The project isin Kelowna, which is set to have 198 rental units and is expected to complete construction by Q3 2025. The value of the project is $103,043,195, meaning the 5% GST would amount to over $5M.
Sawchyn estimates that approximately 15 to 20% of the total cost for a project — about $15M for the Kelowna project — goes towards these kinds of fees, which come before they can even get shovels into the ground. Developers can't just eat the cost increases without doing anything, because it could hinder their ability to continue operating. They also can't always accept reduced revenues, because many developers have outside investors to answer to, which can include pension funds for the public sector. When it comes to the GST, they can't ask a buyer to pay it, because it's a rental and there is no buyer.
Lowering these kinds of fees for developers may not necessarily lower your rent to a level that makes it affordable — that train has likely left the station and cannot be stopped — but it could lower the rate at which your rent increases.