B.C.’s $2.9B middle-income housing program to build 4,000 new homes

A new home-building program in B.C. is hoping to kick-start development and bring thousands of new homes to the province for middle-income earners.

Announced Tuesday, the British Columbian government says its program — BC Builds — will be working in partnership with non-profits, local governments, public agencies, First Nations, and community groups to first identify underused land across the province, to then create and build more homes for means-tested middle-income renters.

“People come to me all the time and tell me they’re spending half, or even more than half, of their income on rent – that’s not affordable, and quite frankly, that’s not sustainable,” said B.C. Housing Minister Ravi Kahlon.

The homes will be funded by a mix of low-cost financing — up to $2 billion — with a $950 million investment from the province by way of grants and subsidies to support a limited number of below-market rents.

“BC Builds leverages the $2 billion low-cost financing vehicle established with the creation of the HousingHub to support the construction of BC Builds to get housing for middle-income British Columbians built faster,” the province explained Tuesday.

“The loans are repaid when construction is complete, and the financing can be loaned to another project.”

The province described the program as a “first in a generation approach,” similar to wartime home building.

The province said more than 20 sites have so far been identified as “underused” and BC Builds is now searching for development partners who want to build new community homes.

“Thousands of BC Builds homes will continue to move at an expedited pace through the planning stages in the coming months, with some estimated to be under construction as early as this summer,” it said.

There are currently three projects in progress that will provide 400 homes. Over the next two years, the expectation is the remaining 17 projects will be underway providing another approximately 3,600 units.

The province explained that BC Builds works in tandem with BC Housing, which is currently aimed at lower-income individuals.

The homes created by BC Builds will create homes for those who are currently ineligible for BC Housing programs.

“BC Builds is designed to create housing that is affordable for household incomes from $84,780 to $131,950 for a studio or one-bedroom home or $134,410 to $191,910 for a two-bedroom home or larger,” the province explained.

“It is important to note that households who earn less than $84,780 will still be eligible to live in a BC Builds home but existing BC Housing rental programs focusing on lower incomes would better align to their income levels. We will continue to build housing through these programs.”

BC Builds homes will be then set to 30 per cent of resident’s incomes.

However, the province noted that income targets will vary by local communities to reflect local incomes. The income levels were set by looking at incomes across the province, and setting them at the 75th percentile.

University of British Columbia Associate Professor Tom Davidoff says the government’s new initiative is a huge investment, but it also underscores how hard it is to build affordable housing – even for people with decent incomes. 

“For the magnitude of the investment, you’re only building housing for people who are doing reasonably well, as you say. It’s just not feasible. Even when land is being given away by municipalities,” Davidoff said.

“And even when the province is coming in with low-interest financing, you’re still renting to people making well over $100,000 a year.” 

-With files from Cecilia Hua