Developers of a high-profile high-rise project in Vancouver’s West End have been placed under receivership, as they owe $82.2 million to the Bank of Montreal. The project, called 1045 Haro Street, consists of a 55-storey condo tower and a 15-storey tower with retail space, a childcare facility, and a public plaza. The owners of the property purchased it in 2018 but have been unable to meet the city’s requirements to move forward with the project. They attempted to sell the property but received offers significantly lower than the purchase price. The Bank of Montreal subsequently filed for receivership to arrange a sale of the property. The appointed receiver will not be able to seek approval for sale offers until April 26.

The Information About The 55-storey Tower In Vancouver’s West End Has Been Placed Under Receivership

A big building project in Vancouver called 1045 Haro Street has hit a roadblock. The developers, Haro-Thurlow Street Project Limited Partnership, are in financial trouble and owe $82.2 million. A bank called the Bank of Montreal has taken legal action and asked the court to appoint someone to take over the project and sell the property.

The project was supposed to include a 55-storey condo tower and a 15-storey tower with 450 condos and 66 rental units. The plan also included retail space, a childcare facility, and a public plaza.

The property is owned by Harlow Holdings Ltd., but the partnership that was responsible for the development is the one in financial trouble. The partnership is made up of several companies, including 11044227 BC Ltd., Forseed Haro Holdings Ltd., and Terrapoint Developments Ltd.

Intracorp Homes, a Vancouver developer, was managing the project, but they are not in financial trouble themselves. The architect for the project is Patkau Architects.

The owners of the property bought it in 2018 for $172.75 million, with financing from the Bank of Montreal and the companies in the partnership. They have been unable to meet the requirements set by the City of Vancouver to move forward with the project, and they have not formally applied for a development permit. One of the reasons for this is that the project would block some views, which is currently being reviewed by the city.

The owners have been in talks with the bank to try to extend the deadline to repay their debt, but the bank has refused. The owners then tried to sell the property, but the offers they received were much lower than what they paid for it. This caused tension between the partners in the project.

The owners missed a payment in July 2023, and the bank demanded repayment. When the owners did not comply, the bank filed for receivership. A receiver is someone who takes control of a property and sells it to pay off the debt.

The appointment of the receiver was approved by the court, but they are not allowed to sell the property until after February 23. They also have to get court approval for any offers they receive.

The property has been appraised at $192 million, but it is unclear if any lenders would recognize that value. The value may have also decreased since then due to various factors such as higher interest rates and construction costs.

If the receiver does start a sales process, they will likely hire a real estate brokerage to help. The offers they receive will be narrowed down before being presented to the court for approval.

Wrapping Up

Major high-rise development project in Vancouver, the developers have been placed under receivership due to an outstanding debt of $82.2M owed to the Bank of Montreal. The project planned for 830-850 Thurlow Street and 1045 Haro Street, was set to include a 55-storey strata condo tower, a 15-storey tower with 450 strata condominiums and 66 rental units, as well as retail space, a childcare facility, and a public plaza. The development site is owned by Harlow Holdings Ltd. and beneficially owned by Haro-Thurlow Street Project Limited Partnership (HTLP), which is owned by several parties. Intracorp Homes is serving as the development manager of the project but is not subject to the receivership application. The owners defaulted on their interest payment in July 2023 and BMO subsequently made a demand for payment on August 29, leading to the receivership application.

BMO is seeking the appointment of a receiver to arrange a timely sale of a property owned by CM Group, as they have lost confidence that the owners are working to repay the debt. The property’s value is disputed, with an appraisal valuing it at $192M based on development potential, but the president of Intracorp Homes expects it to be even lower than the $93M offer submitted by Chard Development. The owners have identified three lenders willing to provide loans to repay the debt, but BMO claims no evidence has been provided. Deloitte has been appointed as the receiver, but will not be able to undertake any sales efforts until after February 23 and cannot seek approval of any sale offers until after April 26.

Good news for the Canadian housing market! After a cautious year with rising borrowing costs, economists predict a rebound in 2024. This is largely due to forecasts that the Bank of Canada may begin cutting its key interest rate from the current level of five percent as early as the second quarter of this year. While there have been softer market conditions since the end of last summer, there are indications that the market is starting to turn around. Although price declines have mainly been an Ontario phenomenon, home prices were also starting to soften late in the year in other areas. However, prices were mostly holding firm or continuing to climb in provinces such as Alberta, Saskatchewan, New Brunswick, Prince Edward Island and Newfoundland and Labrador.

The interest rate story is one of many unknowns lingering after the calendar flipped to the new year, but economists are optimistic that a cut in interest rates will bring more activity and small increases in prices over the second half of the year. While there may not be a rapid recovery, any rate cut will spur excitement and activity in the housing market.

The Details Of Economists Foresee A Significant Turning Point In The Housing Market This Year, Coinciding With The Imminent Interest Rate Cuts

After a cautious year with changing expectations due to higher borrowing costs, economists are optimistic that the Canadian housing market will experience a rebound in 2024. This largely depends on the forecast that the Bank of Canada may begin lowering its key interest rate, currently at five percent, as early as the second quarter of this year.

TD Bank economist Rishi Sondhi stated that they are monitoring the market for signs of a turning point. Weak sales and price activity in recent months suggest that the market, at least in terms of demand, is starting to recover.

