What’s the stated objective of the $4 Billion “Homes for People” program? The NDP have identified 4 pillars to this program:
- Unlock more homes, faster: “Work with municipalities” to speed up permitting and approvals to get homes built faster. The provincial NDP has demanded that municipalities with the greatest housing pressure end the existence of single family zoned homes, with the threat that the province will legislate such zoning out of existence if the municipalities fail to act. This is terribly contentious, with municipalities responding strongly to what they perceive as provincial government overreach, and home owners in single family neighbourhoods objecting to the province neglecting Official Community Plans and desires on how the community evolves over time. However, some development minded cities (Vancouver in particular!) seem to be embracing these policies since they align with what city hall wants to do anyway, and they allow the city to make the province “the bad guy” for those who disagree. As part of this initiative, they are also launching “BC Builds” – a new program which seeks to build homes for middle-income people using provincially owned land. The government is also announcing a forgivable loan of up to $40,000 for homeowners who build rental stock within their homes.
- Deliver better, more affordable homes: Prior to the 1990s, the provincial government used to be fairly active in building social housing. Budget pressures caused these programs to be cut, causing an acute housing crisis for the most disadvantaged over time. The BC government has pledged to build thousands more social housing units, up to 4,000 additional on-campus rooms, and introduce legislation to further protect affordable rental stock.
- Supportive programs for low income renters: the government is introducing a means-tested renter’s tax credit, of up to $400 annually. Funds are also being specifically set aside for building homeless shelters, to redevelop the truly appalling SROs (Single Room Occupancy) in the Vancouver Downtown Eastside.
- Create a Housing Market for People, not Speculators: this has been a constant trope of this government for years. New initiatives include a “flipping tax”, stricter enforcement on short term rentals, faster resolution of renter/landlord disputes and expanding the Speculation and Vacancy tax to additional areas.
In summary, the “Homes For People” housing action plan introduces various new policies and commitments with the potential to have a substantial impact on housing supply and affordability in British Columbia. The effectiveness of these policies in addressing the persistent housing crisis in the province remains to be seen, and time will reveal their practical impact.
Will this work? Probably. Certainly, developers love the idea. It will also take Canada’s economy further and further away from a nation with a real economy to an economy based on real estate, which is a real issue. Single family homes will become rapidly more unaffordable as developers snap them up to redevelop – and their prices will likely soar in coming years.
Interesting times…
Check our other blogs under Real Estate 101 – that might give you answers about buying or selling a home.
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