British Columbia Committee Hansard (Blues) — Tuesday, April 30, 2024, p.m., Issue 424 (42nd Parliament, 5th Session) (20240430pm-CommitteeA-Blues)
20240430pm-CommitteeA-Blues
British Columbia — Debates (Hansard)
Fifth Session, 42nd Parliament
(2024) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Tuesday, April 30, 2024
Afternoon Sitting
Issue No. 424
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business
Tributes
Michael Lunn and Fred McEachern
Hon. S. Malcolmson
Introductions by Members
Orders of the Day
Committee of Supply
Estimates: Ministry of Housing (continued)
Hon. R. Kahlon
K. Kirkpatrick
T. Halford
Report and Third Reading of Bills
Bill 20 — First Nations Mandated Post-Secondary Institutes Act
Committee of Supply
Estimates: Ministry of Housing (continued)
K. Kirkpatrick
Hon. R. Kahlon
A. Olsen
A. Walker
Report and Third Reading of Bills
Bill 22 — Safe Access to Schools Act
Proceedings in the Douglas Fir Room
Committee of the Whole House
Bill 20 — First Nations Mandated Post-Secondary Institutes Act (continued)
C. Oakes
Hon. L. Beare
Bill 22 — Safe Access to Schools Act (continued)
M. Lee
Hon. N. Sharma
S. Robinson
Proceedings in the Birch Room
Committee of Supply
Estimates: Ministry of Energy, Mines and Low Carbon Innovation (continued)
A. Walker
Hon. J. Osborne
S. Furstenau
Estimates: Ministry of Finance
Hon. K. Conroy
P. Milobar
D. Clovechok
TUESDAY, APRIL 30, 2024
The House met at 1:32 p.m.
[Mr. Speaker in the chair.]
Routine Business
Tributes
MICHAEL LUNN AND FRED
M c EACHERN
Hon. S. Malcolmson: Today in Nanaimo is Red Shirt Day. It’s the ten-year anniversary
of a terrible and tragic workplace shooting at the Western Forest
Products mill. Two men lost their lives, leaving two families
devastated.
Please join me in thinking of Michael Lunn and Fred McEachern and,
also, their union brothers and sisters, the United Steelworkers, who are
mourning today and thinking of the terrible day ten years
ago.
Introductions by Members
A. Walker: Today is the birthday of a constituent of mine, Mr. Robert Filmer. He
was one of the youngest councillors to be elected in this province and most
certainly the youngest in Qualicum Beach.
I’m thinking of him today on his birthday because the town of
Qualicum, under his leadership, put in a rainbow crosswalk. It was a big day
for our community. However, over the last week, we’ve seen two alleged
incidents where someone has dumped chicken manure on that crosswalk. That is
not something I stand for, nor anyone in this House.
I do want to wish him a very happy birthday.
Orders of the Day
Hon. R. Kahlon: In the main chamber here, I call Committee of Supply for the Ministry of
Housing.
In the Douglas Fir Committee Room, I call Committee of the Whole for Bill
20, First Nations Mandated Post-Secondary Institutes Act.
In the Birch Committee Room, I call Committee of Supply for the Ministry
of Energy, Mines and Low Carbon Innovation, followed by the Ministry of
Finance.
Committee of Supply
ESTIMATES: MINISTRY OF
HOUSING
(continued)
The House in Committee of Supply (Section B); J. Tegart in the
chair.
The committee met at 1:35 p.m.
The Chair: I’ll call the committee to order. We are dealing with the
estimates for the Ministry of Housing.
On Vote 33: ministry operations, $1,033,255,000
(continued) .
Hon. R. Kahlon: I want to start by just sharing with the member. The member asked
me a question last time. We were discussing estimates around the rental
protection fund. It was a question that was a little bit towards the
Ministry of Finance, but I committed that I would try to get an
answer.
When we discussed the rental protection fund, in particular, the
question was around the impact for the property transfer tax and how
much would be coming back to the province and not available for
acquisitions.
The team did have a chance to connect with the RPF and can share
the following. Of the 27 properties currently approved for acquisition,
24 of them are exempt from the property transfer tax. This exemption
resulted in savings of $13.8 million in property transfer tax. Yeah, I
believe that’s what the member’s question was.
K. Kirkpatrick: Thank you to the minister, and thank you to the staff for that
follow-up. It’s much appreciated.
Lots to cover in a little bit of time here. You’ll be happy to
know I don’t have a headache today, so we are going to go…. I’m going to
be much tougher than I was last week.
There was a modelling report that was released in December of
2023. It was written by my friends at the Sauder School at UBC and Terra
Housing. It was a modelling report. I’ve got a couple questions with
respect to that.
It did show the housing prices set to rise and housing starts
reducing over time. That was through the Finance Ministry projections as
well. The modelling report’s mid-line estimate for how many new homes in
the next five years, out of the 250,000 that have been talked about, is
49,000. That means that 80 percent of the 254,000 homes won’t be
completed until after 2028, which is the end of the NDP’s ten-year
housing plan.
Specific questions: can the minister confirm that the purported
reduction in housing prices is only a reduction in future increases and
not a decrease in prices overall?
[1:40 p.m.]
Hon. R. Kahlon: The team is just pulling the stuff from the report. They’ll be
doing that, and we can canvass the report at greater length over
time.
I will share with the member that the report did say that it would
lead to from 216,000 to 293,000 additional net new housing units for
British Columbia over the next ten years.
The report did highlight that without the important interventions,
the prices for housing would continue to go up, given that we have more
people than housing available. The report also did highlight that with
these measures, with the increase in housing supply, prices would
stabilize for rents, and prices would stabilize for the ability for
people to buy homes.
K. Kirkpatrick: Thank you to the minister.
May I clarify with the minister the beginning of what the minister
said. Does the minister need time to pull that report so that I can
continue to ask questions on it? Should I move to another part, and come
back to that report? Would that be the preference of the minister?
Okay.
If the Chair can indulge for a moment, I just need to reorganize
here for a moment.
Hon. R. Kahlon: Yeah, that would be greatly appreciated. That way, the team that’s
working on that can cue up. If the member has the general frame of which
topics we want to discuss, then we can just have everybody prepare
accordingly. I know that these things move, and that’s fine. But any
insight on that would be, I think, helpful for the limited time we
have.
K. Kirkpatrick: Thank you to the minister.
It’s a pretty key document, in terms of the implementation and the
impact of legislation that has been coming down the road. There’ll be a
number of things: the ACC impact, land lift costs. There are a few key
pieces in there. I hope that is directive enough.
If I might, Chair, I will then move to asking some questions
specifically about the main estimates documents. I will start with this.
There has been a dramatic reduction of over $20 million in the housing
and land use policy piece of the budget. It’s the largest cut in the
ministry’s budget this year.
If I can ask the minister: how would he plan to ensure that
affordability and availability of housing will move forward without
these critical funds? Isn’t this move counterproductive to addressing
the housing crisis?
Introductions by Members
Hon. R. Kahlon: I want to start by welcoming students from Pacific Christian School, I
believe, that are here today.
I see head nods. I want to welcome them to the chamber. There are 20
grade 10 students that are here.
[1:45 p.m.]
I want to welcome you to the chamber today on behalf of my colleague
the MLA for Saanich South. She’s not here right now. We’re debating the
housing estimates, the Ministry of Housing, and we’re having an exchange
about all the things related to housing in the province.
Welcome. I hope you enjoy the proceedings.
Debate Continued
Hon. R. Kahlon: On the question, it’s actually not a decrease. What’s happened is
that we had some dollars for DAPR, the development approval process
review, and we moved that sooner. The dollars got out quicker than they
were. It’s not a massive….
I’ll read this: “The $20.123 million funding decrease is primarily
a result of accelerated payments in fiscal ’23-24 for development
approval process review funding.”
K. Kirkpatrick: Thank you for the answer. I have to ponder that for a moment to
see where to go from that answer. I may come back for some
clarification.
The ministry’s budget reflects a substantial $7.5 million increase
in salary and benefits. How does the ministry justify such a significant
increase in administrative costs? Doesn’t this again show a misalignment
of priorities during a housing affordability crisis?
Hon. R. Kahlon: The number referred to by the member is broken down in different
initiatives that we committed to as part of our Homes for People plan.
Some of these things were in contingencies before, and now they’ve just
been put into the budget.
For short-term rentals, it’s $1.7 million. We’ve launched a new
digital permitting tool. We haven’t launched it, but we will be
launching it soon, and $1.3 million is for the team that’s working on
that. We’ve got housing innovation resources, strategy, governments and
accountability, housing supply. We’ve got different pieces of the
housing strategy that are now coming into the base budget when most of
those were in contingencies previously.
K. Kirkpatrick: Thank you to the minister.
I’m really interested in the housing innovations division. There
is a $2 million estimate provided for that, maintained into the next
year. Can the minister describe what kinds of innovative solutions the
ministry is expecting to be funded?
[1:50 p.m.]
Hon. R. Kahlon: That team is doing exciting work. First, they’re working on
digital permitting.
I can share with the member that the digital permitting team is
working on a new digital building permit tool which will enable
community proponents to submit building permits digitally so that there
could be automatic code compliance checks on the building code side and
will also do a complete check for completion of applications to ensure
that it meets the local government’s needs. That work is happening right
now.
We think that’s going to have significant impact in communities,
and we want to expand that over the years. It’s starting as a basic
tool. We have signalled that we will digitize the building code to PDF
initially, but we are moving to BIM-enabled over time so that an
application that is created in BIM, in a digital model, will be able to
be submitted in a digital format and be automatically checked for code
compliance. That’s where that team is heading, and we’re working with 14
communities on that.
Then the team is also working on opportunities for modular going
forward. In particular, they’re also working on mass timber and
advancing mass timber use in B.C.
K. Kirkpatrick: Thank you to the minister for that answer.
The digital building permits part of that is being funded under
the $7.5 million increase in benefits. Another piece is coming out of
the housing innovations division. I understand the minister said they’re
working with 14 communities. Is the digital building permits
technology something that’s expected to be rolled out and then
customized to municipalities across B.C. once it’s finalized?
Hon. R. Kahlon: It’s a front-facing tool that will be rolled out initially with
the communities that have agreed to pilot with it. More details will
come soon. If it is successful, I suspect that communities around the
province would be wanting to be part of it, but there’s work for us
still to do on that.
K. Kirkpatrick: Thank you to the minister. I’m very interested in that. I think
that is certainly the way of the future.
Can I ask then, with the $2 million for the housing innovations
division and the various things going on there, how will the investment
directly impact the housing market, and what measures is the ministry
putting in place to determine the effectiveness of the new projects that
the innovation fund is funding?
Hon. R. Kahlon: I can’t give the full impact at this point, other than to say that
the team is working. We have a working group: UDI, ULI, local government
representation, architects, engineers and the Building Officials
Association. We’ve got a whole table of professionals who work in this
space that are at the table helping design and guide it.
We have got the folks at Digital on it. We have got folks from
B.C. Tech on it. Really, pretty much everybody that touches that type of
work is at the table helping guide the process.
There’s a lot of excitement about the potential around this. This
may be a surprise, but the federal government is interested in something
that B.C. is doing. They’re interested in this initiative in particular.
The reason why everyone is excited is because they see the potential
impact this could make, to address both time and uncertainty.
[1:55 p.m.]
Also, there is potential in the future for this tool to have the
ability for information-sharing between different entities, different
authorities. That is an important piece, I think, for us. That is,
again, future work.
I can share with the member kind of where we’re at now. We think
that this team will have major impact, whether it’s on the digital
permitting side or on work they’re doing around the building code on
mass timber. It’s a small but mighty team. I think, as the member has
highlighted, that this is the future, and the team is leading that
work.
