A person's well-being starts at home, and access to safe and affordable housing is a critical element of improving the well-being of individuals and communities.

As part of its commitment to improving access to affordable housing and housing that is affordable, in October 2023 the Provincial Government introduced a Five-Point Plan to Improve Availability of Housing that is Affordable. Driven by a record provincial investment in Budget 2024, the Provincial Government has seen significant progress in supporting first-time homebuyers, while setting the foundation for significant growth in affordable rental housing.

Progress in the first 11 months of the Five-Point Plan includes:

• 193 individuals or families approved under the First-Time Homebuyers Program, with 132 families purchasing their homes to date.
• 11 projects approved under the Rental Housing Development Loan Program, which will result in the creation of an estimated 450 new rental units.
• Five projects conditionally approved to develop affordable rental housing projects on government-owned land in St. John's, which will result in the creation of an estimated 300 new rental units.
• 29 homeowners approved to develop affordable secondary or basement suites in their homes with a five-year forgivable loan to a maximum of $40,000.

The Honourable John G. Abbott, Minister of Housing and Minister of Mental Health and Addictions, provided the update on September 27. The minister was joined by Derek Brown, Board Chair of the Newfoundland and Labrador Construction Association, and Alexis Foster, Executive Officer of the Canadian Home Builders' Association Newfoundland and Labrador.

Also included in the Five-Point Plan is the removal of the provincial portion of the HST on new purpose-built rental housing. This includes a 100 per cent rebate on the provincial portion of the HST for larger scale projects with multiple units (minimum of four private units or 10 private rooms with shared amenities), and a 36 per cent rebate on the provincial portion of the HST on projects that do not qualify for the 100 per cent rebate. The deadline for applications is up to two years after project completion, with retroactive reimbursement to September 13, 2023. It is expected that there will be applications in 2025 and beyond as projects currently underway are completed.

The Provincial Government expects further progress in the second-year of the plan implementation, as recent developments at the municipal and federal levels should lead to increased housing development. The City of St. John's, City of Mount Pearl and Town of Grand-Falls Windsor have all introduced secondary suite programs that can be combined with the provincial Secondary and Basement Suites Program, further decreasing the homebuyer's personal investment.

At the same time, the Provincial Government continues to work with the Federal Government to identify opportunities under Canada's Housing Plan, first announced in May 2024, that reflect the realities of Newfoundland and Labrador.

The Five-Point Plan is just one part of the Provincial Government's efforts to increase housing availability in Newfoundland and Labrador. Through the Affordable Rental Housing program, the Provincial Government is investing over $80 million in projects that will construct approximately 900 new affordable rental homes throughout the province. In Budget 2024, the Provincial Government announced the construction of over 100 new social housing units in Corner Brook, Central Newfoundland and Labrador West. These new builds are in addition to ongoing construction of 16 homes in Happy Valley-Goose Bay and 32 homes in the Pleasantville area of St. John's, with a further 40-unit apartment complex set to begin construction in 2025.

From January to June 2024, housing starts in the province totaled 672 units, up 106.8 per cent (or 347 units) compared to the corresponding period in 2023.

Quotes

"Well-being starts at home. Having a safe, affordable place to call home is critical for mental and physical health. We know that those whose homes that aren't affordable - or those without a home at all - face significant challenges without this foundation. Our Five-Point Plan has seen early success in helping families purchase their first home, and we expect significant affordable rental housing development as a result of our investments in the years to come."

Honourable John G. Abbott, Minister of Housing and Minister of Mental Health and Addictions

"The NL Construction Association is excited to see the Provincial Government provide funding, loans and land to facilitate development of hundreds of new affordable rental units in this province. Our membership looks forward to continued collaboration with the Provincial Government, as well as municipal governments in moving these projects forward to completion and getting more people in homes."

Derek Brown, Board Chair, Newfoundland and Labrador Construction Association

"CHBA-NL is pleased to see the positive impact of the Provincial Five-Point Plan on affordable housing in Newfoundland and Labrador. We commend the government for valuing feedback and making necessary adjustments to the programs. We are optimistic that these changes will inspire further housing developments, ensuring more Newfoundlanders and Labradorians have access to safe and affordable homes."

Alexis Foster, Executive Officer, Canadian Home Builders' Association Newfoundland and Labrador

Learn more

• Provincial Government Launches Five-Point Plan to Improve Availability of Housing That is Affordable
• Proposals Invited for Development of Land for Rental Housing That is Affordable
• Provincial Government Announces Program to Help Support Residential Rental Housing Development