Public Accounts

The House of Commons Standing Committee on Public Accounts met to study the Auditor General's report on the current and future use of federal office space, with appearances from Auditor General Karen Hogan, Canada Mortgage and Housing Corporation (CMHC) President and CEO Coleen Volk, and Deputy Minister of Housing, Infrastructure and Communities Paul Halucha.

Auditor General Karen Hogan stated that Public Services and Procurement Canada (PSPC) made little progress in reducing federal office space, achieving less than a 2% reduction from 2019 to 2024, far short of its 50% reduction target by 2034, due to a lack of funding and departmental reluctance. She noted that PSPC lacked standardized, reliable data on space usage from tenants, and that the Treasury Board Secretariat's ability to manage real property decreased with the dissolution of its Centre of Expertise for Real Property in 2024. On the federal lands initiative, she found that while CMHC was on track to meet its 2027-28 target for commitments to build 4,000 housing units, only about 49% would be ready for occupancy by then, and the affordability criterion was not based on household income, meaning the lowest-income renters did not fully benefit.

Coleen Volk explained that CMHC administers the federal lands initiative as designed by the government, with policy responsibility now residing with Housing, Infrastructure and Communities Canada (HICC), and that the program is on track to meet its unit targets, citing the Mikinàk community in Ottawa as an example. She defended CMHC's "pay at risk" compensation system, stating it is not a bonus but a portion of salary withheld and paid only when employees meet individual objectives, and she rejected the suggestion that CMHC alone can solve the housing crisis, noting it lacks the resources and mandate to do so. She acknowledged that the federal lands initiative does not work well in rural areas due to a lack of federal buildings there, and pointed to other tools like the apartment construction loan program and mortgage loan insurance as larger contributors to housing supply.

Paul Halucha stated that the new Build Canada Homes agency will use an income-based affordability definition—deeply affordable units at less than 30% of before-tax median household income for low-income households, and affordable units for moderate-income households—which he said will better match local market conditions. He noted that the federal land bank was a key innovation, but that the average time to move surplus properties through the process remains nine years, and that the government is moving from a system of relying on surplus lands to proactively identifying high-potential federal lands for housing. He emphasized that Build Canada Homes will function as an investment bank, not a program-based organization, and will focus on partnerships, modular housing, and working with provinces and municipalities to accelerate supply, including in rural areas.

During the meeting, members questioned CMHC's performance bonuses, with Volk reiterating that the "pay at risk" system is standard compensation practice, while some members expressed dissatisfaction with the explanation. Members also pressed on the definition of affordability, with Hogan noting that the current criterion does not target the lowest-income renters, and Halucha confirming that Build Canada Homes will adopt an income-based approach. The committee discussed the need for standardized data collection on office space usage, with Hogan recommending that PSPC enforce compliance, and members noted the lack of specific targets for departments to identify underutilized lands. No procedural motions or votes were recorded.