Ontario Construction News staff writer
Four B.C. housing organizations are calling on all provincial election parties to commit to reducing the cost of building homes, warning that rising expenses and uncertainty over government funding are preventing both market and non-market projects from moving forward.
The Urban Development Institute (UDI), B.C. Non-Profit Housing Association (BCNPHA), Aboriginal Housing Management Association (AHMA) and Co-operative Housing Federation of B.C. (CHF BC) say the cost of land, construction, government fees, financing and regulatory delays is making projects increasingly difficult to deliver.
Groups represent both private developers and non-profit, co-operative and Indigenous housing providers, which they say are facing the same challenges despite serving different segments of the housing market.
“The cost of building and financing a home in B.C. now exceeds what most buyers can afford to pay and what governments are willing to subsidize for low- and moderate-income renters,” the organizations said in a joint statement.
They are asking the next provincial government to restore planned affordable housing investments, finalize agreements to reduce development cost charges (DCCs) and infrastructure expenses, and pursue a broader goods and services tax (GST) exemption on new homes.
The last provincial budget cut $1.4 billion from planned investments in affordable housing, according to the organizations. More than 5,000 affordable rental homes under the Community Housing and Indigenous Housing Fund were deferred without a new reinvestment timeline.
Cuts left non-profit projects stalled despite land being identified and money already spent on design and approvals. The groups said non-profits, co-operatives and their private-sector development partners lost $45 million in predevelopment costs as projects were shelved.
“Projects are ready, but the land sits empty,” said Jill Atkey, CEO of BCNPHA. “The people waiting for affordable housing cannot wait another budget cycle. The next government has an opportunity to restore the investment and get these homes built.”
Also, the organizations want the province to finalize an agreement with the federal government to reduce development cost charges and fund infrastructure needed to support new housing.
Although the governments announced an agreement, its details were not finalized before the election was called, leaving developers unable to account for the proposed measures in project budgets and municipalities unable to implement them, the groups said.
They want the next government to finalize the federal-provincial agreement within 90 days of taking office so that DCC reductions can be applied to projects.
“One of the first priorities of the next government should be to green light the co-investment of remaining BC RPF funds with the new Canada Rental Protection Fund to protect even more affordable rental homes in B.C.,” said Thom Armstrong, CEO of CHF BC.
Another request is for B.C. to follow Ontario’s lead by securing a GST exemption on new homes for all buyers, rather than limiting the measure to first-time buyers.
“When market developers and non-profit housing providers are asking for the same thing, it should tell every party how serious the cost of delivery crisis is,” said Mike Drummond, CEO of UDI.
Reducing the cost of housing delivery would support affordability, economic productivity, employment and stronger communities, advocates say.
UDI represents more than 850 corporate members involved in land development, planning, financing and related industries. AHMA supports Indigenous housing providers serving nearly 10,000 Indigenous people and families living off reserve in B.C. BCNPHA represents the province’s non-profit housing sector, while CHF BC represents housing co-operatives and related organizations.