According to the Canadian Real Estate Association, the housing market has experienced softer conditions since the end of last summer, with both sellers and potential buyers taking a more cautious approach. While price declines have mainly been seen in Ontario, there are indications that prices are also starting to soften in the Fraser Valley, Winnipeg, and Halifax. However, prices in other provinces like Alberta, Saskatchewan, New Brunswick, Prince Edward Island, and Newfoundland and Labrador have either remained stable or continued to rise.

Larry Cerqua, chair of the Canadian Real Estate Association, noted that he does not expect any major headlines in the resale housing market in the next few months. This suggests a positive outcome, as a balanced and stabilizing market is desirable.

Realtor Tim Hill in Vancouver shared his optimism, stating that sentiment among his clients has gradually shifted due to modest price improvements in recent months. He believes consumer confidence will increase, and people will begin considering housing moves again in 2024.

While the Bank of Canada has kept interest rates steady in the face of moderated inflation, there is still a possibility of rate hikes. However, most forecasters expect the next move to be a rate cut. Sondhi mentioned the risk of maintaining high rates if inflation remains elevated.

Nathan Janzen, assistant chief economist at RBC, pointed out that there are many uncertainties as the new year begins. In addition to watching the central bank, he highlighted the weakening labor market as a factor affecting housing activity.

Janzen predicts that housing activity will remain slow in the early stages of 2024, but as inflation slows down, the Bank of Canada can consider interest rate cuts, which will likely lead to more activity and gradual price increases in the second half of the year. He does not anticipate a rapid recovery and expects the rate-cut process to be slow initially.

Real estate agent Anne Marie Lorusso believes that any rate cut will bring excitement and activity to the market. She expects a good spring market, where sellers will hold on to their prices, and buyers will need to carefully consider their options.

However, Hill advises his clients not to wait, even though borrowing costs are still high. He warns that once the market picks up, there will be a rush and increased competition among buyers.

Overall, economists are hopeful for a rebound in the Canadian housing market in 2024, especially if the Bank of Canada lowers interest rates.

Wrapping Up

Economists are predicting a potential rebound in the Canadian housing market in 2024, following a year of caution and shifting expectations due to rising borrowing costs. The optimism is based on forecasts that the Bank of Canada may begin cutting its key interest rate from the current level of five percent in the second quarter of this year. However, softer market conditions have been observed since the end of last summer, with sellers and buyers staying on the sidelines. While price declines have been mainly seen in Ontario, there are also signs of softening prices in other regions.

The Canadian Real Estate Association expects a stable market that leans towards a soft-landing scenario. Some realtors are already seeing increased consumer confidence and modest price improvements. The decision on interest rates remains uncertain, as the central bank has held rates steady but could potentially raise them depending on inflation levels. It is anticipated that interest rate cuts could spur activity and small increases in prices in the later part of the year. Nonetheless, the recovery is expected to be gradual, and potential home buyers are advised not to delay their purchasing decisions.

Westbank Corp., a well-known Canadian developer with a reputation for ambitious architecture, is currently facing problems with unpaid bills for multiple projects in Toronto and Seattle. Numerous contractors have claimed millions of dollars in unpaid fees, resulting in a rise in lawsuits and liens over the past year.

The construction industry has been particularly affected during this challenging period, as borrowing costs and construction expenses continue to soar. Westbank has found itself entangled in disputes with over two dozen construction and trade businesses regarding unpaid bills. It is important to note that these allegations have yet to be proven in court.

In response, the Vancouver-based developer has refrained from providing detailed comments on the ongoing disputes, as they are still under negotiation or litigation. However, Westbank has expressed its expectations of reaching a resolution for these matters. The company also emphasized that construction delays caused by the global pandemic are not exclusive to its projects, but rather a common challenge faced by the entire industry.

Similar to other developers, Westbank has faced significant increases in the costs of materials and labor, as well as rising borrowing costs. Residential construction expenses have risen by 58% over the past three years. Additionally, the prime interest rate charged by banks has reached its highest level since the beginning of the century, currently standing at 7.2%.

These sharp escalations have resulted in financial difficulties for several other Canadian developers throughout the year. For instance, Sam Mizrahi’s luxury condo project, The One, defaulted on $1.6 billion in debt payments and was put into receivership in October. Vandyk Properties faced similar consequences as lenders placed several of their developments into receivership after defaulting on over $183 million in loan payments. StateView, a residential builder located north of Toronto, also faced receivership after defaulting on $349 million in debt payments.

In Vancouver, Coromandel Properties filed for creditor protection when its lenders demanded repayment of over $200 million in loans. Onni Group, a developer with properties in various North American cities, has also been sued by multiple contractors in British Columbia for unpaid bills.

While other Canadian real estate developers have faced legal actions and creditor challenges, Westbank stands out as one of the largest and most prominent developers experiencing a considerable amount of litigation and claims from unpaid creditors. Though the individual amounts of some liens may not be substantial, the high volume of claims and ongoing litigation suggest developer-facing conflicts with trades on multiple fronts.

