A federal human rights agency is calling on Ottawa to withhold funding from municipalities that fail to increase housing construction, arguing governments should face consequences if they do not address Canada’s worsening affordability crisis.Blacklock's Reporter says in a new report, the Canadian Human Rights Commission said Canada’s housing shortage has reached alarming levels and recommended tying federal transfers to measurable housing targets and tenant protections.“Canada has an alarming housing crisis,” the report stated, adding there are currently “no legal mechanisms” to hold governments accountable for ensuring Canadians have access to adequate housing.The report, titled Building Homes, Upholding Rights: A Human Rights Approach To Housing Agreements, said more than 4.8 million homes are needed nationwide to restore affordability as rents continue climbing and homelessness worsens.According to the Commission, more than 60% of evictions are considered “no fault” cases where tenants are removed despite not violating lease agreements.“Municipalities and service providers are struggling,” the report stated.The Commission proposed that federal funding agreements with provinces and municipalities be linked directly to housing performance, including construction starts and tenancy protections.“Provincial and municipal governments would be required to demonstrate concrete progress toward the right to adequate housing,” the report said.The proposal mirrors a 2025 Conservative campaign pledge that would have penalized municipalities failing to increase housing permits by 15% annually.“If they miss the target their federal funding will be withheld equal to how much they miss their target,” the Conservatives said during the campaign..The party also proposed rewarding municipalities that reduced development charges by offering subsidies worth up to 50% of those fee reductions, capped at $50,000 per new home.Conservatives argued municipalities should publicly disclose development charges so taxpayers could “hold municipalities accountable when they build bureaucracy instead of homes.”The Carney government later introduced a similar program on April 7 called the Build Communities Strong Fund.The federal initiative promised $5 billion annually in subsidies for provinces that agree to reduce municipal development fees and housing-related charges.Federal officials have acknowledged housing affordability has deteriorated sharply over the past decade.A 2025 Department of Housing transition memo found shelter costs now consume 52% of the average household income in Canada, up from 38% ten years earlier.“Middle income households across the country are finding it increasingly hard to buy homes,” the memo stated.The department also warned many middle-income Canadians are remaining in rental housing longer, increasing pressure on supply and driving rents even higher.
