The BC government has now launched their new endeavour which will try to make housing more affordable for the middle class.
Specifically, they want to lower construction costs and speed up timelines by cutting red tape which slows some projects down.
The aim is to have more homes come to the market that the middle class will be able to buy.
BC Builds will attempt to accomplish these lofty goals by taking underused land and financing it at a low-cost to builders.
The Province is providing $2 billion in financing for land and $950 million for the BC Builds endeavour overall has been committed to by the Province.
“Anyone looking for a place to live knows how hard it is – even if you make a decent salary there are not enough rental homes people can afford,” said Premier David Eby. “The private sector alone has not been able to deliver the homes middle-class people in BC need.”
“That’s why we’re taking action through BC Builds to deliver lower-cost middle-income homes, faster, so the people who keep our communities working – like teachers, nurses, and construction workers – can find homes they can afford in the communities they love.”
This new initiative is the result of inflation, high interest rates, costs of land and construction costs which have resulted in not enough homes being built that are attainable for the middle class.
The Province says many people are spending upwards of half their monthly household income on housing which has become a domino effect to the housing market.
BC Builds will first focus on rental housing which will take a look at the local landscape and determine their below-market pricing so renters will only have to pay around 30% of their monthly income on housing.
“Too many middle-class families are struggling to find a place to live that they can afford, and that’s holding people and our economy back,” said Ravi Kahlon, Minister of Housing.
“BC Builds is designed to meet this moment, overcome challenging market conditions, and deliver lower-cost rental homes for the people who deliver the services we rely on, and drive our economy forward – so they can build good lives here and thrive.”
The specific details of the program are as follows:
- 20% of all BC Builds rentals that are in partnership with non-profits and First Nations will be 20% below market rates
- The target for all BC Builds homes will be for people to pay no more than 30% of their income on rent
- The cost of rent will not exceed the individual market’s rates
- All who live in a BC Builds home will be income tested at move-in
- Average income levels will be based on the surrounding community
- The program will try to build more two-bedroom, three-bedroom and four-bedroom units for families
- The projects entrusted to non-profits will have lower rents, aiding affordability over time.
However, the BC Green Party says that BC Builds forgets the vast majority of those who need housing.
BC Greens disapproval
The BC Green Party leader and MLA for Cowichan Valley, Sonia Fursteneau, says that BC Builds fails to deliver to people who need housing most desperately.
“With this housing announcement, the BC NDP have abandoned British Columbians who struggle the most with costs of living,” said Furstenau.
“Premier Eby has chosen to support British Columbians with earnings over $85,000 per year, ignoring the desperate reality the majority of British Columbians are facing. Where is the support for the truly middle income households, who make up over half of BC’s population,” she asked.
Adam Olsen, BC Green Party MLA for Saanich North and the Islands added that this program resembles a “recycled” version of the HousingHub effort which he believes has not delivered adequate housing solutions.
“Premier Eby appears to be out of touch with the lived reality of renters across the Province, who need support now, not in 12-18 months, to avoid slipping into homelessness,” Olsen stated.
The BC Greens would rather see the Premier implement three of their proposed solutions:
- Raising the income caps on Shelter Aid for Elderly Renters
- Raising the income caps on the Rental Assistance Program
- Putting in place rental rate protection that would limit the increase to rents between tenants
“We need a government that responds appropriately to the crisis that far too many British Columbians are facing right now,” said Furstenau.
Cowichan Tribes BC Builds project
There are already several BC Builds projects on the go currently.
The Cowichan Tribes First Nation will see a new 199-unit development come to the reserve in Duncan.
This project is being developed by Khowutzun Development LLP and has been approved to include a four-to-six storey wood frame building with 20% of its units having a rent of at least 20% below market value.
This space will also act as a new governance headquarters for the Cowichan Tribes and will offer retail space for Indigenous entrepreneurs to open businesses.
“Cowichan Tribes has been working hard to develop innovative partnerships to meet the substantial urgent housing needs in our community,” said Xtli’li ye’ Lydia Hwitsum, Chief of the Cowichan Tribes.
“I am pleased to see the provincial government stepping up with the BC Builds program and partnering with us to get these homes built.”
