Why did BC Housing pay almost twice the assessed value for this Kelowna property?

Click to play video: 'Critics argue BC Housing overpaid for Kelowna property' Critics argue BC Housing overpaid for Kelowna property
Watch Above: Critics argue BC Housing overpaid for the proposed Kelowna site of a new supportive housing project. – Oct 18, 2018

They’ve already made it clear they don’t like the location, now critics of a proposed supportive housing project in Kelowna are raising concerns about the cost of the land.

They say the property that BC Housing chose for the development was anything but affordable, with a purchase price at almost double the assessed value.

However, the crown corporation argues the property was a good buy.

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BC Housing purchased the property at 2025 Agassiz Road in Kelowna in May 2018 for $2.6 million.

Less than a year earlier, in July 2017, BC Assessment valued the property at $1,350,600 — half the amount the crown corporation paid for it 11 months later.

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“They are looking to put a supportive housing unit here and they are looking to put 52 people here. If they were smart, fiscally responsible with our money, they could have bought two pieces of property and put 104 people in it,” said area resident David Bradshaw.

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BC Housing denies it paid too much.

The provincial organization argues the property is worth more now than what it paid. BC Housing said an independent appraisal valued the property at $2.89 million.

The crown corporation said the lower 2017 assessment doesn’t reflect the current market value of the property.

“The market for multifamily land has been extremely active in Kelowna. Finding suitable land for affordable housing in appropriate areas of Kelowna has become increasingly difficult over the last few years,” BC Housing said in a written statement.

An open house is planned on the project in November.

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