B.C. invests $2 billion toward low interest loans for builders of affordable housing
April 30, 2021
The financing target projects for renters and buyers with average household incomes of $75,000.
The British Columbia government has announced an investment of $2 billion in a low-interest loan program for builders of affordable housing.
According to Housing Minister David Eby, the financing will be offered to private developers and community groups through the province’s HousingHub program – a division of BC Housing – and will target projects for renters and buyers with average household incomes of $75,000.
In a news release, the B.C. government said the loans will be provided at below-market rates, and in return, developers commit to pass these construction-cost savings through to the tenants and prospective homeowners in the form of more affordable rents and homeownership opportunities. “These loans are repaid once construction is complete, allowing HousingHub to reinvest in additional housing, continuing to increase the number of homes built for middle-income households over the 10-year lifespan of the program,” the news release said.
Since it was established in 2018, HousingHub has over 3,400 homes completed or underway throughout the province for households with an average annual income of $75,000. HousingHub primarily supports development of rental homes with additional support for affordable homeownership projects. Rents or the costs of HousingHub homes offered for purchase must be at or below market rate and must remain affordable for a minimum of 10 years.