K. Kirkpatrick: Thank you to the minister.
Back on the digital permitting, which I think is quite
interesting, certainly this is a good idea. What I have found with this
government is that sometimes the execution on things doesn’t go quite as
smoothly as initially intended. Can the minister explain when this
project will be completed?
Hon. R. Kahlon: We will have to disagree on the characterization of the work. I
would highlight that almost every single initiative that we have brought
forward when it comes to housing is being adopted across the country. We
are leading the way when it comes to new policy, new tools, new
technologies. I’m really proud of the folks sitting around me, because
they’re leading this work across the country.
There’s no end goal, necessarily, of this work. Digitizing our
processes is ongoing. So I can’t put an end date. I can say that in the
coming months, we’ll have phase 1 of the digital tool made available to
the public, to homebuilders. Part of the work, the scope of the work,
is: what would phase 1 look like? This is what we’re in now.
Then, with that advisory group, we’re talking about what phase 2
looks like, what phase 3 looks like. It will be multiple years to roll
out this work. I know I’ve met with housing advocates, homebuilding
organizations, from Ontario, that are trying to get the Ontario
government to do this work. We’re hoping that we can set a model which
then can be taken across the country.
K. Kirkpatrick: Thank you to the minister.
I’ll move on, but just two things. I know we’re making statements
here prior to answering questions. I may disagree with the minister that
the plans and the work that are being done on housing are being adopted
across the country.
I think there certainly is a curiosity as to how things are
rolling out here. I am concerned — with such a significant investment,
such as software, in the development of what could potentially be a real
game-changer, in a significant, complicated project — that there’s not a
specific scope in timelines for when it’s going to be completed and how
that work is going to be done.
A question to the minister, again on the financials. The strategic
governance and accountability allocation sees a significant rise of
$536,000. Can you explain the necessity behind this increase? How does
bolstering governance and accountability translate into tangible
benefits to those who are struggling with housing?
Hon. R. Kahlon: I think the member and I can probably agree that governance and
accountability are critically important. That’s the process we’re
going through right now. I can share with the member that this team
works with the FPT tables. This is one of its
responsibilities.
[2:00 p.m.]
There are a lot of initiatives that we’re doing that now require
us to work better, in better collaboration, with the federal government,
whether that’s BC Builds, or their version, Canada Builds, or whether
this is…. Now some of the conversations they’re having are around
infrastructure, housing targets, all these things. That’s partly the
work this team is doing.
Also, a new Indigenous unit that we’ve started there…. More
Indigenous communities are very active in construction and projects. We
see a need for a team to be able to support that work, to support
communities, but also support housing across the province. It’s actually
a modest amount, considering the work that the team is doing.
K. Kirkpatrick: Thank you to the minister.
I’m going to talk a bit about the cost pressure grants and some of
the issues happening with construction overspends on projects. The cost
of construction has gone up significantly under this government, and the
government had to expend $154 million on overbudgeting housing projects,
and that’s nearly $4 million per project. I have about three pages’
worth of projects here that have overruns.
We have seen the cost of construction soar, leading to that $154
million in cost pressure grants being poured into the over-budget
housing projects. How does the minister justify nearly $4 million per
project in overruns to taxpayers who are already burdened with some of
the highest cost-of-living increases we’ve ever had?
Hon. R. Kahlon: The member referred to this government, but I think the member can
easily say governments across North America, across the world are
dealing with global inflation. Certainly, in Canada, my counterparts
across the country are seeing cost pressures on housing, infrastructure,
all types of projects. And that’s no different than the private sector.
There are a lot of projects that are private sector projects that are
dealing with major cost pressures.
What I would say is that there is a deficit of affordable housing.
There is, we believe, decades of underinvestment in affordable housing.
And when you have projects that are going, it’s vitally important that
they get built, because they’re supporting some of the most vulnerable
people in our community. We acknowledge that there are cost pressures on
housing, on infrastructure, across the board, across Canada. What we’re
doing here is we’re stepping up to deal with it.
We also are looking at supporting federal government projects. The
federal government, at one point, decided that they were going to go
directly to local governments to support housing projects. Some of those
projects had cost overruns and stalled those projects. We’ve been trying
to find ways to ensure that even those types of housing units continue
to get built, because we know what it means for people in our
communities.
K. Kirkpatrick: Thank you to the minister.
It’s easy to say that everybody else is having the same problem,
and everybody else is having the same results, but that is not
necessarily true. When there are anticipated cost overruns, when you’re
managing a project, you have to make decisions along the way that are
going to make that project affordable. The ability to simply write a
cheque at the end of the day and not actually be really managing the
budgets on these projects and making decisions to manage those costs is
concerning.
I know my colleague from Kamloops last week was asking the
minister about a B.C. Housing project that had been purchased. Money
hadn’t gone into it to make sure that…. I shouldn’t say that money
hadn’t gone into it. There was no thought to maybe turn off the water
during the winter so all the pipes didn’t burst. You’ve got a building
sitting there empty that should have people in it. So it’s hard to take
the explanation for the cost overruns on “it’s just something that
happens,” because we know that bad management is certainly a contributor
to those cost overruns.
Given the table from the B.C. Housing FOI that we received,
indicating numerous projects across various communities, it’s clear that
the cost overruns are widespread. So realizing now that this is
happening, what specific measures is the ministry taking to ensure more
accurate budget forecasting and control over public funds?
[2:05 p.m.]
Hon. R. Kahlon: I think it is true and fair to say that cost pressures are being
felt across the country. I know this because I talk to colleagues across
the country. We’re talking about our not-for-profit partners, who are
the ones who are dealing with these cost pressures. No one is trying to
make extra money here. These are real cost pressures — because of global
inflation, interest rates — that are being felt.
I think the member knows that it’s the same with our local
government partners. It’s the same with the federal government. It’s the
same with our private sector partners. All of them are facing real cost
pressures that are putting challenges on their projects.
We’re doing an analysis to ensure that it’s real cost pressures,
tying it to things that are actually impacting the housing to be built.
The accountability measures are in place to do that. In the end, it’s
vitally important that when a community knows there are 40 units of
housing coming in their community, we find a way to make sure those 40
get built so people can get indoors.
K. Kirkpatrick: Thank you to the minister.
There is considerable financial impact when budgets, obviously,
are overrun. I’m curious about the accountability measures within B.C.
Housing. What kind of oversight is there to make sure that these budgets
are being managed as best as they can be?
I’ll take what the minister says. I mean, I know we’re in a high
inflationary period of time. There are cost pressures, but we have to
manage those cost pressures. Again, I’ll…. You know, the Kamloops
reference…. There’s money being spent on things where you’re not
actually getting benefit, and those are taxpayer dollars being
spent.
What accountability mechanisms are in place when projects exceed
their budget forecasts? Is there a risk of systemic inefficiency within
the current approach to housing development?
Hon. R. Kahlon: The accountability measures that are in place…. All related cost
overruns for new projects get verified through a third-party cost
consultant. If the variance is above 10 percent, it automatically has to
go back to the board. If there’s a variance of over 15 percent, it has
to come to the province as well.
K. Kirkpatrick: Thank you to the minister.
Who is the third-party cost consultant?
Hon. R. Kahlon: There are many consultants out there. An example would be Altus.
Altus is a well-known company that does this work. But there are many
that B.C. Housing works with.
K. Kirkpatrick: Thank you to the minister.
May I ask the minister if we can now move back to the December 7
modelling report? Okay. I’ll start questions on that. Let me just see.
Did I ask a question on this, or did we stop before I started? Yeah.
Okay.
Is the information in the modelling report baked into the
ministry’s budget? Does it inform the housing starts and the supply
projections?
[2:10 p.m.]
Hon. R. Kahlon: The report was a third party doing an economic analysis of the
impacts of the legislation that we brought forward. The data has been
shared with the Ministry of Finance. It has been shared with our local
government partners. It may guide communities in some of their
decision-making. It was important to see the impacts, potentially, of
the work. That’s why they were consulted to provide us this
information.
K. Kirkpatrick: Thank you to the minister.
The question was based on the data that’s in this report. These
are people that this government relies heavily on for data that is meant
to inform policy decisions.
Was the data in that report considered in the government’s budget
in terms of estimates on housing starts and supply
projections?
Hon. R. Kahlon: The data that’s presented reinforces that the legislation we
brought in was important to address the challenge we have. I would not
say it was used for creating the B.C. Housing Ministry’s budget. The
projections are for private sector, mostly, housing that’s going to be
built. We, obviously, use the data internally. We use the data for what
could possibly happen, but it did not impact the size of our housing
budget in the ministry.
K. Kirkpatrick: Thank you to the minister.
I’m sure that the minister and the ministry are alive to some of
the comments and analysis of policies that this government has brought
in and the view that there will be negligible impacts in many areas from
the legislation that is being brought in.
How does government respond to concerns that the majority of the
new homes which are promised under the current plan won’t be available
until after the end of the NDP’s ten-year housing plan in 2028? I know
that the minister said these homes will be ready in ten years. The date
I’m referencing is actually the end of the NDP’s ten-year housing plan,
and the majority of these homes won’t yet be completed.
Hon. R. Kahlon: There are a few things. The projections from this third party are
in addition to the targets that we had set. It’s in addition to the
targets that we had set. That’s the first important thing.
The member refers to studies that show that the policies we’ve
brought forward won’t have a big impact. I’m happy to talk about those
studies that the member is referring to. I can’t point to specifically
which policy the member is referring to.
K. Kirkpatrick: Thank you to the minister. This is just, again, from the research
that was done out of UBC and Terra. The modelling report suggests that
the new amenity cost charges could actually significantly and negatively
impact housing growth, particularly in Vancouver.
[2:15 p.m.]
Why, then, is the NDP allowing Metro Vancouver to triple the taxes
on new housing in the region?
Hon. R. Kahlon: I think the member’s question is conflating two different issues
into one. Amenity cost charges are an important tool because not only do
we want housing, but we also want to ensure we have viable, livable
communities that have amenities. I don’t know if that’s a position of
the official opposition, not to support amenities in our
communities.
The tool, as we debated at great lengths, comes with checks and
balances for local governments. They have to clearly put in their bylaws
what amenities they’re prioritizing, what part of their community. It
comes with some certainty on costs. It comes with some requirements to
have analysis done on the impacts it would have for housing.
I think that it’s important that communities be able to build
those amenities, and that’s what the amenity cost charge is: moving away
from a model of negotiations or discussions that are not in the public
to a very transparent public form of funding critically important
amenities.
We believe we can have both. We believe we can have housing but
also ensure that local governments have dollars to build important
amenities to support growth in communities.
K. Kirkpatrick: Thank you to the minister.
Well, it was quite the leap to suppose that by my asking about the
negative impact of amenity cost charges, there was any suggestion
whatsoever that the official opposition doesn’t believe in community
amenities. I mean, livability is foundational in terms of the housing
plan that we’re talking about on this side of the House.
The question is that this is modelling that is done that is
showing that the introduction and the use of amenity cost charges could
significantly, negatively impact housing growth. May I ask what the
minister has as a response to that?
Hon. R. Kahlon: It would help us, in this exchange, if the member were able to
point to a page number on the report or what
section the member’s
referring to when referring to amenity cost charges.
K. Kirkpatrick: Thank you to the minister. I appreciate that. I’ve got page
numbers on some of these, but I’m sure that my folks behind the computer
here will provide a page number in a moment that I can share with
you.
I will move on to the next question then. Can the minister
elaborate on the modelling report’s caution about the potential for
rezoning to mainly benefit the incumbent property owners?
[2:20 p.m.]
Hon. R. Kahlon: I was trying to find where the member is referring to in the
question, and I can’t find the reference. I will say that to suggest
that the impacts or the effects of this legislation won’t have impacts
on people that are renters or others in the housing market is
incorrect.