Over the past decade, Westbank has expanded its projects across Seattle, Toronto, and Vancouver, leading to a delay in completion dates for skyscraper projects. Westbank and its ex-general contractor, Graham Construction & Management Inc. were accused by >12 construction companies in Seattle, of not providing payment for work conducted at residential complexes called Museum House and WB120.

The issues began to surface in 2022 when Graham was removed as the contractor for Museum House. As the general contractor, Graham was responsible for hiring specialists in various areas such as welding and window installation. When Graham was replaced, subcontractors turned to Westbank for their payment, resulting in a pile-up of bills. Twenty-two subcontractors have since placed liens on the Terry project (Museum House), Graham, and Westbank’s development company, Icon West.

For instance, High Rise Glazing Specialist LLC filed a lawsuit in December 2022, claiming that Graham and Terry failed to pay $1.45 million for work completed between June 202 and June 2022. However, Graham and High Rise Glazing have not responded to requests for comment. There is a tentative trial scheduled for next year.

Furthermore, subcontractors are continually placing liens against the Terry project. Most recently, Zuhause Design LLC filed a lien on November 8, 2022, demanding payment of $231,781.

Situation In Volatile Construction Industry

Overall, Westbank’s current situation reflects the challenges faced by developers in a volatile construction industry. While negotiations and resolutions for unpaid bills are ongoing, the company remains committed to progressing with its projects, despite the difficulties caused by the global pandemic.

According to the law in Washington State, a lien becomes unenforceable after eight months if the person who filed the complaint doesn’t follow up with a lawsuit. However, many contractors choose not to take this step because it can be very expensive. Even if some liens on the Terry project have expired, it doesn’t mean that the contractor’s unpaid bills have been resolved.

When there is an active lien on a property, it lowers its value and prevents the developer from refinancing unless they pay the unpaid bill or obtain a bond to replace the lien.

Even though Westbank has released some liens by posting bonds, it doesn’t mean that the subcontractors have received their payment.

Iris Window Coverings NW Inc. is one of the subcontractors affected. They provided automated draperies for the Terry project and have an outstanding bill of US$123,178. Westbank posted a bond of US$184,000 to release the lien, but Iris Window Coverings has not received any of that money and is now facing financial difficulties.

A similar situation has occurred at WB120, which consists of two skyscrapers with about 1,000 apartments. Several subcontractors filed liens against the project over the past two years, with the latest one filed in December. One of the subcontractors, Zuhause, placed a lien of US$13.5 million due to unpaid work. Zuhause started work on the project in June 2021.

Westbank was also involved in litigation with the general contractor, Graham, over a US$50.1 million lien filed against the WB120 project. The general contractor accused Westbank of not paying for work done from April 2018 to November 2022. Graham countersued when Westbank took Graham to court trying to reduce the amount of the lien. Although the lien was eventually reduced to US$42.5 million and released, the lawsuit remains open.

Having a large number of liens filed against a developer is usually seen as a sign of funding issues and other problems.

In the case of Westbank, the company usually acts as its own general contractor for its projects. However, in Seattle and Toronto, where it is building various properties, Westbank hired EllisDon Corp. as the contractor. The relationship with EllisDon began to deteriorate in 2022, and Westbank took over as its own contractor for both projects.

EllisDon, one of the top construction management companies in the country, filed a legal action against Westbank in June for missed payments at Mirvish Village. They also filed and then dropped a separate claim for $4.4 million owed on another project, Duncan Street.

Westbank is a company that’s involved in building the King Toronto condo project, which is currently being constructed. However, they have faced some legal issues recently. Three other construction companies have sued Westbank for unpaid bills related to the Mirvish site. Westbank’s executive, Ian Duke, acknowledged that these situations can be complex and take time to resolve. He also mentioned that removing EllisDon, one of their contractors, has been a disruptive decision but disputes with trades are a normal part of the business.

However, other industry executives warn that allowing contractor relationships to deteriorate like this can be costly in terms of reputation, time, and money. Bryan Levy, the CEO of Toronto-based DBS Developments, emphasized the seriousness of not paying key trades.

Westbank started in the 199s with the construction of shopping malls and high-end condo buildings in Vancouver. Over the years, they have taken on more high-profile projects, including the Shangri-La Tower, the redevelopment of Woodward’s department store site, and the Fairmont Pacific Rim hotel.

The company expanded to Toronto in 2012 and continued to grow in Vancouver, Toronto, Seattle, and San Jose. They also ventured into Asia, with projects in Tokyo and offices in Taipei, Shanghai, and Hong Kong.

Like many developers, Westbank took advantage of low-interest rates to launch new projects. However, as interest rates have risen, they have faced challenges in completing projects on time. Some of their projects in Seattle and Vancouver have experienced delays, and sales of condo units have been slow.

The rise in interest rates has also impacted Westbank’s construction loans. For example, a loan they took out in 2018 for their Alberni condo project now has a much higher interest rate due to rate increases by the central bank.

Late payments have become more common in the development industry, which puts financial pressure on small suppliers. Craig Macklin (president), of Lumbermens Credit Group Ltd., expressed concerns about the impact of extended cash crises on these suppliers. He also mentioned that delays in payments can lead to further delays in completing building projects.

Iris Window, a drapery supplier in Seattle, is one of the companies waiting to get paid by Westbank. They have struggled with rising inflation and labor costs, making it difficult to make money on contracted jobs.

