400 new affordable ownership units converted to regular condos in Surrey

Artistic rendering of 104 Plaza at 13748-13774, 13772-13790 104th Avenue, and 13777 Central Avenue, Surrey. (Andrew Cheung Architects/Echo Properties)

The 104 Plaza project in Surrey City Centre will no longer be a model example of BC Housing’s province-wide Affordable Home Ownership Program (AHOP) due to challenging market conditions.

When Daily Hive Urbanized previously covered the redevelopment in 2020, the concept incorporated over 400 AHOP units, accounting for 35% of the overall total of 1,141 homes in the project.

However, the proposal is now returning to a public hearing later this fall, with the previous rezoning rescinded, as these 401 affordable homeownership units will now be sold as regular market condominiums.

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Vancouver-based developer Echo Properties initially proposed these homes as affordable home ownership options for middle-income households. AHOP homes are sold to eligible purchasers at fair market value, with a pre-determined portion of the purchase price secured by a registered second mortgage facilitated by BC Housing.

The AHOP mortgages through BC Housing are interest- and payment-free for up to 25 years (BC Housing covers 10% of the purchase price), with the balance of the purchase price secured under a standard market mortgage by the eligible purchaser.

But with the significant macroeconomic changes due to heightened interest rates buckling the ability to borrow money for construction financing, combined with the 30% increase in construction costs due to the inflation in the prices for materials, equipment, and labour, 84% of the AHOP units are now no longer eligible under BC Housing’s program’s income threshold.

104 Plaza 13740-13760 104 Avenue 13772-13790 104 Avenue 13777 Central Avenue Surrey Echo Properties

Artistic rendering of 104 Plaza at 13748-13774, 13772-13790 104th Avenue, and 13777 Central Avenue, Surrey. (Andrew Cheung Architects/Echo Properties)

Based on the original proposal for the AHOP units calculated in 2020, the average selling price per sq ft was $948, the mortgage interest rate was 5%, and the equity payment portion was 10%. As of September 2023, these figures have increased to $1,098, 8%, and 10%, respectively. These various conditions have led to the need to increase the sale prices.

“As a result of the planned units no longer being eligible under AHOP, it is highly challenging for this project to receive construction financing,” reads a City staff report.

“In today’s financial and income environment, along with the program’s income and affordability criteria, the program is no longer feasible.”

Artistic rendering of 104 Plaza at 13748-13774, 13772-13790 104th Avenue, and 13777 Central Avenue, Surrey. (Andrew Cheung Architects/Echo Properties)

With the affordability component removed, Echo Properties’ revised rezoning application will require the developer to pay more community amenity contributions (CACs) to the municipal government in order to realize the market condominium uses and densities.

Other than the shift to 100% condominium uses for the residential component of the project, there are no other changes to the proposal previously supported by City Council.

The project carries the addresses of 13740-13760 104th Avenue, 13772-13790 104th Avenue, and 13777 Central Avenue — located near the southeast corner of the intersection of Whalley Boulevard and 104th Avenue. It is within close walking distance to SkyTrain Surrey Central Station.

Site of 104 Plaza at 13748-13774 104th Avenue, Surrey. (Google Maps)

There will be three towers, with the 33-storey north tower with residential and some ground-level retail/restaurant uses forming the first phase, a 36-storey tower with residential uses on a middle parcel forming the second phase, and a 31-storey south tower with residential uses forming the third phase. The AHOP units were originally slated for the first phase.

The overall unit size mix is 63 studios (with 58 being micro units), 588 one-bedroom units, 454 two-bedroom units, and 36 three-bedroom units, including 26 three-bedroom townhouses.

The total building floor area will reach about 910,000 sq ft, establishing a floor area ratio density of a floor area that is 10.3 times larger than the size of the two-acre land assembly. This includes over 14,000 sq ft of retail/restaurant uses. Andrew Cheung Architects is the project’s design firm.

Previous City staff reports indicate the project will provide over 1,000 vehicle parking stalls within the underground levels.

Artistic rendering of 104 Plaza at 13748-13774, 13772-13790 104th Avenue, and 13777 Central Avenue, Surrey. (Andrew Cheung Architects/Echo Properties)

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