Homes for People: A Summary of BC's New Housing Action Plan

On April 3, the Premier of British Columbia, David Eby, and Minister of Housing, Ravi Kahlon, released the “Homes For People” housing action plan. While the plan includes many previously announced commitments and plans, there are new areas of commitment for the provincial government. This article summarizes the new policies announced in the plan.

Significant Announcements Impacting Housing Supply

The plan includes three significant announcements that impact housing supply. Firstly, the province will introduce legislation in the fall that will allow more Missing Middle (three or four units) on a traditional single-family detached lot, depending on the size or type of lot. The legislation will also allow for additional density permitted near large transit centres. Secondly, legislation will be introduced later this year to make secondary suites allowed in every community in BC. Beginning in early 2024, homeowners will be able to access a forgivable loan of 50% of the cost of renovations, up to a maximum of $40,000 over five years, which can be forgiven if the homeowner meets all conditions laid out in the program. The third significant announcement impacting housing supply is the implementation of the Housing Supply Act, which was brought into force in fall 2022.

Improving Housing-Related Permits and Approvals

In 2023, a newly dedicated single window application process will be launched for all housing-related permits overseen by the province to speed up the process and eliminate the need for multiple applications across ministries. These improvements will complement recommendations in the Development Approvals Process Review.

Taxes and Compliance Efforts

The BC Government will introduce a tax on the proceeds of property sales based on how soon they happen after the initial purchase. The province will also consider expanding the Speculation and Vacancy Tax (SVT) to more areas with low vacancy rates and stepping up efforts to improve compliance.

Future Ready Plan

The province will create a Future Ready Plan, to be released in spring 2023, to connect more people to the relevant skills and training they need to quickly find and advance their careers in the construction sector.

Impact On Rental Housing

The plan also includes several new policies to impact rental housing, including exploring new opportunities and ways to build new rental buildings, as well as expanding and maintaining existing purpose-built rental buildings, making the renter’s tax credit permanent, increasing funding for the BC Rent Bank, and mandating more data-sharing by short-term rental platforms.

Conclusion

Overall, the “Homes For People” housing action plan includes a range of new policies and commitments that could significantly impact housing supply and affordability in British Columbia. However, it remains to be seen how effective these policies will be in practice and whether they will be enough to address the ongoing housing crisis in the province.