Build Canada Homes Act

Summary#

The proposed Build Canada Homes Act would create Build Canada Homes as a federal Crown corporation and make a related change to the Financial Administration Act. Its stated goal is to support the supply of affordable housing in Canada and encourage innovative, efficient building methods. The bill text says its provisions would start on dates set by the Governor in Council; it does not establish that they are in force.

• The corporation could give financial assistance, invest in housing-related businesses and projects, develop land, build housing, and acquire, manage, lease, sell or otherwise dispose of property.
• It could also advise governments and federal bodies, work with them on programs, collect and share housing data, and charge fees for its services.
• The Minister of Finance could provide up to $11.5 billion from the Consolidated Revenue Fund for the corporation’s operations and activities, subject to amounts set in other legislation. This is permission to make payments, not a requirement to spend the full amount.
• The Governor in Council could transfer property, rights, interests or obligations from Canada Lands Company Limited or its wholly owned subsidiaries to Build Canada Homes. It could also direct corporate changes involving Build Canada Homes, Canada Lands Company Limited and their wholly owned subsidiaries; the companies’ directors would have to follow those directives.
• The bill sets up a board and a chief executive officer. The corporation would be a Crown agent, but the Governor in Council could declare it not to be an agent for activities specified in an order.

What it means for you#

• People seeking affordable housing: The bill does not give individuals a right to housing, set eligibility rules for homes or create an application process for housing assistance.
• Housing organizations, businesses and governments: Build Canada Homes could offer financial assistance, invest, lend or guarantee loans, enter into agreements, and develop or build housing. A loan guarantee would require the Minister of Finance’s approval. The bill does not require the corporation to provide assistance to any particular applicant.
• Canada Lands Company Limited and its subsidiaries: Their property, rights, interests or obligations could be transferred to Build Canada Homes by order. They could also be required to carry out specified corporate changes under a directive.
• Taxpayers: The bill would authorize substantial federal payments and permit borrowing. It does not say how much money will actually be spent.
• General public: The bill creates a corporation, not an independent agency. It also allows the Governor in Council to make regulations about the corporation’s powers and activities.

Money#

The bill authorizes federal funding, but the supplied material gives no estimate of actual spending.

• The Minister of Finance may pay up to $11.5 billion from the Consolidated Revenue Fund for Build Canada Homes, unless another Act sets a different amount.
• A separate aggregate limit of $1.515 billion applies to payments for Canada Lands Company Limited’s capital or shares, and to funding designated entities doing activities related to the corporation’s purpose. Coordination provisions may reduce this limit by amounts already paid under specified provisions of another bill.
• The corporation may borrow from other sources up to $400 million outstanding in total. The Governor in Council may change that limit by order. The Minister of Finance may also lend to the corporation from the Consolidated Revenue Fund on terms the Minister sets.
• The corporation may charge fees for services. No fee amounts or cost estimate are provided.

What is unclear#

• The bill does not define “affordable housing,” “innovative” or “efficient” building techniques.
• It does not set rules for who may receive funding or investment, how decisions are made, or what affordability conditions would apply.
• It does not say how much the corporation will spend, borrow or charge in fees, or how many staff it will have.
• It does not explain which property or obligations may be transferred from Canada Lands Company Limited, or when that might happen.
• The bill requires a review after five years and every ten years after that, with a report to Parliament. It does not set regular public reporting requirements on the corporation’s activities.

Case for#

• A dedicated corporation could use several tools—funding, investment, land development and construction—to support housing supply.
• It could work with governments and other organizations, rather than relying only on direct federal construction or funding.
• Its ability to invest in building methods and collect housing data could help it support the bill’s stated goal of encouraging efficient and innovative construction.
• The board, chief executive and scheduled reviews would provide a formal governance structure.

Case against#

• The corporation would have broad powers to invest, borrow, build, acquire and dispose of property, but the bill does not set detailed funding criteria or affordability standards.
• The funding limits are large, while the bill gives no spending estimate or details about how the money would be divided among activities.
• The Governor in Council could direct major corporate changes, including amalgamations, dissolutions and asset transfers. The bill says directors must comply, but gives few details about how those decisions would be explained or reviewed.
• Directives are exempt from the Statutory Instruments Act, and the bill bars certain legal claims related to existing agreements when action is taken under a directive. These provisions may limit some usual avenues for scrutiny or recourse.