Carney-Eby condo bailout: What you need to know — and how to stop it
With taxpayers expected to foot the bill for developers' unsold condos, we investigated alternative solutions to the problem — along with Housing Minister Gregor Robertson’s curious history of political support from Bob Rennie, a heavyweight Vancouver condo developer.
After years of Vancouver being deemed “impossibly unaffordable,” British Columbians were finally seeing signs that the market was beginning to cool.
Overpriced condo sales weakened; competition decreased, giving would-be buyers a little leverage as the market appeared to be starting a stage of self-correction.
Then came Mark Carney and David Eby.
The two leaders have joined forces on a plan that critics say amounts to a taxpayer-backed condo bailout, one that could see governments step in just as the market was beginning to put pressure on developers and investors holding unsold units.
Carney says governments should use financing mechanisms to convert empty condos into affordable housing. Skeptics, however, are asking a simple question: if developers can't sell these units at the prices they're asking, why should taxpayers be forced to buy them instead?
BC Conservative housing critic Linda Hepner says many of the units were built and priced during a very different market, and that some were reportedly listed for more than one million dollars.
"The market has simply shifted," Hepner told Rebel News. "They are not going to get the same amount of money as they would have several years ago."
Hepner says ordinary Canadians face losses when markets move against them, and developers should not be treated differently.
"If I sell my condo today, I'm going to take a bath. If you sell your home today, you may take a bath. We are all subject to the free enterprise market."
She also questioned why governments are focusing on rescuing unsold inventory rather than helping prospective homeowners.
"Why do they not simply help those that are looking to purchase?" Hepner asked, suggesting measures such as eliminating GST on home purchases. "Now you're talking market stimulus as opposed to market stagnation."
Instead of what the BC NDP describes as "innovative funding methods," Hepner argues governments should focus on reducing red tape, lowering development costs, and making it easier for ordinary British Columbians to enter the housing market.
"If you're going to do something innovative, do something that actually helps everyday people in British Columbia get ahead."
The proposal has also raised questions that remain unanswered.
How much taxpayer money will be committed? Which developers and investors stand to benefit? What prices will governments pay for these units? And why was the announcement made while Parliament and the B.C. legislature were recessed for the summer?
In my latest report, I examine those questions, the political connections surrounding some of the key figures involved, such as federal Housing Minister Gregor Robertson and his history with one of Vancouver's most influential development figures, "Condo King" and 15-minute city pioneer, Bob Rennie.
Drea Humphrey
B.C. Bureau Chief
Based in British Columbia, Drea Humphrey reports on Western Canada for Rebel News. Drea’s reporting is not afraid to challenge political correctness, or ask the tough questions that mainstream media tends to avoid.
