B.C. Premier Eby compares condo-conversion plan to buying items 'on liquidation'

British Columbia Premier David Eby defended a joint federal-provincial plan to convert unsold condominiums into affordable housing Thursday, comparing the strategy to purchasing items "on liquidation" rather than a bailout for struggling developers.

Eby and Prime Minister Mark Carney were in Vancouver announcing a multibillion-dollar infrastructure agreement when they addressed criticism of the condo-purchase program, which has been roundly criticized since being announced last month.

The plan would fund the purchase of more than 2,000 unsold condos with the intention of converting them to rentals or affordable housing under a rent-to-buy scheme. Eby said the characterization as a "bailout" does not fit the reality. "When you buy something that's on liquidation, you don't say to yourself, 'I'm supporting a bailout for the store'," Eby said.

"This is an opportunity for us to recognize the reality that people can't wait for housing. We can buy housing at below our construction cost and make it available affordably, and if we don't do it, someone else will do it."

The premier noted that developers have made clear this is not what they asked for and is not a bailout from their perspective. However, he acknowledged that there are no plans to purchase units in Vancouver because "the numbers just don't work" to convert them to affordable housing.

Carney said the plan will only proceed when it makes sense financially. "If those opportunities present themselves — we've created the flexibility in order to get affordable housing to people at a cheaper price than could be built — we'll do it. If the market shifts, if the opportunity doesn't present itself, then it won't happen."