Canada’s Plan to Turn Distressed Condos Into Affordable Housing Draws Fire
Prime Minister Mark Carney defended a C$1.45 billion program to acquire more than 2,200 vacant condominium units in British Columbia and convert them into affordable housing, after the June 18 announcement drew criticism from political opponents and industry groups. The federal government would provide roughly 10 percent of the financing, with the federal and provincial governments purchasing distressed units at a discount. Carney acknowledged the government had poorly communicated the plan and emphasized no specific transactions have been finalized.
Vancouver and Toronto face a glut of unsold condominiums after a pandemic construction boom collided with rising interest rates and immigration caps. Developers have canceled projects, slashed prices, and in some cases lost towers to receivership. Carney said the program would focus on rent-to-own arrangements that allow tenants to build equity through rental payments. Housing Minister Gregor Robertson, a former Vancouver mayor, said more details would come in the months ahead.
Conservative Leader Pierre Poilievre and industry observers attacked the plan as a bailout for developers and banks using taxpayer money to absorb private losses. The Urban Development Institute, which represents British Columbia developers, opposed the program and called instead for a sales-tax rebate on new home purchases to increase supply. Carney said no developer had directly requested the policy, which was proposed by the provincial government.
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