B.C. and First Nations reach deal to sell 2,600 condos at 60% of market value

An agreement between First Nations and the British Columbia government will see thousands of homes made available in Vancouver at 40-per-cent below cost.

Premier David Eby calls it a "remarkable" accomplishment between the province and the Musqueam, Squamish and Tsleil-Waututh First Nations, which would see about 2,600 homes sold for 60 per cent of the value in one of the most expensive real estate markets in the world.

The agreement would sell one-, two- and three-bedroom units in a 99-year-lease on First Nations land with the government financing the other 40 per cent of the value to be paid back when the unit is sold or 25 years after the purchase date.

There will be screening to stop speculators, while eligibility requirements for buyers include household income thresholds, set at $131,950 or less for studios and one-bedroom units, as well as pre-qualifying for a mortgage and a minimum deposit of five per cent.

Prospective buyers would be able to register and confirm their eligibility as early as next spring for a unit on the Heather Lands on the west side of Vancouver, followed by a randomized selection of eligible buyers with priority for first-time owners.

Eby says he's excited about scaling up similar ideas across B.C., adding there will be a strong emphasis on housing in the NDP's upcoming election platform.

A studio unit is expected to sell for a about $372,000, while the one-bedroom would be sold for $510,000 and a two-bedroom condo would go for $780,000. About 540 of the condos would be social housing.

"The dream of home ownership has been out of reach for too many, for too long, especially here in Vancouver, " Eby said Thursday at the announcement.

The plan will help thousands of middle-class people break into the housing market, he said, while allowing the government to recover its financial contribution.

"This means more families living and working here can put down roots, while also addressing labour challenges and driving our economy forward," the premier said.

Eby says the province's contribution is estimated to be about $670 million in loans.

This report by The Canadian Press was first published Sept. 19, 2024.