NPA charges ahead on plan for homeless

After a rancorous debate, the NPA–controlled Vancouver city council narrowly voted on March 13 in favour of an ambitious new approach to addressing homelessness. However, four Vision Vancouver councillors and one COPE councillor criticized the NPA majority for approving "in principle" the creation of two new organizations—a real-estate limited partnership and a charitable foundation—without first seeking public input.

"I think, like the referendum around the Olympics, this is something we need to ask the public about, all sectors of the public," Vision Coun. Tim Stevenson said during the council debate.

COPE Coun. David Cadman claimed that the public will be "angry" when it finds out that the NPA majority granted approval in principle to create two new organizations without first seeking input from citizens. "You are adopting this not in principle but in practice, and your consultation is a sham," Cadman said.

The NPA majority defeated Stevenson's motion to refer several key staff recommendations to the public for consultation prior to holding a vote. Instead, the majority voted to give approval in principle and then hold public consultations.

The director of the city's housing centre, Cameron Gray, had earlier told council that without "in-principle approval" of the foundation and limited partnership, the province would not begin discussions about providing $48 million a year in funding. According to Gray's staff report, the city would seek $48 million in annual provincial funding for support services and for the development and ongoing operation of at least 1,500 new supportive-housing units to be built on city-owned land. The province would also work with the city to purchase and/or lease, upgrade, and operate at least 500 single-room-occupancy rooms.

NPA Coun. Kim Capri seized on this point to justify voting in favour of the staff recommendation to proceed. "If this is what's going to bring in those provincial government dollars to the tune of $48 million, let's do it," Capri said.

In return for provincial funding, staff recommended that the city exempt property taxes on supportive housing, which are paid by the province, on all the city-owned sites set aside for the charitable foundation. According to the report, this would cost the city $1 million per year in 2006 dollars. The NPA majority voted in favour of this over the objections of the opposition councillors.

All members of council voted to approve "in principle" making 12 or more sites available for 1,500 or more units of supportive housing for low-income single people, including for those who have mental-health or addiction issues. The staff report suggested that these sites have an estimated value of $50 million. Council also voted unanimously in favour of a recommendation to approve "in principle" a one-time city contribution of $10,000 per room toward the purchase and/or lease and upgrade of the 500 single-occupancy rooms, which would cost $5 million. All of this is subject to the province agreeing to provide the $48 million per year in funding.

After Stevenson introduced his motion to refer the staff recommendations for public consultation, NPA Mayor Sam Sullivan accused the opposition councillors of wanting to delay taking action on homelessness. Sullivan claimed that it was an "unacceptable delay" if people were left homeless for an extra two hours, let alone for two months to allow for public consultation. "I do not want my term on council to have that kind of legacy," Sullivan said, insisting there was a need for "immediate action".

Vision Coun. Raymond Louie pointed out that Sullivan had been on council for five terms and claimed that during this period Sullivan had allowed the homelessness crisis to develop. "It seems that process doesn't matter," Louie said, his voice rising in apparent anger. "The ends justify the means. That's what you value: whatever you think is of value, and not valuing the citizens and what their concerns are."

Consultants Ken Dobell—Premier Gordon Campbell's former deputy minister—and Don Fairbairn had earlier submitted a report to council proposing the creation of a Vancouver Homelessness Partnership, which would offer 70 percent of its investment units for sale to the public and to institutional investors. The remaining 30 percent would be owned by a second new entity, the Vancouver Homelessness Foundation, which would raise funds and offer tax receipts to contributors.

Fairbairn and Dobell explained to council that this approach, combined with tax breaks from the federal government and the use of city-owned land, could facilitate more funding for supportive housing. Fairbairn said that investors would generate cash flow from rents, which would be provided by the provincial government. Dobell suggested that council should give consideration to the limited partnership building smaller units, of perhaps 260 to 265 square feet, on the sites.

That prompted Stevenson to blurt out: "I hope we're not down to cruise-ship sizes," referring to the small cabins on some vessels.

The report by Dobell and Fairbairn stated that under the current model, nonprofit organizations develop and operate most supportive housing on land they lease from the city on a long-term basis. Funding may come from BC Housing, a provincial Crown corporation, or the Vancouver Coastal Health Authority.

Canada Mortgage and Housing Corp., a federal Crown corporation, insures loans. BC Housing sells the mortgages into the private mortgage market, and the province provides annual funding for rental payments and support services.

Fairbairn suggested that by creating a limited partnership and a homelessness foundation, it could be possible to generate new sources of funding to combat homelessness. At one point, however, Cadman asked why the city was pursuing a "philanthropy model" when the federal government generated a $13-billion surplus and the provincial government recorded a $2-billion surplus.

"When you see those kind of surpluses that are occurring year over year over year, surely what we have is a failure of will for the jurisdictions that are responsible," Cadman said.

In 1989, then-mayor Gordon Campbell announced a different scheme to create affordable housing on city-owned land in Vancouver. He declared that the city had formed a partnership with a new company called VLC Properties Ltd., which was owned by union and management pension funds, to develop 1,500 to 2,000 rental apartments per year on city-owned sites. In 1994, the Georgia Straight reported that VLC had fallen far short of the target—building fewer than 1,000 rental units over a four-year period—because it couldn't generate an acceptable rate of return. In 1992, the company returned its last three city parcels to the city-owned land bank.