Overall, while Westbank has faced challenges and legal issues, its major partner Allied REIT has expressed confidence in their ability to meet their obligations. However, it is important to monitor the situation and consider the potential impact on the company’s reputation and relationships with contractors and suppliers.

Summary

Canadian developer Westbank Corp. is facing legal action from several contractors claiming millions of dollars in unpaid bills at projects in Toronto and Seattle. The company, known for its ambitious architecture, has been hit with more than two dozen lawsuits and liens over the past year as borrowing costs and construction expenses soar. Westbank has not commented on the individual disputes, but said it expects to reach a resolution. The Vancouver-based firm has had to contend with a significant spike in costs for materials and labour, along with soaring borrowing costs.

Westbank, a Canadian real estate developer, is facing multiple liens and lawsuits from subcontractors over unpaid bills for its construction projects in Seattle and Toronto. While Westbank has released some liens by posting bonds, subcontractors claim they have not received payment. The situation has led to financial struggles for some of the affected companies. Experts say a large number of liens filed against a developer is seen as a red flag of problems with funding. Westbank has traditionally served as its own general contractor but broke the pattern in Seattle and Toronto, where it is building offices, condos, and rental apartment buildings. However, the relationship with its general contractor began to fray in 2022, and Westbank took over as its own contractor from EllisDon on both projects. Three other construction companies sued Westbank for unpaid bills over the Mirvish site in September and October.

Westbank, a major Canadian real estate developer, is facing financial pressure due to rising interest rates and delays in completing some of its high-profile projects. The company, which has expanded into Vancouver, Toronto, Seattle, San Jose, Tokyo, Taipei, Shanghai and Hong Kong, has taken out construction loans with variable interest rates that have increased significantly as central banks have raised rates. Some of its projects have also been delayed beyond their original completion dates. While Westbank has not disclosed specifics about its project financing or partnerships, it has received support from major partners such as Allied REIT.

The King Toronto condominium project by Westbank has been delayed due to the bankruptcy of its window-wall contractor, Integro Building Systems Inc. This has caused issues for sub-trades like Iris Window, a Seattle drapery supplier, who are waiting to get paid by Westbank. Iris Window has struggled to make money on fixed-price contracts due to rising inflation and labor costs. Westbank recently contacted them to see if their bids for another delayed project were still valid, but Iris Window declined due to their financial situation.

A new development permit application has been submitted by local developer Peterson Group to redevelop 488 West 43rd Avenue in Vancouver, which will include a 29-storey condominium tower and a 15-storey hotel tower connected by a six-storey base podium with hotel, retail, and restaurant uses. The residential tower will contain 176 strata condominium units, while the hotel tower will have 233 hotel suites. The total building floor area will reach about 330,000 sq ft, and underground levels will provide 310 vehicle parking stalls. The project has gone through ownership changes since receiving rezoning approval in March 2021.

The Details of Next to Oakridge SkyTrain, 15-Storey hotel and 29-Storey Condo Development Is Proceeding

The development of a hotel and condo next to the Oakridge SkyTrain station in Vancouver is moving forward. After receiving approval from the Vancouver City Council two and a half years ago, the project is now being pursued by local developer Peterson Group. They have submitted a new application to redevelop a property at the corner of Cambie Street and West 43rd Avenue. That is 488 West 43rd Avenue (previously 5910-5998 Cambie Street).

The project will include a 29-storey condominium tower and a 15-storey hotel tower. These towers will be connected by a six-storey base podium that will house retail and restaurant spaces. The residential tower will have 176 condo units, while the hotel tower will have 233 suites. The project has undergone some changes since the rezoning approval, including a change in ownership and revisions to the architectural design.

With a mix of 59 one-bedroom, 99 two-bedroom, and 18 three-bedroom units in addition to 10 live-work units, the residential tower will have 176 strata condominium units.

There will be 233 hotel suites in the 174,000-square-foot hotel tower component, comprising 121 one-bedroom units, 12 two-bedroom units, and 4 executive units.

The total floor area of the development will be about 330,000 square feet, which is over ten times larger than the size of the land it sits on. Underground levels will provide parking for 310 vehicles.

The Oakridge area is currently undergoing significant construction due to the Cambie Corridor Plan, which includes various mixed-use tower projects. Peterson Group has also been involved in other major hotel properties in Vancouver and Toronto.

The Fairmont Pacific Rim Hotel, Shangri-La Vancouver, Carmana Hotel & Suites Vancouver, and Shangri-La Toronto Hotel are just a few of the notable hotel properties that the Peterson Group has had at hand.

Overall, the hotel and condo development next to the Oakridge SkyTrain station is progressing, with the new application submitted and changes made to the design and ownership.

Summary

Progress is being made on the development of a hotel and condo complex next to the Oakridge SkyTrain station in Vancouver. The local developer, Peterson Group, has submitted a new application to redevelop a block of land at the southeast corner of Cambie Street and West 43rd Avenue. The project will consist of a 29-storey condo tower, a 15-storey hotel tower, and a six-storey base podium with retail and restaurant spaces. The condo tower will have 176 units, ranging from one to three bedrooms, while the hotel tower will have 233 suites. The total building floor area will be about 330,000 square feet, providing ample space for parking. This project has faced some changes in ownership and design, but it is now moving forward with a revised architectural plan. The development is part of the larger transformation happening in the area due to the Cambie Corridor Plan. Peterson Group has previously been involved in other notable hotel properties.

