Quebec's new housing law aims to fast-track construction. Will it deliver?

Amendments to Quebec's new housing law allow municipalities to approve projects that go against their own bylaws. But experts say the provisions are contradictory, could lead to corruption and won't necessarily speed up construction especially with a lack of funding.

For the next three years, one amendment authorizes municipalities to circumvent local bylaws such as height restrictions, property lines, and landscaping to approve housing projects, as long as they either include mostly social, affordable or student housing units, or if the municipality has a population of more than 10,000 people and a vacancy rate below three per cent.

The average vacancy rate in the province is 1.3 per cent, according to the latest Canada Mortgage and Housing Corporation (CMHC) data.

During studies of Bill 31, the Order of Urban Plannersof Quebec (OUQ) and the Order of Architects of Quebec (OAQ) came out against the amendment giving greater leeway to municipalities.

The orders sent the National Assembly a letter saying, "We need clear, transparent rules that apply to everyone, rather than discretionary measures with unpredictable deployment."

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Bill 31 was pitched as a way to strike a balance between tenants and landlords, but advocates say the most significant impact will be the power it gives landlords to deny a lease transfer for any reason.

Pierre Corriveau, the OAQ's president, told CBC municipalities already have the power to update their urban planning which makes it "nonsensical" to go case-by-case.

David Alfaro Clark, who speaks for the OUQ, said he worries that the new provisions will lead to projects that don't integrate well into existingneighbourhoods.

"Projects that are not in good locations, that don't have access to public transit or don't have access to services; don't have access to grocery stores and everyday type services: that is the biggest concern," he said.

But another amendment that allows for the building of accessory housing, meaning a dwelling can be built on a lot already occupied by a home, is more promising, experts say.

Will it really speed up construction?

According to revised CMHC data, Quebec needs to build 150,000 units per year over the next decade to preserve affordability in the province. But the province fell well below that target in 2023, with roughly 30,000 housing starts.

Guillaume Houle from Quebec's largest association of housing contractors, the Association de la construction du Qubec (ACQ), said giving municipalities this new power can fast-track some projects that have stalledbecause of bureaucratic red tape.

But there are other hurdles to building enough housing, like a lack of government investment and a labour shortage in construction, said Houle, adding Quebec is not building anywhere near enough housing.

Houle says his organization is still waiting for the province to table its budget on March 12 to see how much money will be allocated to housing. He doesn't believe the private sector will be able to contribute to keeping housing affordable under the current government financing programs.

Fabrice Fortin, a spokesperson for the Association des professionnels de la construction et de l'habitation du Qubec (APCHQ), said he's happy to see municipalities gain new powers to fast-track construction permits. According to the APCHQ, there are more than 25,000 units that have yet to be built in projects awaiting the green light.

Fortin thinks the new provisions in the law will be "an important tool" but "won't solve the housing crisis overnight."

Promoters can't get around all bylaws. For example, public consultation remains a necessary but lengthy process.

'Soft densification'

Another issue is where to build.

A lot of neighbourhoods don't have the underground infrastructure to handle new buildings, said Fortin. For example, some sewage systems are already overwhelmed.

The change in law allowing for accessory housing could help solve those issues, according to Richard Shearmur, a professor at the McGill School of Urban Planning.

For example, someone could turn their basement into an apartment, or build an extension that will serve as a housing unit. Most cities in Quebec had restricted these kinds of units. The change would create what Shearmur calls a "soft densification."

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"This is the way to go if you want to create more units in suburban type locations because it doesn't change the character of the neighbourhood," said Shearmur.

"One of the issues of housing today is that a lot of people who have houses are occupying bigger and bigger houses, whereas households are getting smaller."

Accessory housing can also help counteract the "not in my backyard" effect Fortin says is preventing development in suburban areas. He says some affordable housing projects get axed in public consultation with residents of the area who are scared their neighbourhoods will change.

Could it lead to corruption?

Virginie Dufour, the Quebec Liberals'housing critic, said she worries the amendment to the law could open the door to corruption.

Housing Minister France-laine Duranceau, who tabled the bill, said the government would monitor developments closely.

"Accountability and transparency are a must. It should also be noted that this power is limited in time, and that projects must be subject to public consultation. So it's all in the open," said Justine Vzina, a spokesperson for Duranceau's office, in a written statement.

Shearmur says there have been frameworks put in place to prevent corruption after the Charbonneau Commission report of 2011. But the law could lead to instances of favouritism among developers and city council members, he said.

"For example, you know, there's a developer who is a cousin of the mayor who will get permission [for their project], but a developer who the town council doesn't like isn't going to," Shearmur said.

"I can understand why the minister wants to, over the next three years, kick start housing, but unfortunately there are just too few guidelines as to how it should be applied."

Will municipalities actually use it?

It's unclear how municipalities will make use of their new powers.

The mayors of Laval and Granby declined the CBC's interview requests, while the mayors of Quebec City and Trois-Rivires didn't respond.

Montreal Mayor Valrie Plante said her administration will take the time to look into the amendments to the law.

"Anything we can use to accelerate the building of units is a great thing. At the same time, every project will be different because a housing project is within a neighbourhood and within a complexity," she said.

"Our goal is to accelerate while respecting all the other urban planning mechanisms that already exist in the city of Montreal."

But municipalities say they still need funds to get projects off the ground.

Construction associations say the lack of funding in provincial housing programs is hurting the industry and stalling truly affordable housing. The APCHQ's Fortin isn't holding his breath for the next provincial budget, but is optimistic that the federal government will open its wallet.