B.C. Housing needs to do more about owners taking advantage of low-cost housing program: critic

A loophole in a B.C. Housing pilot project has the NDP’s housing critic calling for change.

“I’m astounded by the fact the government knows so little about what is happening in the housing market, including in their own housing,” David Eby said.

Eby’s response comes after a Global News report about some condo owners who are taking advantage of a loophole in the system.

In late 2015, a new condo development — Sequel 138 — opened in the Downtown Eastside. The controversial project featured 18 affordable housing units, which are managed by a private organization. However, 79 condos in the building were up for sale. For those units, only buyers with a combined household income of less than $85,000 a year qualified to get into one. In return, they paid little to no down payment.

All buyers signed a covenant with B.C. Housing. One clause clearly states for the first two years owners wouldn’t use the property for anyone but themselves. Instead, Global News has learned some units are being rented at market value.

The issue was first brought to B.C. Housing’s attention by a condo owner in August, however no action was taken until Global News began asking questions on Tuesday. Eby says it should have been addressed months ago.

“This is the indication that B.C. Housing and this government doesn’t have adequate information about what’s actually happening in the housing market and then even when they do have the information, they’re failing to act until it’s a news story,” Eby said.

In a statement to Global News, B.C. Housing says the initial agreement for the 79 units included in the Affordable Homeownership pilot project allowed for rentals. Owners and tenants had to meet an income test and B.C. Housing monitored those requirements.

“However, under the initial terms of the agreement, no cap was placed on the amount of rent owners can charge tenants. B.C. Housing is investigating the concern and going forward, this clause will be eliminated in all similar agreements by prohibiting rentals and leases,” the statement went on to read.

Eby supports government initiatives aimed at tackling metro Vancouver’s affordability crisis, but says there has to be a system in place to ensure they actually work.

“The issue is that this government — in overseeing B.C. Housing — needs to make sure B.C. Housing is going back after the thing is built to make sure that actually what is built is affordable housing,” he said.

“If you’re not doing that, if you’re not following up, then these kinds of problems won’t be addressed and you won’t actually make any headway in the problem.”