This enactment enacts the Building Homes Not Bureaucracy Act in order to

(b) provide for the reallocation of $100 million from the Housing Accelerator Fund to municipalities that greatly exceed housing targets;

(c) require that federal transit funding provided to certain cities be held in trust until high-density residential housing is substantially occupied on available land around federally funded transit projects’ stations; and

(d) make it a condition for certain cities to receive federal infrastructure and transit funding that they not unduly restrict or delay the approval of building permits for housing.

It also amends the Canada Mortgage and Housing Corporation Act, the National Housing Act and the Excise Tax Act in order to

(a) eliminate executive bonuses unless housing targets are met and to reduce executive compensation if applications for funding for new housing construction are not treated within an average of 60 days; and

(b) provide a 100% GST rebate on new residential rental property for which the average rent payable is below market rate.

In addition, this enactment requires the Minister of Public Works to table a report on the inventory of federal buildings and land, to identify land suitable for housing construction and to propose a plan to sell at least 15% of any federal buildings and all land that would be appropriate for housing construction, subject to certain exceptions. Finally, it requires the Minister of Public Works to place these properties on the market within 12 months of tabling the report.

Preamble

Whereas from 2015 to 2023

average monthly mortgage payments in Canada increased by close to 150% to $3,500,

home ownership costs rose, taking up 66% of the average Canadian family’s pre-tax family income, and

rents in Canada doubled;

Whereas the current housing crisis is a major threat to Canada’s economic and social stability, with Canada most at risk of mortgage defaults among all developed economies;

Whereas Parliament is of the opinion that a generation of Canadians have lost faith in their future and in the future of Canada, with nine out of ten young people believing they will never own a home;

Whereas the federal government has a direct role to play in ensuring that all Canadians can afford a home;

And whereas the federal government can directly incentivize cities to increase their housing supply by tying federal funding to new housing units built;

Now, therefore, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Restriction on performance bonus

(2) No performance bonus is payable to a member of the Executive Committee unless the national target determined under section 5 of the Building Homes Not Bureaucracy Act is achieved each year.

Reduction of compensation

(3) If the average time to approve or reject an application referred to in section 4.‍1 of the National Housing Act is more than 60 days for a continuous period of six months, the salary of the members of the Executive Committee is to be reduced by 50% until the average time is reduced to no more than 60 days.

Governor in Council

(4) The Governor in Council may suspend the operation of subsection (3) if the Governor in Council is of the opinion that the suspension is justified.

Revocation

(5) If the average time to approve or reject an application referred to in section 4.‍1 of the National Housing Act is more than 60 days for a continuous period of 12 months, the Governor in Council must revoke the appointment of the members of the Executive Committee unless the Governor in Council is of the opinion that sufficient reasons exist not to do so.

Restriction on bonus

(2.‍1) No performance bonus is payable to an officer or employee employed by the Corporation at the executive level unless the national target under section 5 of the Building Homes Not Bureaucracy Act is achieved each year.

Reduction of compensation

(2.‍2) If the average time to approve or reject an application referred to in section 4.‍1 of the National Housing Act is more than 60 days for a continuous period of six months, the salary of every officer or employee employed by the Corporation at the executive level is to be reduced by 50% until the average time is reduced to no more than 60 days.

Governor in Council

(2.‍3) The Governor in Council may suspend the operation of subsection (2.‍2) if the Governor in Council is of the opinion that the suspension is justified.

Termination

(2.‍4) If the average time to approve or reject an application referred to in section 4.‍1 of the National Housing Act is more than 60 days for a continuous period of 12 months, the President must terminate the employment of every officer or employee employed by the Corporation at the executive level unless the President is of the opinion that sufficient reasons exist not to do so.

Regulations

Regulations

• (c) is payable under subsection 165(1), or is deemed under section 191 to have been paid, by the master pension entity in respect of a taxable supply to the master pension entity of a residential complex, an addition to a residential complex or land if, in respect of that supply, the master pension entity is entitled to claim a rebate under section 256.‍2 Insertion start or 256.‍201 Insertion end or would be so entitled after paying the tax payable in respect of that supply.

