The Provincial Government introduced a five-point plan designed to increase the availability of housing that is affordable in Newfoundland and Labrador by helping stimulate private sector development and stabilize or reduce housing prices.
Through the targeted actions, valued at more than $65 million, there will be upwards of 500 new housing options added to the market.
Similar to other jurisdictions across Canada, Newfoundland and Labrador is experiencing increased demand for housing that is impacted by a number of factors, including the province’s sustained growth in population, demographic shifts, and higher costs.
The new initiatives will incentivize the rapid construction of housing that is affordable and support the transition to home ownership.
They include Removal of the GST/HST on new purpose-built rental housing. This could potentially save developers hundreds of thousands of dollars depending on the size of the build.
A low interest financing program that will provide financing to assist in constructing purpose-built rental housing, including modular, or converting non-residential buildings into purpose-built rentals.
Use of available Provincial Government-owned land and buildings for construction or conversion for purpose-built rental housing, including modular.
A home ownership assistance program for first-time homebuyers with lower-to-moderate incomes who qualify for a mortgage to access the required downpayment to purchase a home. The program will also assist with closing costs of up to $1,500 to match the Federal First-Time Home Buyers’ Tax Credit.
A Secondary and Basement Suite Incentive, which will be a pilot project, whereby homeowners will be able to access a forgivable loan of 50 per cent of the cost of renovations, up to a maximum of $40,000 over five years.
These actions are in addition to the extra $3 million to repair and renovate approximately 143 vacant Newfoundland and Labrador Housing Corporation units announced today, along with the more than 750 new public housing options that have been advanced over the last two years, and the $140 million record high investment in housing in Budget 2023.
Through the Newfoundland and Labrador Housing Corporation, the province has seen more than 2,000 individuals and families access permanent housing over the last two years, and expansion completed or underway of 165 emergency shelter beds 76 supportive housing units, and 12 second stage housing units, and shelter beds for women.