A $123 million rental program funded by the feds and the province could create 1,000 homes for seniors and boost B.C.’s economy, Premier Gordon Campbell announced today.

“We’ve been talking for some time about an aging population,” Campbell said. “The question for us is, ‘how do we shape our communities and our cities and our services to meet the needs of those older British Columbians?’”

New houses are set to go up in 19 small communities scattered mostly across northern and interior B.C. Many homes will be prefabricated and funding will be split equally between provincial and federal coffers.

Campbell said construction on the first 218 units could start in the next few months and create 800 jobs, a linkage between housing and the economy that may lay hint at the B.C. Liberals’ forthcoming election platform.

The premier noted several times the project will use B.C. wood and employ local labour. Mill closures and job losses will likely be major issues in the May 12 election as small communities decide which party is the best to lead them out of an economic downturn.

Karen Stone, executive director of the BC Non-Profit Housing Association, said today’s news was a cause for celebration. By 2031, seniors will make up nearly 25 per cent of the province’s residents, she said.

“Our population is aging faster than housing options are being constructed,” Stone said.

Federal money for the new units comes out of the $40 billion stimulus package announced last January. The Conservative Party budget earmarked $2 billion for nation-wide social housing to upgrade existing units and fund homes for seniors and native peoples on reserves.

Housing Minister Rich Coleman couldn’t say how money much B.C. will get , but he estimated total funding in the range of “hundreds of millions.”

Geoff Dembicki is a staff reporter for The Hook.