Today in the legislature I rose in Question Period to ask the Minister of Municipal Affairs and Housing when the government will step in to clamp down offshore purchases of BC real estate. I’ve been raising the issue of housing affordability week after week in the legislature and I continue to be very troubled by the lack of action on this file.

Yesterday the government released very disturbing data that indicated a growing crisis in terms of offshore buying. Fully 5 percent of the homes in the Capital Regional District and Metro Vancouver, 10 percent in Burnaby and 11 percent in Richmond were purchased by foreign buyers in September alone.

Below I reproduce the video and text of my question period exchange.

Video of Exchange

Question

A. Weaver: Yesterday the government released property transfer tax data that clearly demonstrates the rising impact that foreign speculators are having on our housing market.

Fully 5 percent of the homes in the capital regional district and Metro Vancouver, 10 percent in Burnaby — that’s a doubling in a year — and 11 percent in Richmond were purchased by foreign buyers in September alone.

And that’s not counting all the transactions that were able to avoid paying property transfer tax and foreign buyers tax through creative measures.

Across every single community in Metro Vancouver, the percentage of transactions involving a foreign natural is going up. These transactions have now an outsized impact on the entire market, contributing beyond their relative share to the price increases we’re seeing in our province.

It’s essential that this government take action on the use of foreign money in our real estate sector, and this action must start now.

To the Minister of Municipal Affairs and Housing: When will British Columbia start implementing policies that will ensure that our limited housing stock is used first as homes for British Columbia, not as a bank to account for foreign capital.

Answer

Hon. C. James: I am proud to work with the Minister of Municipal Affairs and Housing.

This is a tax issue, and I’m proud that we’re actually doing work in the Ministry of Finance on tax issues to come up with a comprehensive strategy that will address affordability in our province.

I appreciate the member’s question because what’s clear from the figures is that the previous government’s piecemeal approach did not work. You’re continuing to see foreign investment increase. We need to address the issues.

So right now, within my ministry, we’re actively examining all of the existing and new ideas for housing tax measures, including a speculation tax, including the foreign buyers tax.

We’re rejecting the piecemeal approach, because we know we have to address housing affordability in a long-term strategy. That’s what we’re focused on, and that’s what we’re going to do.

Interjections.

Mr. Speaker: Members.

If I may, before you continue, member, remind all members that we have visitors in the gallery. I’m thinking it’s difficult for them to hear, and I’m especially reminded we have a wonderful group of young school students in the gallery.

Supplementary Question

A. Weaver: That was timely, because that wonderful group are actually grade 5 students from Glenlyon Norfolk, a school in my riding. So welcome here, in during question period.

I appreciate the Minister of Finance rising in response to my question. But my question was to the Minister of Municipal Affairs and Housing about what is being done today, not what is going to be done hypothetically in February.

Look, the reality of the situation is this: the previous government brought us back in summer to implement on a timely, urgent fashion a foreign buyers tax. This was done despite the budget cycle, which was not occurring for another six months.

So I don’t buy the minister’s argument. We’ve heard the government talk about speculation taxes. Yet, there’s been no action. We’ve heard them talk about vacancy taxes. No action. We’ve heard them talk about Airbnb. No action.

To be blunt, the government is acting like deer caught in headlights. This is the single biggest issue facing our province, and we are told week in and week out: “Wait and see.”

Interjections.

Mr. Speaker: Members.

A. Weaver: I’ve got some cheerleaders on the opposite side today. It’s good.

The former Housing critic made it clear that tackling foreign speculation was the most important step that could be taken. There are plenty of actions that could be taken now to close loopholes. Sure, we’re tracking and collecting data and working with our federal partners. All could be done outside of the budget process.

My question to the Municipal Affairs and Housing is: why has the government been silent on the foreign demand issues since taking over government?

Answer

Hon. C. James: Thanks to the member. In fact, you can check off a couple of those pieces. The work we’re doing with the federal government is already done. We included information-sharing in September. Those are exactly conversations that are going on. That’s a piece that’s happening now.

