B.C. Municipalities Reel as Province Suspends $3.3 Billion Housing Fund
Municipalities and non-profit housing developers across British Columbia are expressing shock and frustration following the provincial government's decision to suspend the Community Housing Fund. The move, tucked into the NDP's 2026 budget, represents a significant shift in housing policy that community leaders describe as a devastating blow to affordable housing development.
Budget Fine Print Reveals Major Funding Shift
Tucked into Tuesday's budget documents was a line indicating the government would be "reallocating nearly $1.4 billion across the fiscal plan" and slowing the pace of new housing projects. Upon closer examination, Cori Ramsay, president of the Union of B.C. Municipalities, discovered this included the suspension of the Community Housing Fund.
"We do feel that this is a massive step back from the province's own housing plan," said Ramsay, who has met with Housing Minister Christine Boyle since the budget was delivered. "Local governments and not-for-profit housing providers feel like they have had the rug pulled out from under them."
Established Program with Significant Track Record
The Community Housing Fund was created in 2018 with a mandate to provide $3.3 billion to municipalities and housing operators for the development of 20,000 affordable rental homes. To date, the program has helped build 13,000 units, with another call for applications in May announcing that the next tranche of funding would see $775 million allocated to build an additional 4,600 units.
In an email sent at 3:33 p.m. on budget day to those who had applied for funding, B.C. Housing acknowledged the frustrations but noted a need to slow the pace of development. The email confirmed that no funding would be provided to projects that applied in 2025.
"We understand this is disappointing, and that applicants have been patiently waiting for information about next steps," said Mike Pistrin, vice-president of development and asset strategies for B.C. Housing. "We thank all proponents who submitted an application."
Municipalities Left Holding the Bag
The sudden suspension has left municipalities with significant financial exposure from pre-development work already completed in anticipation of funding. Squamish Coun. Jenna Stoner revealed that her municipality has spent more than $500,000 on pre-development work for a 100-unit non-profit housing project that will likely no longer move forward.
The Squamish community was seeking $17.8 million to cover capital costs, as well as an ongoing operating subsidy. With the fund's suspension, these plans are now in jeopardy, representing both a financial loss and a setback in addressing the community's housing needs.
Government Response and Alternative Funding
Housing Minister Christine Boyle acknowledged the disappointment of municipal and non-profit partners but emphasized the government's continued commitment to affordable housing development. She pointed to alternative funding sources, including a federal government investment of $170 million to help build 700 supportive and transitional homes in B.C., plus 400 affordable rentals.
B.C. Housing is contributing $640 million in capital and operating costs as part of this federal-provincial agreement. However, this represents a significantly smaller investment than the suspended Community Housing Fund, which had allocated $3.3 billion since its inception.
Broader Budget Context
The budget move comes as B.C. faces multiple fiscal pressures, with the government redirecting more than $1 billion from affordable housing development to help cover other operational priorities. Finance Minister Brenda Bailey tabled the provincial budget on February 17, 2026, outlining the government's spending priorities for the coming fiscal year.
The suspension of the Community Housing Fund represents one of the most significant housing policy changes in recent years and has sparked concern among housing advocates who worry about the long-term implications for affordable housing development across the province.
