Dream Unlimited Corp. (TSX: DRM) (“Dream”) has unveiled its plans to provide 5,000 new purpose-built rental units in urban centres across Canada following the recent tabling of new legislation in Parliament relating to GST exemptions, along with the expected provincial announcements regarding tax waivers and this year’s average interest rates.
“These government announcements establish a newfound ability for the entire development industry ecosystem to partner with all levels of government, not-for-profit and private sector organizations to collectively address the affordability crisis by increasing the amount of market and affordable rental units available to Canadians,” reads a release from Dream Unlimited Corp.
The Prime Minister announced on September 14, 2023, that GST would be removed on the construction of new apartment buildings. This is meant to encourage construction of needed housing. That effort was moved forward when the new legislation was tabled. “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.” The sites identified by Dream currently all have approvals in place. In the next six months, Dream will be able to advance its shovel ready projects, which includes a total of 1,350 units. In Ottawa, Dream will be advancing 1,010 units of which 43 per cent will be dedicated as affordable, according to the release. 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. Dream will also bring 340 units in Saskatoon.
Dream will be able to advance another 3,700 units across Ottawa, Toronto, Calgary, and Saskatoon by 2025, according to the release. “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. As a result of the partnership, both organizations are able 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,” reads the release.
“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.”
Suzanne Le, Executive Director, Multifaith Housing Initiative, said, “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.”
“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 to proceed and produce a much needed 608 units of purpose-built rental of which 41 per cent or 250 units will be affordable ranging from 59 per cent of median market rent to market units, with affordability tenure in excess of 55+ years and will be net zero. These partnerships are essential to scale the delivery of affordable housing and to strengthen capacity in the non-profit sector in our country. We welcome the government’s initiative and continue committed to working with governments and private-sector to deliver safe, clean and affordable housing for Canadians.”
“With the recent GST waiver announcement and cooperation with government partners, Dream and MHI, other developers, investors and not-for-profits can maximize the volume of market rent and affordable housing available to those in need and create enhanced benefits to future residents. The successful partnership between private sector developers, non-profit organizations and governments represents an innovative model that can be replicated and allow for the creation of new affordable units all over Canada,” reads the release.
“While the GST waiver is a substantial step, all participants and all levels of government will benefit by continuing to join forces to advance this critical mission that will create substantial new housing and create meaningful opportunities for community-building and social impact for Canadians across the country,” concluded the release.
