Premier clears up condo buyout plan: no Vancouver purchases, no developer profit

B.C. Premier David Eby has clarified the joint federal-provincial condo purchase proposal announced last week, revealing that his government conceived the plan and that purchases will be made only outside Vancouver.

Prime Minister Mark Carney told media Thursday in Ottawa that the program was "initiated" by the provincial government. The federal government will contribute 10 per cent of the roughly $1.5 billion cost to purchase 2,200 new unsold condos in B.C.

Eby confirmed that his government proposed using half of $300 million in new federal housing money to buy unsold condos for British Columbians who can't afford down payments yet but pay substantial rents. The program targets distressed assets—such as projects in foreclosure—so developers will not profit from the purchases. Purchases will not be made in Vancouver "because the numbers don't work," Eby said.

Both governments are contributing $150 million each, creating a $300 million deposit for financing and upfront costs. "This comes at no ultimate cost to taxpayers because the mortgage is an asset for taxpayers," Eby noted.

The premier said targeted regions include the Fraser Valley, Vancouver Island, and the Okanagan. BC Housing will manage the selections. When asked if criticism could scrap the plan, Eby said: "If people hate it, that's OK, we don't have to do it. But I actually think that ultimately, we'll be buying below the cost of construction, no developers will be profiting from us and it'll give people an opportunity to buy a home that would otherwise not have it."