324 New Social and Affordable Housing Units to be Built Rapidly in Québec

March 15, 2024

The governments of Canada and Quebec have announced that 5 projects with a total of 324 new units will be rapidly built in the city of Québec. The projects were selected as part of the second call for projects under the Société d’habitation du Québec’s (SHQ) Programme d’habitation abordable Québec (PHAQ).

These projects are being made possible through the Canada-Quebec Agreement under the Housing Accelerator Fund, to which the governments of Canada and Quebec have each contributed $900 million. The City of Québec is also a financial partner in the projects, contributing the equivalent of at least 40% of the base grant from the SHQ.

In response to the ongoing housing crisis, the governments of Canada and Quebec announced on February 16 the rapid construction of 2,574 new housing units throughout the province as part of 47 selected projects, including those announced today. To make sure these projects get off the ground quickly, developers must sign contractor agreements within 12 months of being selected to remain eligible for government funding.

Highlights:

• Some of the households that move into these units could benefit from the Société d’habitation du Québec’s (SHQ) Rent Supplement Program, ensuring that they spend no more than 25% of their income on housing. This additional assistance is covered by the SHQ (90%) and the City of Québec (10%).
• To keep the other units affordable, a maintenance period for this assistance will be required. This period could last up to 35 years. Assistance rates will vary based on the term of the commitment. Rents may be indexed each year based on percentages set by the Tribunal administratif du logement.
• The PHAQ aims to engage all partners who can develop affordable housing projects. Co-operatives, nonprofits, housing bureaus and private-sector businesses can submit projects under the Program. The PHAQ also aims to accelerate residential construction, which is why its standards stipulate that projects must be started within 12 months of being selected. This period may be extended to 18 months in certain circumstances.
• The Housing Accelerator Fund (HAF) is a $4-billion Government of Canada initiative launched in March 2023, of which $900 million is earmarked for Quebec. The goal of the HAF is to accelerate the construction of 100,000 housing units across the country.
• The Government of Quebec, as part of its fall 2023 economic update, also announced new investments of $900 million to accelerate housing construction.
• The HAF encourages local governments to implement sustainable initiatives that lower barriers to increasing housing supply and approving development projects. Its long-term goal is to get more housing built in Canada.
• On December 11, 2023, the Government of Quebec announced the first wave of 14 projects from the second PHAQ call for projects (linked article in French only), representing 999 units in total. Two of these projects are located in the Québec area.
• The Government of Quebec is firmly committed to continuing its work to accelerate the construction of residential units in the province through the Act respecting land use planning and development and other provisions. An interdepartmental project acceleration group will be set up in collaboration with municipal authorities, and new land-use planning guidelines are coming that include residential construction metrics that municipalities will use in setting targets. New legislative amendments (currently in development and subject to adoption by the National Assembly) will also be tabled to improve urban densification and streamline multi-unit construction approval, thus reducing the associated delays.

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