With inflation, high interest rates, and construction costs, developing new rental housing has endured challenges. Those earning a decent salary are struggling to find affordable rental housing. BC Builds addresses these challenges using low-cost, low-interest financing and grants while expediting project timelines. The housing program will free up more housing for people, help finance the cost of construction, utilize underused or low-cost land, and create work for housing developers.

In this article, we’ll review the details of the BC Builds Project and discuss its impacts on housing providers.

What is the BC Builds program?

The BC Builds program, led by Premier David Eby and BC’s provincial government, is a housing strategy striving to provide affordable housing to middle-income households. British Columbia’s housing crisis has made lower-cost rental homes scarce, and this program offers grant funding for building new lower-cost, middle-income homes in designated areas.

Tenants won’t spend more than 30% of their income on rent. The projects completed in partnership with non-profit organizations and First Nations will set rents at least 20% lower than prevailing market rates for at least 20% of the housing units.

Eight pre-zoned public land parcels spanning the Interior to Vancouver Island have been acquired for future BC Builds projects and are now available for housing development.

Several BC housing projects are already underway.

Funding:

• Canadian federal government: $2 billion
• British Columbia: $950 million
• Provincial low-cost construction financing: $2 billion

How will BC Builds affect rental operations? 

Housing operators must implement a tenant screening process with income verification, ensuring middle-income households have access to affordable housing units. This will optimize the program’s impact and sustainability. The goal is to find middle-income working people, so tenant screening services like SingleKey can help housing providers verify a tenant’s income..

What are the benefits of BC Builds for participating housing providers?

Government financing, grants, and low-interest loans significantly ease the financial burden of developing new housing projects. You’ll have access to low-cost or publicly owned land. With streamlined permitting and approval processes, project timelines are expedited, allowing developments to progress from concept to construction within 12 to 18 months—far quicker than the usual timelines.

This initiative will lead to a flood of rental applications and more opportunities for housing operators. More housing means a boost in rental income as well. Each new development increases revenue, supporting the financial health of projects and providing affordable homes for families.

How can property owners become eligible for BC Builds?

To qualify for the BC Builds program, housing providers should review the housing development opportunities on the BC Builds website and understand the following requirements:

• Finance: Demonstrate financial stability and secure funding through grants or low-cost financing from BC Housing.
• Guidelines: Must comply with all BC Housing guidelines, ensuring tenants spend no more than 30% of their income on rent and that at least 20% of units are priced 20% below market rents in partnership projects. 
• Partnerships: Work with nonprofits, local governments, and First Nations to leverage additional resources.
• Regulations: BC Builds is not designed for short-term rentals. The goal of the project is to provide affordable homes for people who are middle-income earners and reside in British Columbia.
• Land: Use a pre-zoned, low-cost parcel of land provided by BC Housing that aligns with zoning regulations.
• Management: Ensure applicants are going through the tenant screening process, adjusting the criteria to align with BC Builds’ guidelines that require middle-income people to have access to rental homes.

FAQ: How BC Builds creates opportunities for housing operators