B.C. premier's action on housing applauded by some, called 'modest' by others

Premier David Eby's government introduced two pieces of legislation to boost housing supply Monday. While he claims the plan is bold, some say it's modest and may come with unintended consequences that could make some homes even more expensive.

On his first day in the B.C. legislature as premier, Eby's housing minister tabled the two bills. 

"We just can't have a situation where we're leaving housing on the table when people are looking for a place to rent," Eby told reporters.

Bill 44, introduced Monday and expected to be passed this week, comes into effect immediately. It means, stratas must allow owners to rent their units and welcome kids under 18. No bans will be allowed, although, buildings restricted to those 55 plus will be able to keep the age requirements in place.

The government estimates a modest 3,000 units may be freed up, out of about 300,000 units currently covered by such rules.

UNINTENDED CONSEQUENCES?

Yet, Tony Gioventu, the executive director of the Condo Home Owners Association said rental restrictions may be the only thing keeping investors out of the bidding for some units.

"It will certainly open the gates on accessibility for investors and speculators across the province," he told CTV News.

And if those restrictions are gone, prices could go up.

Gioventu says that's not the only issue with touting this change as a move to increase affordability.

"By the time you pay your strata fees, your taxes, your insurance, your extra special costs for special levies and maintenance and repairs and all the rest – you can't be renting your unit out in an affordable window," Gioventu added.

That means the units being added may not offer much relief at all for renters looking for affordable housing in some of the country's priciest markets.

MUNICIPALITIES MUST MEET TARGETS

Bill 43, the Housing Supply Act, also introduced Monday, aims to encourage municipalities to increase supply.

About eight to 10 municipalities will be identified as high need. In 2023, they'll have to develop action plans to meet targets set by the province. If they don't meet the goals, the province can take enforcement action.

Peter Waldkirch, with Abundant Housing Vancouver, said he's encouraged the province is talking about supply at the municipal level.

"Municipalities have failed. Their track record on housing is atrocious. They have demonstrably led us to a housing crisis," he added.

He said Vancouver and other cities in B.C. are dealing with a shortage of supply because they've failed to build. The enforcement actions the province could take aren't specified but government officials say it may mean changing zoning, approving specific projects or providing funding to help with infrastructure.

"Ultimately, I think the province will have to step in and sort of set minimum standards for land use, for zoning and so on to sort of lead to real reform. But iIthink this is at least a good first step," Waldkirch told CTV News.

He and others also pointing for years the provincial and federal governments also neglected this issue.

REACTION MIXED

The BC Liberals argued that the strategy creates more bureaucracy when what's needed now are homes. Leader Kevin Falcon pointed out Eby was housing minister for more than two years before becoming premier, and these actions could've been taken sooner.

"Instead of a canon we got a pop gun and frankly, I think young British Columbians and first-time buyers who were hoping to get into the housing market won't have a lot to hold on to, " Falcon added.

The BC Greens voiced their own concerns.

"There is no protection against Real Estate Investment Trusts, who could now redevelop rental strata housing to increase shareholder profits," leader Sonia Furstenau said in a statement. "

The BC Real Estate Association applauded the policy changes, saying the legislation would improve housing supply.

The Grater Vancouver Board of Trade also praising the actions, writing, 'We must continue working together to address remaining barriers to building more housing, including a lack of available workers, the rising cost of materials, and slow permitting and approvals processes.'

NEXT STEPS

Eby says he's committed to all the proposals in the housing plan he campaigned on to become NDP leader and premier. That includes a flipping tax, and rezoning each single family home to three units. Eby has also re-committed to a $400 renters' rebate first promised by the NDP 5 years ago. No timelines were given.

Bill 43 and 44 are expected to be passed this week, as the legislative session has extended debate to 9 p.m. on Monday and Tuesday, and 10 p.m. on Wednesday to allow opposition parties to provide input. Strata changes will come into effect immediately, while the supply act will come into force in 2023.