More than 6,000 new “below-market” rental apartments are either under construction or being processed by the City of Vancouver. Read More
Douglas Todd: A flood of new below-market rental apartments are coming to Metro Vancouver. But deciding who gets into them is fraught.
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More than 6,000 new “below-market” rental apartments are either under construction or being processed by the City of Vancouver.
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But who will actually get to live in the subsidized units? The question has long been fraught.
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A difficult task awaits those deciding who will be, in a sense, the fortunate ones allowed to rent a lower-cost unit in the many new apartment buildings coming within the boundaries of Vancouver’s vast Broadway plan, next to its SkyTrain stations and elsewhere.
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The torrent of new rental blocks and towers are generally based on the formula that up to one in five units are “below market,” which is understood to be 10 to 20 per cent below average city rents. Similar below-market schemes are underway in Richmond and the City of North Vancouver.
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But many questions are being asked.
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What kind of incomes make one eligible? Is it best for city staff or for landlords to decide who gets to rent the below-market units? Will those in charge monitor tenants’ changing income over the years, to make sure they continue to qualify for subsidized dwellings?
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With condo construction stalled, many Metro Vancouver city councils have been trying to make it easier and cheaper to build more rentals because they are concerned people on middle incomes cannot afford what the market dictates. Average rent for a two-bedroom unit in Vancouver, according to rentals.ca, is currently $3,430.
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Instead of requiring developers to fund amenities such as parks and community centres in exchange for density and other zoning bonuses, politicians are requesting a portion of units be below-market.
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But Cameron Gray, who was head of housing for the City of Vancouver for almost two decades, is among those with pointed concerns.
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Gray is worried “about the cost and difficulty of administering the 20 per cent below-market rentals. The devil is in the details.”
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Gray and Christina DeMarco, former head of planning for Metro Vancouver regional district, believe it could be difficult for city officials to enforce whether the people allowed to rent the discounted units are truly in moderate-income brackets. In Vancouver, a moderate income is generally considered between $30,000 and $80,000 per year.
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Landlords ‘obligated to verify income’
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“The fact is that private landlords are not really interested, or shouldn’t be, in administering complex housing agreements and tenancy arrangements,” Gray said. “It may help them fill less-valuable units, but I doubt that will compensate them for all the administrative burdens.
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“Will the incomes be annually reviewed? If a tenant’s income increases to the point where it exceeds the entry limits, will they be forced to move? Will the city be party to the tenancy agreements between the landlord and tenant?”