Prime Minister Justin Trudeau announced on Thursday that the federal government will launch the "Canadian Rental Protection Fund" worth $1.5 billion to keep rental prices affordable across the country.

The fund is the latest commitment from the federal Liberals, who have spent over a week previewing the spending to be included in the 2024 federal budget, including a series of affordable housing loan programs, with rule reforms focused on fairness for tenants.

So far, the Liberals have allocated $25 billion for new spending and loans. When asked to clarify what no one of his ministers could clarify last night, the Prime Minister said, "There are no plans to hike taxes on the middle class to fund new budget commitments."

He continued, "We will continue to make fiscal responsibility at the core of what we do, to ensure fairness for every generation."

The Prime Minister did not provide details about the interest on these various loan offers or their repayment deadlines, saying more will be revealed on Budget Day.

He said, "It's all about making the math work."

What will the Rental Fund do?

According to the government, the fund will provide $1 billion in loans and $470 million in contributions to non-profits, community housing providers, and other partners to help purchase affordable rental buildings that are on sale.

Speaking at an affordable housing complex in Winnipeg, Trudeau said, "We need more affordable housing buildings like this, across the country."

"Unfortunately, many of these places face a continual threat of demolition to build apartments, or being sold to speculators and large companies which will lead to rent increases, people being driven out of their communities, and that is unacceptable so we have to help."

The Liberals are launching this fund as a step toward preserving rental prices to ensure long-term affordability for low-income tenants.

A statement from the Prime Minister's office accompanying Trudeau's announcement said, "Led and co-funded by the federal government and other partners, the fund will mobilize investments and financing from the philanthropic and private sectors to protect and grow affordable housing in Canada."

Housing Minister Sean Fraser, speaking alongside Trudeau, said Canada has lost hundreds of thousands of affordable housing units over the past decade, some due to demolition after poor maintenance, while others were bought by owners who renovated and raised rents.

Fraser said, "Here in Canada, less than four percent of our housing stock is actually owned by non-profit institutions or governments off-market. By comparison, the average for advanced economies worldwide is about eight percent."

"We have an ethical obligation to make sure that everyone in this country has a roof over their head, and a safe and affordable place to call home."