DND says purchase of B.C. apartment building part of ‘alternative’ housing plan

Minister of National Defence David McGuinty responds to questions at the Liberal caucus meeting in Edmonton on Wednesday, Sept. 10, 2025. THE CANADIAN PRESS/Amber Bracken

The Department of National Defence on Thursday announced it has acquired a 37-unit apartment building in British Columbia that will house troops as part of an alternative housing model for the Canadian Armed Forces.

The four-storey apartment complex, situated near Canadian Forces Base Esquimalt, was constructed by a private developer and then purchased by the federal government for $23.3 million, according to a news release.

National Defence says the building will house Canadian Armed Forces members working at the Victoria-area military base starting in January 2026.

“The Canadian Forces Housing Agency is exploring alternative solutions through private sector partnerships and support to federal housing initiatives, including acquisitions like this one,” the department said.

“This particular acquisition was achieved through an unprecedented, multi-departmental approach that reduced a typical processing time of one to two years into just five weeks to complete, resulting in faster access to housing for CAF members.”

The federal government highlighted the project as an example of its increasing investment in national security projects, including a plan to build and acquire several hundred housing units for Canadian Forces members by the mid-2030s.

Among those CAF housing projects are the construction of dozens of new housing units on and around military bases in Alberta, Ontario, Quebec, New Brunswick and Nova Scotia.

“Throughout their careers, Canadian Armed Forces members and their families make countless personal sacrifices to serve their country,” National Defence Minister David McGuinty said in a statement Thursday.

“It is critical that we provide personnel with living accommodations that improve their quality of life, not impede their ability to do their job.”

Paolo Zurro, the CEO of the Canadian Forces Housing Agency, which will manage the Esquimalt complex, said in the statement that the agency is accelerating the delivery of housing units for CAF members “at a moment where they are needed most.”

Last year, the federal government’s updated National Defence policy allocated $2 billion over 20 years to establish the Canadian Armed Forces Housing Strategy to build and renovate housing for CAF members.

As part of the plan, the department awarded a contract in August 2024 to design a new, 480-unit housing complex on CFB Esquimalt. The new highrise will replace the base’s aging Nelles Block dormitory, which was built in the early 1950s and will be demolished once construction is complete in the early 2030s.

The 32,000-square-metre facility will house junior non-commissioned members of the Royal Canadian Navy in single-occupancy rooms, and will incorporate administrative services, a kitchen and a dining hall into a single building.

Construction services firm EllisDon was awarded the $10-million design contract for the on-base project, while National Defence estimated the total cost to complete the facility at $165 million.

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