Canada provides $1.4 billion for 3,000 rental homes in deal with Vancouver-area First Nation

The federal government is providing a $1.4-billion loan to a Vancouver-area First Nation to build 3,000 homes on land that was once an ancient village that was burned and expropriated a century ago.

At a groundbreaking ceremony held Tuesday, the Squamish Nation said the development is the largest Indigenous-led housing and retail development in the history of Canada.

"Theproject that we are embarking on with our partners represents an over $10-billion return that is going to come back to theSquamish people through the use of our lands, through sustainable economic development," saidSwxw7mesh xwumixw (Squamish Nation) Council Chairperson Khelsilem.

The on-reserve residential and commercial development will be built at the head of Vancouver's False Creek, land that was returned to the nation by the courts in 2003.

"The hope that every generation in every culture has is that the next generation will have a better life than the one we did," he added.

Prime Minister Justin Trudeau says the development's additional supply of rental units has the potential to change both pricing and availability for housing in Vancouver.

"Particularly in Vancouver, it's tough to find a place. The rental market vacancy rate is very low. We need to work together to provide more housing options for people, and that's what brings us here today," Trudeau said.

When complete, the Senakw development will create 6,000 homes, and the federal government has committed to finance the first two of four phases.

The prime minister made the announcement before heading into a three-day cabinet retreat in Vancouver as the Liberal government prepares for the next sitting of Parliament.