Thunder Bay, Ont., getting $20M in federal funds to build hundreds of housing units, Trudeau says

The housing crisis thatbegan in Canada's biggest citieshas spread across the country, said Prime Minister Justin Trudeau as he announced federal funding of over $20 million to spur housing development in Thunder Bay, Ont.

Trudeau was in the northwestern Ontario city on Thursday, the latest areain Canada to see a similar housing announcement in recent weeks.

The $20.7 million for Thunder Bay will help fast-track building more than 600 new units over the next three years. Themoneycomes from the government's Housing Accelerator Fund and can be used to buildmulti-unit dwellings, with up to four homes per lot.

Trudeau spoke after addresses by Mayor Ken Boshcoff andPatty Hajdu, minister of Indigenous services who's alsoresponsible for the Federal Economic Development Agency for Northern Ontario (FedNor). The event was held at Smart Modular Canada, amodular home-building factory in the city.

No 'one-size-fits-all-solution'

"We have seen housing prices and rent prices go up significantly across the country over the past years," Trudeausaid. "What started as a downtown Toronto and a downtown Vancouver challenge has quickly spread to every corner of the country."

The announcement represents one part of the federal government's strategy to address the country's housing crisis, by adding supply to the market, what Trudeau called "basic economics" involving supply and demand.

WATCH| Trudeau lays out how increased supply will ease the housing crisis:

How adding to Canada's housing supply fits in Justin Trudeau's plan to address the housing crisis

6 months ago

Duration 1:01

Prime Minister Justin Trudeau announced $20.7M from Ottawa to help spur housing development in Thunder Bay Ont., and explained how he sees adding housing stock plays a role in the government's strategy to combat Canada's housing crisis.

"When you're talking about challenges faced by both the biggest cities and the smallest most remote communities, you have to know there's not a one-size-fits-all solution that is going to solve all of those challenges," he said.

"One of the pieces of the solution is going to be: build more supply. If there are more homes available, if there are more apartments where people can find rents, that will keep the prices down at a reasonable market level."

Over 6,500 homes to be builtover next decade

The money for Thunder Bay comes alongside several commitments from city officials, including:

• Rezoning commercial areas.
• Fast-track development approvals.
• Add incentives and grants to get more housing projects off the ground.
• Create a team to recommend systemic changes.
• Work with non-profit organizations, community organizations, advocacy groups and homebuilders.

The government said the funding will help spur the construction of more than 6,500 homes in Thunder Bay over the next decade.

Housing has been a major policy focus for Boshcoff and city council. In November, Boshchoff and other city officials said they'd asked the federal government for $45.6 million to build 2,113 units.

"I will never be disappointed by $20 million, and we know what we have to do," Boshcoff said following Thursday's announcement. "There's other sources of funding, and once you show the government that you're actually doing it, there will be other applications that will be allowed, too, so I'm optimistic."

Boshcoff also said he believed the target of 6,500 housing units in the next decade is achievable.

"It will take some serious organization, and that'swhere the civic council and administration can facilitate that construction," he said. "Ican assure you it'll be a top priority."

The federal NDPmeanwhile, criticized the spending, with NDP MP Charlie Angus issuing a statement saying the housing announcement falls short of what people want or need.

"The government's announcement today is a last-ditch attempt to fix what they've created and doesn't even meet what Thunder Bay wants to build," he said. "Today's announcement is only half of the funding requested by the city and only a third of the housing that was asked for."

Councillor says building goal 'incredibly ambitious'

Westfort Coun. Kristen Oliver, who was also at Thursday'sannouncement, called the goal of 6,500 housing units "incredibly ambitious."

"I think we have the ability to get there, but a big concern is where we're at on the skilled trade side, andrecognizing also that there's significant homebuilding going on across this country," she said. "You have a smaller pool of people to draw from to come and meet those needs."

WATCH| Why didn't Thunder Bay get the original amount it asked for?

Is $20.7M enough to hit Thunder Bay's housing goals?

6 months ago

Duration 3:21

CBC's Michelle Allan questions Prime Minister Justin Trudeau on why Thunder Bay didn't receive the full $45.6M it asked for under the Housing Accelerator Fund.

Last week, Trudeau was in B.C., where he committed $2 billion to help finance a program aimed at constructing thousands of rental homes on underused public land. He's also announced plans for housing funding in Guelph, Ont. and Cape Breton, among others.