N.S. municipalities defend housing fund Conservatives have promised to cut

Some Nova Scotia municipal leaders are defending a funding stream the federal Conservatives say they will cut if elected, calling it a "game changer."

Conservative Party Leader Pierre Poilievre has said the $4.4-billion Housing Accelerator Fund from the Liberal government has been costly to administer and doesn't do enough to create new housing units.

About $1 billion of the fund has been spent already in deals to more than 170 municipalities and First Nations across Canada that commit to reducing red tape to build more homes. So far 16 Nova Scotia municipalities and First Nations have signed deals.

If elected, Poilievre said, he'd cut the GST on new homes sold for under $1 million to speed up construction. To pay for that, which he estimated would cost about $8 billion annually, he'd cut programs like the accelerator fund.

But Mayor Lennie White of Westville, N.S., said $1.5 million the town is getting from the program over four years is making a real difference.

"I don't think I overstate it to say that when we received the notice that we were getting these funds, it was a game changer," White said.

"We would not be able to expand [as] quickly, and as easily, as we see that we are going to with the addition of these funds."

As a small town of about 3,800 people, White said the funds will go to projects Westville couldn't do otherwise — like incentives for two local developers building about 100 units in total, and a study to find a new water source to support local housing growth.

It's unclear exactly how Poilievre would handle this cut, and whether towns like Westville would still have their entire funding delivered.

"Losing it would be a significant blow now that … we know that we're getting it for the next three years and can plan accordingly," White said.

Nearby Pictou, N.S., a town of about 3,100 people, is using its $775,000 accelerator grant for various projects, including stormwater system upgrades.

Mayor Jim Ryan said cutting GST for new homes is a good idea but shouldn't come at the expense of the fund that is laying the groundwork for those new buildings.

"We are in a catch-up mode here in terms of trying to make sure that we're ready to provide the housing that people are crying for," Ryan said.

The Liberal government has said that if Poilievre cuts the program, municipalities with ongoing financial agreements could be placed in "significant legal jeopardy."

Both Halifax and Cape Breton regional municipalities committed millions of their accelerator fund dollars this year to developers or non-profits for specific affordable housing projects that will create hundreds of units.

Poilievre has also said he would cut the $6-billion Housing Infrastructure Fund, which just opened for applications from municipalities across Canada. It will be rolled out over 10 years, starting in 2024-25. 

When asked about what this cut could mean for municipalities with current Housing Accelerator Fund deals, a spokesperson for Poilievre's office said the Conservative leader will "incentivize municipalities" to speed up permits, free up land and cut development taxes to build 15 per cent more per year.

Sebastian Skamski said "those municipalities that beat these building targets will get more federal money. Those that don't will get less. That is the only way to reverse Trudeau's housing crisis."