Dream Unlimited plans to build 5,000 purpose-built suites across Canada after the federal government removed the G.S.T. from rental-housing projects.

The company announced that it will build the units in Ottawa, Saskatoon, Calgary and Toronto.

“What this legislation unlocks is our ability to get shovels into the ground quickly at a time when it’s never been more critical to build new homes,” said Michael Cooper, Toronto-based Dream’s president and CEO.

Ottawa eliminated G.S.T. charges on rental-housing construction projects on September 14. Ontario and Newfoundland and Labrador subsequently lifted their provincial taxes on such projects, but Quebec has refused to do so.

Meanwhile, Starlight Investments applauded the federal government’s September 14 move to scrap the G.S.T. on rental-housing construction projects in a statement provided to Connect Canada CRE.

Starlight, one of Canada’s most active developers, said the federal and provincial tax exemptions will allow the company to accelerate its construction of more purpose-built rental suites.

“Collectively, the combination of federal and provincial taxes is the largest expense in most rental project budgets,” said David Chalmers, president of Starlight’s Canadian residential business.