January 28, 2009
OTTAWA — Few sectors in the Canadian economy have been hit as hardly by this recession as the home building one, and yesterday, Finance Minister Jim Flaherty recognized that. In his 2009 Economic Action Plan, Flaherty pledged up to $7.8 billion in tax relief and funding to help reinvigorate the residential construction industry.
"For the Canadian economy, the home construction and home renovation industries are major sources of jobs and growth," Flaherty said in his budget speech before Parliament. "These measures to support home construction and renovation will help stimulate our construction and building-supplies industries."
For homebuyers, there's support in the form of both tax relief and access to funds. In industry's case, the support is more direct.
Social housing was targeted with a raft of programs which will pour over $1 billion into residential construction for low-income seniors and peoples with disabilities, as well as social housing on First Nations reserves and in the Far North.
The feds also announced they will be giving a boost to green construction by partnering with the provinces to fund a one-time investment of $2 billion over two years for renovations and energy retrofits. In addition, $300 million will be set aside over two years for the ecoENERGY Retrofit program. This could translate into as much as 200,000 additional home retrofits.
The industry may also draw important fringe benefits from substantial funding increases to skill trade training programs, core infrastructure projects and support to ease the credit crunch which has choked off loans to potential homebuyers.
In the latest issue of Home Builder Magazine, CHBA president John Hrynkow expressed optimism that Flaherty would provide home builders with a boost. In a press release from the CHBA, Hrynkow sought to congratulate the Minister on his plan
"Mr. Flaherty has introduced several measures that will benefit individual Canadians and speed the recovery," said Hrynkow of the budget.