B.C. law change will let City of Vancouver enact SRO vacancy control

The province has introduced law amendments that will allow the City of Vancouver to enact vacancy control on single-room occupancy (SRO) units in the Downtown Eastside.

Vacancy control refers to a policy where rent increases are tied to a unit, and not a tenancy, a move that many housing advocates have pushed for amid a housing affordability crisis.

In December 2021, Vancouver passed bylaws that enacted vacancy control for SRO units in the Downtown Eastside, with the units often geared toward low-income people who could not afford housing elsewhere.

However, those bylaws were struck down in 2022 after a lawsuit from two private SRO owners, with the courts ruling that the city's bylaws constituted an overreach of its authority, given that property owners were already regulated by the provincial Residential Tenancy Act.

Now, the province has stepped in to introduce amendments to its Municipalities Enabling and Validating Act, after a request from the city, which would allow Vancouver to go ahead with its bylaws.

"We want to ensure Vancouver remains a place where everyone can find a sense of belonging, regardless of their income," said Mayor Ken Sim in a statement. "This bylaw is an important step in addressing the urgent need for low-income housing and protecting vulnerable Vancouver residents."

According to Sim, SRO rents have increased by 21 per cent in recent years, and more than 500 tenants have been displaced from private SROs.

"Last year alone, over 900 rooms were rented at a substantially higher cost per month, placing them out of reach for many low-income residents," he said.

The province says there are more than 6,500 SRO spaces in Vancouver, and 48 per cent of SRO buildings are privately owned. The rest are owned by the city, province or non-profits.

"As we work to replace SROs over the long term, we cannot risk losing the current affordable housing stock they provide," Housing Minister Ravi Kahlon said in a statement.

"We are protecting vulnerable people who are being exploited by some bad actors, who are using pressure tactics on tenants to leave their rental units so they can hike the rent, leaving them with nowhere else to live."

The province says some SRO rents are increasing to around $800 or $1,000 per month — going as high as $1,950 per month. The listed rents are well above the maximum of $500 in shelter allowance given to those on income assistance.

Former councillor praises amendments

Former city councillor Jean Swanson was the driving force behind the vacancy control bylaws in 2021, and praised the province's move on Monday.

"The landlords took it to court and won ... on the grounds that it's provincial, not municipal jurisdiction," she told CBC News. "So, now with the province introducing this act, they're saying the province wants it ... it's good."

The city appealed the B.C. Supreme Court decision that quashed its 2021 bylaws, but the appeal was dismissed by the courts earlier this year.

Swanson says the bylaws will help prevent SRO landlords from evicting tenants simply to raise rent, and it may help prevent a lot of homelessness.

"It only affects SRO residents. If I had my druthers, it would apply to all renters, but [it's a] first step," she said.