Question Period Note: Public Services and Procurement Canada Disposals & Federal Lands Initiative

Public Services and Procurement Canada (PSPC) linkages to the Federal Lands Initiative program.

• PSPC is a strong supporter of the Federal Lands Initiative program, which aligns with its broader socio-economic priorities of Indigenous reconciliation, social housing and improved accessibility to the built environment
• Since 2018, PSPC has contributed five of its surplus properties to the Federal Lands Initiative program including partnerships with local First Nations
• PSPC is currently advancing plans to right-size its office portfolio, which may result in more opportunities for surplus federal properties to be directed to the Federal Lands Initiative program in the future

If pressed on future opportunities:

• The Federal Lands Initiative program is currently assessing a number of additional Public Services and Procurement Canada properties in Nova Scotia, New Brunswick, Ontario, Quebec, British Columbia and Yukon

The Federal Lands Initiative is a $200-million fund that supports the transfer of surplus federal lands and buildings to eligible proponents. This is available at discounted to no cost to be developed or renovated for use as affordable housing. The discount on the property will depend on the level of social outcomes achieved by the winning proposal. Once transferred, the property will be developed or renovated into affordable, sustainable, accessible and socially inclusive housing.

The Federal Lands Initiative program maximizes the results for properties by running a competitive process in which proponents (eligible housing providers) bid a mix of social outcomes. At the minimum, proposals must meet the following criteria for at least 25 years:

• At least 30% of units in a project must be available at a rental price of no more than 80% of local median market rent;
• On a lifecycle basis, the building must be upgraded with at least a 25% reduction in operating energy consumption and greenhouse gas emissions over the most recent national building and energy codes
• At least 20% of units meet accessibility standards (new CSA standard as of 2023).

PSPC contributions to date to the Federal Lands Initiative program program include:

• Projects that have been announced or in the public domain:
  • 1010 Somerset Street, Ottawa (sold to the City of Ottawa on December 19, 2022 to support a new community which will have 1,156 housing units, with 345 of these deemed affordable);
  • Aspen Apartments, 5204 52nd St., Yellowknife (transferred to Northwest Territories Housing Corporation on June 27, 2023 to convert former federal staff housing into 36 permanent affordable housing units)

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As of spring 2024, FLI had distributed or allocated almost all of its original budget, and had a number of properties in its pipeline being assessed or being made ready for competitions or transactions. Budget 2024 allocated a further $112.6 million over five years (starting 2024-25), and $4.3 million in future years, to allow FLI to continue its work and enable it to participate in the pending Public Lands for Homes Plan.

• The Federal Lands Initiative was created in 2018 as part of the National Housing Strategy, with a 10-year mandate and $200 million budget
• The Federal Lands Initiative program is led by the Canada Mortgage and Housing Corporation with support from PSPC, Infrastructure Canada, and the Canada Lands Company Limited
• The Federal Lands Initiative program facilitates the transfer of surplus federal lands and buildings to eligible proponents, at a discounted cost, to be developed or renovated for use as affordable housing
• PSPC is a contributor of surplus federal real property to the Federal Lands Initiative program