You can also check off, Member, the issue of closing the fixed-term loophole to be able to protect tenants from unfair landlords who were looking at year leases.

You can also check off investing in the residential tenancy branch to protect tenants and support good landlords.

And I would remind the member, as well, that in fact, the information that came forward on the foreign buyers data showed very clearly that one measure simply doesn’t work. A comprehensive approach is needed. That is what we are looking at now to end speculation of the real estate market. I look forward to the member’s ideas so we can put a plan together long term that is going to address affordability.

Today in the Legislature I was up in Question Period. I took the opportunity to continue pressuring the government to commit to demand-side housing reforms.

Housing affordability is the single most pressing issue facing British Columbians. As mentioned in the exchange below, I’ve sat through question period for the last two months and have yet to hear any questions of substance from the BC Liberals on this topic.

I’m not entirely happy with the response to my supplemental question and will continue to pressure government to deal with speculation in our real estate sector.

Below I reproduce the video and text of the exchange.

Video of Exchange

Question

A. Weaver: The single biggest issue facing British Columbians today is the issue of housing affordability. I’ve now sat in this question period for a full two months, and I’ve yet to hear anything of substance in question period from members opposite. As a consequence….

Interjections.

Mr. Speaker: Members.

A. Weaver: As a consequence, please let me pick up the file.

Interjections.

Mr. Speaker: Member, if you could please be seated for a moment.

Members, I’m not sure this is a productive use of the time in the House here.

Member, please continue.

A. Weaver: As a consequence, I’ll pick up the file.

The B.C. Liberals introduced the B.C. home owner mortgage and equity partnership in early 2017. The then opposition housing critic and now Attorney General called the program “completely bizarre,” and he said: “It’s an incredibly poorly thought-out policy.” And he further noted our provincial government’s — that’s the previous government — response is to encourage people to take on more debt and subsidize the debt. It’s bizarre, he said.

I agree, and so does Evan Siddall, the president and CEO of the Canadian Mortgage and Housing Corporation, who said this: “Programs that support demand in supply-constrained markets like Vancouver serve primarily to increase prices and make the affordability problem worse.”

In reference to the stated goal of the program and the program and making houses more affordable, he stated: “I’m joined by loud chorus of economists in insisting that it will do the exact opposite.”

My question is this. When will this government eliminate the program, which nothing more than incentivize British Columbians to take on more debt than they can afford, a reckless incentive particularly when the interest rates are rising, as they have twice already this year?

Answer

Hon. C. James: Thank you to the member for the question. I think, as the member pointed out, after 16 years of ignoring the housing crisis in British Columbia, there’s a lot of work that has to be done.

I’m very proud of the first steps we took — in less than two months after being sworn in, in government — in our budget update by announcing funding for 1,700 affordable housing units and 2,000 modular housing units.

We’ve also added resources to the residential tenancy branch to support good landlords and good tenants in the work that they do.

We’ve also improved information sharing with the homeowner grant and the Income Tax Act to look at speculation and how we address the speculation.

On the member’s specific question around the B.C. partnership program. It is being looked at as part of the budget. The member will know from the budget update that the amount of money has been reduced in that program, because the previous government predicted about $700 million over three years as usage. We have reduced that by $500 million because the program has been underutilized because of the concerns that the member has raised. So this is being looked at as part of the budget process.

Supplementary Question

A. Weaver: The members opposite seem to think that if I don’t hurl a character assassination at government, it’s a softball question, as opposed to a question dealing with real issues facing British Columbians.

Yesterday, Global News noted New Zealand’s approach to tackle their housing crisis and clamp down on offshore ownership and speculation. The story included a very disturbing comment attributed to government: “Foreign ownership of homes is not being considered as part of the budget 2018 planning.”

There’s a lot of foreign capital out there looking for a safe place to park money in these tumultuous times. Foreign investors have turned to our real estate sector, thereby turning our houses and land into commodities for investing in speculation, not living in or working on. Our residents are paying a social cost, as they can’t afford to live in the places that they work.

