Breadcrumb Trail links
- Politics
- News
- Local news
The Rent Protection Fund will prevent older buildings from being snapped up by large corporations…who often evict tenants to renovate or remodel the building and charge higher rents.
Posted on Jan 12, 2023 • 3 min read
20 comments Premier David Ibby, Housing Minister Ravi Hallon and Rental Housing Task Force Chair Spencer Chandra Herbert, along with representatives of the not-for-profit housing sector, announce the protection of rental housing in Burnaby, British Columbia, Thursday, January 12, 2023 (Photo by Jason Payne/PNG) Photo by Jason Payne/PNG
Article content
Not-for-profit housing providers that have asked for more funding to address the housing affordability crisis can now take advantage of a $500 million fund that will help them buy rental buildings slated for redevelopment and protect tenants from eviction.
Advertisement 2
This ad has not yet loaded, but your article continues below.
Article content
The Rent Protection Fund, announced this morning by Premier David Ibi and Housing Minister Ravi Kahlon, will prevent older buildings from being snapped up by large corporations such as real estate investment trusts (REITs), which often evict tenants. to renovate and charge higher rents or redevelop into luxury co-ops.
Start your day with a roundup of BC-focused news and opinion delivered straight to your inbox at 7am, Monday to Friday.
By clicking the signup button, you agree to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
Thanks for signing up!
A welcome email is on its way. If you don’t see it, please check your spam folder.
The next issue of Sunrise, presented by the Vancouver Sun, will be in your inbox soon.
We encountered a problem registering you. Please, try again
Article content
Premier David Ibby, Housing Minister Ravi Hallon and Rental Housing Task Force Chair Spencer Chandra Herbert, along with representatives of the not-for-profit housing sector, announce the protection of rental housing in Burnaby, British Columbia, Thursday, January 12 2023 (Photo by Jason Payne / PNG) Photo by Jason Payne / PNG
The fund, a key element of his leadership campaign platform, will provide one-time capital grants to housing nonprofits to purchase rental properties listed for sale.
During a news conference outside a co-op housing complex run by 115 Place Housing in Burnaby, Ibby criticized the “predatory model” used by large international corporations that buy rental buildings as an investment vehicle that “leads to evictions and rent spikes and can lead to homelessness.”
Advertising 3
This ad has not yet loaded, but your article continues below.
Article content
Many tenants in Metro Vancouver have expressed fears they will be evicted when an older rental building is snapped up by a developer.
“There’s no worse feeling than waking up in the morning and seeing a for sale sign on the front lawn of the building you live in,” Eby said, “because it raises the whole question of whether you’re going to be able to stay in your home.”
Canada Mortgage and Housing Corporation data shows that between 1991 and 2021, approximately 97,000 purpose-built rental units in British Columbia were remodeled or converted to more expensive units.
Jill Atkey, CEO of the Non-Profit Housing Association of British Columbia, praised the new fund, saying in a statement that “not-for-profit organizations will be able to purchase existing rental housing and lock in their affordability in perpetuity, ensuring the necessary relief for existing residents and generations to follow.”
Advertising 4
This ad has not yet loaded, but your article continues below.
Article content
Tom Armstrong, CEO of Co-operative Housing Federation BC, called the investment “groundbreaking.”
“The powerful idea behind this initiative is that we cannot lose affordable housing faster than we build it,” he said. “This announcement is the shovel that will allow us to start digging again.”
Eby has yet to announce progress on another part of its housing platform, which is to pass a law guaranteeing a right of first refusal for not-for-profit housing associations that want to buy low-rise buildings for sale, thereby preventing a bidding war with a private investor. Such a policy has been adopted by the City of Montreal.
Eby said similar legislation won’t be ready for the upcoming legislative session, but it’s still on his radar.
Advertising 5
This ad has not yet loaded, but your article continues below.
Article content
Premier David Ibey on the balcony of an apartment at 115 Place Housing Co-operative in Burnaby, British Columbia, following the announcement of rental housing protections on Thursday, January 12, 2023. (Photo by Jason Payne/ PNG) Photo by Jason Payne /PNG
BC Housing figures show a record number of purpose-built rental units — 14,546 units — were built in 2022, compared to 9,272 units in 2017. However, a September study by the Office of the Federal Housing Advocate showed that businesses private equity, pension funds and real estate investment trusts are increasingly acquiring and developing housing as an investment strategy that is associated with unaffordable rents and evictions.
The fund will become operational in the coming months and will be funded before the end of the fiscal year on March 31, meaning it will be financed using the $5.7 billion budget surplus from the current fiscal year. The fund will be managed by an external entity called the Housing Protection Fund Society, made up of the British Columbia Non-Profit Housing Association (BCNPHA), the BC Co-operative Housing Federation (CHFBC) and the Aboriginal Housing Management Association (AHMA).
Advertising 6
This ad has not yet loaded, but your article continues below.
Article content
Eby’s first major housing reform was the Strata Property Act, which banned strata from capping rents or imposing age restrictions above 19, which could drive out young families when they have a child. The exception is that buildings can maintain “adults only” or 55-+ policies, which Eby says will ensure seniors have enough housing options.
However, some strata corporations are taking advantage of a loophole in the new law banning tenancy bans by converting buildings only for seniors or over 55s.
-
BC NDP leadership race: Eby’s housing policy includes flip tax, legalized secondary apartments and increased density
-
Alex Hemingway: David Ibby’s first chance to change the housing game
kderosa@postmedia.com
More news, less ads: Our in-depth journalism is made possible by the support of our subscribers. For just $3.50 a week you can get unlimited advertising access to The Vancouver Sun, The Province, National Post and 13 other Canadian news sites. Support us by subscribing today: The Vancouver Sun | The province.
Share this article on your social network
Advertisement 1
This ad has not yet loaded, but your article continues below.
Comments
Postmedia is committed to maintaining a lively but civil forum for discussion and encourages all readers to share their views on our articles. Comments can take up to an hour to be moderated before they appear on the site. Please keep your comments relevant and respectful. We’ve enabled email notifications – you’ll now receive an email if you get a reply to your comment, there’s an update to a comment thread you follow, or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.
Add Comment