The governments of Canada and British Columbia finalize an agreement for the Canada Housing Infrastructure Fund

RICHMOND, BC, March 21, 2025 /CNW/ - 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 one 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 province-wide, 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 

"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."

The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, on behalf of the Honourable Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities 

"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."

Wilson Miao, Member of Parliament for Richmond Centre

"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."

Parm Bains, Member of Parliament for Steveston-Richmond East

"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 BC. We welcome the support of the federal government as we address challenges facing B.C. communities."

The Honourable Ravi Kahlon, Minister of Housing and Municipal Affairs

"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."

Kelly Greene, MLA for Richmond-Steveston

"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."

Mike Hurley, Board Chair, Metro Vancouver

 Quick facts 

• Part of Budget 2024, and Canada's Housing Plan, CHIF will invest more than $5 billion over 10 years for the construction and upgrading of core public infrastructure that will enable housing growth and densification in communities across Canada. 
• Under CHIF, funding is available over 10 years to support long-term provincial and territorial infrastructure priorities that will directly enable increased housing supply. Such initiatives could include projects that provide the critical infrastructure necessary to enable more homes or increase densification, provide the drinking water, wastewater, and stormwater systems required to support community growth, preserve existing capacity or increase reliability and access to drinking water, or implement waste diversion initiatives to reduce landfill use.
• A share of this funding is allocated to support long-term provincial and territorial priorities. Provinces and territories must finalize an agreement and commit to key housing-enabling conditions to receive funding. Funding for those provinces and territories that do not conclude an agreement will be transferred to the direct delivery stream of CHIF. 
• Funding through the direct delivery stream of CHIF will be provided to support pressing infrastructure projects in municipalities and Indigenous communities. The intake launched on November 7, 2024, and applications will be accepted until March 31, 2025 for communities of all sizes across Canada, and until May 19, 2025, for Indigenous applicants. Municipalities and Indigenous communities can learn more or apply online. 
• In the 2024 Fall Economic Statement, the Government of Canada announced, through existing funding allocated under the provincial and territorial stream of CHIF, that it will provide $250 million over five years to the Metro Vancouver Iona Island Wastewater Treatment Plant project, starting in 2025-2026.
• In March 2023, the Government of British Columbia committed $250 million to this project.
• On April 12, 2024, the federal government released its ambitious housing plan, Solving the housing crisis: Canada's Housing Plan, supported by new investments from Budget 2024. The plan acknowledges the diverse needs of Canadians and centres around these three pillars: 
  • Building more homes. 
  • Making it easier to own or rent a home.  
  • Helping Canadians who can't afford a home. 

Associated Links 

Canada Housing Infrastructure Fund 
Fairness for Every Generation
Solving the Housing Crisis: Canada's Housing Plan  
Iona Island Wastewater Treatment Plant Projects | Metro Vancouver  

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SOURCE Department of Housing, Infrastructure and Communities

Contacts: For more information (media only), please contact: Sofia Ouslis, Press Secretary, Office of the Minister of Housing, Infrastructure and Communities, [email protected]; Media Relations, Housing, Infrastructure and Communities Canada, 613-960-9251, Toll free: 1-877-250-7154, Email: [email protected]; Ministry of Housing and Municipal Affairs, Media Relations, 236 478-0251, Metro Vancouver, [email protected]