Latest news with #RickIlich
The Province
02-08-2025
- Business
- The Province
Developer proposes a 'more-nuanced approach' to foreign investment in B.C. housing
Dan Fumano: It remains to be seen whether governments — and the voters who elect them — might be open to encouraging some type of foreign investment in real estate, with certain restrictions. But one local CEO is floating an idea. Townline Homes CEO Rick Ilich. - Submitted photo: Townline Homes After the federal and provincial governments rebuffed a call from several B.C. developers to allow foreign investment back in housing, another real estate leader is proposing a middle-ground: enable offshore investment, but 'with a handcuff' and an aim to produce rental homes. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors 'If we're inviting foreign money back into the market, I would recommend that it comes with a bit of a handcuff, and that would be a requirement to enter the rental pool for five years,' Townline Homes CEO Rick Ilich said Friday. Townline, he said, proposes allowing foreign buyers into the market, but 'under regulated conditions that require their units be rented out through a professionally managed rental program for the first five years of ownership or the first five years after project completion.' Ilich had declined to add his name to a recent letter that was signed by dozens of leading figures in B.C.'s real estate sector, lobbying Ottawa and Victoria for policy changes to encourage more foreign purchases of local homes to boost a struggling construction industry and ensure a steady future pipeline of housing. This advertisement has not loaded yet, but your article continues below. 'I don't want to say it was a mistake,' Ilich said of the request from his fellow developers. 'But it does misread public opinion.' The coalition's letter, which was sent Tuesday, asked the governments of B.C. and Canada to reconsider the federal temporary ban on foreign purchases of residential real estate and the provincial tax on foreign buyers. The coalition urged the federal government to look at Australia, which prohibits foreigners from buying existing homes, but allows them to buy new builds and presales. The federal Housing Department responded with a statement suggesting such changes were not in the cards. Provincial leaders were even more blunt, with Premier David Eby saying he's glad the old model of foreign-funded speculative development is dead. Essential reading for hockey fans who eat, sleep, Canucks, repeat. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. 'In fairness to the existing government, they took a position which is popular,' Ilich said Friday. 'But we are not going to hit the prescribed housing targets … if we don't get creative with finding other means of having capital enter the market, because there's simply not enough capital interested in real estate in Canada right now — so invite it back, but use it as a catalyst to expedite rental.' Ilich is working on a proposal he plans to present to provincial and federal government leaders. He provided with Postmedia a version of the letter, which says that while he and his colleagues at Townline understand the concerns and motivations behind the other developers' request earlier this week, they would advocate a 'more-nuanced' approach. This advertisement has not loaded yet, but your article continues below. 'Many factors drove housing prices beyond reach for both renters and owners — unrestricted access to our market by foreign investors was one of those contributing factors,' Townline's draft letter says. 'Today, the foreign buyer ban has swung the pendulum too far, at a time when the housing industry needs to attract diverse and broad forms of investment — both local and non-domestic — to meet our long-term housing needs.' Ilich argues that his proposed program could free up capital for developers to build more housing, increase rental supply for local residents, prevent empty homes, and 'discourage quick resale for profit.' Ilich chairs the Urban Developer Institute, but emphasized he is floating this idea on behalf of he and his company, not for the industry association. This advertisement has not loaded yet, but your article continues below. He proposes allowing foreigners to buy both presale condos and unsold condos currently under construction or recently completed. 'This is not about bailing out developers. It's about freeing up capital for a purpose, to produce housing,' he said. The coalition's Tuesday letter cited an estimate that only one per cent of Canadian homes were owned by non-residents. But the proportion of foreign ownership appears to be dramatically higher in certain segments of the market, according to a new analysis by Andy Yan, an associate professor of professional practice in urban studies at Simon Fraser University. A Statistics Canada report released this week showed that 4.8 per cent of all residential properties in British Columbia were owned by at least one non-resident of Canada, Yan said, but when looking only at newly built condos that rises to 14.8 per cent in Vancouver, 12.6 per cent in Burnaby, and 15.1 per cent in Richmond. This advertisement has not loaded yet, but your article continues below. It seems likely that those levels of foreign ownership could put upward pressure on prices, Yan said. 'The question for the federal government is whether it would like to continue on with a game that has created some winners and many losers, or actually create a housing system that houses all Canadians. … Do we want to extend and pretend? Or change and adapt?' It remains to be seen whether governments — and the voters who elect them — might be open to encouraging some type of foreign investment in real estate, with certain restrictions. While Eby's response to the coalition's letter earlier this week made clear he is not interested in 'going back' to the days of wild speculation and empty condos, he seemed to leave the door open to some kind of role for international investment. This advertisement has not loaded yet, but your article continues below. Citing the cautionary tale of a downtown Vancouver condo project that was fuelled by foreign money and is now facing receivership, Eby said 'that model is dead.' However, Eby also said: 'If foreign capital can help build housing for Canadians and British Columbians, great.' Asked Friday about Townline's proposal, a B.C. Housing Ministry spokesperson sent an emailed statement that said that the province recognizes the 'the urgent need to increase housing supply throughout B.C. so we can continue to see rents fall and vacancy rates rise. ' 'While we will not return to previous policies and approaches that don't help people find the housing they need, we are open to exploring new opportunities that support the development of more rental homes — particularly those that meet long-term needs of the community,' the ministry said. 'We are also mindful of the federal government's ban on foreign home ownership, but we remain open to engaging with industry experts to find a balanced approach where we can leverage investments and deliver more homes for people.' dfumano@ Read More Vancouver Whitecaps News Local News Vancouver Canucks News
