A Visit on the Hill: Eliminate HST on Affordable Homeownership

From the Desk of Hazzem Koudsi, CEO of Habitat for Humanity Prince Edward-Hastings.

Habitat for Humanity is all about a hand-up and not a handout. Our houses are not given away but instead sold at fair market value to hard working families that don’t have enough for a down payment through conventional borrowing but could afford a mortgage if given a chance. What if the federal government could give Habitat a hand-up like we do for families? What if that was in the form of eliminating HST on new Habitat build projects?

Habitat leaders from across the country travelled to Ottawa on October 1st to meet with our MPs and ministers on Parliament Hill. It was a chance to connect with our elected representatives in a bi-partisan manner. During this time, we asked them those two questions.

For close to 30 years, Habitat for Humanity Prince Edward-Hastings has been transforming Canadians’ lives through affordable homeownership. We are Canada’s only national affordable homeownership organization. At Habitat for Humanity, we believe affordable housing includes affordable homeownership.

Sadly 82% of Canadians want their governments focused on the housing affordability crisis, which is more than any other issue.

Since the introduction of Canada’s National Housing Strategy in 2017, Habitat for Humanity in Canada has paid almost $19 million in GST/HST on the affordable homes we build for working families. For every 100 Habitat homes, we could deliver anywhere from five to 13 additional homes to working Canadian families. The dollars that would have gone to paying GST/HST would instead be invested in affordable homes.

The federal government clearly recognizes the impact of removing the GST/HST from specific types of homebuilding.  Since September 2023, they have given 100% GST/ HST relief to purpose-built rental apartments, student housing, seniors long-term rentals and co-op housing, but not to affordable homeownership units provided by non-profits.

As the costs of land, construction, labour, and other fees have increased dramatically, the additional burden of GST/HST can impact whether an affordable housing project is financially feasible. This additional cost burden prevents us from partnering with more low and middle-income families on a pathway to owning their own home. 

Our Habitat families have a chance to build equity. Parents go back to school, re-train and get better jobs. Their kids have a place to study. Their mental health improves. They invest in their community. They pay property taxes. It’s good for all of us. 

When governments invest in affordable homeownership, we all benefit.