Critics blast B.C., federal government condo ‘bailout’

There is no shortage of criticism of the federal and provincial government’s plan to buy up empty Metro Vancouver condos and either resell them or rent them at affordable prices.

Prime Minister Mark Carney and Premier David Eby announced the plan last week as part of a multi-billion-dollar program to boost the supply of affordable housing.

While Carney says the details won’t be released until the fall, critics say buying up unsold condos at market prices is a bailout for developers who made bad decisions in the first place.

“When one benefits when the market, when prices go up, but what happens when prices go down, and that really shouldn’t we allow market mechanisms determine those prices as opposed to having government come in to set a floor,” Andy Yan, City Program director at Simon Fraser University, asked.

Last week, Carney said the government will “leverage innovative financing tools from Build Canada Homes to convert thousands of vacant condos into affordable homes.”

There are about 2,200 vacant condo units in areas considered a priority for growth in B.C., and Carney said converting those would be the fastest and most efficient ways to increase housing supply.

B.C.’s Housing Minister Christine Boyle said they are hoping to convert all these units.

“We’re running all of the numbers on what a program design looks like that works for the folks we’re talking about, hard-working British Columbians making good income, still feeling locked out of home ownership,” she said.

Conservative leader Pierre Poilievre was at Vancouver International Airport on Sunday and also commented on the plan.

“The condo goes from expensive to less expensive. Who’s going to pay the difference? Well, Mark Carney wants you, the taxpayer, struggling with mortgage bills and gas prices, to pay those losses instead of the developers,” he said.

The partnership announced Thursday between the two governments includes spending more than $5 billion on B.C. infrastructure, $3.2 billion to lower development charges for multi-unit housing — reducing costs by up to 50 per cent in communities that are deemed a priority — and $284 million to reduce barriers for new construction.