The latest from the man who is building both Vancouver House (high-end, sold offshore, unusual building next to Granville Bridge) and, someday, a mix of social and market housing on the Stanley/New Fountain Gastown site — he has formed a non-profit that will be dedicated to building rental, tapping into the country’s big pension funds and getting some help from CMHC (unless what as yet).
Dave Ebner’s story, with my assist, was in the Globe today.
The $40-Billion Opportunity
Gillespie’s Creative Housing Society represents an ambitious attempt to leverage the federal government’s $40-billion National Housing Strategy announced by Prime Minister Justin Trudeau. The proposal calls for constructing 50,000 units of affordable rental housing over a decade, primarily concentrated in Toronto and Vancouver, where housing affordability has reached crisis levels.
The financing model breaks new ground in Canadian housing policy. Under the Creative Housing proposal, CMHC would serve as the primary lender, while institutional investors from the private sector—including pension funds and insurance companies—would provide equity financing. Westbank and Allied Properties would also contribute capital, creating a public-private partnership structure designed to deliver rental units at below-market rates for middle-class families earning between $30,000 and $80,000 annually.
The star recruit for this venture is Jennifer Keesmaat, Toronto’s former chief city planner, who was hired as CEO of Creative Housing Society in March 2018. Keesmaat’s involvement adds significant urban planning credibility to an initiative that could reshape how Canada approaches affordable housing delivery. Her reputation for innovative city-building solutions, developed during her tenure overseeing Toronto’s planning department, represents a crucial asset in navigating complex municipal approval processes across multiple cities.
The Controversy and Criticism
Obviously, there’s a lot of reaction to this, since Gillespie’s company Westbank is currently best known in the city for building very expensive projects and marketing at least some of the units through the company’s overseas offices. The company has faced sustained criticism for promoting foreign homeownership in Vancouver, with critics arguing that overseas marketing contributes to local housing unaffordability.
Just one example of the skepticism around this here:
Derrick O’KeefeVerified account @derrickokeefe 8h8 hours ago
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Trudeau govt reviewing request for federal funds from Ian Gillespie and Westbank to build “affordable housing.” This is outrageous. Enough w/ this privatization model, we need real public & social housing now #vanpoli #cdnpoli
The controversy extends beyond ideological concerns about privatization. Housing advocates worry that channeling federal dollars through private developers like Westbank—known for luxury projects like Vancouver House and the ambitious Oakridge redevelopment—may compromise the affordability mandate. The Tyee reported concerns about potential conflicts between profit motives and affordable housing delivery, particularly given Westbank’s track record of marketing to international investors.
The Industry Perspective
I should note that some have privately messaged me that Gillespie’s pitch might not be the worst idea since, if the federal government is about to pour money into housing, those who have experience building thousands of units at a fairly rapid clip might be able to do the job more efficiently than non-profits, which are just learning the development game.
Here was one analysis of the Westbank idea:
There is some speculation they may want to vertically integrate the construction and maintenance/management of the units once built. If that’s their route, they will be hiring people on the nonprofit side to start planning their submissions. There is likely an air that there will be a long surge of government investment into housing again, and existing non-profits are already overloaded. There is room to grow in this market, and it seems likely Westbank is wanting to get in on it. I expect some of their competitors may be planning similar moves.
The proposal taps into a fundamental capacity challenge facing Canada’s housing sector. Traditional non-profit housing providers, while mission-driven, often lack the scale and expertise to deliver housing at the speed and volume required to address current affordability crises. Westbank’s development capacity—the company has delivered thousands of units across major Canadian cities—represents exactly the kind of proven execution capability that government housing programs require.
I do wonder whether, given that there are finite housing dollars, some will worry that the more that goes to a P3-type operation, the less will be available for the longstanding non-profits. I await comments on that.
The Political Dimension
The Creative Housing Society initiative emerged at a particularly volatile moment in Canadian housing politics. The federal government’s National Housing Strategy promised unprecedented investment in affordable housing, but questions remained about delivery mechanisms and private sector involvement.
The project’s political sensitivity became evident when Keesmaat resigned from Creative Housing Society in July 2018 to run for Toronto mayor against incumbent John Tory. Her departure, just months after joining the initiative, highlighted the intersection between housing policy and electoral politics. The Financial Post reported concerns from Gillespie about the timing and impact of her mayoral campaign on Creative Housing Society’s federal funding applications.
The Legal Foundation
On a side note, the reason I started looking into this is I had heard that Gillespie was creating a non-profit for housing, but I had heard that it was mainly so that he could bid on a current call in Vancouver for proposals to build rental housing that will rent for less than market rates.
I see from the paperwork here below that the society was created last October. Conspiracy theorists may note that the lawyer involved, Neil Kornfeld, is the same person acting for Beedie Living on the 105 Keefer site. However, I believe that’s just because he’s seen as a go-to real-estate lawyer, rather than any real link.
CREATIVE HOUSING SOCIETY
NAME OF SOCIETY:
Incorporation Number: S0068201
Business Number: 78983 1914 BC0001
Filed Date and Time: October 10, 2017 04:24 PM Pacific Time
REGISTERED OFFICE ADDRESS INFORMATION
Delivery Address: 1100 – 505 BURRARD ST VANCOUVER BC V7X 1M5
Mailing Address: 1100 – 505 BURRARD ST VANCOUVER BC V7X 1M5
DIRECTOR INFORMATION
Last Name, First Name Middle Name: GILLESPIE, IAN
Delivery Address: 501 – 1067 CORDOVA ST W VANCOUVER BC V6C 1C7
Last Name, First Name Middle Name: KORNFELD, NEIL
Delivery Address: 1100 – 505 BURRARD ST VANCOUVER BC V7X 1M5
Last Name, First Name Middle Name: LEUNG, JUDY
Delivery Address: 501 – 1067 CORDOVA ST W VANCOUVER BC V6C 1C7
The October 2017 incorporation date suggests strategic planning well before the public announcement, positioning Creative Housing Society to participate in federal funding competitions and municipal affordable housing initiatives across Canada.
