Budget Fallout - Another Tower in Turmoil? - Posted February 19, 2026
The fallout from the provincial budget continues after the Province confirmed it's suspending the Community Housing Fund, which helps fund affordable rental housing across British Columbia. According to a February 18, 2026 Victoria News article:
The $3.3 billion fund was introduced in 2018 to help pay for more than 20,000 affordable rental units. It has become something local governments rely on to meet provincial housing targets, which were introduced in 2023 to ensure municipalities are working to tackle the housing crisis. The program has paid for 13,600 homes so far. The fund’s latest intake opening, announced last May, opened up $775 million for project proposals. Budget 2026, released on Tuesday, Feb. 17, retracts this money, leaving those who applied scrambling for answers.
The article notes one of the projects affected is the 22-storey affordable rental housing tower in the Roundhouse development at 251 Esquimalt Road, part of Focus Equity's Roundhouse at Bayview nine building masterplan. Plans for the building were formally submitted to the City in October 2025; however the project was not being developed by Focus Equity but instead by TL Housing Solutions on behalf of the Greater Victoria Housing Society.
It was the second tower formally submitted as part of the Roundhouse masterplan, following Focus Equity's 25 storey residential/commercial building at 210 Kimta Road in August 2025. It may be several months before we learn of the fate of 251 Esquimalt Road - will Focus Equity partner with another developer; proceed to develop this lot themselves as market rentals or less likely as condo units? It's hard to imagine the City still requiring an affordable housing tower after the Province pulled the funding but considering the multi-decade Roundhouse development saga don't expect answers or clarity anytime soon.
Together with the potential loss (and at best - delay) of UVic's Sinclair Road tower, affordable housing has taken a significant hit this week; yet an alternative perspective is two bullets narrowly missed considering the uninspiring architecture in both cases.