Most of the 400 units are in the city of Vancouver
Rebecca Tebrake
Sun
Metro Vancouver is planning to raise rents in hundreds of district-owned housing units.
Metro’s regional housing manager Don Littleford told The Sun the hikes could be as high as 40 per cent over a three-year period for at least 300 units.
Later, he said his proposal had been rejected by the region’s top administrator, and a new plan is being worked out that will be in place by July 24.
The Metro Vancouver Housing Corporation, the regional housing authority, says the units are undervalued, some by as much as 40 per cent, and the money is needed to keep pace with mounting repair costs.
The proposed increase would apply to higher-income tenants who receive no rent subsidies, renting apartments and townhomes in complexes that offer a mix of subsidized and non-subsidized units.
“Nobody wants a rent increase, but people that can afford to pay them need to pay them to keep this whole system afloat,” said Littleford.
Approximately 2,200 of the authority’s 3,500 units are supposed to be rented at market rates, Littleford said.
At least 300 to 400 of the 2,200 units are below market rates, and will see rent hikes to bring them into line.
Increases will vary according to the location and nature (number of bedrooms, type of housing) of the units.
The bulk of the underpriced housing is in the City of Vancouver, and tenants in those homes can expect the greatest increases, Littleford said.
A two-bedroom townhouse in east Vancouver now rents for as little as $725 per month, an estimated $200 under market value. The same type of home in the west side of Vancouver, now renting for as little as $1,200 per month, would have to see rent hikes to $1,400 to reach market value.
Subsidized tenants will not be affected by the increases, Littleford said.
All tenants facing rent hikes will have the chance to qualify for a subsidy if the increase means they will spend more than 30 per cent of their income on rent. This will prevent low-income renters from losing their homes, Littleford said.
The Tenants Resources and Advisory Centre, a tenant advocacy group, hasn’t seen Metro Vancouver’s proposal yet, but executive director Martha Lewis said rent increases are fair as long as people aren’t evicted.
“We understand the reason why they are wanting to do this. Money is a problem and they want to be able to afford subsidies for tenants who need subsidies,” Lewis said.
She does question how the authority will determine a fair market rate.
“A few percentage points one can understand, but 40 per cent? What impact is that going to have on the people living there in an economic downturn?” Lewis asked.
The authority had independent consultants determine the market rents around Metro. It has had no problem renting test suites with rents set at market rates, Littleford said.
For decades, rents were kept low by federal regulations.
But with the federal government turning affordable housing responsibilities over to the province, BC Housing is allowing Metro Vancouver to raise the rents, he said.
Any rent hikes will be used for much-needed repairs for complexes like Vancouver‘s Earle Adams Village, where tarps have been used to patch leaky roofs for years.
The region has spent more than $2 million on roof repairs alone in the past two years.
Many of its complexes are 25 to 30 years old and will need major upgrades soon, Littleford said.
Metro Vancouver‘s capital budget for housing ranges from $3 million to $4 million a year, said Littleford.
Eighty per cent of the repair budget comes from rent. The remaining 20 per cent comes from the provincial and federal governments.
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