• (c) is payable under subsection 165(1), or is deemed under section 191 to have been paid, by the master pension entity in respect of a taxable supply to the master pension entity of a residential complex, an addition to a residential complex or land if, in respect of that supply, the master pension entity is entitled to claim a rebate under section 256.‍2 or would be so entitled after paying the tax payable in respect of that supply.

Definitions

256.‍201 (1) The definitions in this subsection apply in this section.

first use, in respect of a residential unit, means the first use of the unit after the construction or last substantial renovation of the unit or, in the case of a unit that is situated in a multiple unit residential complex, of the complex or addition to the complex in which the residential unit is situated is substantially completed.‍ (première utilisation)

qualifying residential unit of a person, at a particular time, means

• (a) a residential unit of which, at or immediately before the particular time, the person is the owner, a co-owner, a lessee or a sub-lessee or has possession as purchaser under an agreement of purchase and sale, or a residential unit that is situated in a residential complex of which the person is, at or immediately before the particular time, a lessee or a sub-lessee, where

  • (i) at the particular time, the unit is a self-contained residence,

  • (ii) the person holds the unit

    • (A) for the purpose of making exempt supplies of the unit that are included in section 5.‍1, 6.‍1, 6.‍11 or 7 of Part I of Schedule V,

    • (A.‍1) for the purpose of making exempt supplies of property or a service that includes giving possession or use of the unit to a person under a lease to be entered into for the purpose of its occupancy by an individual as a place of residence, or

    • (B) if the complex in which the unit is situated includes one or more other residential units that would be qualifying residential units of the person without regard to this clause, for use as the primary place of residence of the person,

  • (iii) it is the case, or can reasonably be expected by the person at the particular time to be the case, that the first use of the unit is or will be

    • (A) as the primary place of residence of the person or a relation of the person, or of a lessor of the complex or a relation of that lessor, for a period of at least one year or for a shorter period where the next use of the unit after that shorter period is as described in clause (B), or

    • (B) as a place of residence of individuals, each of whom is given continuous occupancy of the unit, under one or more leases, for a period, throughout which the unit is used as the primary place of residence of that individual, of at least one year or for a shorter period ending when

      • (I) the unit is sold to a recipient who acquires the unit for use as the primary place of residence of the recipient or of a relation of the recipient, or

      • (II) the unit is taken for use as the primary place of residence of the person or a relation of the person or of a lessor of the complex or a relation of that lessor, and

  • (iii.‍1) it is the case, or can reasonably be expected by the person at the particular time to be the case, that the average rent payable for a unit in the complex in which the unit is situated is or will be less than the market rate as determined by regulation for the market in which the unit is located,

  • (iv) except where subclause (iii)‍(B)‍(II) applies, if, at the particular time, the person intends that, after the unit is used as described in subparagraph (iii), the person will occupy it for the person’s own use or the person will supply it by way of lease as a place of residence or lodging for an individual who is a relation, shareholder, member or partner of, or not dealing at arm’s length with, the person, the person can reasonably expect that the unit will be the primary place of residence of the person or of that individual; or

• (b) a prescribed residential unit of the person.‍ (habitation admissible)

relation has the meaning assigned by subsection 256(1).‍ (proche)

self-contained residence means a residential unit

• (a) that is a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house or in a residence for students, seniors, individuals with a disability or other individuals; or

• (b) that contains private kitchen facilities, a private bath and a private living area.‍ (résidence autonome)

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Reference to “lease”

(2) In this section, a reference to a “lease” shall be read as a reference to a “lease, licence or similar arrangement”.

Rebate in respect of land and building for residential rental accommodation

(3) If

• (a) a particular person, other than a cooperative housing corporation,

  • (i) is the recipient of a taxable supply by way of sale (in this subsection referred to as the “purchase from the supplier”) from another person of a residential complex or of an interest in a residential complex and is not a builder of the complex, or

  • (ii) is a builder of a residential complex, or of an addition to a multiple unit residential complex, that gives possession or use of a residential unit in the complex or addition to another person under a lease entered into for the purpose of its occupancy by an individual as a place of residence that results in the particular person being deemed under section 191 to have made and received a taxable supply by way of sale (in this subsection referred to as the “deemed purchase”) of the complex or addition,

• (b) at a particular time, tax first becomes payable in respect of the purchase from the supplier or tax in respect of the deemed purchase is deemed to have been paid by the person,

• (c) at the particular time, the complex or addition, as the case may be, is a qualifying residential unit of the person or includes one or more qualifying residential units of the person, and

• (d) the person is not entitled to include the tax in respect of the purchase from the supplier, or the tax in respect of the deemed purchase, in determining an input tax credit of the person,

the Minister shall, subject to subsections (7) and (8), pay a rebate to the person equal to the total of all amounts each of which is an amount, in respect of a residential unit that forms part of the residential complex or addition, as the case may be, and is a qualifying residential unit of the person at the particular time, that is equal to the total of the tax under subsection 165(1) that is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase.

