Prime minister defends housing proposal
Prime Minister Mark Carney acknowledged Thursday that the federal and British Columbia governments have not clearly communicated their proposal to purchase vacant, unsold condos and convert them into affordable housing.
Speaking at a news conference in Ottawa, Carney said the rollout had fallen short, including on his own part. The plan was announced last week alongside B.C. Premier David Eby and focuses on more than 2,200 empty condo units in the province.
Plan aims to convert vacant units into homes
The proposal would use financing tools to acquire unsold condos and make them available as affordable housing. Carney said one goal is to help young families and people without down payment savings gradually build equity through a rent-to-buy model.
He argued that purchasing already-built units could move affordable homes into the market faster than waiting for new construction.
Carney said the federal government would contribute 10% of an estimated $1.45 billion in possible total spending. He said British Columbia would cover the remainder, although Eby later clarified that the province would roughly match Ottawa’s contribution for a combined public total of about $300 million, with the balance coming from financing.
Condos would be bought below market value
The federal Housing Ministry said the homes would be acquired at below-market prices. Carney described the target properties as “distressed condos” that would be purchased at a discount “at the right time”.
He also emphasized that the concept originated with the province, saying, “No developer asked for this from me directly.”
Carney did not provide full clarity on whether every home involved in the program would be offered through a rent-to-own structure.
Poilievre attacks plan as developer support
Opposition Leader Pierre Poilievre has criticized the proposal, calling it a “bailout” for large developers and “a transfer of wealth from the have-nots to the have-yachts”.
Carney rejected that characterization and said any eventual transaction should be assessed based on its financial terms rather than dismissed because of the broader concept.
Eby says details came too late
At a separate news conference, Eby said the federal government had been eager to announce the program while Carney was in British Columbia, even though full details were not yet ready.
He said, “I think in hindsight, we should have waited and made sure that all the details were available.”
Despite that admission, Eby stood by the program and argued it should not be viewed as a rescue package for developers.
Premier says Vancouver projects are unlikely
Eby said developers who built for the high end of the market and are facing reduced profits would not benefit from the plan. He also said the numbers do not work for units in the City of Vancouver.
Instead, he pointed to regions such as the Fraser Valley, the Okanagan and Vancouver Island as areas where the approach could be more viable.
“Ultimately we’ll be buying below the cost of construction. No developers will be profiting from this,” Eby said.
Bulk purchases could reduce costs
The premier said governments may be able to purchase homes at lower prices because they can buy multiple units at once. He also said buildings in different stages of bankruptcy protection could create opportunities that individual buyers would not normally have.
According to Eby, the program would help people access homeownership who otherwise would not have that opportunity. He added that the proposal is not the preferred option of the development industry.
He argued that the structure would not create a final burden for taxpayers because the mortgage would remain a public asset.
More information still to come
Further details on the program are expected. Eby left open the possibility that the proposal could be dropped if public opposition remains strong.
“[If] people hate it? That’s OK. We don’t have to do it,” he said.