If the member is referring to the report, on page 17, it says:
“The primary effect of small-scale, multi-unit and TOA legislation on
renters is to reduce rents by existing rental homes through supply
effects.” It also says: “We show that in most cases, new higher-density
housing would be built closer to city centres, with potential benefits
in reducing commuting, congestion and associated carbon
emissions.”
Throughout the report, it talks about the impact of the changes
and what that means to communities. So let’s say I respectfully disagree
with the member’s characterization of what the report says.
K. Kirkpatrick: Thank you to the minister.
To go back to the amenity cost charges, although I won’t debate
those again, there is a table entitled “Impact of ACC charges on TOA
development,” and that’s located on page 126. That is where it shows
that there could well be a negative impact on housing starts because of
the ACCs.
I’m going to, if the minister is okay, move along with similar
questioning, but we don’t need to necessarily connect it directly to the
report. Though I will provide, when I have those details, what pages and
what areas in the report we’re referencing.
As when the member of the Third Party and myself were talking
about some of this new legislation and asking the minister questions as
we went through, there was a concern about wealth inequalities from Bill
44 and the value uplift in properties. That is supported in the
modelling report.
Does the minister, at this point, in hindsight, or with
information that’s coming in…? Could he respond to concerns that gains
from rezoning would exacerbate wealth inequalities?
Hon. R. Kahlon: This is like déjà vu of the fall session. The member for
Parksville-Qualicum is laughing because we spent hours talking about
these topics, and the information was in front of us when we had that
conversation.
The housing system we have right now is not working. Income
inequality and the spread between those who have and those who do not is
growing with the system, prior to any changes. It’s happening. Those
that have access to housing, homes, multiple homes have greater wealth
than those that don’t have access to it. The reforms are about
increasing the housing supply, increasing the ability for people
to get into the market in housing that is affordable to them.
[2:25 p.m.]
I spent, I think, five or six hours talking about this topic. I’m
happy, for the last four or whatever hours we have, to continue to talk
about the legislation in the fall, but I think that time might be better
used for us to spend on the estimates at hand.
K. Kirkpatrick: Thank you to the minister.
With respect, we may have been talking about things, but in the
interim period of time, this report has come out, and there has been
other information that supports what some of our concerns
were.
There is also, in this report, a recommendation for value capture
mechanisms to tax the land lift in these properties. Coun. Christine
Boyle has advocated for a land value capture tax to deal with
this.
Has the minister had any communications with Councillor Boyle
regarding this type of tax?
Hon. R. Kahlon: I have not, and I’m not aware of any conversations happening
around this.
K. Kirkpatrick: Thank you to the minister.
Because there seems to be a disconnect between the ministry and
the information I’ve got with respect to the modelling, I’m going to
move on to some other topics at this point.
Surprise, surprise. I am going to ask the minister about
compensation for homelessness costs. This is starting with the invoice
from the city of Victoria to the ministry. They have decided to invoice
the province for $100,000 to cover the operational costs of Our Place’s
storage facility and community centre.
I’ve got a couple quotes here from a few different
mayors.
Marianne Alto in Victoria: “This council has done yeoman’s work
well above its usual capacity…in stepping into spaces that have been
traditional responsibilities of the provincial and sometimes the federal
governments.”
Mayor Leonard Krog from Nanaimo: “Should local residents taxpayers
be paying for what’s essentially the delivery of medical
services?”
Again, UBCM president Trish Mandewo: “We are footing the bill, and
it’s getting increasingly difficult for local governments to balance the
budgets. This issue is not going away.”
A question to the minister. Will the Minister of Housing be paying
the invoice submitted by the city of Victoria? Is that a yes or a
no?
Hon. R. Kahlon: If the member has the invoice, I’d like to see it. We’re not aware
of any invoice that the city of Victoria has shared with us.
I will say that in this case, the city of Victoria made a decision
in 2018 to provide funding for an initiative. The province wasn’t
consulted. They made that decision, and they’ve been funding it for six
years. I am not aware of any invoice that has been sent to us. If the
member has information about that invoice, I’m happy to see
it.
Beyond that, I can say that we have been working with communities,
providing an unprecedented amount of investments and funding for these
measures in particular. I’ll highlight a couple.
Just today I met with the councillors and staff from Prince
George, where we are bringing online 100 affordable housing units,
supportive housing units to get vulnerable people out of encampments and
into homes.
Crab Park — I mentioned that. We had over 100 people at Crab Park.
We’ve been working, building relationships, getting people into housing.
We have 16 people, and our goal is to get them into housing. It’s the
same story in Nanaimo.
Just in Abbotsford, on Friday: 221 housing units that we’re
funding in Abbotsford. Lonzo park site is opening this week. We’ve got
people moving in. We identified new shelter locations. The list goes on,
and it’s important work.
I’m keen to work with our local government partners to support the
efforts that they’re making. I think all the mayors you’ve mentioned —
Mayor Alto, Mayor Krog, Mayor Yu in Prince George, Mayor Siemens in
Abbotsford — will tell you that the historic amount of dollars we’re
investing is needed, and we’ve been doing it in partnership with
them.
[2:30 p.m.]
K. Kirkpatrick: Thank you to the minister.
I don’t think there’s any debate that these investments are
important and that we need to provide shelter housing in these
communities.
The concern from these municipalities is that it does put
additional pressure and additional costs because of the nature of the
housing that’s going into the communities, and that is pushed down to
the municipalities to have to pay. Whatever has happened with Victoria
covering costs in the past, the issue is today and how those increased
costs are being managed.
Given the city of Victoria’s recent action to invoice the
province…. I appreciate that the minister has said he has not seen that
invoice yet. But he has certainly heard about that invoice in the media,
and we are certainly aware that that invoice is coming. So given the
recent action of the city, what is the Ministry of Housing’s stance on
such claims from local governments that these costs are now being
downloaded to them that should traditionally have been the cost borne by
the province?
Hon. R. Kahlon: I would say that dealing with homelessness is a real challenge. I
appreciate the pressures that local governments face, the province
faces, the federal government faces, First Nations communities face. But
I want to make sure that it’s on the record that this discussion of
local governments not believing the province is funding enough is not
something that’s new to our government now.
[S. Chandra Herbert in the chair.]
If you go back to Hansard to 2002, 2004, 2008, you will
hear the same conversation happening. Whether it’s infrastructure or
whether it’s other matters, local governments are always making the case
that the province and the federal government provide more dollars. All
for good reasons, all for good causes.
My goal in our ministry is to work with our partners to address
the challenges around housing. My door is always open to mayors. I spoke
to Mayor Krog just a couple of weeks ago. We’re making some real good
progress when it comes to getting vulnerable people off streets and into
housing. Mayor Alto, similarly. Mayor Siemens — I met with him on
Friday. The list goes on.
Again, we can go into this “the local government’s wanting more
dollars” question, but it is something that is, I think, a historic
piece that local governments have raised that we’re going to have to
just work together on.
K. Kirkpatrick: Just so the minister is aware, and whoever has sent this to me,
Victoria has actually sent the invoice. I’m not sure why the minister
has not seen that invoice, but it has been sent, unless I am being given
wrong information.
I hear what the minister is saying with respect to the kinds of
requests for municipalities that have been historical in terms of asking
for increased supports. But we are talking about issues that are
traditionally, and should be, covered by the province, which are unique
to the times that we are in today.
Additional homelessness, public disorder, decriminalization,
conversion of motels into supportive housing units: all of these things
actually add to the burden of a municipality in terms of the costs they
have to pay. The costs are related primarily in terms of homelessness
and shelters that the municipalities are flagging and that the city is
talking about.
Again, what does the minister have to say to those municipalities
on those specific issues that are unique today that are causing
financial hardship? There’s only so much that a municipality can do,
only so many tools that it has in order to be able to balance its
budget.
Hon. R. Kahlon: I have knowledge that homelessness is a challenge. I think it’s
two things. I think it’s important to acknowledge that homelessness
didn’t just start. We’ve had a homelessness challenge for a long
time.
We went at great lengths when we were discussing homelessness when
the previous government was on this side, on the government side, and
were dealing with homeless encampments in the city of Victoria and
communities across the province. Those were real challenges that
communities have been dealing with for a long time.
Again, for the city of Victoria, I’m not aware of any invoice. But
again, if a local government comes forward with some information, and
they want to have a conversation, we can certainly have that.
[2:35 p.m.]
I think it’s important for the record to note that Victoria
decided they were going to fund this in 2018, six years ago. It wasn’t a
conversation with the province. They decided they wanted to do it. Then
for them to turn around and say: “We want you to pay for it now.” I
think if there’s true collaboration, we should be working together on
that. And that’s my expectation with all communities that we work with
in the province.
K. Kirkpatrick: Thank you to the minister. I think that we’re talking about two
different things in terms of what the city of Victoria has agreed to
fund previously and the nature of their request today. But as the
minister has not seen the invoice or the correspondence from the city of
Victoria, I’ll move on, although to note that this is an issue that is
not just city of Victoria. I believe other invoices will be in the mail
to this ministry in the future.
UBCM has been here recently, advocating for some of the key issues
that municipalities have. With respect to housing, there were several
requests of this minister. As we’ve seen in the last few years, there’s
been a lot of conversation about what’s happening with B.C. Housing. So
one of the questions that UBCM had was: how does this government intend
to improve B.C. Housing operations that will minimize delays in
affordable housing projects?
Hon. R. Kahlon: I would first start by saying that there are a lot of improvements
happening at B.C. Housing. I’m not saying that because the CEO is behind
me, but I am saying that because the CEO is behind me. He’s been doing a
fantastic job in his role in making the changes that I think are
necessary at B.C. Housing.
When it comes to projects, I think there’s always a desire for
projects to move faster. Sometimes it’s procurement challenges.
Sometimes it’s challenges related to local governments and their
permitting and change of use and additional requirements that get put on
in the last minute. I’ve seen it all. It’s a combination. Sometimes we
can do better; sometimes local governments can do better. We are
committed to continue to work with them, especially in this
time.
It’s one conversation to say we have limited funding for housing,
and because there’s limited funding the issues are limited, and the
scale is limited. But we are investing in dollars that we have not seen
in B.C. when it comes to social housing or affordable housing. With that
increased capacity, it puts pressure on local governments. It puts
pressure on us. So we continue to work through that.
I met with the UBCM and the executive members that were here. We
talked about a whole host of topics that get raised about housing. Then
I mentioned the projects that are happening in communities that have
opened, that are opening right now. There is generally a real
excitement.
I think from a UBCM perspective…. Certainly what I heard from them
is that they are pleased to finally see the investments that are needed.
They would always like to see more. The other topics we discussed around
infrastructure and all those pieces, I think those are things we have to
work together on as we go forward.
K. Kirkpatrick: I’m not sure that I would describe the reaction to much of the
changes in housing policy as being pleased. I know that there are a lot
of concerns that municipalities have.
I’m going to ask a couple more questions on B.C. Housing, very
mindful that Vincent is sitting in the House here. There have
consistently been concerns from housing providers that the bureaucracy
at B.C. Housing is challenging. The turnaround times are challenging.
It’s very difficult to get an invoice approved or to get something
that’s relatively critical so that you can move on and a housing
provider can pay for something.
After everything that happened with Atira and B.C. Housing, and I
know there have been changes, there is a recognition of an inefficiency
in the processes at B.C. Housing. Can I ask what has been done to review
that? Are there recommendations just in terms of increasing the
efficiency of how the organization works?
[2:40 p.m.]