Yahoo
02-08-2025
- Business
- Yahoo
Developer proposes a 'more-nuanced approach' to foreign investment in B.C. housing
After the federal and provincial governments rebuffed a call from several B.C. developers to allow foreign investment back in housing, another real estate leader is proposing a middle-ground: enable offshore investment, but 'with a handcuff' and an aim to produce rental homes. 'If we're inviting foreign money back into the market, I would recommend that it comes with a bit of a handcuff, and that would be a requirement to enter the rental pool for five years,' Townline Homes CEO Rick Ilich said Friday. Townline, he said, proposes allowing foreign buyers into the market, but 'under regulated conditions that require their units be rented out through a professionally managed rental program for the first five years of ownership or the first five years after project completion.' Ilich had declined to add his name to a recent letter that was signed by dozens of leading figures in B.C.'s real estate sector, lobbying Ottawa and Victoria for policy changes to encourage more foreign purchases of local homes to boost a struggling construction industry and ensure a steady future pipeline of housing. 'I don't want to say it was a mistake,' Ilich said of the request from his fellow developers. 'But it does misread public opinion.' The coalition's letter, which was sent Tuesday, asked the governments of B.C. and Canada to reconsider the federal temporary ban on foreign purchases of residential real estate and the provincial tax on foreign buyers. The coalition urged the federal government to look at Australia, which prohibits foreigners from buying existing homes, but allows them to buy new builds and presales. The federal Housing Department responded with a statement suggesting such changes were not in the cards. Provincial leaders were even more blunt, with Premier David Eby saying he's glad the old model of foreign-funded speculative development is dead. 'In fairness to the existing government, they took a position which is popular,' Ilich said Friday. 'But we are not going to hit the prescribed housing targets … if we don't get creative with finding other means of having capital enter the market, because there's simply not enough capital interested in real estate in Canada right now — so invite it back, but use it as a catalyst to expedite rental.' Ilich is working on a proposal he plans to present to provincial and federal government leaders. He provided with Postmedia a version of the letter, which says that while he and his colleagues at Townline understand the concerns and motivations behind the other developers' request earlier this week, they would advocate a 'more-nuanced' approach. 'Many factors drove housing prices beyond reach for both renters and owners — unrestricted access to our market by foreign investors was one of those contributing factors,' Townline's draft letter says. 'Today, the foreign buyer ban has swung the pendulum too far, at a time when the housing industry needs to attract diverse and broad forms of investment — both local and non-domestic — to meet our long-term housing needs.' Ilich argues that his proposed program could free up capital for developers to build more housing, increase rental supply for local residents, prevent empty homes, and 'discourage quick resale for profit.' Ilich chairs the Urban Developer Institute, but emphasized he is floating this idea on behalf of he and his company, not for the industry association. He proposes allowing foreigners to buy both presale condos and unsold condos currently under construction or recently completed. 'This is not about bailing out developers. It's about freeing up capital for a purpose, to produce housing,' he said. The coalition's Tuesday letter cited an estimate that only one per cent of Canadian homes were owned by non-residents. But the proportion of foreign ownership appears to be dramatically higher in certain segments of the market, according to a new analysis by Andy Yan, an associate professor of professional practice in urban studies at Simon Fraser University. A Statistics Canada report released this week showed that 4.8 per cent of all residential properties in British Columbia were owned by at least one non-resident of Canada, Yan said, but when looking only at newly built condos that rises to 14.8 per cent in Vancouver, 12.6 per cent in Burnaby, and 15.1 per cent in Richmond. It seems likely that those levels of foreign ownership could put upward pressure on prices, Yan said. 'The question for the federal government is whether it would like to continue on with a game that has created some winners and many losers, or actually create a housing system that houses all Canadians. … Do we want to extend and pretend? Or change and adapt?' It remains to be seen whether governments — and the voters who elect them — might be open to encouraging some type of foreign investment in real estate, with certain restrictions. While Eby's response to the coalition's letter earlier this week made clear he is not interested in 'going back' to the days of wild speculation and empty condos, he seemed to leave the door open to some kind of role for international investment. Citing the cautionary tale of a downtown Vancouver condo project that was fuelled by foreign money and is now facing receivership, Eby said 'that model is dead.' However, Eby also said: 'If foreign capital can help build housing for Canadians and British Columbians, great.' Asked Friday about Townline's proposal, a B.C. Housing Ministry spokesperson sent an emailed statement that said that the province recognizes the 'the urgent need to increase housing supply throughout B.C. so we can continue to see rents fall and vacancy rates rise.' 'While we will not return to previous policies and approaches that don't help people find the housing they need, we are open to exploring new opportunities that support the development of more rental homes — particularly those that meet long-term needs of the community,' the ministry said. 'We are also mindful of the federal government's ban on foreign home ownership, but we remain open to engaging with industry experts to find a balanced approach where we can leverage investments and deliver more homes for people.' dfumano@ Related 'That model is dead': B.C. Premier, housing minister rebuff developers' request for foreign real estate investment Duelling B.C. letters to Mark Carney on housing crisis expose clash over way forward
