May 14, 2024

As we head into our AGM today, we have to reflect on the non-stop year we tackled together. We’ve put together a full look-back on the last year in our 2023-2024 Annual Report – but here are a few of the highlights.

Across multiple levels of government, we witnessed a definitive shift in their approach to housing and development; in some cases, decades worth of UDI’s advocacy finally came to fruition. In others, we found ourselves in a gridlock, fighting against unreasonable demands on the development community, or grappling with a sense that some changes are too little, too late.

UDI has had our work cut out for us to ensure your voices were never lost in the mix.

As UDI members, we applaud you, both for your commitment and because we know all too well how difficult it is to plan effectively in the midst of change.

What Changed: The federal government began shifting its narrative.

UDI ramped up its federal engagement in the last year with a dedicated federal advocacy committee and by collaborating with like-minded organizations across the country.

With a more willing partner in the Ministry of Housing, Infrastructure, and Communities, we started to see a more collaborative approach to housing and an increased focus on housing supply.

Over the past year, it took an application of persistent effort to make small, but measurable progress federally. UDI shifted tactics in our advocacy for exemptions from the excessive interest and financing expenses limitation (EIFEL); and refocused our efforts on an incremental change, which led to an exemption for new purpose-built rentals from EIFEL. But our work isn't done and this achievement only strengthens our position that broad exemptions are needed across the whole real estate industry.

Adding to our wins for the industry: the federal government answered decades of advocacy with the removal of GST from purpose-built rentals, an accelerated Capital Cost Allowance (CCA) rate for eligible rental projects, and a federal housing plan that attaches funding to outcomes.

These are not perfect wins, nor were all of the changes introduced by the federal government positive. But they tell an important story: the federal government is now becoming aware of the role they must play to move the needle on housing delivery – one that should not involve layering on more demand-side measures.

What Changed: There was a lot of progress provincially.

While the federal government is just beginning to re-engage on housing, the provincial government really gained momentum this year.

The province set housing targets for 10 cities for the first time this year, and recently added another 20 names to that list. The impacts are now materializing in some municipalities that have begun removing barriers to speed up development in their communities.

Bills 44, 46, 47, and 16 represent a complete shift in the way municipalities plan for future housing needs. In response, UDI has established six provincial working groups to identify gaps in the legislation, while working directly with the Ministry of Housing to propose solutions.

The 2024 BC Building Code changes also become a dominant issue for UDI. Our members spotted potential unintended consequences from the new Code, and UDI doubled down, pushing for more time to look for mitigating measures, and the Province listened. That time has not been wasted, and through a strong working relationship and regular dialogue with the Building and Safety Standards Branch who hold the pen on the BC Building Code changes, we’re actively collaborating on solutions.

We are especially grateful to our members who were such an important part of taking up the mantle on the BC Building Code; you have been bringing your concerns directly and relentlessly to the Minister, making it impossible to ignore, as it should be.

Also at the provincial table, BC Hydro heard your longstanding concerns about cost structures and infrastructure delivery, and is now working with us towards progress and a new model for funding system improvements and infrastructure upgrades.

What Changed: Metro Vancouver ignored our pleas and raised the rates.

UDI was loud and clear that a threefold increase in DCCs is unsustainable and works against the acceleration of housing supply, and ultimately against buyers and renters.

We lost the battle. DCCs tripled, directly impacting developers. But we are still waging the war.

In response, we have called for a wholesale governance review of Metro Vancouver Regional District and financial review of the ballooning wastewater project budget.

UDI has put a lot of resources into this issue and will continue to do so. For us, this is a hill to die on and we are determined to get to a place where sustainable funding and management will prevent developers from becoming the scapegoat when things go sideways.

What Changed: Municipalities are adapting.

Municipalities have been on the receiving end of a whirlwind of changes this year, and we are starting to see them react.

B.C.'s Housing Supply Act provided a framework that UDI can now use to assess the state of development planning in different municipalities. This has helped us use our liaison committees to endorse positive aspects and suggest adjustments where needed in updated OCPs.

Strings-attached federal and provincial funding is also leading to municipal changes to smooth the planning process.

Meanwhile, in the City of Vancouver, UDI’s advocacy led to the retroactive removal of unsold inventory and lands under development from being captured by the Empty Homes Tax, as well as the alignment of language around tax definitions with existing provincial parameters.

Finally, UDI established new liaison committees in New Westminster and Port Moody to promote dialogue and engagement with city staff as those communities grow.

While there are some outliers, a general theme of collaboration arises from all this change.

This is something we’ve been practicing between our Vancouver, Victoria, and Kelowna offices as well. By bringing our teams together, our advocacy is growing more robust; a fuller picture has come into view through collaboration, and of course thanks to our members who are not afraid to pick up the phone and tell us what’s happening in your corner of the province.

The world that we are trying to shape is so much more sustainable and productive than where we are today. UDI was prepared for a bumpy ride this year and we’re prepared for another one too because generational change is never easy.

We hope to see you at our AGM this morning, and look forward to another year collaborating with you to inspire change and, ultimately, to help you get more housing off the ground.

Sincerely,

Anne and the UDI Team