News Release
North Vancouver
Tuesday, February 13, 2024 10:35 AM
(flickr.com)
The Province has launched BC Builds to lower construction costs, speed up timelines, and deliver more homes that middle-income people who live and work in B.C. can afford.
BC Builds is a new initiative that leverages government, community and non-profit owned and underused land with $2 billion in low-cost financing and a commitment of $950 million for the overall program.
“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 B.C. 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.”
Inflation, high interest rates, and the cost of land and construction have driven up costs and rent in B.C. and across the country, and not enough middle-income housing is being built as a result. Too many homes are out of reach for middle-income earners and people are spending more than half of their household income on housing, pushing people out of communities, and making labour shortages worse.
Supported by grant funding and financing from the B.C. government, through BC Housing, BC Builds is designed to deliver through challenging market conditions to bring down building costs, get more projects started, and build more homes that fit into middle-income budgets. The program will focus on rental housing first with rents reflecting local conditions and determined on a community-by-community basis. This means more households will find below-market rent and spend less than 30% of their income on rent.
“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.”
BC Builds works in partnership with non-profits, local governments, First Nations and the development sector to identify available underused land, provide financing and funding, and deliver projects that create more homes and help bring costs more in line with what middle-income households earn.
BC Builds details include:
- At least 20% of all BC Builds homes will have rents that are at least 20% below market rate for projects in partnership with non-profits and First Nations.
- All BC Builds units have a target of middle-income households spending no more than approximately 30% of their income on rent.
- The rents for BC Builds will not exceed market rent for that community, and will in many cases be below.
- All households living in BC Builds homes are income tested at move-in.
- The income levels vary by community, so homes are within reach for that community’s middle-income households.
- BC Builds projects aim to deliver more two-, three- and four-bedroom homes, as many as possible with below-market rents.
- Projects owned and operated by non-profit providers mean rents will remain low over time, creating more affordability.
BC Builds uses lower government borrowing rates to offer lower-cost financing and grants to bring down construction costs. The program also works with municipalities, landowners, residential builders and housing operators to move projects from concept to construction within 12 to 18 months, compared to the current of average of three to five years. This will be accomplished by streamlining municipal development processes and by working with landowners, municipalities and residential builders to remove barriers.
BC Builds is designed to grow. In addition to the sites detailed below, thousands of BC Builds homes will continue to move at an expedited pace as projects are approved over the next three years,with some estimated to be under construction as early as summer 2024. More than 20 initial BC Builds sites have been identified on government, First Nations, non-profit and community-owned land. BC Builds is seeking new partners and landowners who want to build housing on underused land or above new community buildings.
The following three projects are examples of BC Builds:
- A site owned by the City of North Vancouver, located at 225 East Second St., being developed by non-profit Catalyst, has development approvals for the following:
- An 18-storey mass timber building that will include 180 units affordable for middle-income households in North Vancouver.
- A minimum of 20% of units must rent at 20% below market, with a goal of delivering even more units at below-market rates.
- The building will be located with the North Shore Neighbourhood House, which provides an extensive range of community services, including 37 child care spaces, child-development support programming for 250 children experiencing development delays, food programs, wellness and recreation activities, and youth and seniors’ programs.
- The project is located beside a new BC Housing project that will deliver 89 affordable homes, set to open in late 2025.
- A site owned by Cowichan Tribes, located at 222 Cowichan Wayin Duncanon reserve landis being developed by Khowutzun Development LLP. It has development approvals for the following:
- A four-to-six-storey wood-frame building, which will include 199 units for middle-income people and families living in the Cowichan Valley.
- A minimum of 20% of units must rent at 20% below market, with a goal of delivering even more units at below-market rates.
- New governance headquarters for the Cowichan Tribes.
- Space for Indigenous businesses.