Yesterday I also received an email from a rural farm and ranch realtor who had been approached on behalf of a limited company based in Hong Kong looking to purchase 35,000 acres of farmland in British Columbia. The stories are never ending.

This government continues to focus on the supply side of housing. When will this government step in to clamp down on foreign money flooding into our real estate sector and agricultural markets like other jurisdictions have done internationally?

Answer

Hon. C. James: Thanks to the member for the questions and the ideas and the solutions to take a look at speculation and closing loopholes. Stay tuned for more information this afternoon around one piece of that.

I’m working with the Minister of Housing. We’re working together on both the demand and supply side. It is critical, as the member has pointed out, that we look at both pieces.

The member will know that tax measures are not talked about before the budget comes out so that we ensure that people don’t utilize tax information to their own personal benefit. That will come out as part of the February budget.

I can assure the member that speculative issues are being looked at — how we close the loopholes. It’s all part of a comprehensive housing strategy that we are going to be proud to table and proud to implement in this province.

Today in the legislature I rose to question the Minister of Municipal Affairs and Housing about the government’s apparent inaction on the affordability file. When I attended the Union of BC Municipalities 2017 convention last week I heard  the Premier give his address to delegates. In it he once more focused only on the supply side of the affordability crisis. But there are also problems on the demand side.

As I have argued for four years, there is a glaring tax loophole that needs to be closed. This Bare Trust loophole incentivizes speculation, discourages transparency and encourages property tax avoidance.

Below I reproduce the video and text of my question period exchange with the Minister. I also reproduce the media release we put out today.

I was not statisfied with the response to my questions. Over the coming weeks we’ll continue to pressure the government to deliver on their commitment to clamp down on rampant real estate speculation in British Columbia.

Video of Exchange

Question

A. Weaver: It seems fitting that I rise and ask a question after this.

Last week, at the UBCM, the Premier took a page out of the B.C. Liberals’ failed strategy to deal with Metro Vancouver’s housing crisis. “We need more supply,” he proclaimed to the delegates. Once more our government has missed the glaring problems on the demand side. Where is their promised speculation tax? Where are the so many other steps that they said they would do and that they would take during the election campaign? And why, after I raised it here in the Legislature almost four years ago, has this government not yet closed a loophole that incentivizes speculation, discourages transparency and encourages property tax avoidance?

My question through you to the Minister of Municipal Affairs and Housing is this: why haven’t you already closed the bare trust loophole — a loophole so big you could drive a bus through it — and ensure that the property tax is applied on the transfer of beneficial ownership and not just the transfer of title?

Answer

Hon. S. Robinson: I want to thank the member down the way for the question.

It’s really important that, when we take a look at the housing crisis — a crisis that rose under the previous government that did nothing, that just pretended like it was not an issue….

Interjections.

Hon. S. Robinson: Let’s be really clear. They were saying: “If you don’t like it, move to Fort St. John.” People have been really struggling.

Interjections.

Mr. Speaker: Members, please, we shall hear the response.

Hon. S. Robinson: It’s really important that….

Interjection.

Hon. S. Robinson: I’ve got nothing against Fort St. John, but I don’t like the government telling me where to live.

It’s really important that when we talk about putting together a comprehensive, affordable strategy, a comprehensive housing strategy, that addresses all of the pieces — the supply side and the demand side — that we take a look at all those levers and all the tools at our disposal, that we make sure that they work together. That’s what comprehensive means, and we need to take our time to get it right.

It’s really important. This is too important to really mess up, so we need to make sure that we’ve got it right. I’m really excited that it is coming in short order.

Supplementary Question

A. Weaver: Please let me remind you that when the Attorney General was in opposition, he was a very fierce critic of the B.C. Liberal housing policy or lack of a policy on affordability. Indeed, a year ago he told Reddit, the readers of Reddit: “We need to eliminate what’s called the bear trust loophole in the property transfer tax where these properties can transfer without property transfer tax paid. It’s costing us literally hundreds of millions of dollars, hundreds of millions that could be used for affordable housing initiatives.”

