Federally funded housing project advances amid growing construction costs

Last week, BC, along with the federal government, the City of Victoria, and the Gorge View Society, announced over $50 million in combined funding to build an additional 77 homes for seniors and families at 8 Chown Place. The funding allocation for the project will be $28.2 million from the federal government, approximately $12.6 million from the Province, $770,000 from Victoria, along with $126,000 from the Gorge View Society, and the land will be valued at $7.5 million. This allocation also includes $585,000 in municipal fee reductions and $900,000 in operating funding from BC Housing per year.

The project’s mix will be 68 one-, two-, and three-bedroom apartments and nine three-bedroom townhomes for seniors and families. Removing the Gorge View Society contribution and just looking at the governmental investment, it will cost an average of $559,156 per unit.

The cost per unit is relatively high when compared to similar projects completed in the past. For example, a 2015 affordable rental apartment project in Richmond was delivered at a taxpayer cost of approximately $136,487 per unit, while another affordable housing project in Colwood was completed at a taxpayer cost of approximately $106,439 per unit.

This project adds to a broader portfolio of housing initiatives intended to improve access to affordable housing for British Columbians. However, its per-unit cost appears higher than that of some previous projects. Given current fiscal pressures in British Columbia, continued attention to cost effectiveness and long-term sustainability will be important as the province works to maintain fiscal balance.