Rebate in respect of sale of building and lease of land

(4) If

• (a) a person, other than a cooperative housing corporation, is a builder of a residential complex or of an addition to a multiple unit residential complex and the person makes

  • (i) an exempt supply by way of sale, included in section 5.‍1 of Part I of Schedule V, of a building or part of a building, and

  • (ii) an exempt supply, included in section 7 of that Part, of land by way of lease or an exempt supply, included in that section, by way of assignment of a lease in respect of land,

• (b) the lease provides for continuous possession or use of the land for a period of at least twenty years or it contains an option to purchase the land,

• (c) those supplies result in the person being deemed under section 191 to have made and received a taxable supply by way of sale of the complex or addition and to have paid tax at a particular time in respect of that supply,

• (d) in the case of a multiple unit residential complex or an addition to such a complex, the complex or addition, as the case may be, includes, at the particular time, one or more qualifying residential units of the person,

• (e) the person is not entitled to include the tax deemed to have been paid by the person in determining an input tax credit of the person, and

• (f) in the case of an exempt supply by way of sale of a single unit residential complex or a residential condominium unit, the recipient of that supply is entitled to claim a rebate under subsection 254.‍1(2) in respect of the complex or unit,

the Minister shall, subject to subsections (7) and (8), pay a rebate to the person equal to the total of all amounts each of which is an amount, in respect of a residential unit that forms part of the complex or addition, as the case may be, and is, in the case of a multiple unit residential complex or an addition to such a complex, a qualifying residential unit of the person at the particular time, that is equal to the total of the tax under subsection 165(1) that is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase.

Rebate for cooperative housing corporation

(5) If

• (a) a cooperative housing corporation (in this subsection referred to as the “cooperative”)

  • (i) is the recipient of a taxable supply by way of sale (in this subsection referred to as the “purchase from the supplier”) from another person of a residential complex or of an interest in a residential complex and is not a builder of the complex, or

  • (ii) is a builder of a residential complex, or of an addition to a multiple unit residential complex, who makes an exempt supply by way of lease included in section 6 of Part I of Schedule V that results in the cooperative being deemed under section 191 to have made and received a taxable supply by way of sale (in this subsection referred to as the “deemed purchase”) of the complex or addition and to have paid tax in respect of that supply,

• (b) the cooperative is not entitled to include the tax in respect of the purchase from the supplier, or the tax in respect of the deemed purchase, in determining an input tax credit of the cooperative, and

• (c) at any time at which a residential unit included in the complex is a qualifying residential unit of the cooperative, the cooperative first gives occupancy of the unit after its construction or last substantial renovation under an agreement for a supply of that unit that is an exempt supply included in section 6 of Part I of Schedule V,

the Minister shall, subject to subsections (7) and (8), pay a rebate to the cooperative in respect of that unit equal to the amount that is equal to the total of the tax under subsection 165(1) that is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase.

Rebate for land leased for residential purposes

(6) If

• (a) a person makes an exempt supply of land

  • (i) that is a supply included in paragraph 7(a) of Part I of Schedule V made to a person described in subparagraph (i) of that paragraph, or that is a supply, included in paragraph 7(b) of that Part, of a site in a residential trailer park, and

  • (ii) that results in the person being deemed under any of subsections 190(3) to (5), 200(2), 206(4) and 207(1) to have made and received a taxable supply by way of sale of the land and to have paid tax, at a particular time, in respect of that supply,

• (b) in the case of an exempt supply of land described in paragraph 7(a) of Part I of Schedule V, the residential unit that is or is to be affixed to the land is or will be so affixed for the purpose of its use and enjoyment as a primary place of residence for individuals, and

• (c) the person is not entitled to include the tax deemed to have been paid by the person in determining an input tax credit of the person,

the Minister shall, subject to subsections (7) and (8), pay a rebate to the person equal to the amount that is equal to the total of the tax under subsection 165(1) that is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase.