Hon. R. Kahlon: There’s been a lot of work happening around streamlining processes
between the requirements from treasury, from B.C. Housing, from our
not-for-profit partners. We’re also doing a lot of work with our
not-for-profit partners. I think that there are ways for that
interaction between our not-for-profits and B.C. Housing to be much more
efficient. We’re looking at digital tools to make sure that information
can be going back and forth, so it’s less labour-intensive. There are
efficiencies, definitely, that we can achieve, but that work is actually
happening right now.
My team, B.C. Housing meet with CEOs from not-for-profits. There’s
a bit of a working group, and those are places where all these
discussions are happening right now.
K. Kirkpatrick: Thank you to the minister.
Are contract renewals with the housing providers being done in a
timely manner, or are they actually exceeding the dates when the initial
contracts are expiring?
Hon. R. Kahlon: Thanks to the member for the question.
I think it’s important to note first that there’s never a gap in
service. If an operating agreement hasn’t been renewed, the service
continues, and there are provisions built into the operating agreement
for that.
There is work to do there. We are doing a lot of work in that
space. It’s an important conversation we’re having with our
not-for-profit partners. How do we streamline? How do we find
efficiencies? How do we do this in a better way? The working group I
mentioned to the member is a place where these conversations are
happening.
K. Kirkpatrick: Thank you to the minister for the answer.
The concern I have heard is that there are often services being
provided prior to even having a contract in place with B.C. Housing.
That happens…. The most obvious examples, I think, or the easiest
examples are winter shelter and some of those things that seem to be
left to the last minute to be able to develop and sign contracts with
the housing providers.
What I would like to do now…. I’m going to move on to some
different questioning, but I am going to turn the floor over to my
colleague from Surrey–White Rock for some questions.
T. Halford: I thank the minister and his staff, and I do thank my colleague
from West Vancouver–Capilano for giving me this important time here on
the Housing estimates.
[2:45 p.m.]
The minister and I have canvassed this in the chamber, I think,
definitely outside, regarding the warming shelters in White Rock.
Specifically, this winter, obviously, we saw record temperatures, at
least where I am, of freezing.
White Rock itself is a fairly small community, with just over
20,000 individuals. But also, in terms of our population that’s
unhoused, a lot of those individuals come from Surrey as well, or other
parts of the province. But White Rock has been on the hook —
specifically, we’ll talk about this year — for the warming shelter,
where they approved, through council, $360,000 to fund it.
I’ll be honest; it was kind of done at the last minute, because
they were trying to get support. It’s a much smaller tax base. They did
have a request in for emergency B.C. or $75,000 last season. They can
only apply for those funds if the temperature drops below zero. But now
with their tax base to absorb that and not have any support, where
they’re having to house people from other municipalities….
I know the minister was on record with CBC, following the mayor’s
comments, that he would look into ways that he could assist White Rock
in terms of their funding.
White Rock has a bill here for a substantial amount of money. They
stepped up, and they did the right thing. And we always want to make
sure….
I’ll keep in mind that that warming shelter was only in place
until 10 p.m. Okay? So after 10 p.m., these people had to leave. Where
did they go? A lot of them went behind the movie theatres, the Rialto. A
lot of them slept in alleyways, businesses, abandoned homes.
So my question to the minister is, one, is he still willing to
help White Rock with the bill that they have for the previous winter?
Also, two, how do we find a way where we can actually get people that
aren’t getting put back onto our streets when it is the coldest? After
10 p.m., it’s much colder than it is at four o’clock when they’re
checking into the shelter.
Hon. R. Kahlon: Thanks to the member. The member has spoken to me about this
topic.
I think it’s important to note that my comments on radio were
about a conversation with the city about a permanent shelter. My comment
was that if the city can help us find a location for a shelter, where
people can be indoors, they have a place to sleep at nighttime,
that is a conversation we’re willing to happen.
I don’t think at any point I said that we would fund a new
operation that they started without talking to us about what that looks
like. If White Rock is interested in having something that is available
for people for overnight sheltering, not just day space but overnight
sheltering, we’re keen to have that conversation.
The Chair: I had a brief request for a five…. I had a request for a
biology break, but I’m going to go back to the member from White
Rock, and then we will take that break, so they can get those
questions done.
T. Halford: Biology breaks are important, so I will be brief.
Anyways, I want to thank the minister for that answer, but my
point is this, and I’ll ask the minister this question: did the
minister, or through the ministry, have conversations with the city of
White Rock and with the city of Surrey specific to funding a warming
shelter or an overnight shelter in the either White Rock area or South
Surrey area prior to council approving this $360,000 which had the
warming centre in operation from November 20 to March 15?
We, in my area, have relied primarily on faith-based communities
to do this housing. I know that this has been a very important topic for
those, to make sure that we have something.
Then my second question would be: is the minister in talks with
just White Rock proper in terms of finding a permanent facility for
daytime and overnight? Is that just White Rock, or are those
conversations also including Surrey, specifically in the region of South
Surrey?
Hon. R. Kahlon: There may have been conversations with B.C. Housing staff, in the
local staff, with White Rock. I’ll get that information. I’ll read into
the record for the member once we reach the person that’s the lead on
that.
[2:50 p.m.]
I will say to the member that B.C. Housing doesn’t fund warming
centres. If there is a request for funding for when the temperatures
rise, it’s done through EMCR.
I can say that there were lots of conversations with the city of
Surrey around supportive housing and shelters. I know that for a fact.
We’ll just have to verify what conversations have happened with White
Rock.
Again, communities coming forward and saying, “Hey, we have a
location; we want to put a shelter in place,” is music to my ears. Those
are really difficult conversations to happen in communities.
I do appreciate the member’s understanding and agreement that
there’s a need for this type of housing in communities. I will get that
information for the member and read it into the record so that he has
it.
The Chair: Thank you, Members. I’ll ask that we take a recess for ten
minutes. That means be back here at three o’clock so we can get
going at three. A request to all members. Thank you.
The committee recessed from 2:51 p.m. to 2:59 p.m.
[S. Chandra Herbert in the chair.]
The Chair: All right, Members. It’s just about three o’clock. I’d like to
start things early, if I can.
We are here with the committee for the Ministry of Housing
estimates.
First, I recognize the member for
Coquitlam-Maillardville.
S. Robinson: I seek leave to make an introduction.
Leave granted.
The Chair: Please proceed.
Introductions by Members
S. Robinson: Up in the gallery today, we have several guests. Leo Facio is here
joining us. He’s a city councillor from the burgeoning town of Harrison Hot
Springs. He is a former mayor. He has been a really good friend of mine. A
lovely gentleman. He’s no longer the mayor. He’s now a city
councillor.
He is here with his family: Alja Facio, Matthew Facio, Danica Facio,
Caleb Facio and Mikayla Facio.
[3:00 p.m.]
This is their first trip to the Legislature. I’ve taken them on a bit
of a tour. I think some of the highlights for them, besides the library and
this lovely chamber…. I think it was meeting Keith Baldrey out in the
hallway.
Can everyone please welcome the Facio family to the House.
The Chair: Welcome to anyone else as well.
Welcome to the Facio family.
Hon. R. Kahlon: On a good day, it’s nice to see Keith Baldrey in the hallway. On a bad
day, it’s probably not as nice for us to see him in the hallway.
I’m glad you got a chance to have a tour and see the library. The
library is my favourite spot.
Nice to see you again. Thank you for being here.
Debate Continued
Hon. R. Kahlon: My colleague from White Rock, the MLA from White Rock, asked a
question prior to the break. Our team has connected with White Rock.
They have connected with the staff.
Now, the challenge they found, in the conversation, was the
location. Location was the big challenge. There was, I guess, a round
table with B.C. Housing and others in the community that existed to talk
about how to address this challenge. There was a leadership change, and
under the new leadership, there isn’t that table yet. I think there
might be value in bringing that table together again to talk about how
we address these challenging issues.
I’m certainly hoping my friend from across the way sees this
comment and maybe reaches out to me. We can figure out how to start that
process again.
With that, I’ll pass it back to the member.
K. Kirkpatrick: On behalf of the member for Surrey–White Rock, I thank the
minister for that answer.
I’d like to talk about the impact of some of the policies that
have come in, in the last few years, in terms of how they’re impacting
the work that we’re doing with real estate today. The homebuyer
rescission period, HBRP, was brought in with a goal of cooling the
market and dealing with the multiple offer issues. Has the ministry gone
back and reviewed if that tool has been successful in doing what it was
intended to do?
Hon. R. Kahlon: I appreciate that we’re talking housing. This is a piece that was
the Ministry of Finance. Those estimates are coming up in the other
chamber. This question may be better suited there.
K. Kirkpatrick: Thank you to the minister. I appreciate the response that this is
a Ministry of Finance question.
It certainly has an impact on housing. It’s got to be connected to
housing plans and policies and behavioural modification, which is being
attempted with this kind of work.
Has the minister…? Who would be monitoring whether this tool is
actually working? Is that something that someone in Housing looks at, or
is that something that somebody in the Ministry of Finance would look
at?
Hon. R. Kahlon: Yes. This is, again, the Ministry of Finance.
The challenge we have is they’re in estimates right now in another
chamber. I wouldn’t be able to get any information from the Ministry of
Finance. But it is something that is better suited to ask the Minister
of Finance.
K. Kirkpatrick: I agree with the minister. The challenge is the Ministry of
Finance is in estimates in a different room, and I’m not able to ask
that question right now. I am certainly hoping I will be able to do
that. I do think there are some challenges with the implementation of
that.
Another question on behalf of BCREA and, I believe, on behalf of
most British Columbians who are dealing with the housing market right
now. There has been an escalation of policies and legislation. There’s a
lot going on in British Columbia right now with respect to housing and
changes in housing. BCREA has been asking this government for a
permanent provincial housing round table.
I would like to ask the minister: is that something that’s being
considered, and if not, why not?
Hon. R. Kahlon: I’ll give the member the same answer that I gave BCREA when they
were all here, at their conference, in front of all their members. We
value the input that they could provide to this conversation. In fact,
we have BCREA sitting at various tables on various topics. But when it
comes to housing, limiting the conversation to one table is a real
challenge.
[3:05 p.m.]
We have a lot of local governments. We have different bodies
representing local governments. We have BCREA. We have engineers. We
have architects. We have community planners. We have the Urban
Development Institute, the UDI. The list is actually quite large. There
are local organizations in each community.
My message to BCREA is that, yes, we should all get together and
have conversations about how we move housing together. But to limit it
to one table becomes challenging. It’s hard to have one table where you
can be productive to have the conversation, but at the same time, who
doesn’t get a chance to come on the table is a challenge.
Again, I think they have good input. They have actually shared a
lot of input, and I know from my last meeting with them that they’re big
fans of the reforms we’re bringing forward. We’ll continue to work with
them and all the other partners in the housing space.
K. Kirkpatrick: Thank you to the minister. With all due respect, I think saying
“big fans” might be a bit of an overstep in terms of their reaction to
some of this housing legislation.
If I might just clarify as well. What they’re asking for is not
simply a BCREA ability to meet with government and have input into
policy and legislation. They’re asking federal, provincial, municipal,
regional, Indigenous governance authorities, market and non-market
developers, builders, real estate professionals, civil society
organizations.
I mean, there are a lot of people that need to be at the table,
and then there is ability to have subcommittees or different groups that
can look at something in a more specific area. It is something that I
know has been asked of the minister, and I reiterate that I think that’s
important.
I’m going to move on to something else, which I think is actually
an example of perhaps not getting enough feedback, clarification and
consultation when coming out with legislation. I have a couple of things
I’d like to address, as tomorrow is May 1. We know what happens on May
1. It’s when the STR bill, Bill 35, comes into effect in terms of
limiting short-term rentals.
