Labrador Housing Corporation units.
'Acute crisis' in housing sector, premier says
Asked about how Monday's announcement helps people like those living in a tent city that has popped up across the street from Confederation Building, Furey acknowledged there is an "acute crisis" at the moment.
"Look, any time anyone doesn't have a home or a place to lay their head at night, it is a crisis for them and should reflect as a crisis in society," the premier said.
"There's no question about that, and we are very sensitive and compassionate when it comes to the acuteness."
So if this is an acute crisis, are the measures announced Monday an acute crisis response?
"Whenever there's acute crisis, there has to be an acute crisis response, of course. And seeing some things today like the 143 [NLHC units that will be repaired], certainly that will help, but you can't just snap your fingers and houses are built overnight," Furey said.
"So it's a response to a growing housing crisis that's happening across the country. We think this is a package that helps deal with some of the immediate needs."
The wait-list for social housing units has nearly doubled since 2021, to more than 2,800 applications currently in the queue.
Will these actions trim that wait-list?
"We're developing affordable housing and continuing to incentivize housing that's affordable," Furey said.
"So I think the combination of those two things will help take pressure off the system from two angles, from two different lenses."
Opposition pans housing plan
Newly minted PC Opposition leader Tony Wakeham led off his first question period with housing-related issues.
"For the eighth time since taking office, the Liberal government has made a promise to fix the housing crisis in our province," Wakeham said to the legislature.
"Eight years, eight promises, no action. I ask the premier: can you tell the people of Newfoundland and Labrador why it's taken so long?"
Furey replied that his government takes the issue "very seriously."
Earlier, NDP Leader Jim Dinn told reporters the announcement felt "cobbled together," and he doesn't feel there is a plan.
"I've got to wonder if those who are vulnerable really matter to this government," Dinn said.
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