Several high-profile pre-sale condo projects by big-name developers have recently launched or are set to launch shortly in Burnaby’s Metrotown neighbourhood in Metro Vancouver. The five projects, which include Citizen by Anthem Properties, Riviera by Ledingham McAllister, Reign (South Tower) by Wesgroup, Solhouse 6035 by Bosa Properties, and Greenhouse by Concord Pacific, are all located within walking distance of the Metropolis at Metrotown shopping centre and total just under 1,600 units. While there are risks associated with pre-sales, developers may feel the need to start recouping costs and time to absorb all their inventory. The Metrotown area may also see another wave of launches in the future.

Both parties have received final approval recently, which could lead to another round of competition in the near future.

The Details of 5 Presales – Metrotown In Burnaby Is The Focal Point Of The Presale Condo-World

The Metrotown neighbourhood in Burnaby has become a focal point in the pre-sale condo market, with five major projects recently launching sales or about to do so in Metro Vancouver.

While pre-sales do carry risks, those who are comfortable with these risks and looking to enter the market are now turning their attention to Metrotown. This bustling neighborhood has garnered attention due to a collection of high-profile projects by renowned developers that have either recently been launched or are set to debut soon.

These projects include Citizen by Anthem Properties, a massive 66-storey tower situated on 4663 Kingsway. Riviera by Ledingham McAllister is another notable development, with its striking 38-storey tower located on 496 Bennett Street. Wesgroup’s Reign (South Tower) stands tall at 35 storeys and can be found on 628 Willingdon Avenue. Bosa Properties is making a mark with their 50-storey Solhouse 6035 on Wilson Avenue, while Concord Pacific’s 43-storey Greenhouse on Barker Avenue completes the lineup.

All five projects are conveniently within walking distance of the Metropolis at Metrotown shopping center and in close proximity to one another. In total, nearly 1,600 units will hit the market simultaneously. (For those looking beyond Metrotown, City of Lougheed Tower Three by Shape Properties, Icon by Ledingham McAllister, and Etoile Gold by Millennium Development also join the pool of Burnaby launches.)

It’s worth noting that all five projects have been in the planning stages for an extended period. Proposals were initially submitted to the City of Burnaby over three years ago, with some even dating back over five years.

“It is quite unusual and surprising to see all these projects launching simultaneously while the market is still somewhat uncertain,” says Suzana Goncalves, EVP of Sales and Marketing for MLA Canada.

Developers must gauge sufficient market demand to achieve their pre-sale targets, typically around 60% to 65%, in order to secure construction financing within 12 months. However, there comes a point where waiting may not be an option. Developers may have active construction teams or a desire to start recouping costs.

Goncalves highlights that Anthem Properties, with its extensive experience, is among the most active developers in uncertain conditions. Wesgroup, with two towers planned for their Metrotown site, may have the motivation to kickstart at least the first tower. Ledingham McAllister, on the other hand, began construction on their development a couple of years ago and may have felt the need to recoup costs and clear inventory.

A sixth project, Metro21 by Shokai, originally intended to launch around the same time, has been delayed until next year. The decision to postpone may have been driven by the presence of several big-name players entering the market simultaneously, prompting a strategic move to capture attention as a new shining object in the new year.

In terms of price points, the Metrotown area generally ranges from $1,225 to $1,450 per square foot, positioning it within the medium-to-high range compared to Metro Vancouver as a whole. Riviera and Reign fall toward the lower end of this spectrum, while Concord and Bosa lean towards the higher end.

While Goncalves points out that there is no immediate precedent for this cluster of launches in Burnaby, other areas like Surrey City Centre and West Coquitlam have witnessed competing towers. However, the concentration of this many units within a 15-minute walking radius, as seen in Metrotown, is relatively uncommon.

Nonetheless, the uniqueness of the Metrotown area lies in the possibility of experiencing another wave of development. Just since June of this year, proposals for a three-tower project by Peterson Group and a 33-storey development by OpenForm Properties have emerged within the same 15-minute radius. Meanwhile, Anthem’s 34-storey tower on Marlborough Avenue and the multi-tower second phase of Concord Pacific’s Metrotown community has recently received final approval, foreshadowing another round of head-to-head competition in the near future.

Summary

The Metrotown neighbourhood in Burnaby, Vancouver is the center of attention in the pre-sale condo world. Five major projects by well-known developers have recently launched or are set to launch in the area. These projects, including towers by Anthem Properties, Ledingham McAllister, Wesgroup, Bosa Properties, and Concord Pacific, are all within walking distance of each other and the Metropolis at Metrotown shopping center. Combined, they add up to nearly 1,600 units entering the market at the same time. This concentration of launches in such a specific location is uncommon for Burnaby. The projects have been in the works for several years but are being released amidst uncertain market conditions.

Developers aim to meet pre-sale targets to secure construction financing within a year. While the timing may seem unusual, developers like Anthem Properties and Wesgroup have the experience and resources to proceed confidently. Prices in the Metrotown area range from $1,225 to $1,450 per sq. ft, with some projects leaning towards the lower end and others towards the higher end of the spectrum. This cluster of launches in the Metrotown area may not be the last, as there are already proposed projects and approved developments that could lead to further competition in the future.

