BC Budget 2023 makes significant capital commitments for the development of affordable market, rental and social housing.
In total, the government is allocating $4.2 billion in new operating and capital funding over three years to build more homes, provide more supports and protections for renters, and to help reduce homelessness.
- Up to $91 million over three years toward a new pilot project to provide financing incentives to encourage homeowners to develop new secondary suites on the property of their principal residence to rent to long-term renters. The pilot is expected to create thousands of new rentals.
- $1.7 billion in operating and capital funding over three years to support building thousands of new homes for British Columbians through Building BC and BC Housing programs as well as transit-oriented development.
- $394 million in new capital funding to acquire lands for future affordable and market housing development projects along main transit corridors.
- $575 million over 3 years (or $1.1 billion over 10 years) to enable post-secondary institutions to create thousands more student housing spaces in high demand areas throughout BC.
- An income-tested tax credit (rental rebate) of up to $400 for renter households earning $60,000 per year, with a declining value for households with incomes of up to $80,000 per year;
- $7 million over three years to support the BC Rent Bank; and
- More than $15 million to increase staffing capacity at the Residential Tenancy Branch.
- $2 billion dedicated borrowing facility to support thousands of new affordable homes over 10 years. The government will provide loans. Details to come.
Property Transfer Tax (PTT)
- PTT revenue is forecast to decline by 20 per cent in revenue this year to $1.799 billion from the $2.250 originally forecast due to a slower housing market and expected decline in home sales.
Speculation and Vacancy Tax
- The regulation is being amended to clarify the geographic areas used to determine the annual fair market rent for residential property. This is used to apply the non-arm’s length tenancy exemption if the owners are untaxed worldwide earners (satellite families) or foreign owners.
Municipalities – housing targets
- $11 million to support implementing legislation, including the new Housing Supply Act, allowing the Province to set housing targets for communities.
- $57 million to unlock more homes through new residential zoning measures and by reducing the time and cost associated with local government approval processes.
New PTT exemption
- Two per cent PTT exemption for new purpose-built rental buildings, effective for transactions on or after January 1, 2024 that exceed $3 million. The residential portion of the building must be entirely for rental and have at least four apartments.
Rapid housing initiative
- $66 million in annual operating funding to support new housing through this federal-provincial cost-shared program launched in 2020 to address urgent housing needs of vulnerable Canadians, through the rapid construction of affordable housing.
- $85 million over three years to increase emergency management capacity and provide new investments in disaster risk assessment, preparedness, and mitigation.