It’s a straightforward fix. All we have to do is what Ontario has already done years ago. We don’t need to rediscover the wheel, and there is no excuse for a delay.

My question through you to the Minister of Municipal Affairs and Housing is this: what’s the holdup? You’ve had many years in opposition identifying problems, and you’ve had many years to identify solutions. The Attorney General has identified those solutions, said he’d do it. It’s a quick fix. Why haven’t you done it?

Answer

Hon. S. Robinson: I’m grateful that, with the help of member down the way, we’ll have 4½ years to get this work done. And I look forward to that work.

After ten weeks here in government, we have acted on a promise to increase funding for the residential tenancy branch. We are preparing to close unfair loopholes that allow landlords to bypass rent control, something that the previous minister said was rather complicated, which we learned was actually not that complicated.

We’ve announced the creation of 2,000 units of modular housing with wraparound services. We also announced 1,700 unit of affordable housing throughout the province.

That’s in ten weeks. Just think about what we are going to get done in 4½ years.

Media Release

Weaver presses B.C. NDP to commit to demand-side housing reforms
For immediate release
October 3, 2017

VICTORIA, B.C. – Andrew Weaver, leader of the B.C. Green Party, today questioned housing Minister Selina Robinson on the B.C. NDP government’s intentions to take action to cool the housing market.

“Last week at UBCM the Premier indicated that his government’s solution to the problem of housing affordability is to simply add more supply,” Weaver said.

“Once more our government has missed the glaring problems on the demand side. When in opposition, Minister Eby was a fierce critic of the government’s failure to act, and argued that the bare trust loophole costs British Columbia hundreds of millions of dollars that could be used for affordable housing initiatives. The government can take action immediately to close the bare trust loophole that incentivizes speculation, discourages transparency and encourages property tax avoidance.

“The B.C. Greens are committed to proposing bold solutions to the affordable housing crisis that is facing so many communities. I have previously called for the non-resident foreign buyer’s tax to be extended to the entire province, as communities from Victoria to Nelson face a housing crunch. I have also called for a ban on foreign ownership of ALR land over five acres, in order to stem speculation and protect British Columbia’s food security.

“The purpose of housing should be to provide homes for British Columbians – not a commodity that is wide open to international speculation. The B.C. Greens will continue to propose bold, actionable solutions to the housing affordability crisis that is uprooting so many communities across our province. As an opposition caucus, we will continue to push government to take action so that no British Columbian is faced with the terrible reality of being priced out of their own community due to real estate speculation.”

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Media contact
Jillian Oliver, Press Secretary
+1 778-650-0597 | jillian.oliver@leg.bc.ca

Today in the legislature I was up in Question Period. I took the opportunity to question the Minister of Advanced Education as to what he was doing with respect to allowing universities and colleges to build additional on-campus housing. My MLA colleague Rob Fleming also wrote about this last fall. We’ve offered a way forward and I’m pleased to say the government has finally agreed that this is a direction it is heading.

I have been waiting to raise this issue in the legislature since last spring (as I suspect Rob Fleming has). Unfortunately, with no fall session I did not get the opportunity to do this until today.

Below are the text and video of the exchange. I was disappointed with the answer to my supplementary question as I was hoping to get a more thoughtful response as to what is being done to address the extraordinarily low rental vacancy rates in the Capital Regional District and Metro Vancouver.

Question

A. Weaver: Students at British Columbia’s post-secondary institutions are struggling to find affordable rental accommodation. Yet at the same time, colleges and universities across B.C. are desperate to build more on-campus housing. The barrier to building such housing is access to capital and government concern about increased public debt and how it will affect our triple-A credit rating and, hence, the cost of servicing existing debt.

