The owners of Place Fleur de Lys are calling on governments to relax housing regulations. In Vanier, the first phase of the 480-unit Fleur de Lys neighborhood began, but it took more than five years for the project to get off the ground.
The president and CEO of Trudel Corporation believes the regulatory framework is far too burdensome, especially when a zoning change must be made for the project to move forward.
We really need to work to make quick decisions and meet political and administrative deadlines. The development model in Quebec is currently unsustainable, says William Trudel. His company plans to build around ten sections in the Place Fleur de Lys area, a total of 3,500 residential units.
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William Trudel, President and CEO of Trudel Corporation
Photo: Radio-Canada
Political and administrative leadership is needed in Quebec City to shorten deadlines and make decisions more quickly.
William Trudel is also waiting for the city's green light to launch two more real estate projects in the Galeries Charlesbourg and Place des Quatre-Bourgeois areas. He notes a slight improvement in the discussions as the administration relaxed certain aspects of the regulations in the autumn, but this is still insufficient in the view of the promoter.
“It's a step in the right direction, but I haven't seen the pace pick up yet,” complains William Trudel. Ideally, he said, it would take a year at most to make a decision on a zoning change and another year at most to get approvals.
We have to improve
Quebec councilor Marie-Pierre Boucher, who is responsible for land use planning, admits there are pitfalls when a project doesn't respect zoning. It is certain that we have processes that can take longer when developing projects that are outside of zoning. That's why we need to improve on this side.
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Marie-Pierre Boucher, elected head of land use planning in Quebec City
Photo: Radio-Canada
However, she explains that in the city of Quebec, major measures are currently underway in several sectors to revise zoning and specific urban plans, which in particular determine the maximum height of a building.
According to Marie-Pierre Boucher, more projects no longer require a special permit, which should facilitate their administrative progress. When we have projects that comply with zoning, things can happen very quickly. Over 80% receive a response within 30 days.
Looking for solutions to revive housing starts amid a housing crisis, the city of Quebec is also organizing a housing forum on February 21.
Abolish QST?
Citing the significant decline in construction starts in Quebec in 2023, the Association de la construction du Québec (ACQ) is again calling for the abolition of the QST for the construction of rental housing. The federal government has been granting a GST holiday for these projects since autumn 2023. The Trudeau government had urged provinces to do the same, but only Ontario and British Columbia followed suit.
The President of the ACQ cannot help but point out that housing starts continued to increase in British Columbia (+11%), and that the decline was much less pronounced in Ontario (-7%) than in Quebec (-33%). According to Guillaume Houle, the abolition of the QST would be a strong signal to the real estate market and investors.
This would allow projects where the financial package is more or less secure to see the light of day and we could start 2024 on the right foot. He fears that current conditions mean 2024 is likely to be just as difficult as 2023 in terms of housing starts in Quebec.
For now, the Legault government continues to close the door on abolishing the QST, preferring to focus on targeted measures. Quebec's Housing Minister's Office also reiterates that a housing action plan will be presented in the coming weeks.