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

Municipal leaders in Nova Scotia are voicing their support for a funding stream that the federal Conservatives have announced they will cut if elected, describing it as a “game changer” for their communities.

Conservative Party Leader Pierre Poilievre has criticized the $4.4-billion Housing Accelerator Fund established by the Liberal government, stating that it is costly to administer and does not effectively contribute to the creation of new housing units. The fund has already allocated approximately $1 billion to over 170 municipalities and First Nations across Canada, with 16 municipalities and First Nations in Nova Scotia having signed agreements to receive funding.

Poilievre has proposed cutting the GST on new homes priced under $1 million to expedite construction. To offset the estimated $8 billion annual cost of this tax cut, he plans to eliminate programs like the Housing Accelerator Fund.

However, Mayor Lennie White of Westville, N.S., emphasized the positive impact of the $1.5 million in funding that the town is receiving over four years through the program. White stated that the funding has enabled Westville to undertake projects that would not have been feasible otherwise, such as providing incentives to local developers for the construction of approximately 100 housing units and conducting a study to identify a new water source to support housing growth.

It remains unclear how a potential cut to the Housing Accelerator Fund would be implemented and whether municipalities like Westville would receive their full funding allocation. Mayor White expressed concern about the potential loss of this funding, noting that the town has already made plans based on the expectation of receiving funding for the next three years.

In nearby Pictou, N.S., Mayor Jim Ryan highlighted the town’s use of the $775,000 accelerator grant for various projects, including upgrades to the stormwater system. While acknowledging the benefits of reducing GST on new homes, Mayor Ryan cautioned against sacrificing the Housing Accelerator Fund, which he views as essential for laying the groundwork for future housing development.

The Liberal government has warned that cutting the program could place municipalities with existing financial agreements in legal jeopardy. Both Halifax and Cape Breton regional municipalities have allocated millions of dollars from the accelerator fund to support affordable housing projects that will create hundreds of units.

In addition to the Housing Accelerator Fund, Poilievre has also proposed cutting the $6-billion Housing Infrastructure Fund, which recently began accepting applications from municipalities across Canada. The fund is set to be distributed over a 10-year period starting in 2024-25.

CBC attempted to contact the Conservative Party for comment but did not receive a response by the deadline.