Developers Didn't Directly Ask for B.C. Vacant Condo Plan, Carney Says

Prime Minister Mark Carney asserted on Thursday that developers did not directly solicit the federal-provincial government's plan to acquire vacant condominiums in British Columbia for affordable housing. He emphasized that the initiative was conceived with citizens, not the industry, as the primary focus.

“

No developer asked for this from me directly.

The proposed program, designed to transform unsold units into affordable housing, has drawn criticism from opposition parties and housing experts. Some critics have labeled it a "bailout" for developers struggling with unsold inventory, particularly in Vancouver and the surrounding areas. "No developer asked for this from me directly," Carney told reporters in Ottawa, responding to questions about industry lobbying.

Carney acknowledged shortcomings in the plan's communication, stating, "We haven't done a particularly good job of rolling this out and explaining exactly what it is." Details on the program's operational specifics are anticipated in the fall. The government's objective is to convert "distressed" condominiums into "rent-to-own" properties, enabling renters to save for a down payment.

“

We start, as we always do, with Canadians. We don’t start with developers. Yes, it’s great that there are developers and they build condos. What we care about is affordable housing, enough affordable housing, in this case, for the people of British Columbia.

Governments intend to contribute approximately 10% of the estimated $1.4 billion total value, with transactions to be pursued "at a discount at the right time." Carney stressed that specific transaction structures are yet to be determined. "There’s no specific transactions, no specific contemplated transaction at this stage, but there is an opportunity," he said.

“

I think the issue will be, if and when there are transactions, then judge those transactions on the basis of the economics of that, not on the concept.

British Columbia's Housing Minister Christine Boyle expressed hope that all 2,200 vacant condo units in priority growth areas could be converted into affordable housing. This approach is seen as the quickest and most efficient way to increase housing supply. However, Conservative Leader Pierre Poilievre criticized the plan as a "transfer of wealth from the have-nots to the have-yachts."

“

We’re running all of the numbers on what a program design looks like that works for the folks we’re talking about, hard-working British Columbians making good income, still feeling locked out of home ownership.