Ottawa and B.C. pledge $3.2B to unfreeze housing market

Prime Minister Mark Carney and Premier David Eby announced Thursday, June 18 a $3.2 billion federal-provincial partnership aimed at increasing housing supply across British Columbia.

The two governments will each contribute $1.6 billion over the next decade to reduce development cost charges (DCCs) — fees developers pay for new infrastructure — by up to 50 per cent, or as much as $40,000 per unit in priority communities. The funding will expand water systems, wastewater systems, and local roads.

Carney also hinted at a second measure: the federal government will purchase unsold condo units and convert them into affordable housing. "We are going to go and use the right financing mechanisms and convert those into affordable housing so people can move in and use those," Carney said. Models for the program will be released in the fall.

The announcement, made in South Vancouver's River District alongside condo towers selling two-bedroom units near $1.1 million, represents an attempt to address a surge in vacant units across Metro Vancouver. However, it remains unclear whether developers will pass savings on to home buyers, or whether the funding will directly compensate Metro Vancouver Regional District, which slashed development charges by $387 million over three years in April at the behest of development companies.

Metro Vancouver chair Mike Hurley, who did not vote for the April subsidy, said the funding details matter. "The devil will be in the details," Hurley told Business in Vancouver.