B.C. has struck a deal with the federal government for Ottawa to provide more than $5 billion for housing and infrastructure in the province over the next 10 years.
Funding will include $2.5 billion for transit, such as SkyTrain development, $1.6 billion to lower development cost charges, $600 million for health-care infrastructure, a $284-million one-time payment to reduce barriers to new construction, $100 million for a new Tumbler Ridge secondary school and medical centre, and $50 million for infrastructure in coastal communities such as Prince Rupert and Terrace.
B.C. will match the funds for development cost charges, health care and Tumbler Ridge.
Prime Minister Mark Carney appeared in Vancouver on Thursday (June 18) to announce the spending package alongside Premier David Eby before the two were scheduled to meet and head to the Canada-Qatar World Cup match.
Carney said the goal is to build more homes people can afford, and avoid ending up with expensive empty units.
“Demand continues to outpace supply. And at the same time, there are too many completed condos sitting empty,” he said. “In Metro Vancouver alone, around 2,500 finished units are standing vacant with no buyers.”
Eby explained that the money will help build new homes, but also represents a recognition that the existing housing stock is too expensive for many people.
“They would love to make it their first home to buy, but they can’t afford it,” he said.
This influx of cash comes at a time of severe belt-tightening for the B.C. government, as it grapples with persistently rising deficits, projected to reach $13.3 billion this year.
Eby’s government has tended to blame external global forces for the situation and has begun to rein in spending, announcing delays or suspensions of many infrastructure projects and housing programs.
“In a time of instability, today’s announcement is an important symbol to me of the shared commitment between the provincial and the federal government to make life better for British Columbians in a time when things are challenging,” Eby said.
Construction will begin in Tumbler Ridge this summer, starting with the removal of the school where a mass shooting took place in February. This makes good on what Carney said was an agreement between him and Eby to help the community rebuild after that “unspeakable tragedy” claimed nine lives.
Funding for development cost charges will lower fees for multi-unit housing projects by up to 50 per cent in priority communities, resulting in savings of up to $40,000 per unit. These fees are used for everything from water and sewer upgrades to police stations and fire halls.
In many places, soaring costs for new infrastructure — such as upgrades to Metro Vancouver’s Iona Wastewater Treatment Plant — have led to recent increases in these fees, to the dismay of developers. Carney called these charges “one of the biggest barriers to new homes.”
Other types of infrastructure are generally paid for by the province, but are also needed to serve a growing population. Transit and health care fall into these categories, hence their separate inclusion in the $5-billion package.