My interview with CBC at the end of my Welfare Food Challenge. BC has the worst poverty rate in the country. Why is Christy Clark not doing anything year after year after year. We need to raise the rate now!
FOR IMMEDIATE RELEASE
NDP Housing Critic Jenny Kwan Statement on Government Spin on the “Condo Conversion” Program
The federal and BC governments continue to speak about creating pathways to homeownership, yet their decision to purchase existing distressed condominium units raises important questions about whether public policy is addressing the root causes of housing unaffordability. The condo purchase plan comes after the Community Housing Fund was indefinitely suspended in BC when housing organizations had shovel ready projects they had already invested in. No amount of double speak will hide the fact that the Federal government failed to set affordability targets for the creation of Build Canada Homes and the bill that authorized the expenditure of $1.713 billion of public funds contained no meaningful safeguards, no measurable affordability requirements and no clear accountability mechanisms.
This approach is not a plan to support homeownership for first time buyers, rather, it’s an investment banker’s plan. At the heart of Condo Conversion program are the interests of investors and financial institutions. That is also why Carney has eliminated the Underused Housing Tax in their last budget and has not extended the foreign buyer ban when it expires at the end of the year.
There are alternative approaches that deserve greater attention. For years, the NDP has called for the Federal government to end special tax treatment for housing profiteers such as Real Estate Investment Trusts and to change tax policies that currently favour large institutional ownership of residential real estate. In addition, the NDP has advocated for measures to discourage speculative accumulation of multiple investment properties, and consider measures such as progressively higher down payment requirements for the purchase of additional residential properties as is done in other countries including Singapore. These types of reforms prioritizes the treatment of housing as a primary home and discourage housing profiteering and create a level playing field for first time home buyers.
Canadians deserve a housing strategy that addresses the causes of unaffordability, not just the symptoms and they deserve answers.
Why are governments using public funds to purchase existing condominium units rather than focusing those resources on increasing overall affordable housing supply?
What analysis has been conducted on the impact of these purchases on local housing markets and first-time buyers?
How many units could be created through new construction or partnerships with non-profit housing providers for the same level of public investment?
Why has the government chosen this approach over policies aimed at reducing speculative demand and excessive investor activity?
Why is the government not extending the foreign buyer ban?
Why were there no affordability and accountability requirements in Bill C-26?
Will the Parliamentary Budget Office have the opportunity to conduct an independent analysis of this proposal?
Canadians deserve a housing strategy that addresses the root causes of unaffordability, not just the symptoms. Directing public funding to the private market to purchase unabsorbed condos to bailout developers because, as the Prime Minister says they “are stuck” and “they do not want to sell at a loss, but they also can’t afford to hold the empty units indefinitely” reflects the wrong approach and priorities to deliver affordable homes to Canadians. Pretending that this is turning unsold condo-units into affordable housing is a slap in the face of the dedicated work of non-profit and co-op housing providers who are experts at this work. The government should reconsider this decision and bring back something more tailored to the conditions on the ground.
