2,600 new homes to be sold at 60% market value in Vancouver

Up to 2,600 new housing units planned for the Heather Lands in Vancouver will be sold at 60 per cent of market value, according to a joint announcement by the province, the city and the Musqueam, Squamish and Tsleil-Waututh First Nations.

Province to kick in 40% of purchase price financing with buyers responsible for remainder

Karin Larsen · CBC News · Posted: Sep 19, 2024 3:08 PM EDT | Last Updated: September 20

B.C. helps finance First Nations-led housing development. Can this model be scaled nationwide?

2 months ago

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The B.C. government announced on Thursday that first-time homebuyers will be prioritized for an Indigenous-led condominium project in Vancouver, which the province will now support with financing. The units will be offered under 99-year leases. Tom Davidoff, director of the UBC Centre for Urban Economics and Real Estate, joins Canada Tonight to discuss this project.

The 8.5-hectare parcel of land in question is located on Heather Street between West 33rd and West 37th Avenue, just west of Queen Elizabeth Park.

The development is being touted as an "attainable housing initiative," in which the province will kick in 40 per cent of the financing on the purchase price of the units, with buyers responsible for the remaining 60 per cent.

The units will be sold under a 99-year strata leasehold from the First Nations.

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"For too long, the idea of home ownership has been out of reach for way too many people — people who earn a decent income, who are priced out of the market and do not see any path to home ownership," said Premier David Eby, speaking at the project unveiling on Thursday.

Eby said the cost to the province is $670 million.

chart — Examples of Heather Lands unit costs under the 60/40 financing arrangement, with unit prices to be determined at time of sale. (MST Partnership and Canada Lands Company)

The Heather Lands initiative is aimed at middle-income home buyers who meet the following criteria:

Citizens or permanent residents of Canada. At least one buyer in the household must have resided in the province for the 24 consecutive months leading up to purchase.
At least 18 years old.
Buyers must have no ownership interest in any other property worldwide at the time of purchase closing.
Buyers must have a pre-qualified mortgage and minimum deposit of five per cent of the 60 per cent purchase price.
Must use home as principal residence.

Eby said the 40 per cent from the province is not a grant or ongoing subsidy, but financing that is to be repaid at the end of 25 years, or when the owner sells.

He said there will be strict oversight to prevent people from property speculation, flipping, or otherwise breaking the rules.

"Anyone who thinks they can game the system, there will be serious consequences," he said.

illustration of housing development — An illustration of the planned Heather Lands development. (MST Partnership and Canada Lands Company)

Squamish Nation councillor and spokesperson Sxwíxwtn Wilson Williams said the Heather Lands project was conceived by the three First Nations.

"It's truly innovative and a uniquely Indigenous approach to development," he said. "We're opening up our lands to support the culture and economic sustainability of our people, but also to help provide housing in a city that is desperate for more."

Housing Minister Ravi Kahlon told the CBC the financing model being rolled out for the Heather Lands development could be expanded to other projects.

"If we're able to do this in a really expensive part of Vancouver, we believe we're able to do this in communities across the province as we go forward," said Kahlon.

Construction on the project is expected to begin next year after fast-tracked rezoning from the City of Vancouver.

Until 2012, the Heather Lands were the site of RCMP E Division Headquarters.