The article isn't wrong, but it's missing context. It does provide a smokescreen for the failings of the provincial governments though.
The constitution was repatriated in 1982, limiting what the federal government could do in provincial jurisdiction. Agreements with the provinces for subsidized housing programs were allowed to lapse over time. The feds were fine with that because, as stated, they were dealing with a bit of a debt crisis.
In the GTA, housing prices flatlined at the end of the 1980s, and stayed essentially flat through the 1990s. The developers and the construction industry have a lot of sway at the provincial level, so they weren't interested in new, low cost housing. That meant the provincial government wasn't interested, especially during the Harris years.
The issue is provincial. Just because the provinces are failing to address it, doesn't mean the feds can force the issue. Under the constitution, the federal government isn't the senior government, it's equal to the provinces, the only difference is the distribution of areas of jurisdiction. The feds have more than enough things in their own jurisdiction that they're failing at.
Business regulations are, with few exceptions, provincial; zoning is provincial; property taxes are provincial. Although there are a national building and electrical codes, the provinces are free to modify and add their own rules, ignore others etc.