Vancouver Sun
15-07-2025
- Business
- Vancouver Sun
B.C. cuts Metro Vancouver developers a break from soaring fees, backstopped by $250 million in federal cash
The B.C. government is lending a hand to the ailing homebuilding industry in the province's most populous region, effectively slashing development charges for many projects already in the pipeline. The province confirmed to Postmedia News that for residential projects in Metro Vancouver initiated before March 2024, fees to pay for growth-related infrastructure, such as water, wastewater and parks, will be reduced. Developers of these 'in-stream' projects will be able to pay development cost charges under the old fee structure, instead of the new one that more than tripled this year. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Metro's funding shortfall from the reduced development charges will be backstopped by $250 million from the federal government. The move is being welcomed by some of B.C.'s biggest development companies. The industry had lobbied for some kind of relief since the higher fees were unveiled in 2023, warning the increases would kill previously viable projects. Rick Ilich, CEO of Townline, a major Vancouver-area developer of strata and rental housing, called the in-stream protections a 'bold move' that will protect thousands of jobs in Metro and provides a measure of certainty in an uncertain time. The change is unlikely to make a major difference for many Vancouver-area condo projects considering the state of the overall market, Ilich said, but it could help some rental projects get 'unstuck.' Townline has three projects in Vancouver, totalling 670 rental and 380 strata units, that will benefit from the change and will move forward, Ilich said. While the province, the federal government and many municipal governments are aligned on the goal of dramatically boosting housing supply, several factors — including increasing costs of all kinds, a tight labour market, a U.S. trade war and related uncertainty — are converging to create a challenging market environment for residential projects to proceed. Some of B.C.'s largest development and real estate companies, including Wesgroup and Rennie , have recently laid of significant portions of their staff. Metro's new fee structure was set in 2023, representing increases as high as 255 per cent over three years. It was implemented over the objections of developers and, in a rare case, Canada's then-housing minister , who cautioned the increases were so dramatic that they would render several planned developments unviable. The fee hikes were approved by a vote of Metro's board of directors, a body made up of mayors and councillors from throughout the region, who argued that, despite the industry's protests, development fee hikes were needed to fund necessary infrastructure upgrades. That federal funding commitment was announced late last year, and since then, representatives of the B.C. and Canadian governments have been negotiating the terms of the deal, said B.C. Housing Minister Ravi Kahlon on Monday. The two parties reached an agreement on March 22 of this year — which wasn't publicly known until now, Kahlon said — that applies the old, lower DCCs to projects whose applications were submitted prior to March 22, 2024, and whose permits are issued before March 22, 2026. 'It's using federal dollars to lower the cost of construction so we can continue to see housing supplied,' Kahlon said. 'We spent many months trying to negotiate this, and certainly, it's an example of what can happen when you have partnerships between the federal government, the development industry, as well as the province.' Under Metro's new fee structure, which took effect Jan. 1, development charges for each purpose-built rental apartment more than tripled from $6,249 per unit to $20,906. Kahlon has heard some people describe these kinds of moves as government handouts to the development industry, but he disputes that characterization. 'Having sat down with both not-for-profit builders and private builders, and gone through their pro-formas, I can say that this will be the difference between housing happening, and it not happening. It's not the difference between somebody making a little bit of money and a lot of money,' Kahlon said. 'There's a big difference between the two.' Metro estimated that allowing developers to pay the old, lower charges would mean the regional government needed to recoup about $220 million to make up for the shortfall, said Heather McNeil, Metro's deputy CAO. 'But there's no revenue coming in if projects don't move forward,' she said. Municipalities collect development cost charges and submit them to Metro twice a year. Metro couldn't immediately provide the number of projects and total homes affected by this change. In a written statement, Metro board chairman Mike Hurley, the mayor of Burnaby, said: 'Allowing more time to continue paying 2024 rates offers developers more financial certainty for eligible developments, which can help to advance housing, support local jobs and stimulate the economy.' Urban Development Institute president Anne McMullin said the in-stream protection period is 'a meaningful step that reflects the realities of today's development environment.' 'Current high-cost conditions have placed significant pressure on project viability, and without this change, many projects would not have been able to proceed,' McMullin said. 'This change demonstrates a practical understanding of the barriers facing the industry and helps ease some of the immediate pressure on projects, so they can move forward.' dfumano@
