British Columbia pledges to help preserve rental buildings
An amount of $500 million dollars has been preserved by the BC Government to assist non- profit housing organizations in purchasing reasonably priced properties before speculators and profiteers can snap them up. According to the Premier, David Eby, the province’s Rental Protection Fund will provide security and stability to many low-income tenants and senior citizens.
The goal is to protect against international corporations buying inexpensive properties and redeveloping them into upmarket housing. The Tenant’s advocacy groups have been encouraging the Government to protect against potential investors buying to upgrade and benefit from the profits.
The BC housing ministry expects the fund to be operational in a few months. The fund will provide one-time capital assistance to non-profit organizations looking to buy affordable rental units and co-op housing. The organizations will also receive assistance in obtaining finance as well.
The fund will be managed by an external body – the Housing Protection Fund Society, which comprises the BC Non-Profit Housing Association, Co-operative Housing Federation BC, and the Aboriginal Housing Management Association. The fund is expected to protect thousands of affordable units.
“For too long, this housing crisis has worked to the benefit of speculators and investors instead of people looking for a place to live,” Eby said at a news conference. “Increasingly, we’re seeing across Canada and in BC, large international corporations buying up rental buildings, speculating to earn investment income on homes that people count on for affordable rents.”
Eby said that the government is also considering legislation giving non-profit organizations the first right of refusal in potential real estate transactions involving affordable rental properties. “In too many cases, this predatory model leads to evictions and rent hikes and can lead to homelessness. There is no feeling worse than waking up in the morning and seeing a ‘for sale’ sign on the front lawn of the building you live in”, he said.
The government decision has been lauded as “ground-breaking” by the Co-operative Housing Federation, with CEO Thom Armstrong singing the praises of this decision, "Slowing the loss of affordable rental homes by taking them out of the market and protecting them forever in the community housing sector will make life much more affordable for renters everywhere in BC. This is the best thing the province could have done to maximize the net impact of the affordable new supply it is already investing in."
