The federal and British Columbia governments have announced a landmark housing and infrastructure agreement that promises to accelerate homebuilding, reduce development costs, and unlock thousands of new homes across the province.
Prime Minister Mark Carney and B.C. Premier David Eby unveiled the partnership as part of a broader commitment to invest more than $5 billion in local infrastructure projects over the next decade. At the heart of the announcement is a major housing-focused initiative designed to address affordability and increase housing supply in some of the province's fastest-growing communities.
Under the new Build Communities Strong Fund, the federal government will provide nearly $1.6 billion over the next 10 years, with the province matching the investment for a combined total of up to $3.2 billion. The funding will be used to reduce development charges on multi-unit housing projects by up to 50 per cent in priority communities, potentially saving builders as much as $40,000 per housing unit.
The investment will also support critical housing-enabling infrastructure, including water systems, wastewater networks, and local roads—services that are often cited as major barriers to new residential development.
The governments say the initiative is intended to spur private-sector investment and help speed up the construction of new housing at a time when affordability remains a pressing concern for many British Columbians.
Further boosting housing supply, Ottawa and Victoria announced the creation of the Canada–British Columbia Partnership on Condo Conversion. Through a collaboration between Build Canada Homes and BC Housing, the two governments will work to convert more than 2,200 vacant condominium units in priority growth areas into affordable housing.
Officials described the condo conversion program as one of the quickest ways to add new housing stock without waiting years for new developments to be completed.
In a separate measure aimed at accelerating construction, the federal government has introduced legislation that would provide a one-time transfer of $284 million to British Columbia to help reduce barriers to new housing projects.
While housing dominated the announcement, the agreement also includes significant investments in health care and transportation infrastructure.
More than $600 million in federal funding over three years—matched by the province for a total investment of up to $1.2 billion—will support hospital expansions, emergency rooms, urgent care centres, and other health facilities across British Columbia.
The federal government also committed $2.5 billion over the next decade through the Canada Public Transit Fund to support major transit projects and service improvements, including continued investment in projects such as the Surrey-Langley SkyTrain extension. The funding comes in addition to the $852 million previously announced for TransLink and BC Transit.
The two governments further announced plans to jointly fund new community infrastructure in Tumbler Ridge, including the construction of a new secondary school and upgrades to the local health centre. Ottawa and Victoria will each contribute $100 million toward the project, with construction expected to begin as early as this summer.
The announcement comes as governments across Canada face growing pressure to address housing affordability, infrastructure deficits, and economic uncertainty. Federal and provincial officials say the agreement represents a coordinated effort to support growth while ensuring communities have the infrastructure needed to accommodate new residents.
By tying housing construction directly to investments in roads, utilities, transit, and public services, the agreement aims to remove some of the key obstacles that have slowed development and contributed to housing shortages across British Columbia.
