Government and First Nations partner to build 2,600 homes in Vancouver, up to 40% more affordable.
An agreement between the British Columbia government and the Musquam, Squamish, and Tsilhqot’in First Nations will provide nearly 2,600 homes in Vancouver at 40% below market value.
The agreement could be a groundbreaking attempt to provide affordable housing in Vancouver, one of the world’s most expensive real estate markets.
British Columbia Premier David Evey announced that the deal will see one-, two-, and three-bedroom units sold on First Nation land with 99-year leases.
Homes are sold for 60% of market value, with the remaining 40% of the value financed by the government, repaid 25 years from the date of purchase or when the unit is sold, and so on.
Housing prices are expected to be around $372,000 for studio units, $510,000 for one-bedroom, and $780,000 for two-bedroom condos, with about 540 condos planned to be offered as social housing.
The availability of housing in Vancouver at such low prices will help many middle-income families enter the housing market.
And the government plans to strictly manage eligibility requirements for purchase. Eligibility requirements include an annual income of $131,950 or less for studio and one-bedroom units based on household income, mortgage pre-approval, and a minimum 5% deposit. In addition, a screening process is in place to prevent speculation.
The first targeted area for this housing program will be Heather Lands on Vancouver’s west side, where hopeful buyers will be able to register and check their eligibility starting next spring. Qualified buyers will be selected at random, with priority given to first-time homebuyers.
Premier David Evey emphasized that the agreement will change the reality that the dream of homeownership in Vancouver has been out of reach for too many people for too long. He explained that the plan will give thousands of middle-class families the opportunity to own a home, while also allowing the government to recoup its investment. The plan is expected to allow more families to settle down and live in Vancouver, helping to address labor issues and boost the local economy.
The premier says he plans to expand the model across British Columbia, adding that the NDP’s housing policy in the upcoming election will highlight innovative measures like this one.
The state’s contribution is estimated to be about $670 million in loans, which it hopes will provide a springboard for more people to enter the housing market.
The agreement builds on a strong partnership between the British Columbia government and First Nations, and marks an important milestone that will make a real difference for citizens amid Vancouver’s skyrocketing real estate market.