Canada provides purpose-built rental housing in Vancouver

Vancouver, British Columbia, August 3, 2023

Today, the Honourable Harjit Sajjan, Minister of Emergency Preparedness and Minister responsible for the Pacific Economic Development Agency of Canada and Member of Parliament for Vancouver South, on behalf of the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities, alongside Deputy Mayor Pete Fry, on behalf of Vancouver City Council, announced the construction of 422 purpose-built rental homes in three projects in Vancouver. These new homes were made possible through fully repayable low-interest loans of over $208 million through the Rental Construction Financing Initiative (RCFi).

Canada’s construction of rental homes has not kept pace with the country's growing cities and population, leading to a decline in the existing and aging rental stock for decades. To help address this issue, the Government of Canada introduced the RCFi to stimulate the construction of rental housing across the country. Increasing the overall supply of rental housing in the country is crucial to creating stronger and more vibrant communities that Canadians can feel proud to call home. The Government of Canada recognizes that purpose-built rental housing is an important component of the housing market, and increased supply of rental homes is needed to meet the growing demand for rental housing

The announcement took place at 3435 West Sawmill Crescent where a six-storey multi-use apartment building is being constructed by Wesgroup Properties, offering modern design and environmentally sustainable construction. These homes will be close to grocery stores and other retail amenities, as well as riverfront walking trails, parks and a children’s playground. It is within walking distance of public transit, schools and services for middle-income families.

Quotes:

“Too many Canadians are struggling to find somewhere to rent and to call home. The federal government is seized with reversing this trend, and through programs like the Rental Construction Financing Initiative, we are incentivizing the development of much-needed rental units; including these 422 right here in Vancouver. Investments like these will help to increase the supply of housing, and our Government will continue to make strategic investments so that all Canadians have a safe place that they are proud to call home.”
— The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

“As Vancouver’s population continues to grow, the need for housing becomes increasingly crucial. These purpose-built rental homes here in the River District are an essential part of the solution. Through RCFi, our government can increase its supply of new rental developments right here in Vancouver South and its neighbouring communities. When it is complete, these three projects will offer much-needed housing for families and individuals to grow and flourish in these beautiful neighbourhoods of ours.”
— The Honourable Harjit Sajjan, Minister of Emergency Preparedness and Minister responsible for the Pacific Economic Development Agency of Canada and Member of Parliament for Vancouver South

“We are excited that the CMHC is supporting more housing faster in Vancouver through financial investment initiatives like the RCFi. The City of Vancouver looks forward to continuing to work with the Ministry of Housing, Infrastructure and Communities and agencies like the CMHC, to enable much needed purpose-built rental projects such as this.”
— Ken Sim, Mayor of Vancouver

“Wesgroup is proud to work with the federal government and CMHC to create much-needed rental housing for middle-income Canadians in Vancouver and realize our mission of building complete, vibrant communities. In an environment with rising interest rates and construction costs, the secure, reliable financing provided by CMHC’s Rental Construction Financing Initiative is crucial to making the construction of rental housing viable for developers.”
— Beau Jarvis, President, Wesgroup Properties

“At Rize we build places that matter — homes for those who live and work in our cities. We feel strongly that rental is an integral part of the future of our neighbourhoods and have been actively working on rental projects for a number of years. CMHC's funding through RCFi has been instrumental in helping us build communities where rental is no longer seen as lesser than homeownership.”
— Will Lin, Founder & CEO, Rize and Comma Properties

Quick facts:

Funding details for the three projects include:

$79.35 million RCFi for 178 units at 3435 West Sawmill Crescent; $3.60 million from the City of Vancouver; and $15.39 million in cash and land equity from Wesgroup Properties Ltd.
$65.68 million RCFi for 139 units at 3572 Glen Drive; $17.31 million in cash and land equity from Peterson Kingsway Ltd.
$63.50 million RCFi for 104 units at 695 East 19 Ave; $9.70 million from Stonemark Investments Ltd. and Comma Properties LP (a partnership between Rize Alliance Properties and Pioneer Investments)
- The Government of Canada’s National Housing Strategy (NHS) is an ambitious, 10-year plan that will invest more than $82 billion to give more Canadians a place to call home.
- The Rental Construction Financing Initiative (RCFi) provides fully repayable low-interest loans to encourage the construction of more purpose-built rental housing for middle income Canadians. It creates a positive impact to the housing system at minimal cost to taxpayers.
  - RCFi is one of many programs and initiatives under the National Housing Strategy designed to help address housing needs across the housing continuum.
  - RCFi complements other NHS initiatives that focus on funding affordable housing units for lower-income households.
  - Through RCFi, the federal government is encouraging the construction of more than 71,000 rental units.
  - A stable supply of purpose-built rental housing is essential for more people in Canada to have access to housing that meets their needs.

Additional information:

Visit Canada.ca/housing for the most requested Government of Canada housing information.

CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers unbiased housing research and advice to all levels of Canadian government, consumers and the housing industry. CMHC’s aim is that everyone in Canada has a home they can afford and that meets their needs. For more information, follow us on Twitter, Instagram, YouTube, LinkedIn and Facebook.

To find out more about the National Housing Strategy, visit: www.placetocallhome.ca.

Check out the National Housing Strategy Housing Funding Initiatives Map to see affordable housing projects that have been developed across Canada.