Plante says federal money for housing is a good start, 'but we're in recovery mode'

Montreal Mayor Valérie Plante welcomed Ottawa’s new spending commitments in this week’s federal budget, especially those that will help ease the housing crisis.

In its budget presented Tuesday, the federal government pledged to increase the capital cost allowance rate for apartments from 4 percent to 10 percent, allowing builders greater tax deductions, and to extend the repayment period for mortgages to 30 years. for first time home buyers purchasing new construction. .

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The government also promised to make more public land available for housing construction, including Canada Post and National Defense properties, while leasing land to developers; and spend $250 million over two years to address the “urgent issue” of encampments and the shortage of shelter space for the homeless.

“I’m pleased with the political will to address the housing issue,” Plante told reporters Wednesday morning. “In recent weeks we have seen the federal government announce different measures and to me that shows that there is no single solution to the crisis. “There have to be a lot of solutions, so the fact that the federal government is investing a lot of energy and money into not solving it, but at least addressing it in a very concrete way, is good news.”

There appears to be a push between the provincial and federal governments to invest more money in housing, but Plante said these announcements should just be the starting point. Sustained efforts over several years will be needed to achieve significant improvement, he added.

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He welcomed the recent agreement between the federal and provincial governments for a combined $1.8 billion in housing construction, including 763 units that were announced last week, “but we’re in catch-up mode,” he said. “In previous years, the provincial government didn’t contribute as much.”

Plante said he hopes to make major announcements soon about thousands of units that will be reserved for those living on the margins or with fewer resources.

Although it did not name specific neighborhoods, the city is hoping to build social and affordable housing in the Namur-Hippodrome area, which could house 6,000 new units; Lachine East and Bridge-Bonaventure, each of which could house nearly 8,000 people; as well as the planned developments of the former Molson Brewery and the CBC/Radio-Canada Tower, to name a few.

“I’m very interested in: How can we build more and more together (with the provincial and federal governments)?” Plante said. “How can we build an entire neighborhood within the city, quickly and in a way that responds to needs? Because the needs are enormous.”

Moving quickly on these projects is important, but Plante said his administration’s commitment to ensuring a mix of affordable, social and family housing units is also crucial.

“If we don’t address the housing crisis, it could stop the economic development of Montreal and the country, to be honest. When I talk to mayors from other cities, we are all in the same boat. “We all want to build more and faster.”

Plante says federal money for housing is a good start, ‘but we’re in recovery mode’

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