Urban housing groups fear federal funding will vanish after sooner-than-expected election

Hey there, time traveller!
This article was published 12/01/2025 (265 days ago), so information in it may no longer be current.

Manitoba housing organizations are scrambling to lock in funding for projects because of fear the cash will dry up if there is a change in government in Ottawa.

Since Parliament has been prorogued until late March, there is a little breathing space, but far less than there would have been until the fixed election date in October.

The election is likely to take place well before the fall because of Prime Minister Justin Trudeau’s resignation on Jan. 6.

Whether it is the Housing Accelerator Fund capital grant program announced in 2023 — expected to bring $122.4 million to Winnipeg to fast-track the development of 3,166 housing units — or the Reaching Home project to combat homelessness, programs created by the Liberals could be on the chopping block.

Conservative Leader Pierre Poilievre, whose party leads national polls by a wide margin, said last October he wants to scrap the housing accelerator program and replace it with his plan to use the funds to cover the costs of eliminating the federal sales tax from new homes sold for less than $1 million.

Last September, the federal government and the City of Winnipeg announced 11 housing projects had received $25 million from the accelerator fund.

Jeremy Read, CEO of the University of Winnipeg Community Renewal Corp., which is moving ahead with more projects after scoring $8.35 million for three of the 11 approved projects, said without the funds, construction might not go ahead.

“It’s a concern for us, but it won’t affect (housing accelerator) dollars already approved,” said Read. “There has been radio silence for what it could look like in any successive government.

“The not knowing increases risk… it can make anybody (who wants) to invest in housing drop out…

“I’m hoping the crisis we face as a country will supersede partisan positioning and overcome political divides.”

Read said the housing crisis won’t be resolved in the short term.

“This is a decade-long problem,” he said. “I think the national housing strategy has been successful and it is just getting going. If you turn off the taps, that capacity will be lost.”

Winnipeg South Liberal MP Terry Duguid, who was recently named federal sports minister, said those fears are justified.

“This is part of Pierre Poilievre’s playbook, which is cut, austerity and undoing good work that is occurring among governments,” Duguid said Wednesday.

“The province, the city and the federal government are participating in housing programs together. We are getting along very well, we are pooling our money and the Housing Accelerator Fund, a $122-million investment… if Pierre Poilievre is elected that program goes away.”

A civic official said a new round of approved projects is expected to be announced later this month. The first-round announcement came four months ago.

Mayor Scott Gillingham said the accelerator fund has already resulted in the support of 1,135 new housing units in the city.

“The next round of grants will support even more projects, including 653 units at the Portage Place, Wehwehneh Bahgahkinahgohn (HBC building), and Railside at The Forks developments,” said Gillingham.

“Winnipeg has a multi-year plan to use the (accelerator fund) to get more housing built, with funding tied directly to delivering results. So, like most mayors across the country, I hope the program is allowed to run its course. The good news is that housing remains a national priority.

“We are committed to building more homes, and I’m optimistic this momentum will continue.”

Provincial Housing Minister Bernadette Smith said the NDP government is focused on what it is able to do.

“Our priority is really working for Manitobans and making sure they have housing (and) that they have the supports that they need,” said Smith.

“Regardless of who is in government federally, we will work with them to ensure that we are getting our fair share and that agreements are respected and that Manitoba’s needs are met.”

Sara Stasiuk, CEO of The Forks North Portage Partnership, said the organization is hoping to receive accelerator funding to assist in its development of one of the 10 new housing projects at Railside at The Forks. The project would see 91 units constructed, focusing on families and single-parent households.

“Housing has been part of The Forks’ mandate since Day 1,” said Stasiuk.

“The rest of the buildings aren’t dependent on the housing accelerator fund, so we don’t expect them to be delayed. Many of our developers already have development permits in hand. We are looking at spring.”

kevin.rollason@freepress.mb.ca