- A site owned by the Town of Gibsons, located at 571 Shaw Rd., is being developed by non-profit New Commons and will be operated by the Sunshine Coast Affordable Housing Society. It has development approvals for the following:
- A four-storey wood-frame building, which will contain 33 homes ranging from studios to three-bedroom homes.
- A minimum of 20% of units must rent at 20% below market, with a goal of delivering more units at below-market rates.
- The building will also include an early child care centre with 24 child care spaces, encompassing a pre-school daycare and before-and-after school care for eight children.
BC Builds is part of the Province’s Homes for People action plan. Launched in spring 2023, the plan builds on historic action to deliver housing since 2017 and sets out further actions to deliver the homes people need faster, while creating more vibrant communities throughout B.C. Actions to speed up the delivery of housing in B.C. include reining in short-term rentals, turning land near transit hubs into housing, increasing small-scale-multi-unit homes, fixing restrictive zoning rules and cutting wait times at the Residential Tenancy Branch among other initiatives.
BC Builds is part of a $19-billion housing investment by the B.C. government. Since 2017, the Province has nearly 78,000 homes that have been delivered or are underway throughout B.C., including more than 750 units in North Vancouver.
Quick Fact:
- The Province, through BC Housing, provides a range of affordable rental housing and rental subsidy programs that serve low-, moderate, and middle-income households.
Learn More:
To learn more about the BC Builds program, visit: https://bcbuildshomes.ca
To learn more about government’s new Homes for People action plan, visit: https://news.gov.bc.ca/releases/2023HOUS0019-000436
A map showing the location of all announced provincially funded housing projects in B.C. is available online: https://www.bchousing.org/homes-for-BC
To learn about the steps the Province is taking to tackle the housing crisis and deliver affordable homes for British Columbians, visit: https://strongerbc.gov.bc.ca/housing/
Four backgrounders follow.
Media Contacts
Jimmy Smith
Deputy Communications Director
Office of the Premier
jimmy.smith@gov.bc.ca
Ministry of Housing
Media Relations
236 478-0251
BC Housing
Media Relations
media@bchousing.org
Backgrounders
What people are saying about BC Builds
Linda Buchanan, mayor of City of North Vancouver –
“We have experienced significant job growth across the North Shore. But the people who keep our economy moving do not have housing options within their reach, forcing them to commute from far parts of the region. Thanks to this investment, the people who work here can become our neighbours.”
Silas White, mayor of Gibsons –
“The Town of Gibsons is thrilled and honoured to be part of the launch of BC Builds. Affordable housing is the most critical challenge in our community, so we appreciate the provincial government’s support and collaboration to add another 33 units, as well as a child care program, to the Sunshine Coast Affordable Housing Society’s first 40 units of housing at Christenson Village. The 73 units, plus child care, will go a long way to addressing our housing and workforce needs.”
Xtli’li ye’ Lydia Hwitsum, Chief of the Cowichan Tribes –
“Cowichan Tribes has been working hard to develop innovative partnerships to meet the substantial urgent housing needs in our community. One example is our current project to build two beautiful mixed-use buildings – designed to provide 199 apartment suites and ample green space for residents. I am pleased to see the provincial government stepping up with the BC Builds program and partnering with us to get these homes built.”
Jodee Dick, CEO, Khowutzun Development Corporation –
“Khowutzun Development Corporationis proud to be developing this exciting project with Cowichan Tribes and BC Builds, harmonizing the paths of industry, government, and our Nation into one true path of reconciliation is our goal at Khowutzun Development.”
Jill Atkey, CEO, BC Non-Profit Housing Association –
“BC Builds is another historic investment into much-needed workforce housing, with the Province leveraging community-held assets toward a supply solution. What’s more, we’re excited that there is a clearly defined role to for the community housing sector because the long-term affordability achieved by our sector simply can’t be matched.”
