The BC NDP government’s new budget is increasing funding for various housing programs intended to help a wide swath of British Columbians.
Programs to help middle-income households, renters, seniors and homeless individuals are being expanded through more funding, greater eligibility, higher supplements and other means.
Meanwhile, the speculation and vacancy tax will be beefed up starting next calendar year.
Presenting the budget to the provincial legislature Tuesday, Minister of Finance Brenda Bailey said B.C.’s economy depends on adequate housing.
“Our government is taking action with the province’s most ambitious housing plan ever,” Bailey said.
Below are some key highlights from Tuesday’s budget presentation.
BC Builds gets additional $318 million
BC Builds is a housing program intended to speed up the development of new homes for middle-income people throughout B.C. It was introduced in 2024 with initial funding of $198 million over three years.
In order to lower construction costs, accelerate timelines and deliver more homes, the program uses low-cost financing, grants, and government, community and non-profit lands.
According to the Ministry of Finance, six projects have begun construction, and an additional 11 will be underway in 2025-26, expected to result in nearly 1,400 new rental units for middle-income renters.
In government materials distributed Tuesday, the ministry said communities that will benefit include Abbotsford, Cowichan Nation/Duncan, Fernie, Gibsons, Lake Babine First Nation, North Vancouver, Prince Rupert, Tsawout First Nation and Whistler.
Budget 2025 earmarks an additional $318 million into the program over three years.
“The new funding will deliver more homes and contribute to the province’s goal of thousands more middle-income rental units,” said a ministry statement.
Speculation and vacancy tax rates go up
Budget 2025 doubles down on the speculation and vacancy tax.
Effective Jan. 1, 2026, the rate for foreign owners and “untaxed worldwide earners” will rise to three per cent of their home’s value annually from two per cent. For Canadian citizens and permanent residents who are not “untaxed worldwide earners,” the rate will rise to one per cent annually from 0.5 per cent.
The move is expected to generate an additional $47 million in revenue in 2027-28, to be invested back into housing throughout the province’s 59 regions where the tax applies.
“It’s one more measure alongside the home-flipping tax and a tax for foreign owners to curb price escalations caused by speculators,” said the ministry.
More support for Rental Assistance Program
Budget 2025 increases monthly supports and nearly doubles the number of lower-income working families eligible for help through the Rental Assistance Program.
The income threshold for the program is being raised from $40,000 to $60,000, and is expected to boost the number of eligible families from 3,200 to almost 6,000.
“The number of lower-income working families receiving help with their monthly rent payment will nearly double,” said the ministry’s news release.
In addition, the average supplement families receive will increase from $400 to $700 per month.
More support for SAFER program for seniors
Budget 2025 provides additional funding for the Shelter Aid for Elderly Renters (SAFER) program, which provides monthly payments to low-income seniors to assist them with rent obligations.
The budget increases the income threshold from $37,240 to $40,000. As a result, the Ministry of Finance says up to 1,600 more seniors will benefit from the program.
Meanwhile, the average supplement will grow from $261 to $337, an increase of 29 per cent.
It’s the second increase to funding for SAFER recipients in the past year, said the ministry’s materials.
Expansion of programs addressing encampments
Budget 2025 provides an additional $90 million over three years to expand the Homeless Encampment Action Response Team (HEART) and Homeless Encampment Action Response Temporary Housing (HEARTH) programs into new communities.
These programs work with local governments and First Nations, non-profits and health-care providers to connect outdoor encampment residents with support services, shelters and other housing options “so they can move inside and encampments can close,” said the ministry’s materials.
The ministry said BC Housing has partnered with 10 municipalities since 2023 to open 15 HEARTH sites throughout the province, for a total of 611 temporary supportive homes or shelter beds. Those communities are Abbotsford, Campbell River, Chilliwack, Duncan, Kamloops, Kelowna, Nanaimo, Prince George, Vancouver and Victoria.
"Nowhere is the impact of the housing crisis more apparent or devastating than on our streets," the finance minister told the legislature. “Far too many people are living outside in encampments.”
.png;w=120;h=80;mode=crop)
