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Woodward’s developer tries new experiment in affordable housing

July 26th, 2010 · 36 Comments

Developer Ian Gillespie and architect Gregory Henriquez are partnering with Vancity and Habitat for Humanity to build a project that is affordable to people with incomes in the $26,000-$36,000 range, as I detail in my Globe story today.

This is sure to set off another interesting debate about affordability (what is it, what does it mean, are the trade-offs worth it, affordable to who, affordable for how long) and gentrification in the Downtown Eastside (since CCAP and Wendy Pedersen are currently taking the position that anything except for social housing is gentrification, even these kinds of units).

I find this project interesting because of the way Gillespie and Henriquez are puzzling over how to prevent speculation. That’s an ongoing issue in this city — well, in certain parts of the city. There’s no doubt that speculative buying drives up the price of real estate in particular neighbourhoods, which then ripples out to other neighbourhoods. How do you prevent it or slow it down, assuming you want to?

I’ll be looking forward to see the results of this effort.

(Btw, for those not aware, Gillespie and Henriquez are also the team behind the much-debated tower on Comox in the West End.)

Categories: Uncategorized

  • Chris

    If this succeeds, I’d like to see it replicated around the city.

    I live next door to the new condos being built in Mount Pleasant (District and Social). The giant holes needed for parking boggles my mind, especially in an area so well served by transit. Without those parking garages, I might have been able to afford a unit.

  • Tessa

    I’ll second the call for more buildings allowed with no parking. That would be one of the easiest ways to not only make buildings more affordable, but also encourage more people to give up their car. $40,000 is a lot of money. Add onto that the savings from using basic finishes rather than the unnecessarily pricey high-end stuff, and suddenly the homes become a lot more affordable for the types of people being pushed out of Vancouver right now due to price.

  • Bill Lee

    If they can’t prevent the city-workers/police/fire/health people from flipping or subletting their Olympic village squats how are they going to stop anyone at the Bourbon Hotel place?
    First anti-restriction lawsuit is going to be a doozy.
    And how is the 250 square feet condo place on 22 West Hastings coming along? Apartments already sold?

    Claudia Kwan’s stories on the Woodwards has already talked about people moving in because they could not get a good flip price.

    Maybe the entire city should be placed on 99 year leasehold or of a similar nature. Do you need the house when you die? How long will you live? How to move out for various reasons of the Bourbon Hotel condos?
    And will the press be reading the owner/tenant/occupier lists and seeing who had connections or other benefit to get in?
    An interesting question, solved elsewhere with a stronger social sense and a greater use of the public powers.

  • IanS

    Isn’t there a concern that people with cars will buy the lot and just park in the surrounding area?

  • Bill McCreery

    AFFORDABLE CONDO OWNERSHIP —
    a possible way to allow those who might not ordinarily qualify for a mortgage would be for the Feds or Province [not City but maybe Vancity?] do some kind of ‘joint ownership’ arrangement with the purchaser. This could then allow the purchaser to obtain a low interest mortgage. The F/P could lend or provide all or part of the [5%] down payment & the mortgage could be for say 40 years if need be to keep payments down. This might function something like a ‘rent to own’ agreement. If the purchaser defaults, the F/P assumes the property which they can resell. If the purchaser moves, the property could be sold & some formula for splitting any profit / loss could be worked out. This, if properly structured could also prevent speculation. Others with more financial expertise than I can comment on whether or not this would create the huge run up of debt Mr. Trudeau’s ARP & MURB ventures did in the 70s & 80s. If so, it’s a no go but, I see no reason, other than admin costs [which can be offset via a share of the ‘profit’ in resales], for this to add to the F/P debt. @ some point if the purchaser could do so, they could pay out the down payment & assume full ownership. It seems to me this is a low key plan which could not just provide affordable housing but, provide that ‘leg up’ to individuals who can & want to improve their lives.

  • Joe Just Joe

    Perhaps the best way to have them remain “affordable” is by making them passively “affordable” instead of trying to do it actively. Giving the units no parking right away makes them less desirable (from a speculation POV). Making them owner occuppied again makes them less desirable to flippers as there is no potential rental income to carry costs. Providing them with so called inferior finishes also while keeping costs down will remove demand on the resale market. This items designed into the project will ensure that the resale value will always be below other units. Those items alone might not guarntee they remain “affordable” over time but they would always be “more affordable”.

  • Vanessa Carter

    I applaud this effort – affordability issues are simply what the average person earns in a year. Rentals amount must be based on the model set forth by the mortgage companies 25-35% of your total net income on housing. The sad fact remains is that many renters are paying over 50% of their net income on rent leaving nothing to invest with. My father crunched the numbers and he told me that as long as I l continue to live inVancouver, BC I will never be able to retire and I am spending over 50% of my net income on rent. Human greed and peoples sense of entitlement and the Aisian invasion of the early 90’s and the subsequent greed has prevented many of us who make decent money elsewhere in Canada have been priced out of the market all together.

    Thanks Gregory Henriquez for thinking of the greater good unlike so many other developers and private landlords.

  • Bill McCreery

    Covenants could be put on title defining who qualified future purchasers can be. In fact, if the City is effectively subsidizing this project as per STIRS [are they?] + 0 parking, the City & developer have an obligation to do so.