We did a lot of work on Resort Drive in Parksville and in
Qualicum. That was, admittedly by this government, an oversight in terms
of looking at the impact on a particular community with the overreach of
this STR legislation and the impact that it would have had on
Parksville. I know that Parksville appreciates that the minister heard
and has addressed this issue. Now, he could not have not heard this
because of the 100 people that came into the Legislature and the
introduction of the amendment of this act by B.C. United.
But I have another example that I would like to share and would
ask if the minister could explain why this particular project and
property would be included in the STR ban. This is a resort community
called Aqua resort. It’s a 300-plus unit, 380-degree waterfront,
multiphase, concrete highrise. It is in the process of being developed.
Presales have been made. It’s on the shore of Lake Okanagan’s Lower
Mission resort drive.
It was purpose-built for short-term rentals, distinct in every way
from its zoning. So it’s got commercial zoning, its OCP designation,
waterfront and hotel tourism–specific districts next to hotels — a hotel
on each side of it. It has a private boat launch, state-of-the-art
indoor boat club with crane-assisted rack storage and boat valet
service, waterfront boardwalk with beach and waterfront restaurant,
multiple swimming pools, spas, hot tubs, concierge, central air
conditioning, yoga studio, golf simulator, fire pits and more
hotel-style amenities.
To me and to anyone that would look at this, it’s clear that this
is a resort community. This was built as a resort community. The people
who have done the presales and purchased in here paid for something that
they believed was legal and was within the OCP. Can the minister please
explain to me and to the owners in Aqua resort why this would be
considered under the short-term rental legislation?
[3:10 p.m.]
Hon. R. Kahlon: It sounds amazing, but your description, I think, has put it out
of my price range. I can pretty much guarantee.
I would say that, first off, I would strongly disagree with the
characterization from my friend across the way. At no point did I say it
was incorrect or an oversight. From day one, we said that strata hotels
would be able to continue to operate. But because of the complexity of
strata hotels, given the complexity of the different economic models
that all of them operate on, we wanted to have the time to bring that
in. We said we would bring that in through regulation, and that’s
exactly what we did.
I want to recognize the member for Parksville-Qualicum
because he also brought lots of different types of scenarios to us,
which helped inform the policy.
To the specific property, the member knows that we’ve laid out
clearly what is required for new strata hotels to be considered strata
hotels. That’s laid out clearly. If the member doesn’t have the three
different
definitions of that, I can certainly share that with the
member. Anyone that wants to come into this space needs to ensure that
they’ve got that.
If they’ve got a concierge, that’s one important step. One of the
items is “staffed at the front desk.” It sounds like they’ve got
that.
One or more employees or contractors that provide housekeeping
services for overnight accommodation. It sounds, from the description….
You had me sold. It does sound like that’s there.
A platform providing platform services available exclusively for
the owners offering short-term rentals of the property. Those are
important pieces that they have to have in order to be considered a
strata hotel.
K. Kirkpatrick: Thank you to the minister.
Can I clarify that the significant difference between whether this
is exempted from the legislation or not would be whether there is
one central management company that is managing the short-term rentals,
as opposed to individual owners who are managing those rentals on their
own?
Hon. R. Kahlon: I’ll read this into the record. “Before December 8, 2023,
accommodation was provided in a manner similar to the hotel and motel —
a staffed front desk on site, one or more contractors that provide
housekeeping services for the overnight accommodation, a platform
providing platform services available exclusively for the use of owners
offering short-term rentals of the property.”
These are the elements that have to be in place for anything
that’s coming in the future.
K. Kirkpatrick: Thank you to the minister.
Can I clarify, then, that the property had to be operating prior
to December 28, 2023? That is my understanding of what the minister has
just said.
[3:15 p.m.]
Hon. R. Kahlon: I wanted to make sure I had the right language here. I think it’s
important to note that this is all on the website already, available to
the public. If the member would like it to be in writing, I can get that
in writing for the member as well.
The following services have to be provided that are similar to a
hotel or motel. They have to have a staffed front desk on site. One or
more employees or contractors are providing housekeeping
services. Overnight accommodation, a dedicated online reservation
platform and the strata lot and the property are not able to be used as
a principal residence by anyone due to legal use restriction, including
zoning, rental management agreement between a manager and an owner of a
strata lot, and then a restrictive covenant or a covenant under
section
219 of the Land Title Act.
K. Kirkpatrick: Thank you to the minister. That opens up some opportunities,
maybe, here.
If I could clarify. I didn’t understand when I heard…. Maybe I
didn’t hear that date, and I heard something else. But the date of May
28, 2023 — was that something in there as a requirement for something to
have been operating already, or did I take that out of
context?
Hon. R. Kahlon: The description I’ve laid out is going forward. The description
that I’ve laid out is for strata hotels that want to come online in the
future. They have to have those requirements they must follow. Again, I
can get this in writing for the member. The information is on the
website for everyone right now.
K. Kirkpatrick: I was just confused about that date, so I’ll look on the website
to find the date.
My concern here is that we’ve got a building that isn’t operating
yet. It’s still under construction. I would like to read a paragraph to
the minister. This is from a real estate development professional who is
in Kelowna: “I am not aware of any similar punitive change to a
development, completed or under construction, in the history of the
province of British Columbia where the intended use for a purpose-built,
OCP-designated, neighbourhood-planned, zoning-applicable project has
been stripped of its permissible use rights without grandfathering or
compensation.”
[3:20 p.m.]
Now, when this legislation was being drafted, can I
understand, please, from the minister why, at the very least,
those units who were legally operating designated short-term rentals
were not grandfathered?
Hon. R. Kahlon: The information we’ve laid out on the website makes it clear, for
these proponents, what they need to do to ensure they can operate like a
strata hotel. Certainly, the member verified two of the three things in
the description of the amazingness of this new property.
The third is that it seems reasonable for them, as a site that
wants to operate as a strata hotel, to follow, so we made the
information available for them. I appreciate it. It may mean that some
units may not be as easily sold by this salesperson. That could come as
a challenge; I appreciate that.
We wanted to make sure that the rules were clear, in that people
that were coming forward in the future would know how they could operate
in a strata hotel. It does mean they can. It just may mean they perhaps
won’t be able to sell the units as expensively as they wanted, or maybe
they have a smaller pool of people that are interested in
buying.
Those things I can’t control, but I can control the fact that this
is important work that we did, in partnership with a lot of folks, to
make sure that strata hotels that are operating like hotels can continue
to do that and that those that want to come in the future can operate
this way as well.
K. Kirkpatrick: Thank you to the minister.
This is cold comfort for a lot of people, people who are owners in
the Janion, for example. I’m still really struggling with how we can
look at a building like the Janion…. It is sold as strata units, zoned
specifically as tourism short-term rental, legally operating commercial
licences, owned by those individual strata owners. Why are we making
this distinction, between the Janion and what the minister is now
describing as strata hotels, in the ability to operate?
I don’t understand why the good people who own in a building like
the Janion — who were operating legally, who purchased on the absolute
understanding that it was zoned appropriately, and who were following
the rules, without any expectation that these types of short-term
rentals would be caught up in Bill 35 — had the rug pulled out from
under them.
Hon. R. Kahlon: This is a conversation we’ve had at great lengths. Again, I’ll say
that I appreciate that investors have bought homes and want to use them
for short-term rentals. What we’re saying is that when you’re losing the
percentage of homes towards short-term rentals, it’s putting a huge
strain on families and people in our communities. People are not able to
access housing. We’ve seen studies that show rents have gone up because
of this.
We can spend the next four hours going on with this, but we’ve
canvassed this multiple times. Those are housing units that we believe
should be made available for people, either for long-term rental or, in
some cases — if a person says, “I don’t want to be doing long-term
rental” — then sold.
We have seen both. We have seen people sell the units. We have
also seen that people say: “You know what? I’m just going to put it on
the long-term market.”
This is the reason why we’re going in this direction. It’s a
balanced approach that ensures that we can have short-term rentals
available in communities to support tourism but also that we can
prioritize these complete homes and make them available for people who
are struggling for housing in our communities.
[3:25 p.m.]
K. Kirkpatrick: Thank you to the minister.
I feel that when I ask these questions and the minister says that
we’ve canvassed this already, that is disingenuous. We have not even
begun to have these conversations. Every time I ask a question about
this, the minister dictates what to me sounds like a press release. That
is the answer we get over and over.
The minister knows — I think this entire House knows, as I break
into tears in here from time to time — that I take people’s issues,
concerns and impacts to their lives very seriously. I would hope that
the minister and this ministry would as well.
There are terrible consequences to people who have purchased these
units. They are incorrectly painted with a brush, from the other side of
the House, that these are evil investors. This government has destroyed
people financially and emotionally because of Bill 35 applying to these
units that it simply would not apply to. The minister can say over and
over that this is needed for short-term housing. This is a limited
number of units. These are not these investor-owned condos that were
built for people to live in.
The people that are being impacted and hurt in these legal
short-term rentals agree with the majority of Bill 35. They agree with
it. They are saying: “Yes, we need to put some guardrails on here. We
need to make sure that there are not…. Those units in condominiums that
were meant for people to live in, to rent in and to buy — they should
not have short-term rentals in them.”
That is not what this is. The minister is not hearing that. He’s
not listening to people, and he is not reacting to the actual, real-life
impacts to people. To say that we have canvassed this…. We have not even
begun to canvass this. It’s important today, because tomorrow is May 1.
This is going to have, and already has had, unbelievably negative impact
on British Columbians.
I would just like to…. If the Chair will indulge me for a moment,
I have got a couple of quotes and some information on the people and
their families that have invested in the Janion and these other legally
operating short-term-rental buildings.
Here’s one headed “Pension plan gone wrong”: “I have been in a
state of shock and under extreme stress since the announcement of this
legislation. My financial well-being has just evaporated. Sixteen years
ago my partner and I, professional musicians with two young children,
realized we needed to get serious about our financial planning in order
to make sure we could provide for ourselves and never be a burden to our
children, while we were able to pursue our musical careers.”
Now I will jump to the end, but after they have lived frugally —
never going out to restaurants, never getting babysitters, never having
a new car — they were able to come up with a down payment to make an
investment in a hotel-zoned condo in Victoria. This ends with: “I’m now
62, still self-employed, having pivoted career-wise a few times to pay
the bills. I am very tired of the years of hustling and working
extremely long hours. I was planning to retire in three years, but now I
can’t.”
That is the evil investor that this government is going after, but
that is only one.
A young family with a new baby:
“You mischaracterize who short-term-rental owners are. We’re not
wealthy people from out of town. We’re not corporations. I’m from
greater Victoria, born in ’86, starting out in elementary school in
Sidney, working hard. I have a Hungarian grandfather who left Romania in
the ’50s when his property was expropriated.
“Please understand that most short-term-rental owners have been
messaging you that they believe in 95 percent of Bill 35. I’m sending
you a photo of my family. We’re not privileged out-of-town investor
speculators that you imagine. We are collateral damage to this
legislation.”
I’m going to just do one more here, a senior with a disability.
This is part of a transcript from a call.
“I apologize. I own in the Astoria, but I’m legally blind, so it’s
hard for me to participate in this call. This situation shouldn’t have
anything to do with Airbnbs. This is strictly about the provincial
government breaking a law that has been in place since my parents were
children in Vancouver.
[3:30 p.m.]
“The government told us we could do things the right way, the legal
way, to have vacation rentals. It was expensive for us to do this,
expensive to buy into these buildings, costly for our taxes, but we are
not lawbreakers. We did what the government told us was the proper thing
to do. Many seniors, like ourselves, will be facing bankruptcy, as we
have to sell at a loss. If we’re lucky, we’ll be left with a few dollars
in the bank.”
[J. Tegart in the chair.]
So when this minister says that all of these investors are taking
these suites out of the market, I would like him to please speak
directly to the people that I have just read this from, to the other
people who have been financially devastated by Bill 35, so unfairly
pushed on people without consultation, without the ability to
grandfather and without any heart from this government hearing and
understanding what you have done to British Columbians.
