Thursday, February 22, 2024

At a glance (4 minute read)

  • The new BC Builds program is an initiative to fund lower-cost, middle-income rental and market homes that includes funding from both the provincial and federal governments.
  • The program has income-tested eligibility, targeting households with incomes from $84,780 to $191,910 for various home sizes.
  • BC Builds aims to have projects go from concept to construction within 12 to 18 months, and has already identified sites across various municipalities.

 

The province, the federal government, local governments, First Nations, developers, and non-profits will work together to deliver affordable rental homes on underused land to middle-income families in the new BC Builds program.

Affordable market homes are planned for future years.

The program funding includes:

  • $2 billion in low-cost financing from the province,
  • $950 million from the province for the overall program, and
  • $2 billion in federal funding.

Funding will be used to lower construction costs, speed up timelines, and build affordable homes aimed at middle-income BC households.

Eligible renters income tested

BC Builds and partners will identify underused land and use financing and funding to build affordable housing for household incomes from:

  • $84,780 to $131,950 for a studio or one-bedroom home; and
  • $134,410 to $191,910 for a two-bedroom home or larger.

The goal is for moderate-income households to spend less than 30 per cent of their income on rent.

Grant funding and financing will come from the BC government through BC Housing.

Households applying to live in BC Builds homes will be income tested. Income levels will vary by community.

Faster to the market

BC Builds will work with partners to move projects from concept to construction within 12 to 18 months. Currently, the average is three to five years.

BC Builds will help municipalities streamline development processes and work with landowners, municipalities, and residential builders to remove barriers.

“We’re taking action to deliver lower-cost homes, faster, so teachers, nurses, and construction workers can find homes they can afford in the communities they love,” said Premier David Eby. 

Potential sites

More than 20 initial sites have been identified on government, community-owned, First Nations, and non-profit-owned land.

In the Greater Vancouver REALTORS® area, these sites are in these municipalities:

  • Burnaby (Southside Community Church)
  • City of North Vancouver
  • City of Vancouver
  • District of Squamish
  • Resort Municipality of Whistler
  • University of BC

The province, through BC Housing, has also established a partnership with Sacred Waters, a shared economic development corporation of the Katzie, Kwantlen, Semiahmoo Nations.

Example of a current project

A site owned by the City of North Vancouver at 225 East Second St., next to North Shore Neighbourhood House being developed by Catalyst, has development approvals for:

  • an 18-storey mass timber building with 180 units affordable for middle-income households, and
  • a minimum of 20 per cent of units must rent at 20 per cent below market.

Affordable market housing coming

At the Union of BC Municipalities housing summit on February 13, housing minister Ravi Kahlon told attendees that BC Builds starts with rental but will also provide funding for lower-end, affordable market housing. 

Calling developers, landowners

BC Builds is seeking new partners and landowners who want to build housing on underused land or above new community buildings.

Step 1 : Connect and support land partners and home builders

Landowners can find a development partner on their own or source one through BC Builds on its soon-to-be-launched development opportunities page.

Property owners looking for a developer/builder and/or operating partner will be listed for residential homebuilders and housing operators to review and submit a proposal to develop and/or operate rental housing on the site.

BC Builds will facilitate partnership agreements and lease terms between landowners, builders and operators and support the evaluation of proposals.

Step 2: Streamline the approval process

Once a partnership agreement is established, BC Builds will work with municipal and provincial approvers to accelerate permitting, building and operation of housing.

The BC Builds team will also work with landowners, municipalities, and residential developers to remove barriers.

Step 3: Provide low-interest financing and grants

BC Builds offers low-interest construction financing to reduce the cost of construction of eligible projects.

As needed, BC Builds will provide a maximum grant of $225,000 per unit to non-profits and First Nations development corporations to achieve a minimum of 20 per cent of units with rents 20 per cent below market.

For eligible groups that own land and have an initial concept, but need additional financial support to advance their project, pre-development loans are available.

If you have questions about the BC Builds program, contact Harriet Permut, director of government relations at hpermut@rebgv.org. 

More information