British Columbia Will No Longer Allow Rental Restrictions In Strata

Premier David Eby has announced laws to prevent strata councils from imposing limits on renting out condos or forbidding kids from living in their complex.

Municipalities would also be given housing goals to meet, and those that didn’t would be given the go-ahead. This second piece of legislation.

The B.C. Liberals criticized the measures as “too timid and too bureaucratic,” while the group that speaks for the 250,000 condo owners in the province said that the new regulations will mainly help investors and speculators.

While some local leaders worry that the process for determining those targets will be “messy,” some B.C. mayors applaud the proposed housing targets, saying they will help municipalities push through urgently needed initiatives.

The housing statement, made on Eby’s fourth day as premier, is an effort by the former attorney general and housing minister to follow through on his promise to move rapidly on housing reforms during his leadership campaign.

If approved, changes to the Strata Property Act would eliminate all rental limitations for all strata buildings in British Columbia, which, according to Eby, would result in thousands of vacant apartments being converted into rental properties.

It would also be unlawful for stratas to evict young families who have children by enforcing 19-plus age limitations. Stratas designated as “seniors only” are still permitted.

“It is just untenable,” Eby said at a news conference in the legislature’s rotunda, “that a British Columbian looking on Craigslist for a place to rent can’t locate a home and someone who owns a condo is not allowed to rent that property to that individual.”

“It is equally unfair that a young couple who lives in a condo and desires to have a family must begin looking for a new home because that stratum has a regulation that everyone in the unit must be 19 years of age or older,” the woman said.

According to Eby, based on the number of owners who sought for exemptions from the speculation and vacancy tax, there are roughly 2,900 strata apartments that are vacant due to rental limitations.

The Condominium Home Owners Association of British Columbia’s executive director, Tony Gioventu, opposes the proposal because it would make strata units more enticing to investors and raise prices.

Additionally, he noted that many strata flats cost $3,000 a month or more to rent, indicating that the measures will not boost the supply of affordable housing.

The new law only affects condominiums constructed before 2010, when regulations were altered to make it illegal for newer structures to impose a cap on the number of rental units.

Before the fall session ends on Thursday, the administration aims to enact the Strata Property Act. It will start working right away.

The Housing Supply Act is the second piece of legislation, and it sets goals for communities where there is a shortage of housing with the intention of increasing the supply of housing in British Columbia. The objectives will be established in accordance with the housing needs assessments that local governments are already mandated to produce every five years.

According to community plans and growth estimates based on census data, the administration indicated the targets will initially be applied to eight to ten communities. The premier’s office stated that efforts are being made to locate those localities.

The province has three possibilities for intervening to enforce compliance if it finds that a municipality is not making efforts to reach the goals:

  • To identify what is delaying construction starts, a housing minister-appointed expert might examine municipal procedures.
  • The municipality may receive instructions from the housing minister on what steps to take.
  • As a last option, the province has the power to enact an order-in-council that would empower it to override the municipality and compel the construction of new housing projects.

The provincial override powers, according to Eby, “my goal is we never have to use them.” The Act “does have teeth, and it needs to have teeth to ensure that we are accomplishing those goals,”

The legislation intends to quicken municipal zoning approval procedures, which Eby claims are sluggish and hinder the development of new structures and redevelopments. Midway through 2023, the law would go into effect.

Through regional growth programs, the province already assigns housing goals to local governments.

The City of North Vancouver is the only one of the 21 municipalities in Metro Vancouver, according to data gathered by the Homebuilders Association of Vancouver, that is exceeding the expectations established in the Metro Vancouver 2040 Regional Growth Strategy for house construction.

Surrey, Burnaby, and Coquitlam, three fast expanding suburbs that have benefited over the years from billions in SkyTrain construction, are among those falling far behind the housing targets. White Rock, Delta, New Westminster, and Vancouver all fall between one and three percentage points short of their goal.

Eby, the member of the legislature for Vancouver-Point Grey, has been open about his anger with local governments that prevent the rezoning of housing developments due to problems like parking. A non-profit organization’s request to construct an apartment building for persons with developmental disabilities was earlier rejected by Surrey council, which drew his ire.

Brenda Locke, the mayor of Surrey, who voted in favour of that project, said she supports the law and finds encouragement in Eby’s assurance that communities that meet housing targets will be rewarded with provincial funds for amenities.

Kevin Murdoch, the mayor of Oak Bay, said he is pleased that the province is using a “consultative” approach to work with towns before enacting more drastic measures.

Murdoch warned that things can get “messy” as the housing minister chooses which eight to ten communities will be the first to receive the new benchmarks.

The mayor of Victoria, Marianne Alto, praised the law and suggested that other cities follow like.

She asserted that towns must speed up the construction of affordable homes, but they cannot do it alone.

“We need the province’s assistance to push us and other local governments to (construct)… more affordable houses in every neighbourhood in every municipality in B.C.,” she said.

Kevin Falcon, the leader of the B.C. Liberals, claimed that the housing reforms are “too timid, too small, and too bureaucratic” and won’t significantly expand the housing supply in the province.

The pop gun that we received today was not the canon that Falcon had anticipated.

Sonia Furstenau, the leader of the BC Greens, expressed disappointment that Eby didn’t make comments on expanding the supply of affordable housing for renters with low incomes. The law, according to her, does not provide protection against real estate investment trusts, which permit investment companies to redevelop strata housing in order to boost shareholder profits.

In a statement, Furstenau stated that “we need to make sure that speculators and investors are not benefiting from additional supply.” The underinvestment of the federal and provincial governments in non-market housing has made the issue worse.

Eby’s housing platform still needs to take action in a number of areas.

In his program, Eby proposed a flipping tax that would be levied on all home sales. The tax rate would be highest for individuals who retain homes for the shortest period of time and would decrease to zero after two years, albeit this was not stated.

Additionally, he wants to legalize secondary suites across the entire province of British Columbia and empower builders to evict single-family homes in major urban areas in favour of up to three additional units.

According to Eby, the housing renovations are complicated and take time, but he assured that work is in progress.