Tim Heimpel,lead steward for the Health Sciences Association;respiratory therapist, Lions Gate Hospital –
“I’ve seen the increasing cost of housing first-hand; our small, niche department has lost two amazing respiratory therapists to other provinces in the last six months alone; many other departments have been affected similarly. Having affordable, stable housing close to your workplace not only helps with retention and recruitment; but those living close by are much more likely to pick up last-minute shifts, which eases the burden of staff hospital-wide, thereby creating an overall better work environment.”
Carolyn Whitzman, adjunct professor and housing researcher, University of Ottawa –
“It is great to see the B.C. government scaling up non-market and Indigenous affordable housing on government land. Based on previous successful programs in the 1970s and 1980s, we know these homes will maintain affordability over time.”
Rents, income thresholds under BC Builds
- At least 20% of all BC Builds homes will have rents that are at least 20% below market rate for projects in partnership with non-profits and First Nations.
- All BC Builds units have a target of middle-income households spending no more than approximately 30% of their income on rent.
- All households living in BC Builds homes are income tested at move-in.
- The income levels vary by community, so homes are within reach for that community’s middle-income households.
- BC Builds projects aim to deliver more two-, three- and four-bedroom homes, as many as possible with below market rents.
- Projects owned and operated by non-profit providers mean rents will remain low over time, creating more affordability.
- As the private sector alone has not been able to build housing within reach for middle income households, BC Builds delivers housing for households at the top end of current BC Housing program income eligibility and beyond, to meet the growing need for more housing for people in these middle-income ranges.
- BC Builds picks up where existing BC Housing programs leave off. For example, current eligibility for the Community Housing Fund, which is at the top end of BC Housing programs, is for income ranges from $84,780 for studio/one bedroom and $134,140 for two-plus beds.
- 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. This will vary by community, to reflect local incomes. The upper end of the income range will only be applicable in the highest-income communities for three- and four-bedroom units.
- Those with lower incomes will be prioritized for below-market units.
- People who earn less than their community middle-income range annually will be eligible to live in a BC Builds studio or one-bedroom home. However, they may be better served by BC Housing’s affordable rental housing and rental subsidy programs that serve low- and moderate-income households.
- People with income levels above the local thresholds will be ineligible to live in BC Builds housing.
- The program will use a formula-based approach to determine the rental rates within communities using an appraisal of purpose-built rental units within the community and the average income range of people currently living in the community.
Leveraging land through partnerships
Updated on Feb. 14, 2024
The Province, through BC Housing, has established partnership opportunities with 20 governments and organizations that are working with BC Builds to build homes for people faster:
- Church of the Nazarene, City of Langley
- City of Kamloops
- City of Kelowna
- City of Langley
- City of North Vancouver
- City of Port Alberni
- City of Vancouver
- District of Squamish
- Khowutzen Development Corporation (Cowichan Tribes)
- Nelson and District Chamber of Commerce
- Resort Municipality of Whistler
- Sacred Waters (and the respective Nations working closely together: Katzie, Kwantlen, Semiahmoo)
- Southside Community Church, Burnaby
- District of Elkford
- Town of Gibsons
- Town of Ladysmith
- Township of Langley
- c̓išaaʔatḥ (Tsehaht) Nation
- University of Victoria
- University of British Columbia
Connecting landowners, home builders
The Province, through BC Housing, is working with government, non-profit, and community landowners to identify additional underused properties that can be developed or redeveloped into rental housing through BC Builds.
The Province acknowledges its commitment to the Declaration on the Rights of Indigenous Peoples Act, as well as the obligation to consult and co-operate with First Nations regarding the use and disposition of underutilized provincial land that may be identified as potential BC Builds projects. The Ministry of Housing and BC Housingwill continue to ensure this obligation is met.
Step 1 – Connect and support land partners and home builders
Landowners can find a development partner on their own or source one through the BC Builds website. The BC Builds housing development opportunities page will be launched in the coming weeks, with sites already zoned for housing development. 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 has been established, BC Builds will work with municipal and provincial approvers to accelerate permitting, building and operation of housing.
The BC Builds team will 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% of units with rents 20% 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.
