Federal cash aims to boost B.C. home affordability plan

The province's newly announced 'BC Builds' initiative for middle-income earners is getting a $2-billion boost from the Canadian government, announced on Tuesday.

British Columbia‘s new initiative to build more homes is getting a big influx of federal cash — and it could get yet another boost later this year if a drop in inflation paves the way for an expected drop in interest rates.

The province’s newly announced “BC Builds” initiative for middle-income earners is getting a $2-billion boost from the Canadian government, announced on Tuesday.

“This will support, at a minimum, 8,000 to 10,000 new homes over the next few years,” Prime Minister Justin Trudeau said at a press conference.

The program unveiled by B.C.’s Premier David Eby earlier this month commits nearly $1 billion in funding and another $2 billion in loans to build affordable “middle-class” rental housing.

The federal government cash will double the low-cost loans to $4 billion with the goal of approving BC builds’ projects in 12 to 18 months.

“On our end, we are working to reduce permitting wait times and eliminating unnecessary red tape that has hampered home building to date,” Vancouver Mayor Ken Sim said.

So far, 20 sites are being developed under BC Builds, four of which are “shovel-ready.”

UBC professor Tom Davidoff sees this as a useful step to help turn government land into much-needed housing.