B.C. giving $2B in low-interest loans to developers for affordable homes
Posted April 15, 2021 4:26 pm.
Last Updated April 15, 2021 4:27 pm.
VANCOUVER (NEWS 1130) – In a move to have developers build more affordable homes, the province is committing $2 billion in low-interest loans.
Housing Minister David Eby says the idea is that developers save money on the financing side during construction and then pass the savings on to middle-income home buyers or renters.
The financing is being provided by HousingHub, a division of BC Housing.
“The spread between the interest that the borrower would have had to pay without the HousingHub and what they will actually have to pay because of the lending that we provide to them goes into improving the affordability,” Eby said.
He says the developers will have to show how the funding will improve affordability.
“It might be that they have existing affordable housing units and that they’re deepening affordability — the rents will be lower than they would otherwise be,” Eby said.
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The HousingHub program is geared towards helping households making up to $75,000 a year. Since 2018, it been involved in the construction of 3,400, some of which are still being built.
