Ottawa loans $763M for Burnaby megaproject featuring Western Canada’s tallest rental tower

The federal government is putting up $763 million to help build 1,279 new rental homes in Burnaby, B.C., as part of one of the largest housing projects in Metro Vancouver.

The funding comes through the Apartment Construction Loan Program (ACLP), a federal initiative that offers low-cost financing to spur the construction of purpose-built rentals, student housing and seniors’ housing in markets struggling with affordability and supply.

Developer Grosvenor says the loan will go toward the Brentwood Block, a mixed-use project along Lougheed Highway between Alpha and Beta avenues, featuring three residential towers, retail spaces and a new City of Burnaby community centre.

One of the towers is set to become Western Canada’s tallest all-rental high-rise, marking a significant milestone in a region where most new developments have skewed toward condos.

‘Build more, build better, build bolder’

Federal Housing Minister Gregor Robertson announced the funding, saying projects like this are key to addressing Canada’s housing shortage.

“We need to build more, build better and build bolder,” Robertson said in a statement. “Through investments in rental housing, our government is supporting those who need it most — here in British Columbia and across the country.”

The announcement comes as Metro Vancouver continues to face record-low rental vacancy rates and skyrocketing rents. According to the Canada Mortgage and Housing Corporation (CMHC), the region’s rental vacancy rate sits below one per cent, one of the tightest in the country.

Part of a national push

The ACLP has become one of Ottawa’s main tools to address the housing crisis, providing billions in low-interest loans to developers willing to build rental housing rather than condos.

Under the program, developers can access loans covering up to 100 per cent of construction costs if projects meet affordability and energy-efficiency benchmarks.

Robertson said the Burnaby project “exemplifies the kind of partnerships” needed between government and private industry to accelerate supply.

The Brentwood Block is part of a broader transformation of Burnaby’s Brentwood neighbourhood, which has become one of the fastest-growing urban centres in Metro Vancouver, thanks to proximity to SkyTrain and high-density zoning.

When complete, the project will add hundreds of below-market and family-sized units to an area that has seen rising housing costs push renters out of older stock.

Developer calls it a ‘generational investment’

Grosvenor said in a release that the Brentwood Block will include amenities designed to “foster a sense of community,” along with commercial space for shops and cafes.

“This project represents a generational investment in rental housing,” the company said. “We’re proud to be delivering homes that will serve thousands of people and families for decades to come.”