Feds plan to offer low-cost loans for student housing

The federal government says it will offer low-cost loans to postsecondary institutions and builders to expand access to student housing on and off campus.

Housing Minister Sean Fraser is making the announcement in Ottawa on Monday.

Ottawa says it will reform its $40-billion Apartment Construction Loan Program to allow postsecondary institutions, as well as private companies, to access the fund to expand student housing. The change is intended to address concerns about housing availability for students attending Canada’s universities and colleges. The government said some students who don’t have access to housing on or near campus move further into communities, which drives up the cost of rent and reduces the number of homes.

“By allowing postsecondary institutions to access low-cost loans in order to build more student housing, we will help more students find affordable places to live close to where they study, and help ensure there are more homes available for families and folks who live in the community nearby,” Mr. Fraser said in a statement.

 

 

The application process for the program is expected to open in fall 2024. The government said the intention of the Apartment Construction Loan Program is to build 101,000 new rental homes across Canada by 2031-32.

In addition to the student housing announcement, Innovation Minister François-Philippe Champagne said Monday he wrote to Canada’s competition commissioner to encourage him to use his new powers to promote choice and competitive prices in the retail grocery market.

The federal government has been under increasing pressure to address the housing and affordability crisis. Last week, Immigration Minister Marc Miller announced a two-year cap on international student visas in an effort to rein in skyrocketing growth and ease the pressure that foreign students are having on housing and health care.

 

 

The Ontario government also announced on Friday that it plans to crack down on “bad actor” recruitment in the postsecondary sector and will require all colleges and universities to have a housing guarantee to ensure adequate spaces are available for incoming international students.

University and college leaders have said the federal cap on study permits for international students will create financial risks for postsecondary schools in some parts of the country, which could lead to layoffs and program closings. Ontario’s publicly funded colleges say the federal government has created chaos for prospective international students by imposing what amounts to a moratorium on their applications for study permits.

 

 

This article was reported by The Globe and Mail