Premier details rent-to-own condo purchase program targeting regions outside Vancouver
The provincial government will target distressed condos in the Fraser Valley, Vancouver Island, and the Okanagan under a $1.45 billion program developed by the province.
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Premier David Eby outlined details Thursday of a new program to buy up empty condos and use them as affordable housing through rent-to-own arrangements, clarifying that the concept originated with the provincial government rather than Ottawa.
The program will cost $1.45 billion total, with Ottawa and the province each contributing $145 million, and the remainder coming through financing. Prime Minister Mark Carney said the governments were targeting "distressed condos" that could be purchased at a discount.
"What we see as an opportunity right now is the chance to buy condos below the cost of construction, below the cost of what government can build it for, and make them available through a rent-to-own program for British Columbians," Eby said. Residents would put a portion of their rent payments toward a down payment on a mortgage.
Eby said the focus will be on areas outside Vancouver, where "the numbers don't work," but other parts of Metro Vancouver could be eligible. Target regions include the Fraser Valley, Vancouver Island, and the Okanagan. BC Housing will target distressed condo assets such as projects in foreclosure, meaning developers will not profit from purchases.
When questioned whether the program amounts to a bailout for developers, Eby pushed back. "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," he said.
Burnaby Mayor Mike Hurley said the program still sounds like a bailout but added that if the province and Ottawa can secure condos at 70 cents on the dollar, it might be more palatable. Housing experts have raised concerns about the details, noting many unsold condos are in cities like Burnaby and Richmond where prices remain high despite the downturn, and that most are studio and one-bedroom units that may not suit families.