The Canadian government has announced new measures to address the country’s housing crisis, including $15bn in funding for 10-year loans for new rental builds and $1bn for affordable housing construction. The rental funding is expected to spur the construction of 30,000 new homes across Canada, while the affordable housing funding will focus on non-profit, co-op and public housing. The government also proposed new mortgage rules for lenders to help at-risk homeowners, waived fees and costs for relief measures, and plans to discourage short-term rentals like Airbnb’s by preventing owners from making tax deductions on these properties.

The Information About Feds Declare New Mortgage Charter, $15 Billion In Funding For Housing Construction

In the recent financial update, Minister of Finance Chrystia Freeland shared several new plans to address housing issues in Canada. The government will be providing billions of dollars to fund the construction of new affordable housing as many markets in the country are experiencing shortages.

One of the measures announced is the allocation of $15 billion for 10-year loans to support the construction of rental buildings. This funding is expected to lead to the creation of 30,000 new homes across Canada. The loans will be directed towards rental projects with at least five units. Additionally, $1 billion will be allocated to the construction of affordable housing, focusing on non-profit, co-op, and public housing. The funding will be provided directly, rather than in the form of loans, over a three-year period.

The federal government plans to make further changes to the existing Affordable Housing Fund and the Apartment Construction Loan Program in early 2024 to enhance accessibility and approval processes.

A New Mortgage Rules

In addition, the government is proposing new mortgage rules to assist homeowners facing increased interest rates. The Canadian Mortgage Charter outlines new regulations for financial institutions. Under the proposed rules, lenders will be required to contact homeowners four to six months before their mortgage renewal to discuss options. Temporary extensions of the mortgage amortization period will be allowed for homeowners in need. Fees for relief measures will be waived, and homeowners will have the ability to make lump sum payments or sell their residences without penalties. Interest charges on interest during temporary negative amortization will also be prohibited.

For borrowers seeking to switch lenders at the time of renewal, the stress test requirement will be eliminated for those with insured mortgages.

Short-Term Rentals – Airbnb

To address the issue of short-term rentals, such as Airbnbs, the government aims to discourage their operation by disallowing tax deductions for property taxes, repairs, and interest costs in provinces and municipalities where short-term rentals are banned. Funding of $50 million over three years will be provided to municipalities for the enforcement of their short-term rental regulations.

These measures are intended to support the availability of long-term rental properties and affordable housing options in the Canadian housing market.

Wrapping Up

In the fall fiscal update, Minister of Finance Chrystia Freeland announced several housing-related measures aimed at affordable housing construction and addressing the shortage of housing across Canada. The government will allocate billions of dollars towards new housing construction. This includes $15 billion for 10-year loans for new rental builds and $1 billion for the construction of affordable housing. The funding for rental construction is expected to support the creation of 30,000 new homes, while the funding for affordable housing will focus on non-profit, co-op, and public housing.

The government also plans to introduce reforms to make these programs more accessible and to provide faster approvals. Additionally, the government is proposing a new mortgage charter that sets out regulations for lenders when dealing with homeowners who are at risk, including contacting homeowners before mortgage renewal and offering temporary mortgage extensions. Furthermore, the government aims to discourage short-term rentals like Airbnbs by preventing owners from making tax deductions on properties in provinces and municipalities where short-term rentals are prohibited. The fiscal update also includes funding for municipalities to enforce their own short-term rental regulations.

The Government of British Columbia is implementing changes to allow for more low-rise, multi-family residential developments. These changes override municipal government control over zoning and aim to reform review and approval processes. The new policy, termed “small-scale, multi-unit” buildings, will apply to municipal jurisdictions with a population of over 5,000 residents. It allows for up to three units on single-family lots smaller than 280 sq metres and up to four units on larger lots. Lots in close proximity to public transit stops may permit up to six units.

Municipalities must update their zoning bylaws to enable this densification. The provincial government’s policy will catalyze an estimated 130,000 additional homes over the next decade. Public hearings for rezoning applications will be eliminated, and input from the public will be sought during the Official Community Plan public consultation process. The legislation does not apply to the City of Vancouver, which is working on reforming its own public hearing procedures. The government has set aside funds to support municipalities in meeting the new density requirements. Additional legislation to support transit-oriented development and other housing measures will be announced in the future.

The Details of Up To 6 Homes On Single-Family Lots

The Government of British Columbia is making big changes to allow more low-rise, multi-family homes to be built. They call these types of buildings “small-scale, multi-unit” buildings, like townhomes, multiplexes, and laneway homes.

This is part of a plan to give the provincial government more control over zoning and approval processes that cities currently handle. They first proposed this plan earlier this year, and now they are introducing the legislation.

The new policy for small-scale, multi-unit buildings on single-family lots will apply to cities with more than 5,000 residents, which includes most of the province.

For lots that are currently zoned for single-family or duplex homes, if the lot is smaller than 280 square meters (3,014 square feet), it can have up to three units. If the lot is bigger than 280 square meters, it can have up to four units.

For bigger lots that are close to public transit stops with frequent service, up to six units may be allowed.