Application for rebate and payment of tax

(7) A rebate shall not be paid to a person under this section unless

• (a) the person files an application for the rebate within two years after

  • (i) in the case of a rebate under subsection (5), the end of the month in which the person makes the exempt supply referred to in subparagraph (5)‍(a)‍(ii),

  • (ii) in the case of a rebate under subsection (6), the end of the month in which the tax referred to in that subsection is deemed to have been paid by the person, and

  • (iii) in any other case of a rebate in respect of a residential unit, the end of the month in which tax first becomes payable by the person, or is deemed to have been paid by the person, in respect of the unit or interest in the unit or in respect of the residential complex or addition, or interest therein, in which the unit is situated;

• (b) if the rebate is in respect of a taxable supply received by the person from another person, the person has paid all of the tax payable in respect of that supply; and

• (c) if the rebate is in respect of a taxable supply in respect of which the person is deemed to have collected tax in a reporting period of the person, the person has reported the tax in the person’s return under Division V for the reporting period and has remitted all net tax remittable, if any, as reported in that return.

  End of inserted block

Special rules

(8) For the purposes of this section,

• (a) if, at any time, substantially all of the residential units in a multiple unit residential complex containing ten or more residential units are residential units in respect of which the condition set out in subparagraph (a)‍(iii) of the definition qualifying residential unit in subsection (1) is satisfied, all of the residential units in the complex are deemed to be residential units in respect of which that condition is satisfied at that time; and

• (b) except in the case of residential units referred to in paragraph (a) of the definition self-contained residence in subsection (1),

  • (i) the two residential units that are located in a multiple unit residential complex containing only those two residential units are deemed to together form a single residential unit, and the complex is deemed to be a single unit residential complex and not to be a multiple unit residential complex, and

  • (ii) if a residential unit (in this subparagraph referred to as a “specified unit”) in a building affords direct internal access (with or without the use of a key or similar device) to another area of the building that is all or part of the living area of a particular residential unit, the specified unit is deemed to be part of the particular residential unit and not to be a separate residential unit.

    End of inserted block

Restrictions

(9) No rebate shall be paid to a person under this section if all or part of the tax included in determining the rebate would otherwise be included in determining a rebate of the person under any of sections 254, 256, 256.‍1 and 259 and, in determining the rebate of a person under this section, there shall not be included any amount of tax that the person is, under an Act of Parliament (other than this Act) or any other law,

• (a) not required to pay or remit; or

• (b) entitled to recover by way of a rebate, refund or remission.

  End of inserted block

Repayment of rebate

(10) If a person was entitled to claim a rebate under subsection (3) in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person shall pay to the Receiver General an amount equal to the rebate plus interest at the prescribed rate less 2% per year, calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on the day the amount of the rebate is paid by the person to the Receiver General.

Repayment of rebate — average market rent

(11) If a person was entitled to claim a rebate under this section in respect of a qualifying residential unit and the average rent payable for a unit in the residential complex in which the unit is situated was not less than the market rate as determined by regulation for the market in which the unit is located for a continuous period of five years beginning on the day on which the supply in respect of which the person was entitled to claim a rebate was paid occurred, the person shall pay to the Receiver General an amount equal to the rebate plus interest at the prescribed rate less 2% per year, calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on the day the amount of the rebate is paid by the person to the Receiver General.

60-day standard

4.‍1 The Corporation must ensure that applications made to a funding program under this Act that supports new housing construction are approved or rejected on average no later than 60 days after the day on which the application is received by the Corporation.

Brampton, Ontario

Burnaby, British Columbia

Calgary, Alberta

Gatineau, Quebec

Halifax, Nova Scotia

Hamilton, Ontario

Kitchener, Ontario

Laval, Quebec

London, Ontario

Longueuil, Quebec

Markham, Ontario

Mississauga, Ontario

Montreal, Quebec

Oakville, Ontario

Ottawa, Ontario

Richmond, British Columbia

Richmond Hill, Ontario

Surrey, British Columbia

Toronto, Ontario

Vancouver, British Columbia

Vaughan, Ontario

Windsor, Ontario