Hon. R. Kahlon: I’ll say a couple things here.
We have canvassed this at great lengths. The member may feel like
we need to do more, and that’s okay. This is the member’s time. I have
no problem talking about this further.
I think what the member doesn’t often talk about in this place is
the people in our communities who are struggling for that housing, who
need that housing. We’re not saying to these folks that you have to
sell. We’re saying: “You can rent it. You can rent it in the market.” In
fact, the majority of the sales that have happened in these buildings
have been sold at a profit — some, considerable profits. That’s for
those who sell it. I know many folks that are actually renting these
buildings.
What we’re saying is we need housing for long-term renters in our
communities. I appreciate these are challenging topics to discuss. But I
have to say to the member that we are seeing record numbers of investors
buying homes and then putting them into the short-term rental space
while we have families who are struggling in our communities.
Now, the member talked about Victoria. I grew up in this town,
born and raised here. My dad was involved in the tourism community when
he was alive. Drove a taxi. My mom owned a restaurant in town. I
understand tourism is important in this community. I get it. Grew up
here.
But when I have friends I grew up with who can’t live in our
community anymore and can’t raise their kids in our communities because
we’re losing more and more housing stock towards people wanting to buy
investment properties for short-term rentals, it puts a real strain on
our community. I appreciate the member is passionate about it. I’m
passionate from a different perspective, which is the people who really
need to access this housing.
The member read some stories. I’ve got stories of people who, now,
have actually got into housing that were short-term rentals. A woman in
Vancouver reached out to me, who now not only has a home for her family
but is running a daycare out of it. We have so many examples of people
who are like: “We actually have access to housing now, which we didn’t
have access to.”
Our goal with this is to ensure that we have housing available for
people, housing units that were meant for housing available for people.
And when they’re operating like strata hotels, then they’re able to do
that. That’s the differentiation that we made with this
legislation.
K. Kirkpatrick: Thank you to the minister.
The minister said that housing that was meant for housing is being
used for housing. The point of what I was saying is that these were
never meant for housing. These were never built for housing. They were
built…. And the minister knows this.
To tell us that these people have actually been able to sell for a
profit…. We know that the market value of those strata hotels, although,
that’s not how you refer to them…. Those strata-specific buildings for
short-term rentals…. Their market value dropped 30 percent overnight
with no warning for those people. So other than the Premier of British
Columbia actually being able to make a profit from selling a short-term
rental unit, other British Columbians have not.
The minister talks about families who are struggling financially.
You have created 600 families who are now struggling financially with
this bill. The minister is not hearing me and is comparing apples to
oranges. The woman who has found a place in Vancouver where she can now
have a child care facility — fabulous. That doesn’t sound to me like it
was a 250-square-foot, purpose-built, short-term rental that she has
moved into.
[3:35 p.m.]
I would ask that the minister continue or begin to give
consideration for, at the least, providing grandfathering for these
people.
I understand — and I know it’s before the courts, so the minister
will not speak about this — there is a group of people who have found
themselves in this position where they are being devastated and have now
brought a lawsuit forward to the province of British Columbia, asking
for this to be paused and ultimately asking for compensation. That’s
what this government has done.
Are we…? Okay. Well, I can move on to a whole other section. Or it
looks like you need to read something.
Hon. R. Kahlon: I’ll just reply. The member knows that I can’t talk about anything
that’s in front of the courts. One case was brought forward, and it was
thrown out. There’s one in front of the courts right now, and I can’t
comment on that.
Now, hon. Chair, I move that the committee rise, report progress
and ask leave to sit again.
Motion approved.
The committee rose at 3:36 p.m.
The House resumed; the Speaker in the chair.
Committee of Supply (Section B), having reported progress, was
granted leave to sit again.
Report and
Third Reading of Bills
BILL 20 — FIRST NATIONS MANDATED
POST-SECONDARY
INSTITUTES ACT
Bill 20, First Nations Mandated Post-Secondary Institutes Act,
reported complete without amendment, read a third time and
passed.
Hon. R. Kahlon: In the main chamber, I call Committee of Supply for Ministry of
Housing.
In the Douglas Fir Committee Room, I call Committee of the Whole
for Bill 22, Safe Access to Schools Act.
Committee of Supply
ESTIMATES: MINISTRY OF
HOUSING
(continued)
The House in Committee of Supply (Section B); J. Tegart in the
chair.
The committee met at 3:38 p.m.
The Chair: I’ll call the committee to order.
On Vote 33: ministry operations, $1,033,255,000
(continued) .
K. Kirkpatrick: I’m going to move on from Bill 35, because my blood pressure is
hard to manage. I am going to ask a final…. This is a favour — actually
not a favour but a question to the minister.
If I can have somebody from the Aqua resort in Kelowna reach out
to somebody in the ministry…. I understand the information is on the
website. I think there are some unique issues with respect to this
particular project. If I might ask that you can, perhaps later, provide
me with a contact, and we can have these folks connect, because maybe
there is a solution that we can find for them, which I think everybody
would be better off with.
Hon. R. Kahlon: Yes, certainly. Right after we rise today, we’ll get you
information and then make that contact.
K. Kirkpatrick: Thank you very much to the minister.
I’m going to ask some questions now with respect to the seniors
advocate, seniors housing and SAFER. We know, according to the seniors
advocates, that seniors are being left behind in British Columbia.
Housing is unaffordable for them. They’re being impacted even more than
general British Columbians.
[3:40 p.m.]
Wait-lists have grown, and SAFER isn’t reflecting the cost of
living. Even with the increase of $110 per month which was recently
provided, it just simply isn’t enough in order to be able to help
seniors truly live with dignity and live safely.
Questions with respect to this. When will the minister share the
outcome of the NDP’s review of the SAFER program?
Hon. R. Kahlon: I think the announcement was well received, but there’s always
more that needs to be done. I can share with the member the
changes.
We increased the income limit for eligibility for SAFER from
$33,000 to $37,240. So more seniors are now eligible. We increased the
minimum benefit from $25 to $50 a month or $600 a year. We established
the ability to revise the rent ceiling annually. Obviously, we’ve also,
as part of it, launched a public awareness campaign so people are aware
that this financial support is available to them.
This is what was highlighted to us as an important step. I
appreciate the member’s point that more is always needed to support our
seniors.
K. Kirkpatrick: Thank you to the minister.
Rents have gone up $500 a month, at least, for most of these
seniors. In doing an analysis of what was required, and I appreciate the
minister has said that there have been changes, why is the SAFER subsidy
increase only a fifth of that in the long term?
Hon. R. Kahlon: I appreciate the member’s point. We can always do more to support
seniors.
What we’re saying here is…. These changes are significant. We made
a significant increase to this program in 2018. We increased the budget
by 48 percent. Now we’re taking another step to advance this, not only
to ensure that seniors that currently are in the system get
supports.
That number the member refers to is an average. Those that have
lower incomes get more, and of course, those that have higher incomes
get a little bit less. But it does make a significant impact. Not only
that, we’re also including…. Just under 5,000 more people that didn’t
get access to supports before are getting access to this.
We’re going to continue to monitor this as we go forward, continue
to meet with the seniors advocate and continue to also build more
affordable housing that’s accessible to seniors. We know that’s needed
in conjunction with these dollars.
K. Kirkpatrick: Will that one-time payment of $430 through SAFER result in a CRA
2500 slip being issued and having seniors benefits clawed back through
other programs like the GST tax credit?
[3:45 p.m.]
Hon. R. Kahlon: Our understanding is no. We always preface that with…. People need
to get their own tax advice and should reach out to a
professional to get that advice from them.
K. Kirkpatrick: Thank you to the minister.
Reach out to get tax advice. I’m not sure if the minister
appreciates who we’re actually speaking with now. Senior citizens, who
are on very small incomes, are not going to be reaching out to their tax
professionals to get information on this.
Would receiving a SAFER boost reduce eligibility for carbon tax
rebates? Government has the ability to make these
determinations.
Hon. R. Kahlon: The member is taking me into the Ministry of Finance unwillingly.
This is something the Minister of Finance is better situated to
answer.
K. Kirkpatrick: It must be nice to be able to say that. “You’ll have to ask
somebody else. Even though it’s related to my ministry, you’ll have to
ask somebody else.” Okay.
With only 20,000 of the originally targeted 45,000 seniors in the
service plan receiving SAFER benefits, can the minister explain the math
behind this shortfall, or is this another example of creative
accounting?
Hon. R. Kahlon: I think it’s important to remind the member we’re in the estimates
for the Ministry of Housing. If there are items that are not in the
Ministry of Housing, I have no choice but to refer the member to that. I
think the member knows that.
I appreciate that this is an opportunity to try to get digs in.
We’re just trying to give answers for things that are within our
estimates. If you’re asking about carbon tax, that is something that is
done by a different ministry.
Now, the member referred to something. If she can point us to what
exactly is referred to in the documents, it would be easier for us to
answer the question.
K. Kirkpatrick: I believe that’s 45,000 seniors — this is in the ministry’s
service plan — being targeted for the SAFER benefits,
whereas only
20,000 have received them.
[3:50 p.m.]
Hon. R. Kahlon: I’ve got in front of me the B.C. Housing service plan. It says for
’23-24, 30,000; for ’24-25, 35,000; for ’25-26, 36,000; and for ’26-27,
38,000. I’m not sure where the member’s number is coming
from.
K. Kirkpatrick: Thank you to the minister, and I will have to validate where that
number came from and provide that back to you.
I’m going to move on now from questions that I believe will be
sent to the Minister of Finance and focus specifically on seniors issues
that fall into the Ministry of Housing.
Does the minister believe it is acceptable for seniors to be on
wait-lists of over five years for housing?
Hon. R. Kahlon: I think it’s unacceptable that for two decades, we had governments
that didn’t want to invest in affordable housing. They decided that they
were going to just leave it to the private forces to figure out and that
it would just all work out. It’s an unfortunate situation that we’re in.
We’re so far behind on investing in affordable housing that we’re trying
to make up for lost time.
So yes, every day we get up in our ministry, and we try to figure
out how we can get more housing built through affordable housing or not.
I can share lots of examples of affordable housing units that we’ve just
opened because of our investments and a lot more that are coming through
recent CHF announcements.
K. Kirkpatrick: Thank you to the minister.
At some point, I feel I should ask the question as to when the
minister will stop blaming policies from previous governments for the
inability to actually deal with issues and address issues today. The
minister does tend to start many of the answers to my questions with the
blame game of almost a decade ago or 20 years ago, even,
sometimes.
The question that I asked is: is it acceptable for seniors to be
on wait-lists for over five years? Can the minister explain specifically
what is being done to target that wait-list for seniors to help make
sure that they can get into safe and affordable housing
sooner?
Hon. R. Kahlon: I appreciate the member gets sensitive when I talk about the lack
of investments in affordable housing over the last two decades, but it’s
a fact. The member attends not-for-profit association round tables,
attends many events. This is well understood.
It’s always a challenge to say, “How come there’s no affordable
housing available for seniors who are on wait-lists?” and then at the
same time say, “Well, when we were in government, we didn’t build it.” I
have to highlight that point.
[3:55 p.m.]
Now, when it comes to seniors housing, I can tell you that the way
you get at it is building it.
In kʷikʷəƛ̓əm, 14 new
affordable homes just opened up for First Nations Elders.
In Kaslo, ten opened up for seniors in the community.
In Kelowna, 68 rentals for seniors and people with low and
moderate incomes.
In Merritt, 75 new affordable rental apartments for families and
seniors.
In Mission, 61 just opened up.
In Nanaimo, 53 just opened up. Another project in Nanaimo, 62.
