BC Attainable Housing Initiative To Finance 40% Of Heather Lands Presale Prices

On Thursday, the Government of British Columbia announced its new Attainable Housing Initiative in partnership with the MST Nations — xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish), and səlilwətaɬ (Tsleil-Waututh) — in a move that will likely have an undisputable impact on housing affordability, for some.

Through this new Attainable Housing Initiative (AHI), pre-sale purchasers on the new homes at the 21-acre Heather Lands project will only have to account for 60% of the purchase price, initially. The remaining 40% of the price will then be covered and financed by the Province, with the buyer to then repay the amount either after 25 years, when the buyer sells the unit, or when they stop using the home as their principle residence, whichever comes first.

As a result of this, pre-sale buyers on the Heather Lands project — co-owned by MST Development Corporaton and the Canada Lands Company (CLC) — will only need to finance 60% of the price of the home, and will also only need to pay a 5% deposit on that price. For example, if a purchaser is buying a one-bedroom unit with a market price of $850,000, they will only need to finance $510,000, while the Province will finance the remaining $340,000.

The 40% will be paid by the Province to MST and CLC, then recovered by the Province through a second mortgage placed on the title of the home that will not require buyers to make monthy principle or interest payments until after 25 years or after ongoing AHI requirements are violated.

Buyers will have full ownership of the strata leasehold home and will therefore also have full responsibility over the home, including paying the property transfer tax (based on the full purchase price, not the 60%), property taxes, utilities, and strata fees.

"The dream of home ownership has been out of reach for too many, for too long, especially here in Vancouver," said Premier David Eby. "This innovative initiative – delivered in partnership with MST Nations – will help thousands of middle-class people break into the housing market, while allowing government to recoup its financial contribution. This means more families living and working here can put down roots, while also addressing labour challenges and driving our economy forward."

"Ten years ago, Musqueam, Squamish and Tsleil-Waututh signed groundbreaking agreements that led to our Nations working together to regain ownership of several properties within our shared territories," added Musqueam Chief Wayne Sparrow. "This relationship has evolved, and we are proud to collectively introduce this new initiative that will ease the housing crisis faced by our members and the general public."

How The Attainable Housing Initiative Will Work

Premier Eby announcing the Attainable Housing Initiative with MST on September 19. / Government of British Columbia, Flickr

All of the units sold through the Attainable Housing Initiative will be sold as 99-year strata leaseholds on land that is owned by the MST Nations and will only apply to the original first-time purchase of the unit and not to any sales/purchases after that.

To be an eligible purchaser, buyers will have to:

• Be at least 18 years old;
• Be a citizen or permanent resident of Canada;
• Have resided in British Columbia for the past 24 consecutive months;
• Not own any interest in any other property anywhere else in the world at the time of the purchase closing;
• Pre-qualify for a mortgage and be able to pay the minimum 5% pre-sale deposit;
• Use the home as their principal residence.

Additionally, eligibiltiy for different unit sizes will also differ depending on income level (as of 2024).

• Studio and one-bedroom units: Total annual household income below $131,950 and net household assets below $150,000.
• Two-bedroom units or larger: Total annual household income below $191,910 and net household assets below $250,000.

As has been a focus for Eby, the AHI includes safeguards against what he often refers to as "speculators" and "profiteers."

"No 'flipping' of pre-sold AHI units will be allowed," the Province says. "If a pre-sale buyer wishes to back out of a pre-sale contract, the buyer can only assign their contract back to the developer for the price it was originally purchased, not for a profit."

Buyers can sell their units after taking possession, but their net proceeds from the sale will be capped at 60% of the original purchase price, minus costs, plus the following share of any market value appreciation realized through the first subsequent strata leasehold unit sale transaction:

• 0% if the sale occurs within the first year of occupancy;
• 20% if the sale occurs within the second year of occupancy;
• 40% if the sale occurs within the third year; or
• 60% if the sale occurs within or after the fourth year of occupancy (4-25 years).

Any violation of the ongoing AHI requirements — namely using the home as a secondary residence, renting it out on a short-term basis or long-term basis — will trigger repayment of the 40% and that 40% will be calculated based on the market value of the time the use changed, not the original purchase price.

The Heather Lands

The Heather Lands site at 4949-5255 Heather Street and 657 W 37th Avenue in Vancouver. / Canada Lands Company.

The Heather Lands project is set for a 21-acre site at 4949-5255 Heather Street and 657 W 37th Avenue in Vancouver, between W 33rd Avenue and W 38th Avenue, about midway between the VanDusen Botanical Garden and Queen Elizabeth Park.

Formerly known as the RCMP Fairmont Lands, the City of Vancouver launched a comprehensive planning program in 2016 to develop a policy statement to guide the redevelopment of the property. That policy statement was ultimately approved in 2018, and a rezoning application was subsequently submitted by the developers in October 2020, then approved by Council in May 2022.

Construction on Heather Lands is expected to begin in 2025, and at full buildout, the Heather Lands will deliver commercial space, a neighbourhood park, a childcare centre, a new school, and an MST Cultural Centre, alongside around 2,600 homes across buildings ranging between three and 28 storeys.

Although the Province's announcement on Thursday said that the AHI will provide homeownership for 2,600 households, not all of the homes planned for the Heather Lands project are strata homes. Of the estimated 2,612, according to the rezoning application, only 1,672 are being proposed as strata units, with the remaining being rental housing and social housing.