The federal government announced plans to launch a $1.5-billion Rental Protection Fund to help non-profit organizations acquire more rental units and ensure they remain affordable for Canadians. The new fund promises to provide $1 billion in loans and $470 million in contributions to non-profits and other partners as a way to facilitate long-term affordable rents.

At a news conference in Winnipeg, Trudeau said an existing rental protection fund in British Columbia is a good “proof of concept” for the initiative. The $500-million provincial fund was established in 2023 and has approved capital contributions to protect more than rental 900 homes to date.

At the news conference, Trudeau added that housing starts in Canada are likely to decline in 2024 due to higher interest rates before eventually recovering in 2025 and 2026—hence his government’s ongoing focus on “protecting and expanding” the country’s rental stock amid soaring rents and limited supply. The Liberals will be adding another $15 billion to the apartment construction loan program, bringing available funding to $55 billion.

In a follow-up statement, the Federation of Housing Providers of Ontario (FRPO) acknowledged that a Housing Acquisition Fund would preserve and protect existing affordable units:  “FRPO recognizes that market and non-market housing providers both play a crucial role in resolving the ongoing national housing shortage. We welcome the opportunity to collaborate with policymakers, tenants and stakeholders and engage in continued conversation.”