Another project in Nanaimo, 74 units.
I’ve got pages and pages of the units that are opening up from the
investments that we’ve directly made since we’ve formed government, and
there’s much more to come. In fact, it’s well recognized across Canada
that we are investing the most in affordable housing, per capita, from
any province in the country. We have the most amount of new units coming
online.
We appreciate that there’s much more that needs to be done. We
have much more work to do. We are starting at a deficit. All the work
we’re doing in our ministry and B.C. Housing is to try to ensure that
there’s housing available for people in our communities.
K. Kirkpatrick: Thank you to the minister. I’ll remind the minister that when he
references the last two decades, this NDP government has been here for
almost one of those decades at this point.
A question. When we’re talking about the five-year waiting list
for seniors housing…. Can the minister confirm, actually, what that
waiting list is right now for seniors housing and what that was five
years ago for seniors housing?
Hon. R. Kahlon: First off, I think it’s important to say that this is a registry
for people that need housing. People are placed by need. The teams try
to assess who has the greatest needs. We try to get them into the
housing as it opens up.
The member asked a pretty detailed question. The team at B.C.
Housing is going to try to get that number. We can continue to have
conversations, and I’ll put it on the record once I have it.
K. Kirkpatrick: Thank you to the minister. I appreciate that.
Does the minister plan to address what we see as a drastic
underutilization of the SAFER program by seniors in rural
communities?
[4:00 p.m.]
Hon. R. Kahlon: A couple of things. One, I said earlier, when we announced the
additional expansion of the program, that part of the initiatives will
be around public awareness, making sure people are aware that this is
available to them. That’s important. We also share that information with
the seniors advocate. They’ve got regional groups. They’ve got advocates
in communities throughout the province. So using those agencies to try
to ensure that everyone is aware that they have access to this funding,
if they qualify within the brackets of what the program has.
K. Kirkpatrick: Thank you to the minister for that.
A couple questions I’m going to move on to with respect to the
upzoning, be it Bill 44, the transit-oriented development. We recently
met with a group that, I believe, has been in touch with the ministry
called the Tri-Cities Urban Forest Working Group. They’ve raised
significant concerns about the loss of urban green space due to the mass
upzoning.
Enhancing urban density should be balanced with green
infrastructure planning to prevent future heat domes. When you look at
the information that they provided us with — and they map it against the
heat domes and where the majority of the fatalities and health issues
took place — those areas with strong tree canopies were actually the
safest place for people to have been.
The concern is that while we aim to create new homes, which we
need to do, the legislation seems to lack measures to ensure
environmental protections, and this simply raises concerns about
sustainable development amidst the climate crisis.
A couple of questions on this: how does the government plan to
balance the increased housing density mandated by the need to preserve
and expand urban forest cover, especially in light of the exacerbating
effects of reduced greenery and urban heat islands?
[4:05 p.m.]
Hon. R. Kahlon: Sorry, we’re just changing staff over.
Staff have just shared with me that they actually met with urban
tree canopy groups today, in fact, and it was a good conversation. We
shared with them similar answers that I’ve shared here in this place
already, which is that we know that green space is incredibly important
for communities’ health and for climate resiliency. Part of the work
that local governments are doing right now is planning for parks,
planning for green spaces.
Of course, we know at the same time that as we increase housing
supply, which we desperately need to, doing it in existing developed
urban areas is critical to preserving green space overall. So build
housing where we’ve already said we’re going to build housing will
protect green spaces in other areas.
We did canvass this when the bill was in front of the House here,
and we continue to meet with those advocacy groups on this
topic.
K. Kirkpatrick: Thank you to the minister. I am glad to hear that the minister has
met with this group.
There are a number of communities and organizations that have
similar concerns, so there are a few threads that come out of that. I’m
going to anticipate the minister’s answer on this, but I will give him
the benefit of the doubt that it might be different than it always
is.
I recently had a tour around Brentwood. There’s a community group
there. I know that their local MLA came and toured around and took a
look at their community. I’m not sure if the minister has been in
contact with them. I think it’s representative of some challenges and
concerns that many communities have.
Burnaby, I think, is again punching above its weight in terms of
densification. If you look at the amazing Brentwood Mall and all of the
development around there, it’s significant. It’s had significant impact
on the community and has been a great provider of additional housing for
people within Burnaby.
But if you look at that 400-metre…. You draw that circle around
the transit there, and you come across a single-family community with
people living in houses built there in 1965. There’s been very little
redevelopment in the community. These houses are 900 to 1,200 square
feet. They are very modest. It’s a very family-friendly community. The
majority of the homes already have secondary suites in them.
There is a concern about livability. I think just having
one-size-fits-all legislation, where you’ve got your 400-metre
circle drawn around the SkyTrain station there, can have serious
consequences on the livability in communities. And this community is
very concerned.
When I have spoken to a number of planners — and I can assure the
minister, and he’s probably not surprised, I have been speaking to many
planning departments in municipalities around British Columbia — there
are a lot of concerns. The one that is not getting spoken about maybe as
much, or highlighted as much, is the concern about livability:
ground-floor living for people with mobility issues; the fact that it’s
much healthier for children to be able to have access to the outside
from ground floor.
Then there are communities, like Brentwood and other ones, who
really have a character that I think we need to be aware of.
[4:10 p.m.]
We can’t get rid of all of these small, older, single-family
communities where we can actually point to other pieces of property and
other government-owned property and other places where it makes much
more sense to have that density.
In my long ramble, the question really is: can the minister
explain to the people in the Brentwood area why they would be included
in this 400-metre, transit-oriented development without consideration
for the livability and the existing community?
Hon. R. Kahlon: My colleague from Burnaby North has spoken to me about this. We
all agree that the livability is important. We talked about ACCs,
amenity cost charges, and what that means, what those amenities mean for
the community, whether it’s park space or whether it’s community
centres, etc., and why it’s important. I think small-scale multi-units
help also in communities to build that type of housing.
I think it’s important to note that B.C. United, the B.C. Greens,
supported the transit-oriented development legislation with the
understanding that we need to build more housing near the billions of
dollars that we invest in transit, and understanding that, as our
communities grow, people want to live closer to transit because it makes
it easier for them. Sometimes people don’t need the cars because they’re
able to just commute on transit. So that is a good place to have
housing.
I mean, that similar argument can be made pretty much anywhere
where there’s transit. I think what’s important for us is: how do we
want our communities to grow? Where do we want that housing to be? I
think we can all agree that if there’s a place where we should have
housing, it’s near transit. That actually enhances the livability of
communities.
Now, it’s important to know, for Burnaby…. In Burnaby, the towers
they approve are significantly higher than anything that’s in the
transit-oriented development policies. Local governments have the
ability to go ahead and do that. What we’re saying is we want to see
density of housing near transit because we believe that leads to
healthier communities, a healthier province.
Burnaby, of course, can go and do much more, which they are in
their community.
K. Kirkpatrick: Thank you to the minister. That was the answer I was
anticipating.
It is density regardless of impact on community and on livability.
That’s what I’m hearing. The minister himself said that Burnaby has gone
above and beyond with the work that they’ve done and the towers that
they’ve put around the amazing Brentwood Mall. That is the actual name
of it, which is why I’m calling it that.
Can there not be consideration given to the fact that there is
more density within that 400-metre area than is required? Can we not
have some flexibility that communities can have to make rational
decisions about what makes sense in a community?
Yes, absolutely, B.C. United supports transit-oriented
development. It was part of our housing platform long ago. It’s been
something that we’ve been fans of. It makes sense. Everything the
minister said with respect to the value of having housing densified
around transit zones makes complete sense.
Applying it with a heavy hand without the consideration for the
impact on communities feels shortsighted. Yes, we are not going to be
living in a single-family world anymore, single-family-lot world
anymore, and I understand that.
We also do have to have different types of communities, and we
have to value history in certain areas. There are other ways to increase
density. In a community like this, fourplexes might make sense. That can
be done through a secondary suite and coach houses. I mean, there are
different ways for gentle densification rather than to kind of shock a
community into having single-family homes and huge highrises in the same
community. It’s not good urban planning. It’s not good for the health of
the community.
[4:15 p.m.]
An issue that will also occur is you’re going to have conflict in
communities. Rather than creating a cohesive community where people can
say, “Yeah, I can get on board with this. I’m happy to have these other
neighbours in my community and the coach houses,” this is going to cause
a lot of stress to people. It’s going to cause the fabric of communities
to really be torn.
As I will always say — and I’m constantly misquoted, regardless —
we agree that we have to upzone. We agree in the spirit of what is being
done, but God help us, can we please have some flexibility and be
rational about how we’re applying this legislation?
Hon. R. Kahlon: As I said previously, three major parties in this place supported
this transit-oriented development legislation. The Leader of the
Opposition has spoken at great lengths about why housing should happen
around transit. In fact, other housing was opposed by the opposition,
but this one was supported.
I appreciate the member is trying to have the cake and eat it too,
to say, “We support transit-oriented development, support this, and we
need to do it,” at the same time as saying: “Oh, maybe we shouldn’t do
it.” It would be great to hear where the clear position on that
is.
The member did talk about history and heritage, and the member
knows that there are protections in place for that. There are
communities where there’s transit, but there are heritage sites. All
those things were built into the legislation. I think it’s important to
note that transit-oriented development has been happening over
time.
In fact, I was just talking to someone at a not-for-profit who was
telling us about how they were landing into Vancouver. They could see
the SkyTrain route and see where the housing was being built, by being
able to tell where the SkyTrain was and the stations were. That is
actually best practice. If you look at planning across the globe and you
see housing, when it comes to transit, the best practice is to have
housing close to transit.
That’s what we’ve done. We’ve taken best practice and brought this
forward, because we know that this is a good place to have housing. It’s
going to happen gradually. It’s not going to happen
instantly.
People think there are going to be towers everywhere. It’s not
going to happen that way. Transit-oriented development happens
gradually, but it’s important that we move in that direction so that we
have more sustainable growth. We get best use of our infrastructure, and
it creates more livable communities for everybody in our
communities.
K. Kirkpatrick: That is what I had anticipated, and I just would like to clarify
again, because it seems to be an art form on the other side of the House
to be able to kind of flip what I said and make it sound like something
else.
B.C. United supported transit-oriented development. The majority
of how that’s going to work is within regulations. Regulations — you
know, how this is working and the details of this — were not put in
front of the House. It needs to be done in a rational way.
When the minister talks about transit-oriented development, yes,
that is how we should be developing, but there’s also a difference
between new development and when you’re going into a community where you
have existing development.
The example I’m giving with Brentwood is that that’s an existing
community. If you were an urban planner and you were starting with a
blank slate, you’re going to say: “Okay, well, we’re going to put
transit in here. These are new communities. We’re going to start to
build out this way.” But you’re dealing with people who already exist,
homes that already exist and communities that already exist. It has to
be more sensitive to that.
This government likes to point to anybody who has a single-family
home…. I believe most people appreciate they’re very fortunate to have a
single-family home. There are many renters that have a single-family
home. They’re not bad people because they have this. There need to be
different kinds of housing stock, and there needs to be a sensitivity to
how we are implementing. This is a really big hammer that is being
used.
[4:20 p.m.]
We have to give some voice to the communities. Brentwood is a
community where they already had done a lot of work to put restrictive
covenants on those lots so that even the homes that are coming in are
limited in their size, because they didn’t want a community that was
full of big monster homes.
They wanted a community that was more true to the 1960s and those
homes that were originally built. They don’t want a bunch of
redevelopment, but not for the wrong reasons. It’s not because they
don’t want people coming into the community, but because that community
has a flavour and style.
