The provincial government is buying the old Woodward's building in downtown Vancouver, with plans to turn it into a housing co-op.

B.C. Housing will pay nearly $22 million for the now vacant department store on Hastings Street and will convert it into almost 300 co-op units for low and middle income earners.

Neil Monckton, who speaks for the Woodward's Co-op Housing Society, says the development of social housing at the Woodward's building will form an important anchor for residents of the downtown eastside.

"The investment that the province is going to be making in terms of creating affordable housing spaces in the downtown eastside is important for the revitalization of this neighbourhood," he says.

Residential units will make up 40% of the refurbished building. The remainder will consist of commercial and retail space.

The building has gone unused for years, as community workers and government tried to work out a plan to utilize the space.