Affordable Housing Initiative in B.C

I want to go back to your announcement last week on buying the condo, the vacant units in B.C.

It's taken a lot of people by surprise. Some developers have said they didn't ask for this.

There were, though, a lot of developers at your fundraiser in B.C. in February.

Did anybody ask you for this from the development community?

First off, thank you for asking me that question, because – not the last bit. I'll answer that last bit.

First off, no developer asked for this from me directly, so that's a simple answer.

But I want to go to the broader issue, and I want to say up front, I don't think we've done,

self-included, a particularly good job of rolling this out and explaining exactly what it is.

So with your indulgence, I think it's important to say a few words of what this is and what this isn't.

We start, as we always do, with Canadians.

We don't start with developers. We don't start – what – yes, it's great that there are developers and they build condos.

What we care about is affordable housing, and affordable housing, in this case, for the people of B.C.

And the province of B.C., which initiated the idea, sees an opportunity,

potentially given what's happening in that market, to convert some of these condos that are lying unsold

to affordable housing, particularly rent-to-buy affordable housing for – and you can anticipate.

So these are people, in many cases young families, but people who don't have money for a down payment

but can build in that equity over time, rent-to-buy. So there's an opportunity there.

You have a market in Vancouver, particularly Greater Vancouver, Lower Mainland,

which is – absorption rates have moved down to about 60 percent.

They've sort of averaged on 80 percent in the normal markets. In other words,

there's more condos that are there. We would look – we're – potentially, because it's a

question of the actual transactions, when and if they come, providing about 10 percent of the

financing with the federal government for this in a way that can make the transaction work.

So it would be buying distressed condos. Of course, developers are not going to admit that

they're going to have distressed condos, right? But we don't care about the developer. We care

about the person or the family that can potentially move into the home. So buying them at a discount

at the right time, financing, terming that out, setting up a rent-to-own structure.

for truly affordable housing.

That's an opportunity.

We will look at any opportunity across the country

that gets more affordable housing to Canadians.

Can't do it all, but where we see dislocation,

where we see opportunities,

where that's the best use of the dollar,

we will look at that,

and certainly when the province brings that

and brings ideas and brings an opportunity

to market where it's there,

that makes sense to look at.

There's no specific transaction,

there's no specific contemplated transaction at this stage,

but there is an opportunity, and if it's there,

and I think the issue will be

if and when there are transactions,

then judge those transactions

on the basis of the economics of that,

not on the concept.

So we haven't done a good job of,

which is one of the reasons why you're asking the question,

of explaining all the economics of that,

but there's an opportunity,

and if it's there, we'll pursue it for the family.

And just to be clear,

so when you say the feds are looking at 10% of the financing,

what is the dollar value?

About 10% of what?

I think the dollar value is,

the overall dollar value contemplated is about 1.4 billion,

1.45 billion, which is federal and provincial,

so 10% of that, 145 million, yeah.

And so that will be all rent to buy,

and only in BC?

It will depend on the...

Will the government also be buying these?

Well, look, I don't know how much,

we can give you, we'll get someone to give you,

it depends on what's available, Ms. Walsh,

and as things become available,

as the structure's there,

again, I think the core point,

and I'll stop here,

is that there's an opportunity

that potentially gets affordable housing to families,

particularly those who can't get the down payment together,

and if that opportunity's there,

and we can convert condos in order to do that,

we will do that with British Columbia,

because they're looking to do it,

and that's an effective way of,

that is a more effective way

of getting affordable housing immediately

into people's hands than building again,

so I'll stop there, sorry.