The third level of government in this province says cities and most large towns are experiencing a housing shortage and wish to help alleviate that shortage, but they need help with legislative and financial barriers at the federal and provincial levels.

Municipalities Newfoundland and Labrador President Amy Coady says grants that incentivize the creation of affordable and mid-range housing units, including the renovation of existing units, are welcome but current models effectively exclude smaller towns.

Coady says legislative reform is required, as is an improved funding model to take into account the needs of towns with fewer resources.

Local governments in N.L. want to provide housing solutions but are currently restricted by financial and legislative barriers. https://t.co/kkQQTnAd8B

— MNL (@MunicipalNL) September 25, 2023

She says MNL recognizes that their members have a leadership role to play but that they can’t do it alone – they need flexible, right-sized supports from the top two levels of government.

Finance Minister Siobhan Coady has asked the federal government to consider tax options to encourage the construction of new rental housing units. She suggests either tax base adjustments, or providing a full rebate of the GST/HST from the cost of new residential construction.