SURREY, B.C. — New Democrat Leader David Eby says he will help more middle-class, first-time buyers into the housing market with a plan for the province to finance 40 per cent of the price.
Eby said his Homes for People plan will commit up to $1.29 billion per year in financing, while supporting the development of up to 25,000 new units over five years.
The government will partner with non-profit organizations, local governments, First Nations and market-housing providers to identify land and projects for development, he said.
Eby said government financing and the use of low-cost land would allow builders to offer units for sale at 40 per cent below market prices, and buyers would need to come up with the remaining 60 per cent.
"The benefit of this plan means that people will be able to buy with a smaller down payment," he said at an outdoor news conference during heavy rain.
"Their monthly payments will be lower and will be affordable and the taxpayers will be protected," said Eby. "If home values go up, revenue to the province goes up and resources for more affordable housing projects are more available."
He said taxpayers are also protected if home prices drop.
"This is a loan," Eby said. "This is not a grant. The homeowner pays interest on it just like they would on any kind of financing."
He said when the buyer sells, the province's contribution must be repaid, plus 40 per cent of the appreciation value of the home.
Eby said he hears from families across the province telling him their dream of owning a home is out of reach.
"I will be focused every single day on doing all we can to ensure housing affordability for British Columbians," he said. "Without a decent and affordable place to live you might not even be able to get by or get ahead."
Eby said if units under the plan are not sold the provincial contribution would need to be repaid 25 years after the date of purchase.
The proposal uses the same model as a project Eby recently announced with the Musqueam, Squamish and Tsleil-Waututh First Nations.
This report by The Canadian Press was first published Sept. 25, 2024.
Dirk Meissner, The Canadian Press