Municipal governments will need to update their zoning bylaws to allow for this type of development in their single-family neighborhoods. Some cities like Vancouver and Victoria have already made their own rules to allow more units on single-family lots, and those rules will still be valid. However, cities covered by this legislation cannot have rules that allow for fewer units than what the province requires.

Premier David Eby said that the current zoning rules make it hard for people to find a place to live in the communities they love. They are not building enough small-scale, multi-unit homes that fit into existing neighborhoods and give people more housing options. That’s why they are taking action to fix the rules and build more homes for people.

BC Minister of Housing Ravi Kahlon added that this legislation will make communities stronger and help address the housing crisis.

By the end of 2023, the provincial government will release a policy manual with more information about the specific rules and requirements for building these types of homes. This will include things like how far the building needs to be from the property line and how tall it can be. It was also mentioned that there will be no minimum requirements for parking spaces if the property is within 400 meters of frequent public transit.

Municipal governments have until June 30, 2024, to update their rules. In September 2023, the City of Vancouver approved its own policy to allow up to six homes on a single-family lot.

It is estimated that this new policy could lead to the construction of 130,000 additional homes in small-scale, multi-unit buildings across BC over the next 10 years.

The legislation will also eliminate the need for public hearings for some rezoning applications. Instead, there will be more opportunities for the public to give their input during the process of updating the city’s long-term plan for development. This plan will now cover 20 years instead of just five, and it will have to include policies that encourage family-sized homes, rental homes, and affordable homes.

The government has set aside $51 million to help cities make the necessary changes, and $10 million for a program to support local governments with development approvals.

The new directives from the government will also help cities meet their targets for building new homes.

The government will announce more legislation before the end of 2023 to support development near public transit and other housing-related measures. They will also provide funding for infrastructure and amenities to support densification and population growth.

Vancouver Mayor Ken Sim said that the city is excited to support the province’s initiative to build more homes for people who need them. The city has already simplified its zoning rules and reduced the time it takes to approve permits to encourage more housing. This new legislation is another step in the right direction.

Summary

The Government of British Columbia is introducing legislation to enable more low-rise, multi-family residential developments, including townhomes, multiplexes, and laneway homes. The policy will apply to municipal jurisdictions with a population of over 5,000 residents and will require municipal governments to update their zoning bylaws to enable gentle densification in their single-family neighbourhoods. The legislation’s covered municipalities may choose to allow higher densities, but their bylaws cannot have fewer allowed units than what the province mandates. The legislation will also eliminate public hearings for site-by-site rezoning or spot-rezoning that align with the municipality’s Official Community Plan. The policy could catalyze 130,000 additional homes within new small-scale, multi-unit buildings across BC over the next 10 years.

The provincial government of British Columbia in Canada has announced new legislation that will require municipalities to allow for more small-scale, multi-unit housing developments in residential areas. Municipalities will need to update their Official Community Plans and zoning bylaws by the end of 2025 to meet the new density requirements. The government has set aside a $51 million fund to support municipalities with the required changes. The City of Vancouver, which operates under a separate charter, will not be subject to the proposed changes but is working with the provincial government on reforming its public hearing procedures. The government will also announce more legislation to support transit-oriented development and other housing-related measures before the end of 2023.

The Government of British Columbia has introduced new legislation to encourage high-density, transit-oriented development in the areas surrounding major transit hubs, including SkyTrain stations and bus exchanges. This move aims to combat the housing affordability and supply crisis by increasing residential density and ridership on public transit. The legislation requires municipal governments to allow minimum residential building heights of up to 20 storeys within 200 meters of a SkyTrain station, with lower heights permitted at greater distances.

The legislation also establishes minimum floor area ratio (FAR) density requirements, with higher FARs closer to transit hubs. Municipalities must change their policies for transit-oriented development areas by June 30, 2024, and are encouraged to approve higher densities and heights. Additionally, the legislation eliminates minimum vehicle parking requirements within these areas to reduce construction costs, speed up development, and promote public transit ridership. The government expects this legislation to result in around 100,000 new homes near transit hubs over the next decade.

The Details of Up To 20 Storeys Close To Every SkyTrain Station & Up To 12 Storeys Close To Bus Interchanges

New legislation has been introduced in British Columbia to promote high-density, transit-oriented development. The Government of BC aims to increase residential density around major transit hubs, specifically SkyTrain stations and bus exchanges. This move is intended to address the housing affordability and supply crisis, as well as boost ridership on TransLink and BC Transit.

There are exceptions to the new regulations, which will only apply to residential or mixed-use residential land uses. Commercial, agricultural, and industrial land uses, as well as First Nations reserve lands and airports, are not included. The specifics of these policies were previously unknown but have now been clarified.

For SkyTrain stations in Metro Vancouver, municipalities will be required to allow minimum residential building heights of up to 20 storeys within 200 meters of a station, up to 12 storeys between 201 and 400 meters from a station, and up to eight storeys between 401 meters and 800 meters from a station.

The number of new homes that can be built near these transit hubs will also be determined by the floor area ratio (FAR) density, which is the calculation of a building’s total floor area in relation to the land it covers.

