Townhouses under construction in Surrey.

BC Liberals pledge 3,000 new units through $500m housing fund

Few details yet on new affordable housing projects, to be funded in part by foreign buyers tax

The BC Liberals are pledging to finance 2,900 new housing units through a new $500 million commitment to housing initiatives.

Few details have been provided, but Housing Minister Rich Coleman said the goal is to have new projects approved by the end of March and built over the next two to three years.

That surge of housing into the rental market – heralded as the largest in B.C.’s history – will “change a whole bunch of dynamics,” Coleman predicted.

Most of the units are to be affordable housing, built in partnership with non-profits, local governments, other organizations and the private sector. The mix of units promised would provide homes for a wide range of residents, including seniors, students, First Nations, youth aging out of care, developmentally disabled adults and women fleeing abuse.

The B.C. government on Aug. 1 began charging foreign buyers of Metro Vancouver real estate a 15 per cent property transfer tax, which is currently forecast to generate $165 million in new revenue that will partly go to new housing.

Last week, the quarterly financial update revealed the province now has a nearly $2-billion surplus.

“We’ve got a large surplus this year so we are able to afford to do this,” Premier Christy Clark told reporters Monday at the announcement in Burnaby.

Property transfer tax revenue has surged with what has been a white-hot housing market, at least up until the new tax kicked in.

PTT revenue is now forecast at $2.1 billion for 2016, an increase of $965 million from what had been budgeted.

The extra $500 million for housing is on top of $355 million over five years the province already has budgeted for 2,000 new units.

Clark said the housing fund is one of the “pieces of the puzzle” in improving housing affordability on top of government actions such as the foreign buyers’ tax, a new luxury tax on the most expensive homes and cracking down on shady practices in the real estate business.

Other levels of government have to step up as well, she said.

“The federal government has to do its bit,” Clark said. “They have to make sure dirty money isn’t finding a way into our country. They also have to make sure they’re making land available for development and incenting through the tax system more rentals.”

Clark said the biggest role falls to local municipalities that have the power to zone land specifically for affordable housing.

“Local mayors and councils have to be part of the solution because we can’t do the zoning for them.”

The premier was asked by reporters if B.C. has done enough to ensure the Canada Revenue Agency has the information it needs to go after foreign owners of B.C. property who don’t declare their income or profits from real estate investments.

Clark said she welcomes more clarity from Ottawa on what else B.C. can provide to ensure CRA auditors can do their job.

NDP leader John Horgan denounced the Liberal housing promise as a “vague” and belated response to a crisis they have done nothing to prevent.

“They ignored this issue for a decade,” Horgan said. “They just started talking about affordability when they couldn’t avoid it any more.”

He also questioned the government’s plan to in some cases buy existing units from private landlords or developers to create affordable housing dedicated for lower-income renters, adding he doesn’t see how that creates new supply.

“That’s transferring public wealth to private hands,” Horgan said. “These are the same developers that have been financing the BC Liberal party for the last decade, and now, on the way out the door, they’re getting a top up.”

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Pick all your apples and save the bears

As summer ends, bears become more active looking for food

Citing stability, B.C. Premier calls snap election for Oct. 24

John Horgan meets with Lieutenant Governor to request vote

B.C. Premier announces fall election

Kootenay East MLA Tom Shypitka reacts to election announcement

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 20 to 26

Rabbit Day, Hobbit Day and One-Hit Wonder Day are all coming up this week

Interior Health reports three additional COVID-19 cases in region

The number of cases in the region since the beginning of the pandemic are now at 492

B.C. reports 96 new COVID-19 cases, one hospital outbreak

61 people in hospital as summer ends with election

B.C.’s top doctor says she’s received abuse, death threats during COVID-19 response

Henry has become a national figure during her time leading B.C.’s response to the COVID-19 pandemic

BC Liberals must change gears from election cynicism, focus on the issues: UBC professors

COVID-19 response and recovery is likely to dominate platforms

B.C. could be without a new leader for multiple weeks after Election Day: officials

More than 20K mail-in voting packages were requested within a day of B.C. election being called

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Vancouver Island sailor stranded in U.S. hospital after suffering massive stroke at sea

Oak Bay man was attempting to circumnavigate the world solo

Majority needed to pass COVID-19 budget, B.C. premier says

John Horgan pushes urgent care centres in first campaign stop

Public health officials urge Canadians to limit contacts again as COVID-19 cases rise

Canada has committed $1 billion to buy at least 154 million doses of vaccines from five different companies

Vancouver Island family overwhelmed with 14 Lab puppies

Litter may be one of the biggest ever

Most Read