The federal and British Columbia governments have announced a new partnership that will invest up to $3.2 billion over 10 years to reduce development-cost charges for multi-unit housing projects by as much as 50% and expand housing-enabling infrastructure across the province.

The funding includes nearly $1.6 billion from Ottawa through the Build Communities Strong Fund, matched by the province, with the goal of lowering homebuilding costs by up to $40,000 per unit in priority communities while supporting infrastructure such as water and wastewater systems and local roads.

The move comes after the federal and Ontario government launched an $8.8-billion partnership to reduce development-cost charges. Investors and developers have cited high development-cost charges as barriers to home construction for years and recently increased calls to lower them.

The federal government has also introduced legislation that would provide a one-time transfer of $284 million to the province to help remove barriers to new housing construction.

The two governments also agreed to launch the Canada-British Columbia Partnership on Condo Conversion, which will use financing tools through Build Canada Homes and BC Housing to convert more than 2,200 vacant condominium units in priority growth areas into affordable housing.

In addition to housing measures, Ottawa will provide more than $600 million over three years, matched by the province, to modernize hospitals, emergency rooms, urgent-care centres and other health-care facilities. The federal government will also invest $2.5 billion over 10 years through the Canada Public Transit Fund for new transit projects and service improvements in B.C.

“Canadians gave our government a clear mandate to build a stronger country – one where people are empowered with more opportunities, lower costs, safer communities, and homes you can afford,” said Carney. “We’re working in partnership with the Government of British Columbia to deliver – building affordable homes, modern transit, and new community spaces all across B.C. Together, we’re building a stronger British Columbia, and a stronger Canada for all,”

B.C. Premier David Eby said the partnership builds on “strong steps” that the province has taken on housing by making it easier to build homes and invest in infrastructure up which communities rely.

“That means more homes people can afford, better services, and more good job opportunities as we work together to strengthen B.C. and Canada,” said Eby.

Pictured: Condominium towers under construction in Vancouver.

Photo: Shutterstock

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