B.C. government sells social-housing sites but doesn't use money to fund new programs
The B.C. Non-Profit Housing Association has raised “concerns” about the province using proceeds from social-housing-property sales to fund a long-standing cost-sharing housing program with the federal government.
“BCNPHA had understood that the funds generated through the Non-Profit Asset Transfer Program would be new funds to invest in provincial affordable housing initiatives, which would have been a much needed cash infusion during times of austerity,” the organization states on its website. “It was surprising to learn that so far, the income from the sales of Crown property is being used to fund previously announced commitments with no new money for housing.”
In October 2014, the BCNPHA was delighted when the government announced a large-scale asset-transfer program.
It involved turning over ownership of approximately 350 Provincial Rental Housing Corporation properties in almost 100 communities to nonprofit groups that own and operate social housing on these sites.
The first two sites slated for transfer were Nicholson Tower and Stamps Place in Vancouver, which have also been managed by B.C. Housing.
Last October, Stamps Place resident Marilyn McKee told the Straight that "families are terrified" over the potential consequences of the sale.
Meanwhile, BCNPHA executive director Tony Roy told the Straight by phone that his group was under the impression that the approximately $500 million in revenue from these sales would be plowed back into new social-housing initiatives.
“I hoped it would be an increased investment in housing,” he said.
However, the first $150 million from the sales is replacing money that would have gone from general revenue to the cost-sharing program with Ottawa.
Roy emphasized that he supports turning over B.C. Housing sites to nonprofit organizations, calling it a "capacity-building exercise" for the social-housing sector.
In the past, he said, social housing has been “micromanaged through contracts” that inhibit societies from owning assets and leveraging them to redevelop deteriorating buildings.
The minister responsible for housing, Rich Coleman, revealed in estimates debates in the legislature in May that the government would use the building-sales revenue to fund an existing program.
NDP housing critic David Eby told the Straight by phone that this means that the B.C. government is balancing its budget on the one-time sale of B.C. Housing properties.
Coleman did not make himself available for an interview to rebut Eby's claim.
The NDP housing critic added that the government is employing a similar approach with school sites. He argues that this isn’t sustainable over the long term.
“They’ll mothball the schools and close them,” Eby predicted. “It generates revenue one time, and then what do we do in the future?”
Comments
8 Comments
everything
Jun 17, 2015 at 10:57am
The BCNPHA totally jumped the gun by endorsing the divestment plans. BC Housing's policy paper last year already had explained they were cutting $155M in subsidies by 2017 with no indication of new programs etc. Nor will there be, as everyone in the non-profit housing sector knows. The BCNPHA's response was really weird tbh.
Richard S.
Jun 17, 2015 at 1:12pm
What exactly is the "cost-sharing housing program with the Federal government"? Does it even involve supplying social or affordable housing for BC residents?
KentuckyKid
Jun 17, 2015 at 3:54pm
And welcomes off-shore money to build luxury condos.
Coleman can't handle the job, kick him out!
Jun 18, 2015 at 12:36am
This is obscene: "families are terrified". Time's up loser politicians like you Rich Coleman. You've made your money hacking the system but the system needs to be given back to now so all you anti-housing losers need to go. This is so disgusting. Straight, time to get Coleman on the phone no matter what it takes so we can hear his nonsense. Coleman get your fat ass off the couch, m'kay?
We all know we need to fund social housing in a sustainable long term way. Canada could look at almost any other developed nation to figure out how to do this. We are backwards greedy rednecks who need to get our acts together. This is causing so much undo stress.
And "austerity"? The BC Libs have at least doubled the debt since Christy came on board. It's austerity for ordinary people who need a place to live while the gluttons (see Coleman's pic) are getting gluttonier by the second.
So much for love thy neighbour. If we don't yank these tools and get behind social housing initiatives, it will be some seriously bad karma. And you know what they say about karma...We all get what we deserve.
Fat Guy
Jun 18, 2015 at 8:56pm
So... the folks at Stamps Place are paying the freight so Christy Clark can shovel more shitloads of money into the gaping pieholes of the rich - who turn around and flip million dollar condos like poker hands. What an appalling excuse for a government. If there was any justice the Liberals would be breaking rocks in the hot sun for the next fifty years or so.
HellSlayerAndy
Jun 21, 2015 at 9:38am
Hey Fat Guy...why stop at 'social housing' renters?
Everyone who rents is getting exploited by being forced to pay for someone's 'equity'.
No renter is being 'means tested' for their ability to pay and this whole thing rather looks like the higher income renters will simply displace the 'low income' renters.
Last time I looked NONE of the political parties were remotely interested in tackling this issue...and a hell of a lot NDPers were MORE than happy to chat about homelessness! and ONLY homelessness and ducked pretty low when Emperor Krusty just recently rejected reviewing foreign ownership citing a 'fear' to equity. Their fear too, no?
You trying to tell us that the average NDP supporter making a buck off this bubble is anymore willing to place regulations on foreign owners. Forget it.
Eby isn't fooling anybody...members of his own party were drooling over the prospects of taking over those properties and prospects of writing themselves 6 figures to manage them and a boatload of 'union' employees to service them.
Oh wait...no guaranteed revenue source outside of what the building can generate? Well that might be a little tight financially to accomplish, no?
Ergo why BCNPHA hacks were tickled pink and why those chumps at Vision figure rents in excess of $1200 for single bedroom is a 'market' rate for social housing...push out the existing poor tenants living in FULL suites and offer them the alternative of living in one of those 'crack' prisons they just built in the DES.
Barry Growe
Jun 25, 2015 at 5:09pm
The article says that non-profits "own and operate social housing on these sites." What do the non-profits own, and what does the provincial government own that it is turning over to the non-profits?
ClementineG
Jun 28, 2015 at 4:12pm
Charlie Smith is misinformed. Stamps Place and Nicholson Tower were 100% BCHousing---both owned and operated. The nonprofits had nothing to do with them. Before this sale, they are also 100% social housing. Once the nonprofits take over they will be only 50% social housing and the rest for making money. This net loss for BC is being carried out without honest discussion. Once we lose these properties, we will have a very hard time getting them back, especially if they have been used as "leverage to redevelop deteriorating buildings". (i.e. mortgaged to banks)
This is about the privatization of major public assets, and will cripple our ability to house those in need.