The B.C. Liberals have just about finished the previews for some of the good-news announcements in Tuesday’s budget, and barring a surprise on Monday, it looks as if housing help will be the show topper.
Premier Christy Clark and Housing Minister Rich Coleman on Friday released another pre-budget teaser — a pledge to put the equivalent of $355 million into affordable housing over the next five years, enough to build 2,000 units. The where and when depends on talks with municipalities, but there will likely be more details in the budget.
Between $50 million and $90 million a year will flow for the next five years, mostly in the form of real estate. It’s generated from a non-profit asset transfer program, where hundreds of properties now owned by a provincial entity are being granted to societies engaged in social housing, at fair market value. It was billed as the largest single social- and affordable-housing announcement ever. But with 22,000 units built over the past 15 years, the announcement of 2,000 more over the next five years looks to be a reduction of the average pace.
Clark said the move will address affordability issues for low-income earners, seniors and people who need supportive housing. She cited the fact “there are kids living in a tent city in Victoria” as one of the problems to be addressed through the program.
“That problem may be on its way to being solved, but clearly there is a housing problem on the south Island,” she said. The government will look around the province to see where other problem areas are and try to address them “as fairly as we can.”
B.C. is also counting on an influx of new federal money to leverage more housing out of such programs.
“I’m really delighted the federal government wants to get back in the business of supporting affordable housing; they’ve been away from the table for a long time. We’re looking forward to them being a real partner.”
The announcement came after a week of heated debate in the legislature about the shadow-flipping scandal in metro Vancouver, which is also expected to get some quick attention from the government. Realtors assigning themselves the right to flip titles at higher prices before their clients have closed deals at lower prices got a lot of attention after a Globe and Mail investigation.
A promise to “ease the pressures of cost-of-living increases” in housing made in the throne speech might also be filled in with more details next week. As will another promise “to give British Columbians a better opportunity to enter the housing market.”
There was also a hint about reducing the hidden costs in home purchases and making them more transparent, although that might take more time.
The budget will also have to beef up funding to fulfil promises on other social-policy issues, such as improving support for people with mental illness. A legislative committee is recommending mental health become a standalone ministry to help co-ordinate all the available services. Legislation is also coming to modernize community care and assisted living, which could cost more.
A redesign of Medical Services Plan premiums is in the offing, after a wave of concern about how unfair the current flat-rate system is. The government will collect $2.5 billion in MSP premiums this year. It has no intention of giving up the revenue stream, but the source of that revenue will likely be shifted to higher earners.
The only bad news cleared out in the run-up to the budget was a park-fee hike. Camping rates are going up $1 or $2 in many parks, to raise another $410,000 a year.
Just So You Know: The B.C. Liberal focus on housing was so intense this week that it extended even to rabbits. Specifically, the 80 or so Helmcken interchange feral squatters that distract highway drivers. The government and a volunteer group are joining to hire a professional rabbit trapper who will catch them and turn them over to be spayed or neutered prior to deportation to a private U.S. sanctuary.
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