Less than a week after the federal government announced it would be removing GST on the construction of new apartment buildings, Dream Unlimited Corp shared plans to deliver 5,000 new purpose-built rental units in urban centres across Canada.
According to Dream, this and other steps by the federal and provincial governments have helped establish “a newfound ability for the entire development industry ecosystem” to form key partnerships and collectively address the affordability crisis by increasing the amount of market and affordable rental units available to Canadians.
“With Thursday’s introduction of new legislation formalizing the removal of GST, Dream is positioned to move forward on 5,000 net new purpose-built rental apartment units in Ottawa, Saskatoon, Calgary and Toronto collectively,” said Michael J. Cooper, President and Chief Responsible Officer, Dream Unlimited. “This legislation is a game changer for the development industry, and more importantly for Canadians. The housing crisis has impacted every urban centre from coast to coast. What this legislation unlocks is our ability to get shovels into the ground quickly at a time when it’s never been more critical to build new homes.”
Over the next six months, Dream says it is poised to advance several shovel-ready projects. In Ottawa, this includes 1,010 units of which 43 per cent will be affordable. Rents for the Ottawa units will range from 59 per cent of median market rent to market rents, contributing to 7 per cent of the city’s targeted annual construction starts of 15,000 units. In addition, Dream will bring 340 units in Saskatoon.
By 2025, Dream will be able to advance another 3,700 units across Ottawa, Toronto, Calgary, and more in Saskatoon.
The substantial progress in Ottawa is largely due to a unique partnership between Dream and the Multifaith Housing Initiative of Ottawa (MHI), a Canadian non-profit charitable organization founded in 2002 that is a coalition of 80 faith communities. This partnership has enabled the organizations to deliver an integrated rental community that will include affordable housing, transit connectivity and unprecedented sustainability targets. Located on the Library Parcel of LeBreton Flats, the development is an innovative, net-zero, mixed-income community that includes 608 rental units, 41 per cent of which will be dedicated as affordable. Dream and MHI will also develop integrated programs and support systems, creating a sense of belonging, fostering wellbeing, and paving the path for upward mobility for all residents in a sustainable, inclusive community in a transit-oriented development.
“Multifaith Housing Initiative strongly supports the legislation tabled by the federal government on Thursday to eliminate the GST from new purpose-built rentals and encourages all provincial governments to proceed with the exemption of the PST,” said Suzanne Le, Executive Director, Multifaith Housing Initiative. “The elimination of GST/PST will allow projects and innovative partnerships between private and non-profit sector, like the one at LeBreton Flats between Dream and Multifaith Housing Initiative.”
According to Le, these partnerships are essential to scale the delivery of affordable housing and to strengthen capacity in the non-profit sector in our country. And while the GST waiver is a substantial step for those looking to build, all participants and all levels of government will benefit from the creation of new housing, with meaningful opportunities for community-building and huge social impacts for Canadians across the country.