The minimum FAR will vary depending on the distance from the SkyTrain station, with a minimum FAR of 5. for distances up to 200 meters, 4. for distances between 201 and 400 meters, and 3. for distances between 401 meters and 800 meters.

Similar rules will apply to areas near bus exchanges in Metro Vancouver, Greater Victoria, and Kelowna, with slightly lower minimum FAR density requirements.

Municipalities will be required to change their policies for these areas by June 30, 2024, but can choose to approve higher densities and building heights if they meet the minimum requirements set by the provincial government. The legislation also eliminates minimum vehicle parking requirements within these transit-oriented development areas to lower construction costs, speed up construction, reduce emissions, and encourage public transit usage.

Municipalities can now determine the amount of residential vehicle parking needed based on demand. The provincial government anticipates that around 100 transit-oriented development areas will be designated by approximately 30 cities across BC in the first year of the new legislation, potentially resulting in the construction of 100,000 new homes near transit hubs over the next decade.

This legislation is seen as a way to make housing projects financially viable for builders and non-profit developers by offsetting high land costs. It will also support TransLink and the provincial government’s plans to develop under-utilized properties and acquired lands near public transit.

The legislation aligns with the provincial government’s efforts to meet new housing supply targets by providing municipalities with specific deadlines to change their policies and streamline the rezoning process. Overall, these measures aim to promote the development of affordable and connected communities while leveraging public lands for housing.

Wrapping Up

New legislation has been introduced by the British Columbian government to permit high-density, transit-oriented development in the vicinity of major transit hubs, including bus exchanges and SkyTrain stations. The minimum residential building heights that local governments permit will be up to 20 storeys for locations that are 200 meters or less from a station, 12 storeys for locations that are 201 to 400 meters from a station, and 8 storeys for locations that are 401 to 800 meters away from a station. With more people using TransLink and BC Transit, the bill seeks to address the affordability and supply issues in housing. Within the first year of the new law’s implementation, the provincial government anticipates that about 100 transit-oriented development areas surrounding transit hubs will be designated in about 30 cities throughout British Columbia.

The provincial government in British Columbia has introduced legislation to encourage transit-oriented development, which could lead to the construction of up to 100,000 new homes near transport hubs over the next 10 years. Municipalities will be required to meet minimum standards set by the government, but will be able to approve higher densities and building heights at their discretion. The legislation is expected to make projects financially viable for builders and non-profit developers, while also supporting TransLink’s real estate development division and the government’s $400m strategy of buying land next to public transport for housing.

Southgate City Homes has proposed a new neighbourhood in South Burnaby, which would include 934 homes, including 819 market strata condos and 115 non-market rentals. The Courtyard neighbourhood would feature two strata condo towers at 44 storeys and 36 storeys, along with two six-storey buildings, one for strata condos and one for non-market rentals. The development would also include a child-care facility and parking for over 1,000 vehicles. However, councillors have referred the proposal back to the planning and development committee for further discussion before giving it the first of four major approvals.

The Information about The New Development in South Burnaby

A major development is being proposed for South Burnaby that would include over 900 homes. The developer, Southgate City Homes, wants to build 934 homes at a specific location on 11th Avenue. This would consist of 819 condos for sale and 115 rental units. The development, called the Courtyard, is part of the larger Southgate City project.

The Courtyard would feature two condo towers, one 44 storeys tall and the other 36 storeys tall, as well as two smaller six-storey buildings. One of the six-storey buildings would be for condos and the other for affordable rental units. The rental building would also include a child-care facility. The taller condo tower may have a retail space, although this could be changed into a different amenity if not used for retail.

According to the plan, the rental building must be constructed first. The developer intends to provide over 1,000 parking spaces and space for more than 2,000 bikes. Amenities for residents could include study lounges, a guest suite, an outdoor terrace, and a fitness facility.

To move forward with their plans, the developer needs approval from the city council. The staff report also calls for changes to the existing Southgate master plan to meet current policies on rental housing. This amendment was surprising to some councillors who feel it should have been discussed by the planning and development committee first. As a result, the proposal is being referred back to the committee for further analysis.

Overall, there will be approximately 8,454 homes built as part of this development. Out of these, almost 1,000 homes will be available at affordable rental prices. The Southgate City project has already started, and construction work is currently in progress in some areas of the site. The upcoming phases – complete the Courtyard and a “Milk Plant Site”, the name of the location.

Furthermore, there are plans to create a civic center at a specific place. This involves transferring a sales center building to the city, which will be used for public purposes in the future. In simple terms, it means that the building will be given to the city so that it can be used for the benefit of the public.

Overall, this project aims to create a large number of homes, including affordable rental options. It is currently being built, and various stages of development will take place in the future. Additionally, there are plans for a civic center where a building will be given to the city for future public use.

Wrapping Up

Developer Southgate City Homes has proposed the construction of over 900 homes in a new neighbourhood in South Burnaby, Canada. The development, called the Courtyard neighbourhood, would consist of two highrise towers, with 819 market strata condos and 115 non-market rentals. The non-market rental building would also include a child-care facility and one of the towers could feature retail space. The developer plans to provide over 1,000 parking spaces and space for over 2,000 bikes. The proposal requires four major approvals, but councillors have requested the opportunity to discuss the plans before granting the first approval. The Southgate City development is already partially under construction.