The Governments of Canada and British Columbia have announced a new agreement under the Canada Housing Infrastructure Fund (CHIF) that could help unlock more housing supply in B.C., especially in Metro Vancouver.

The deal includes $250 million in federal funding over five years to support Phase 1 of the Iona Island Wastewater Treatment Plant upgrade, matching the province’s previous $250 million contribution. This infrastructure investment is intended to support urban densification and make it possible to build more homes in one of Canada’s fastest-growing regions.

While this announcement may seem distant from day-to-day mortgage brokering, it includes a series of policy changes and proposed measures that could impact housing affordability and construction timelines in the province.

Key aspects:

• Infrastructure investment supports growth:
  Upgrading essential infrastructure like wastewater treatment is a necessary foundation for increased housing density. This project helps remove barriers that often delay or prevent new housing developments.
• Lower upfront costs for builders:
  The province plans to change the payment schedule for Development Cost Charges (DCCs), giving builders more time to pay. This could help ease financing pressures, improve cash flow, and allow some projects to move forward faster to increase housing supply.
• Potential incentives for affordable housing:
  The province is also exploring ways for municipalities to waive DCCs for non-market housing units within market developments. This could encourage developers to include more affordable homes in new builds.
• Extension of in-stream protections:
  B.C. is also working on extending in-stream protections for housing projects impacted by DCCs, helping to stabilize costs and provide greater certainty to builders during the planning phase.

Will this create more affordable housing?

While these measures are positive, experts caution they are unlikely to significantly move the needle on affordable housing in the short term.

Here’s why:

• The infrastructure funding is an enabler and not a direct investment in housing.
• The proposed DCC changes and waivers are not mandatory. Local governments may vary in how they are applied.
• No specific housing targets or timelines have been announced. This makes it difficult to measure the real impact.

Overall, this agreement represents progress toward a more supportive development environment, but more direct, large-scale investments and policy tools are still needed to create a meaningful increase in deeply affordable housing.

As always, we will continue to keep you informed on policy changes that affect housing supply, affordability, and mortgage markets.