$500M fund to protect, expand affordable housing in B.C. attracts dozens of applications

B.C.'s newly created Rental Protection Fund has dozens of affordable-housing organizations across the province vying for grants that would allow them to acquire buildings and offer units at rents below market rates.

The fund is a result of the province allocating $500 million in January to provide one-time capital grants to non-profit housing organizations that would allow them purchase properties, upgrade them and protect renters living there over the long-term.

About 80 organizations have applied so far for grants for projects that equate to about 1,500 homes in 30 buildings, said Katie Maslechko, CEO of the Rental Protection Fund.

"We're thrilled with the demand we are seeing, blown away with just how significantly the community-housing sector has stepped up," she added.

The fund was created to manage the money at arm's length from the provincial government. 

The approach — using public money to bolster community housing's buying power — is popular among those studying how to keep housing affordable in cities like Vancouver.

Often, older rental housing buildings are bought by speculators or large corporations, which then redevelop properties — evicting tenants in the process — and then hike rents to cover costs and make revenue.

Since the 1950s, Brightside Community Homes Foundation in Vancouver has been providing affordable housing in the city. Currently it operates 22 buildings with a total of around 1,000 units for renters who make between $15,000 and $45,000 per year.

Over the past decade, however, it has not been able to acquire any new buildings because it's been priced out. Brightside CEO William Azaroff hopes the Rental Protection Fund means this will change for organizations like his.

"This allows a grant to cover the equity gap that a group like mine just does not have," he said. "So, for the first time we can actually acquire new buildings, put more land in the hands of community-owned organizations."

While B.C. Housing says a total of 14,546 rental units were registered in the province in 2022, a 10 per cent increase over 2021, other studies show a net loss of purpose-built rental housing.

Loss of rental stock

The province said the loss of rental stock due to redevelopment has made the net number of purpose-built rental units in B.C. comparable to what it was in the early 1990s — while the population has grown by 50 per cent since that time.

Data from the Canada Mortgage and Housing Corporation shows that between 1991 and 2021, approximately 97,000 purpose-built rental units in B.C. were either redeveloped or converted to more expensive units.

About one-third of all B.C. households are currently rental — a total of 669,450, according to the province in a release from January

"We're digging ourselves a hole that keeps getting bigger, even though we're trying to build, bring on new units," said Virginia Holden, executive director of the Greater Victoria Housing Society.

The society owns and operates around 1,000 units for 1,300 residents — predominantly seniors, families and persons with disabilities, but also working singles and couples.

Holden says the society has earmarked acquisitions it's hoping the fund will provide grants for. She says she wants the funding model expanded beyond B.C.'s borders.

"I'd love to see the federal government get more involved," she said. "How do we make sure this happens in other jurisdictions across the country?"

Maslechko said the first group of grants is expected to be decided in December. She is also hopeful the attention the fund is gaining will interest other investors to bolster it beyond provincial funding.

"There's a variety of interest from ...  different capital sources, with a strong, genuine desire to be involved in affordable housing and the affordability challenge we're all facing," Maslechko said.