Over the past year, Canadians have navigated a rapidly changing and increasingly fragmented world. In response, Canada's government continues to focus on what we can control: building a strong Canadian economy, delivering responsible fiscal management, and supporting Canadians who are under pressure from everyday expenses. And when it comes to bringing down costs for Canadians-a key area of focus for the federal government is lowering the cost of a new home.
Yesterday, Bill C-26, the Improving Housing Supply Act, received Royal Assent. This key piece of legislation will provide $1.7 billion to provinces and territories to help remove barriers to residential construction across Canada.
These funds will help boost housing supply by supporting measures like reducing development fees on new homes and enhancing existing provincial and territorial programs that encourage housing construction. Provinces and territories can decide how to use the funds to best improve housing supply.
For example, Ontario is using its allocation to introduce a temporary program that would provide relief equal to the 5% federal portion of the HST on eligible new home purchases. This builds on Ontario's decision to provide relief for its own 8% portion of the HST through temporary enhancements to its existing HST new housing rebate and HST new residential rental property rebate.
The funds allocated through C-26 may also support efforts by provinces and territories to improve internal trade by harmonizing regulations and increasing productivity in the home construction sector. This aligns with requirements under the provincial and territorial stream of the Build Communities Strong Fund, which conditions funding on lowering development fees and other charges that have been a barrier to homebuilding and construction.
Bill C-26 is a key part of our government's broader housing plan, which includes a comprehensive suite of measures to catalyse a more productive homebuilding industry with fewer barriers and less red tape so that builders can build more affordable homes at the scale we need.
