The governments of Canada and British Columbia have finalized an agreement under the Canada Housing Infrastructure Fund (CHIF).

The agreement provides $250 million in federal funding over five years for Phase 1 of the Iona Island Wastewater Treatment Plant project to enable more homes and improve densification. The funding is an equal cost match of the Province’s contribution toward the project in 2023 and helps secure the funding required for phase one of the project. The funding will support the Metro Vancouver Regional District to improve the facility for the health and safety of the residents in Metro Vancouver and the surrounding coastal waters.

In reaching this agreement, the governments of Canada and British Columbia negotiated terms that better support communities across the province. These terms are designed to pave the way for the construction of more homes for people, as well as support infrastructure investments to address the growing population of the province.

The terms include actions to reduce upfront costs for homebuilders that assist in paying for essential infrastructure. The Province is intending to change the installment payment timing of development cost charges (DCCs) that will give homebuilders more time to pay. It will in turn make life more affordable and help build more homes, faster.

Thanks to this ambitious partnership, the Province is also working on extending the existing in-stream protection for housing projects that are subject to Metro Vancouver’s DCCs. These measures provide homebuilders with greater certainty and reduce financial pressures by lowering project costs, which keeps homes more affordable for people.

The Province is also considering providing an avenue for local governments to waive DCCs for non-market homes within market housing projects, which could encourage the development of more affordable housing. This change would apply provincewide, helping local governments secure additional affordable housing options in their communities, making housing more accessible for people. The Province will share more details when this work is finalized.

These measures are part of B.C.’s work to support growth in a balanced way to help more homes get built and address key infrastructure needs during uncertain financial times.

The remainder of the $590-million allocation to B.C. will be redirected to the direct delivery stream under the Canada Housing Infrastructure Fund.

Quotes:

Jonathan Wilkinson, federal Minister of Energy and Natural Resources, on behalf of Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities –

“Building resilient communities starts with investing in strong infrastructure that delivers essential services to support growing populations. By investing in the Iona Island Wastewater Treatment Plant in Richmond, which provides service to residents in Vancouver, Burnaby, Richmond, the University of British Columbia, the University Endowment Lands, and the Musqueam Indian Band, this 10-year agreement will support these communities while advancing our shared housing objectives and needs.”

Wilson Miao, MP for Richmond Centre –

“As communities across Metro Vancouver grow, critical infrastructure such as wastewater treatment ensures neighbourhoods remain livable, enhances quality of life and supports sustainable growth. By investing in these systems, we are safeguarding public health and the environment, while creating a foundation for continued development, increased housing supply, and resilient communities.”

Parm Bains, MP for Steveston-Richmond East –

“With 40% of the region’s wastewater treated by the plant, and with growing communities, the need for increased capacity is clear. These upgrades will not only meet the demands of a growing population but also improve water quality, enhance environmental sustainability, and support long-term, resilient infrastructure for future generations.”

Ravi Kahlon, B.C. Minister of Housing and Municipal Affairs –

“We’re investing in crucial infrastructure and supporting communities that are stepping up to build the homes people need. This investment not only supports critical infrastructure but also helps unlock new housing options for people in B.C. We welcome the support of the federal government as we address challenges facing B.C. communities.”

Kelly Greene, MLA for Richmond-Steveston –

“I’m thrilled that today’s announcement will bring upgrades to the Iona Island Wastewater Treatment Plant so people in Metro Vancouver will continue to have safe, reliable services. The investment we’re making with the federal government will support local infrastructure in our fast-growing community and spur homebuilding so people have a place to call home in the place they love.”

Mike Hurley, board chair, Metro Vancouver –

“We’re grateful for the Government of Canada’s support for this essential infrastructure project, which is driven by a need to meet updated federal wastewater treatment regulations and accommodate growth. Local governments have limited options to fund infrastructure upgrades, and this support helps us continue to protect public and environmental health.”

Learn More:

Key housing enabling conditions: https://housing-infrastructure.canada.ca/housing-logement/chif-fcil/index-eng.html#details (can01.safelinks.protection.outlook.com)

Municipalities and Indigenous communities can learn more or apply online: https://housing-infrastructure.canada.ca/housing-logement/chif-fcil/index-eng.html (can01.safelinks.protection.outlook.com)

Solving the Housing crisis: Canada’s Housing Plan: https://housing-infrastructure.canada.ca/housing-logement/housing-plan-logement-eng.html (can01.safelinks.protection.outlook.com)

Canada Housing Infrastructure Fund: https://housing-infrastructure.canada.ca/housing-logement/chif-fcil/index-eng.html (can01.safelinks.protection.outlook.com)

Fairness for Every Generation: https://www.budget.canada.ca/2024/home-accueil-en.html (can01.safelinks.protection.outlook.com)

Solving the Housing crisis: Canada’s Housing Plan: https://housing-infrastructure.canada.ca/housing-logement/housing-plan-logement-eng.html (can01.safelinks.protection.outlook.com)

Iona Island Wastewater Treatment Plan: https://metrovancouver.org/services/liquid-waste/iona-island-wastewater-treatment-plant-projects (can01.safelinks.protection.outlook.com)

A backgrounder follows.