Federal Housing Minister Sean Fraser is warning the City of Burnaby that its $43 million allocation in housing funding could be at risk if the Conservative Party wins next year’s election.

Fraser wrote a letter to Burnaby Mayor Mike Hurley on Oct. 30, citing recent comments from Conservative Leader Pierre Poilievre that he would cut the Liberals’ Housing Acceleration Fund.

Poilievre said money from the fund would be reallocated to finance federal tax cuts on new home construction.

Burnaby was receives $43.4 million over four years from the Housing Acceleration Fund last December.

“These funds have been released to your community based on your ambitious commitments that will make it easier and faster to build homes,” Fraser wrote.

“Based on your analysis, you told us this funding would result in an additional 11,950 permits being issued for new homes in your community over a 10-year period,” he added, asking the city to say more about what would happen if the Conservatives cut funding.

Fraser also asked the mayor to “inform members of (his) community of the impact this reduction would have.”

The mayor has until Friday, November 8 to provide his comments to the minister.

Numbers behind Burnaby Housing Accelerator funding

As of August this year, Burnaby had spent almost $980,000, or 9 per cent of the overall Housing Acceleration Fund budget for 2024, according to a report. recent staff report to the council.

“Some underspending should be expected in the first year due to program ramp-up requirements, including recruitment time, program planning for infrastructure, issuance of calls for bids and time required for other project management tasks,” the report said.

Staff plans to roll over unspent money to next year.

Burnaby allocated the $43 million as follows:

• 31% for new staff
• 3% for non-staff operating costs, such as consultancy
• 66% for capital projects, including new technologies to help streamline development approvals and infrastructure projects required to support the construction of more homes.