It’s hard. I wish I could articulate this in a way that really
frames the concerns that people in communities are having: that urban
planning needs to look at livability. It needs to look at where the
density make the most sense. You can say: “Yes, it makes sense to be
around transit-oriented development.” We agree, but there also has to be
a reasonable application that has some sensitivity to the way that that
community was originally developed.
A question — not to this, we’ll move on — is…. Actually, I will
ask. This is related to all of the upzoning. Let’s say that a
municipality has an application for a fourplex on a single-family lot,
that it’s the appropriate size under this legislation and that the
fourplex should be allowed, but the fourplex’s upzoning is denied by the
municipality for concerns that it’s too close to a school field, that
there’s some issue with trees, or whatever the issue is.
Who is going to be the arbiter of why a municipality can turn down
an upzoning application? I understand that government can come in, and
they can just approve it if the municipality hasn’t approved it. Who’s
the arbiter? What is that mechanism for overriding the decision of a
municipality?
Hon. R. Kahlon: I wanted to correct a couple of things.
I don’t recall…. The member can let me know if she’s ever heard me
call people who live in single-family homes bad people. I don’t recall
anyone on our side of the House ever saying a person who owns a
single-family home is a bad person. I want to clarify that on the
record.
When we brought the transit-oriented development legislation
forward, we said this was what we were expecting within 200 metres, 400
metres, 800 metres, and we had support from all the parties in this
place. I want to make sure those two things are on the
record.
Now, we’ve switched to the small-scale multi-unit, and I’ll just
say that local governments are required to pre-zone the three or four
units in their communities. That is expected in June. So it will be
clear for people as to what they are able to do on their parcel of land
and what they’re not able to do.
K. Kirkpatrick: Forgive me where I’m not understanding this. That was probably not
the best example to give.
In an example where a developer, say, wants to upzone to put in
whatever the development is that they want to put in, and it fits in
with Bill 44, on what basis can a municipality turn down an
application?
If I’m understanding this, and the minister can tell me if I’m not
understanding this, I believe that the province has the ability to come
in and override a decision that the planning department in a
municipality has made. Under what circumstances would they be able to
override that? Am I correct that they can override that
decision?
Hon. R. Kahlon: I’ll just clarify for the member. It’s not a one-by-one case. It’s
not going to be like one proponent comes forward with one home and then
the province is overriding it. This is around communities doing their
zoning planning as one community.
[4:25 p.m.]
We’re not going to be going in one by one. We’re asking
communities, by June, to update their zoning bylaws to reflect our
legislation and the site standards document. That’s what we’re
expecting.
It won’t be us going one by one, overriding across the province.
That would be, I think, difficult for anybody that wanted to do
that.
K. Kirkpatrick: Targets. I know I asked about targets last week because, of
course, it was fresh on the target being introduced to the city of North
Vancouver.
Can the minister describe how targets work and interact with Bill
44? I understand that the targets provide different types of housing in
terms of what’s affordable, what’s family, what’s not. If I’m incorrect
in what those targets set out, the minister can correct me.
How is that not something that should have been addressed by Bill
44? It seems there are a lot of competing requirements for communities,
and the targets are just one more layer of something that their planning
department has to worry about.
Hon. R. Kahlon: Bill 44 and the targets actually go together. We don’t see them
competing. One enables the other one to be done in a more efficient way.
I’m not sure where the member is going with it, but we just don’t see
them as two competing things. We see them as two things that go
together.
K. Kirkpatrick: Thank you to the minister. I’m going to change channels for a few
minutes here.
I would like to ask about a specific affordable housing project,
the Mission affordable housing project, which was denied funding by this
government. The decision to deny this has sparked some criticism from
local council members and the project developer.
A question to the Minister of Housing. I don’t know if he needs
more information about the specifics. I believe the minister would
understand what the specific Mission affordable housing project was.
Given the provincial emphasis on affordable housing, why was the
funding application for the Mission affordable housing tower rejected,
especially when the project aligns closely with government’s
objectives?
Hon. R. Kahlon: We shared this through our MLAs and publicly as well that this
project in particular was being built without any government funding. In
fact, it was almost complete, and the proponent wanted us to buy that
from them. Now, as you can imagine, there are a lot of projects that
would just say: “Hey, we’re going to build it. We’re just going to sell
it to you, and we’ll try to make some money from it.”
We have to do assessments, just like we do everything else,
assessments on affordability of the units compared to what we buy, look
at the operating of it. How will we operate that in an efficient way for
the partner that will be operating it?
It’s got to go through the same criteria, so we’re not picking and
choosing projects. Certainly, I’m not picking and choosing projects at
all. It goes through the same criteria as every single other community
housing fund project. The assessment is done through B.C. Housing. They
share with me the successful proponents. And then we follow up with
proponents that weren’t successful if that’s of interest to
them.
K. Kirkpatrick: I’m actually going to ask the Chair’s indulgence in a five-minute
break.
The Chair: We’ll take a five-minute recess.
The committee recessed from 4:30 p.m. to 4:37 p.m.
[J. Tegart in the chair.]
The Chair: I call the committee back to order.
K. Kirkpatrick: We’re wrapping up here. I’ve just got a couple more housekeeping
kind of questions.
For the minister. Government recently announced an increase in the
exemption for first-time homebuyers from $500,000 to $835,000. I just
wanted to clarify with the minister that, although the exemption has
moved from houses that are $500,000 to houses that are $835,000, the
exemption is still only on the first $500,000 of the first-time-buyers
exemption.
Hon. R. Kahlon: The member asked a specific question. It is Ministry of Finance. I
know the member is going to say it’s Housing, but it’s a tax measure, so
it’s Ministry of Finance.
[4:40 p.m.]
I can get the member the answer from the Ministry of Finance, in
writing. Or the Minister of Finance is in estimates for the next two
days, probably until Thursday, so this question can be raised there as
well.
K. Kirkpatrick: Thank you to the minister.
I have to assume that the Minister of Finance doesn’t wake up in
the morning and go, “I have a great idea for housing,” and come up with
that without consultation with the Ministry of Housing. But I guess I
will see if I can ask that question directly to the minister.
Here’s a new question, because things are changing quickly out in
the world right now. Are tent cities going to continue to qualify as
lawful residences for the purpose of the decriminalization revision
introduced on Friday?
Hon. R. Kahlon: We’re not consulted on tax measures.
K. Kirkpatrick: That’s really concerning.
Hon. R. Kahlon: Yeah, well, information is always made available through Ministry
of Housing, but they don’t inform us of tax measures. This is, I think,
the history of all Finance Ministers and every budget as far back as I’m
aware of. But that being said, I’m supportive of the measure. I think
it’s a good measure to help first-time home buyers.
Now, the member has asked a question. I don’t support or agree
with the characterization or the framing of the question. We have seen,
coming out of the pandemic, multiple things. We’ve seen people being
displaced. We’ve seen mental health challenges. We’ve seen a significant
increase in population in Canada, but in British Columbia in particular.
The amount of housing has not kept up to that pace.
When there’s a limited housing availability…. What that means is
those with means have access to the housing, and it pushes everybody
else further into challenging situations. That has led to challenges of
homelessness in some communities.
This is not a B.C. thing. This is North America–wide. Every
community is dealing with it. You know, meeting with communities through
PNWER…. If you look at Seattle; Portland; California; Austin, Texas; New
York — everywhere, this is a challenge communities are dealing
with.
What we’re doing is taking action to address that. That’s what I
was doing with the MOU with the city of Abbotsford on Friday, 221 units.
We announced shelter spaces. We announced opening of supportive housing,
affordable housing. That’s what we’re doing with the city of Nanaimo,
with our MOU there. We just opened up a brand-new supportive housing
site.
We’ve got other projects that are in the works, but we’ve
committed significant dollars to scale up the capacity so people can get
indoors. That’s what I met with Prince George councillors this morning
about. We’ve got an encampment there of 30-something, I think 36,
people. We’ve got 100 units right now that are coming online. I would
say by the end of summer, we’ll have all 100 open. So that means we can
get people indoors and not have them in encampments.
Similar discussions in Kamloops, similar discussions, of course,
in Vancouver — I’ve shared with the member — around Crab Park, where we
had over 100 people at one point. We’ve been able to build the
relationships and get people in. I think 16 people are remaining
there.
Our team spends a lot of time on dealing with these issues
community by community, trying to get housing options available so we
can get people indoors.
K. Kirkpatrick: Thank you to the minister.
I would like to extend my appreciation to the minister and to the
minister’s staff for the time. I am concluding my questions, and I will
be passing it over to the member for Saanich North and the Islands. But
I would like to say I appreciate the time.
We don’t agree on certain things. I think we agree on the
overriding vision of providing housing for people in British
Columbia.
I would like to just leave with the request that this government
be open to listening to the true stories of people who are being
impacted by housing policy and that one-size-fits-all, or one
paintbrush. There are many unique circumstances and issues that should
be considered.
And then one final thing is: Go Canucks!
[4:45 p.m.]
Hon. R. Kahlon: I have to note, for the record, the strategic timing of this
ending and the “Go Canucks!”
I just want to say that I really respect the member across the
way. She comes at this work with all of her heart. Every exchange we’ve
had has been a thoughtful one. I think it’s a real shame for that
community not to have you as their representative. I want to thank you
for the work you’ve done as my critic. You’ve made our team better in
the work you’ve done. So thank you as well.
The Chair: Recognizing the House Leader of the Third Party.
A. Olsen: Okay. I agree with your comments, by the way.
I disagree with the comments from the member who spoke before me —
or, at least, the hockey team. Anyway, we’ll leave that for another
place.
Interjections.
A. Olsen: There have been articles written about it. Yeah. Go for it. Just
google it.
Now back to the business here about housing, very important
business about housing.
The minister earlier talked about the tree canopy. I’m just
wondering if there can be some clarity. This was in a question directed
by the official opposition’s Housing critic just around green space
being preserved elsewhere. The places where we’ve developed are where
the housing is going to go.
While I recognize that densification need happen, there are
actions that this government could take and that local governments do
take or were able to take previously to be able to protect the urban
tree canopy. In fact, there are many initiatives, as the member talked
about, and residential neighbourhoods and community groups that work
very hard to ensure that there is a tree canopy within their
communities.
As we saw in the heat dome…. Indeed, that tree canopy was the only
place that many residents were able to get refuge. We don’t have the
standards within our building code that require air conditioning in
every unit, as an example.
I’m just wondering if the minister can maybe respond to this. It
seemed like there was a position taken…. The urban tree canopy is at
threat. Basically, it was…. The effort is to preserve green space
elsewhere.
I’m wondering if maybe the minister wants to reflect on whether or
not there will be any measures put in place, from the densification
project last fall, that protect the urban tree canopy in the areas that
are already developed, if there are any measures to encourage
development to happen adjacent to that tree canopy, etc.
[4:50 p.m.]
Hon. R. Kahlon: I had answered to my critic from the official opposition that the
reason why the amenity cost charge is important, the tool, was that it
would provide a means for local governments to be able to collect
dollars to build parks and to build green space. So that’s what I was
referring to in my answer to the member.
Now, there is flexibility in the small-scale, multi-unit
legislation for local governments to make some adjustments, but it can’t
be unreasonable. We know in some local governments, they want to protect
a tree. They want to adjust the setbacks in order to have the housing
being built. That flexibility is there, but it can’t be seen as
unreasonable in the measures that they’re taking.
A. Olsen: I guess I want to draw the distinction and perhaps my colleague
was wanting to draw the distinction between building new parks and
planting new trees and the fully old trees, the actual cover that an old
tree provides that a young tree won’t be able to provide for at least
60, 70, 80 years, in some cases. The clarity in this…. I appreciate the
minister, I think, drawing more clarity in the response, that there is
space for trees to be protected as long as it’s not unreasonable. I
guess my fear is the