Host First Nations, B.C. gov’t to build 2,600 below-market homes in Vancouver

A new housing project on the lands of the xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish), and səlilwətaɬ (Tsleil-Waututh) Nations will create 2,600 new affordable homes.

The homes will be at Heather Lands, an 8.5-hectare (21-acre) lot between West 33rd and West 37th avenues on Heather Street, just west of Queen Elizabeth Park.

The province says buyers will be able to purchase the homes at 60 per cent of market value — with 40 per cent of the cost covered by provincial financing.

CLICK HERE TO LISTEN TO 1130 NEWSRADIO VANCOUVER LIVE!

In an announcement Thursday, Premier David Eby explained the financing agreement isn’t a grant or a subsidy, it’s a loan from the province.

“The 40 per cent is repaid at the end of 25 years, or when the owner sells. … What we have created here, together, is a financing tool that protects taxpayers, that minimizes impact on public budgets, and yet, at the same time, delivers affordable housing now,” Eby explained.

“And when the loan is paid back by the homeowner, [it] protects affordability in the future,” he added.

Eby shared that the homes will be sold as 99-year strata-leaseholds with Musqueam, Squamish, and Tsleil-Waututh Nations.

“The unit prices will be determined at the time they actually go up for sale, but if they were for sale today, under current market conditions, a studio apartment on the site would sell for $620,000. Under this program we’re announcing today, that same studio apartment will sell for $370,000,” he said.

“On this site today, the market price for a two-bedroom condo is $1.3 million. Under this program that we’re announcing today, that will be $780,000.”

Eby added priority will be given to first-time homebuyers, and there will be “strict” criteria around income and asset ceilings for would-be purchasers.

“I want to assure you that we will have strict rules and screening measures in place, and anyone who thinks that they can game the system when we detect that, there will be serious consequences.”

The province says that to cover the 40 per cent of purchase prices, it will need to finance an estimated $670 million. If purchasers would like to buy out the remaining 40 per cent of the value of the home, Eby shared owners are able to do just that, “but if they exit in advance of 25 years, then they need to pay the appreciation in the value of the property as well.”

“Say property values go up, they would have to pay that share of the government’s appreciation of the property as well. And say, property values go down, they would still have to pay the full amount back to the government that was loaned at the first instance,” he added.

---

---

While an agreement has been signed between the Host Nations and the B.C. government, Eby said if the incumbent NDP government does not win the upcoming provincial election, “it is theoretically possible for a future government to cancel this.”

Musqueam Chief Wayne Sparrow yəχʷyaχʷələq, Squamish spokesperson Wilson Williams Sxwíxwtn, and Tsleil-Waututh councillor Curtis Thomas spoke at Thursday’s announcement, sharing their thanks to all stakeholders and relatives who have brought the Host Nations’ vision to life.

“This attainable housing initiative is something that was conceived by our Nations,” Williams shared. “It is truly innovative and a uniquely Indigenous approach to development. And we were very pleased to find a partner in the provincial government of B.C.”

“We’re opening up our lands to help support not only the culture and up economic sustainability of our people but also help provide housing in a city that is desperate for more,” Wilson said.

“We are on a journey of integration — integrating into Western society. It hasn’t been easy, but we’re on a journey of revitalization and protecting and sustaining our culture, our traditions, our language. Doors are opening. We are now integrating into the survival of present-day life, looking at economic sustainability, economic wealth, and economic health for the future of our generations.”

Thomas noted the work the Nations and its partners have done over the last decade.

“I want to thank everybody involved to date, over the years, who have stood together to work through the challenges, to take the necessary steps, to sign the agreements, to get the deals done for our Nations, to get back some of our lands, which has set us up today to see this attainable housing initiative come to realization,” he shared.

“As First Nations people, the decisions we make and the actions we take today are not all for us — they’re meant to positively impact the next seven generations.

“These projects will provide jobs, skills training, career development and continue to support our people in our communities. It is our job now to inspire our people, to inspire our young ones, to create the connections, and educate our people about the many career pathways available for them to thrive in this Indigenous-led economy. The sustainable housing initiative will benefit many future generations of MST people, along with those who choose to live in our territories, we truly are stronger when we stand together.”

According to the province, prospective buyers must have a total annual household income of less than $131,950 (as of 2024) and net household assets of less than $150,000, to be eligible for studio and one-bedroom leasehold homes.

To be eligible for two-bedroom, or larger leasehold homes, buyers must have a total annual household income of less than $191,910 (as of 2024) and net household assets of less than $250,000.

Buyers must be a citizen or permanent resident of Canada, and at least one buyer must have resided in B.C. for the past 24 months consecutively. Buyers must be at least 18 years old and cannot own an interest in any other property anywhere else in the world at the time of purchase closing. The home must also be the owner’s principal residence.

Thomas Davidoff, a professor at UBC’s Sauder School of Business, says it’s too early to tell if the initiative is a good move on the province’s part.

“The big win is getting more homes,” said Davidoff.

“This isn’t the province giving away 40 per cent of the purchase price, which I think would be a horrendous idea. Instead, they’re giving money today, and they’re going to get money in the future.”

But he says the question remains whether the taxpayer is getting a fair rate of return.

“This is a fairly complicated structure, but it is clear that the more home prices grow, and I believe the quicker the units turn over, the better the province does financially. I think it’s good to structure these things in a win-win way.”

Davidoff says with the buying restrictions in place, the initiative shouldn’t be viewed as a generous subsidy. If the objective was to give housing away to those who otherwise would be living on the street, he says the program would be structured differently.

“It’s an opportunity for people who are doing OK and hope to do better overtime to get in now and have put on the housing ladder.”

Overall, Davidoff says it will lower the barrier for middle-income earners to enter the Vancouver housing market, but only time will tell if it’s a bargain for the province.

“Having the province creatively say, ‘hey, we’ll do a little bit of splitsies: you get enough money to afford the product today, but you don’t get the full benefits. We’re taking some of the benefits.’ That’s not crazy. It’s not an easy contract to write. The devil will certainly be in the details. I’m not 100 per cent convinced at all the province is going to break even, but it’s also very possible.”

Construction of the Heather Lands project is set to begin in 2025. 

—With files from Cole Schisler and Michelle Meiklejohn.