The British Columbia government has introduced a multi-billion dollar plan to build more housing as quickly as possible in an effort to turn the country's housing crisis around.
The so-called “Housing for People” plan promises to invest $12 billion over 10 years, starting with $4 billion over three years, through construction incentives, laws to curb speculation and financial assistance to renters and homeowners.
“This crisis is affecting people in every corner of our state, affecting the quality of life in our communities and straining our entire economy,” Premier David Eby said.
“Businesses are struggling to attract workers who can't afford to live in areas where the jobs are.”
Housing Minister Rabbi Kalon said as part of the plan, the government will introduce provincial legislation this fall that would allow three or four homes to be built on the site of a traditional single-family home in well-served areas and allow for even higher density construction.
“This means we won't have to go through lengthy zoning procedures just to build duplexes, triplexes and row houses. Without more of these types of housing, we risk pushing more people out of our state in the next generation,” he said.
Additional legislation is expected to be introduced this year that would allow secondary suites in any community in the state. Next year, homeowners could qualify for a forgivable loan for 50 percent of the renovation costs, up to $40,000 over five years, if they agree to rent out their secondary suite at below-market rate for at least five years.
The pilot program is expected to be open to at least 3,000 homeowners over its first three years.
WATCH | BC Premier issues warning to home flippers:
British Columbia Premier David Eby to impose tax on home resales
The Prime Minister is said to be sending a message to house resellers: “This tax is being introduced, it will cost you money, so stop doing that.”
Resale tax to be introduced
Eby has also promised to introduce a resale tax to curb speculation.
“The tax system will be designed to ensure that people achieve their goal of buying homes, holding them for a short time and then selling them at a higher price, driving up costs,” he said.
“If you own a home right now with the intention of flipping it, or you're thinking about buying a home with the intention of flipping it, the message today is this tax is coming. It's going to cost you money. So don't get in the way of doing it. Homes are for British Columbians to live in this province.”
The government also promises to strengthen enforcement of short-term rentals and streamline and modernize the permitting process to reduce costs and speed up approvals.
Reducing homelessness is a key part of the plan, which proposes adding 3,900 new supportive housing units and 240 mixed care spaces.
It also includes teams organized to rapidly respond to encampments and provide support to people living outdoors.
WATCH | In February, CBC News looked at who's buying real estate.
Analysis: Who is buying property in Vancouver?
In February, Statistics Canada released a new report showcasing data on who is buying real estate and what it's being used for. One big takeaway is that investors are snapping up most of the new real estate in the Vancouver area. Lien Yeung crunched the numbers and explains what they mean.
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