A real estate economist says it makes sense for the provincial government to end a pilot program designed to encourage the construction of secondary suites. 

"With a similar program from the (federal government) and with the (province) looking for places to cut spending, it makes sense the province is choosing to end it," Brendon Ogmundson, chief economist with the British Columbia Real Estate Association, said. He added that available figures show the program had little uptake.                                                                                   

The provincial government will stop accepting applications on March 30, 202 5for the project first announced in 2023. The remaining funds, some $80 million, will be going toward other existing and future BC Housing programs and services aimed at delivering more affordable homes for people.

Government cited uncertain financial times and the existence of a comparable program from Ottawa for the change. 

B.C. Housing Minister Ravi Kahlon said earlier this week that government is looking for the best value of public funds as B.C. faces uncertain economic conditions and an unpredictable tariff situation with the United States. "With the federal government committing to deliver a national secondary-suite program, we are ensuring that we are not duplicating programs so we can use those funds for other programs that give people more housing options," he said in a statement. 

Government had first announced the project as part of the provincial budget in 2023. It committed up to $91 million over three years to incentive the construction of secondary-suites through forgivable loans to eligible homeowners who build secondary suites or accessory homes on their properties. 

According to information from the Ministry of Housing and Municipal Affairs, government has approved or pre-approved over 200 forgivable loans as of March 2025. Under 50 applications have been submitted to BC Housing and are undergoing review to determine if they are eligible. 

As of March 2025, government has approved $1.94 million in forgivable loans. Government has also approved another $5.77 million in forgivable loans with home-owners receiving that money once they have completed construction of their new suites.

While the pilot project was not central to government's housing agenda, government predicted that it would help create thousands of new homes throughout B.C. Municipal officials also praised the program because it recognized the importance of secondary suites. 

Jen Ford, then-president of the Union of British Columbia Municipalities, called secondary suites a critical part of the housing continuum, with estimates pegging the number of secondary suites at just under 229,000. 

In 2024, Ottawa launched a comparable program that allows homeowners to access low-interest loans of up to $80,000. The provincial government, by comparison, covers 50 per cent of construction to a maximum of $40,000.

The provincial government said this week that British Columbia home-owners interested in developing secondary suites may have the opportunity to apply to the federal program, once it has launched. 

Government said that BC Housing will continue to work with approved applicants to process committed funds, register forgivable mortgages and carry out loan forgiveness over the coming years.

Others who have started the process and have received all necessary permits and cost estimates will be able to submit their applications until March 30.