But if an external organization were to own the debt, there would be no risk to B.C.’s credit rating. Colleges and universities could service it through operating revenues generated from on-campus residence fees — a very captive audience that exists there. Housing more students on campus frees up off-campus rental units, thereby easing upward pressure on rents.

Will the government commit to exploring the creation of an external non-government organization that would own the debt, thereby allowing colleges and universities to build more on-campus housing?

Answer

Hon. A. Wilkinson: I thank the member from Oak Bay for his thoughtful and productive question, which distinguishes it from many in this room.

Now, the member is known to be a very clever man, but the ministry staff are at least a year ahead of him on this question. It’s actually interesting that yesterday I met with the president of the University of Victoria to discuss this very issue, because the prospects there are very strong for this exact opportunity to build student housing which will not form part of government debt.

The details of this arrangement need to be worked out. There are arrangements that need to be set up for the deal structure, for the financing vehicles. But I think the key point here is to congratulate the member for Oak Bay–Gordon Head for his insight, for his dedication to good public policy. I’m sure he’ll be so persuaded by his own genius that he won’t need to ask a follow-up question.

Supplementary Question

Well, I must say that was a somewhat patronizing response to a serious question. I would point out, in fact, that this lone B.C. Green MLA was several years ahead of the B.C. Liberals in identifying an affordability crisis in the province that they refuse to deal with.

There’s an ongoing affordability crisis not only in Metro Vancouver but here in the capital regional district. For many living in our two largest cities, home ownership is simply not an option for the foreseeable future. Yet at the same time, the private apartment rental vacancy rate in Victoria is 0.5 percent and in Vancouver it’s 0.7%.

My previous question offered one possible way for the government to reduce pressures on the existing rental stock, and I’m glad to see that they’re taking it up. But the question that I have is this: What other steps is this government taking to address the vacancy rates in Metro Vancouver and the CRD? And an answer that’s saying “build more stock” is simply not going to deal with the issue in the time required to deal with it. What is the government doing?

Answer

Hon. A. Wilkinson: The question actually reflects well into the member’s first question in that the novel housing arrangements for financing that we have come up in this government, courtesy of the Minister Responsible for Natural Gas Development and Housing, have provided this financing vehicle that’s provided 800 non-profit housing providers in more than 280 communities across British Columbia with support for more than 104,000 households.

The plans that the member calls upon are already being implemented. Since 2001 we have completed close to 24,000 new units of affordable housing, with more than 5,000 more units in development or under construction.

Thank you for the question. If you have any further, we’d be glad to answer them.

Video from Question Period

Media Statement, Dec. 15, 2016
Statement from Andrew Weaver on B.C. Home Partnership
For immediate release

VICTORIA B.C. – Andrew Weaver, Leader of the B.C. Green Party, is calling the B.C. Home Partnership a populist, short-sighted, and irresponsible move.

“The cost of purchasing a home has gone through the roof in this province because of irresponsible speculation and government inaction. The reason people can’t afford a home isn’t because the downpayment is too big – it’s because the average home in Vancouver costs more than $1 million. That’s the real problem, and this government is avoiding it entirely.

“Instead of tackling the real problems that are causing out of control housing prices – like deregulation and speculation – the government is announcing a band-aid solution that will build an even bigger housing crisis down the road

“We have seen the dangerous consequences of this type of policy in the United States. It became easier and easier for people to take on unaffordable mortgages, leading to crippling debt, the collapse of the housing market and first-time home buyers losing their livelihoods. The whole point of having a downpayment is to protect people from unmanageable debt. That’s also why the federal government recently increased the stress test for high ratio mortgages.

“The fact is, people should not have to take on a dangerous amount of debt to afford a home. The only reason they have to do that right now is because the B.C. Liberal government failed to act to keep housing prices affordable. Now, they are choosing to implement populist, short-sighted and irresponsible programs that download risk on to vulnerable people who are just looking for a way to improve their lives.”

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Media contact
Mat Wright, Press Secretary, Office of Andrew Weaver, MLA
+1 250-216-3382 | mat.wright@leg.bc.ca