UDI Annual Report 2023-2024
Title Slide
Year in Review
As we reflect on
the past year, one
word comes to
mind: change.
Much of this change has been driven
by external forces – particularly
government actions – that have
significantly altered the development
landscape. Both senior levels of
government have received the
message loud and clear – it’s all about
supply. That said, change also brings
uncertainty, which is reflected in the
current market dynamics.
In the last 18 months alone, five
pieces of Provincial housing legislation
have required intense and ongoing
engagement from the UDI Board,
committees, and staff. This commitment
has involved collaborating with
members, municipal partners, and the
Provincial Government to ensure these
changes create a supportive policy
environment for members working to
deliver new housing supply across
B.C. However, much work remains to
be done to ensure these measures
enable the delivery of new homes to
be realized.
Housing has also become a recent
focus for the Federal Government.
We have seen some positive first
steps taken, and UDI has seized this
window of opportunity to engage more
closely with the Offices of the Minister
of Finance, Minister of Housing,
Infrastructure and Communities, and
the Official Opposition. We intend to
grow our Federal advocacy efforts
over the coming year to support
positive policy change at this level of
government, and hope to replicate the
success we have had at the Provincial
level in B.C. through factual, data-
driven advocacy.
In Budget 2024, UDI successfully
advocated for an acceleration of the
capital cost allowance for purpose
built rental from 4 to 10 percent,
additional funding for the Apartment
Construction Loan Program (formerly
RCFI), and changes to the application
of the excessive interest and financing
expenses limitation (EIFEL) rules on
rental projects. But these changes are a
far cry from what is required to address
the magnitude of the housing crisis.
UDI members have faced continued
cost pressures ranging from high
interest rates to increases in
development charges, which have
made it increasingly difficult to bring
projects to market. While many of
these cost escalations are beyond our
control, a central advocacy focus that
has emerged for UDI is challenging
the orthodoxy that “growth should pay
for growth”, rather that “development
should pay for its fair share of growth”.
We are in a housing supply crisis,
and all levels of government must
understand that a reduction in fees
and charges is necessary if we are to
build the housing we need across the
province.
This is especially true of Metro
Vancouver’s 255% DCC fee increases.
Metro Vancouver’s own consultant
hired for economic testing compared
the cost hike to the elevated financing
costs that have already made several
rental projects unviable, and the
justification from Metro Vancouver that
they are not the only ones increasing
costs tells us that the Regional District
has decided they are comfortable
being part of the problem.
To tackle the challenges outlined
above, UDI expanded our member
support programs and government
relations initiatives over the past
year. This growth has been especially
evident at the municipal and provincial
levels, where our engagement has
been essential to shaping housing
policy during a time of unprecedented
change.
To continue expanding and enhancing
our services to better serve you,
our valued members, the Board of
Directors has decided to adjust our
membership fees. This decision was
made after careful consideration of
UDI’s operational needs to support
both current and future member
services and government relations
efforts, while maintaining the high
quality of our existing programs.
In closing, it is important to recognize
that our strength as an organization
comes from the expertise and
dedication of our members, who take
a leadership role in helping to shape
UDI’s policy advocacy. UDI is unique
in Canada. No other organization can
marshal the breadth of development
expertise that UDI members provide.
Thank you for your continued support.
Sincerely,
Rick Ilich
Chair, UDI Board of Directors
Anne McMullin
President and CEO