Build Canada Homes Act

This bill creates a new federal Crown corporation called Build Canada Homes, whose job is to increase the supply of affordable housing across Canada and promote more innovative, efficient home-building methods. It will be run by a board of directors (a chairperson plus eight to ten other members) and a full-time chief executive officer, all appointed by the federal government, and it operates as an agent of the Crown, meaning it acts on behalf of the government.

To do its work, the corporation can give financial help or loans to governments, companies, or other groups; invest in housing projects; buy, develop, or sell land and property; build housing directly; guarantee loans (with the Finance Minister's approval); partner with other governments or organizations; and collect housing-related data. The government is authorizing up to $11.5 billion from public funds to cover its operations, plus limited borrowing powers, and the corporation can also set up subsidiary companies with ministerial approval.

The bill also allows the government to transfer property, staff, obligations, and responsibilities from other Crown corporations — particularly Canada Lands Company Limited and its subsidiaries — into this new corporation, and gives cabinet the power to direct reorganizations of Canada Lands Company as needed to support this shift. Up to about $1.5 billion more is authorized for these related transfers and support. There are transitional rules to move over an existing "special operating agency" version of Build Canada Homes (already created administratively) into this new legal entity, a required legal review of the Act every five to ten years, and a minor technical update to the Financial Administration Act to formally list the new corporation. Most provisions take effect on a date set later by the government.

This bill creates Build Canada Homes, a Crown corporation with a board of directors and Chief Executive Officer, and gives it financial, property, investment and reorganization powers related to housing.

• Governance appointments — the Chairperson and Chief Executive Officer are appointed by the Governor in Council (Cabinet) to hold office "during pleasure" (removable at will) for terms Cabinet considers appropriate; other directors are appointed by the Minister with Cabinet approval for up to four-year terms; Cabinet may also terminate, remove or suspend any director or the CEO at any time.
• Financial powers — the Minister of Finance may pay up to $11.5 billion from the Consolidated Revenue Fund to fund the Corporation's operations, may lend it further money on terms the Minister sets, and the Corporation may borrow up to $400 million from other sources (a limit Cabinet may change by order); it may also charge fees for its services.
• Operational powers — the Corporation may provide financial assistance or loan guarantees (guarantees require Finance Minister approval) to any person or government, invest in or acquire shares of housing-related entities, develop land and construct housing, buy, sell or lease property, take security interests, and enter agreements with any government or entity, including acting as their agent.
• Open-ended activity clause — the Corporation may "do any other thing related to carrying out its purpose that the Governor in Council may, by order, specify," leaving the scope of its activities partly to future Cabinet orders rather than fixed in the Act.
• Reorganization powers — Cabinet may, by order, transfer property, rights, interests and obligations from Canada Lands Company Limited (or its subsidiaries) to the Corporation, and may issue directives requiring the Corporation, Canada Lands Company, or their subsidiaries to incorporate, dissolve, amalgamate, buy or sell assets or securities, or restructure capital; directors must comply, and no lawsuit for damages or restitution may be brought against the Crown, ministers or their agents over actions taken under such a directive.
• Oversight and regulation-making — Cabinet may make regulations to carry out the Act's purposes, including setting requirements on how the Corporation exercises its powers; a review of the Act must occur five years after commencement and every ten years after that, with a report tabled in Parliament and referred to a committee, but there is no sunset clause ending the Corporation or its powers.