    I think thought & provisions must be put in place now on such projects as well as the STIRs to define up front what the developer / investor can or cannot do if their properties [condo or rental] get into trouble down the road as I believe the STIRs will. 39o sf, $2.50 / sf units will not be seen to be bargains when the going rate is $1.50 to $2.00. Then what? Will these SROs be rented as hotel rooms? I would appreciate knowing whether these possibilities have been thought through.

    It’s interesting this proposal has come up. I have been thinking about the above ‘rent to own’ scheme for some time because I feel strongly the STIR initiative is misguided.

  • Frances Bula

    @IanS. I had that question in my mind too and my little voice answered me that, yes, people with cars could just buy a parking space nearby (the Woodward’s parkade comes instantly to mind). But it is made more difficult for them, it’s not an automatic. And they’d have to walk to another building, instead of just going down the elevator.

    Then they also have to pay the true cost of housing their car by having to pay full rates for a nearby commercial lot, instead of what happens now. People without cars still have to pay their share of building space for cars when they buy their condos.

  • IanS

    I suppose it would make it more inconvenient, though I’m not certain it would be any more expensive if the $30-40,000 value for a parking space is right.

    Still, I guess it would make the cost of parking stall optional, which is something.

  • Urbanismo

    Let me share a little story told to me, yesterday, by someone close to the family. This is West Van by the way.

    So, “Sarah” and her husband bought a house out in Eagle Harbour thru foreclosure: they attended court to clear the title. Evidently there were many foreclosures that day: something that I naively thought only happened in bulk south of the border. Not so!

    Anyway the deal went thru and they have a nice house in a posh neighbourhood.

    But time to sell their old house: typically illustrating why young families have trouble affording rent or mortgage in the region.

    Despite the proliferation of foreclosures their house sold immediately.

    So, and this is extraordinary, while foreclosures were going on all around a bidding war ensued in the sale of their erstwhile property. And to add extra ordinary to extra ordinary, it sold above their asking price: to off-shore buyers, who bid higher to clear the locals, planning to replace it with a monster.

    I just heard this yesterday.

    The same affects Vancouver too and illustrates the futility of chopping floors and fiddling with paperwork.

    The housing situation will not be solved by Richard coming up with cute architectural tricks or by Susan scoring brownie points.

    Here are two big problems that cannot be solved locally but will sure as hell keep hurting locally.

    Lack of affordable housing, period, will persist until the above are put to bed.

    http://members.shaw.ca/urbanismo/thu.future/vancouver.failed.html

    And not just Vancouver!

  • Ron

    Does anyone think that a parking space could be considered a “mortgage helper”? Although I haven’t done the calculation on what mortgage paymentswould be on $40,000.

    In my condo tower in Yaletown, parking spaces rent for about $100 per month and there’s no shortage of takers. With the number of condos rented out to “roommates”, there is often a need for more than one parking space per unit (even if cars are only used on weekends for road trips).

  • Ron

    That’s actually a good point about averaging costs within a project. i.e. Condos like Spectrum near GM Place / Rogers Arena didn’t automatically come with parking spaces – the smaller units / studios may not have ven had the option to buy a space. However – when it comes to building maintenance, those units will still be sharing the costs of lighting and maintaining the parking garage since “unit entitlement” on which strata fees are based probably does not take into account whether or not a unit has a parking space (i.e. neither does it take into account other factors such as hoe many windows a condo has or whether it has a balcony or patio or the extent of plantings specific to a unit).

  • Grumbelschmoll

    It’s a mistake to think that the car parking spaces that we use are as many as we need. Not so. Experience from other cities shows that if fewer parking spaces are available both privately and publicly, people will own fewer cars. If we allowed residential buildings to be built without parking on site, then some would park in the neighbourhood, and what’s wrong with that?, and some would buy private parking, nothing wrong with that either. In total, there would be fewer cars because owning a car that is a pain to find parking for is a pain. Some would not want that pain, making instead do with other transportation choices.

  • Jon Petrie

    Don Cayo, Sun, 25 July, has an article entitled “Vancouver’s parking policy rife with contradiction” http://www.vancouversun.com/Vancouver+parking+policy+rife+with+contradiction/3321678/story.html

    Vancouver, thanks to mandated overbuilding of parking, has one of the lowest parking rates downtown of any major Canadian city: Per Colliers International the average monthly price for an unreserved downtown parking spot, Vancouver $224, Edmonton $275, Montreal $280, Toronto $305 , Calgary $460. http://www.edmontonsun.com/news/edmonton/2009/06/24/9913981.html

    And re the suggestion that $100 a month for a $40,000 parking spot could be seen as a mortgage helper — a 6% return on a $40,000 parking spot — not allowing for any return of capital or allowance for lighting, administration, etc — would be $200 a month, so at $100 a month a $40,000 parking spot is being heavily subsidized.

  • Blinky

    I just can’t understand DTES groups that would oppose something like this. I live in the area, and surely any sort of separate culture or identity is a very unhealthy one. What is there to preserve and promote, really?

    I remember attending a film screening a few years ago about some volunteers that attempted to support people in the area and help them out. Afterwords the head of addiction services at St. Pauls had a Q/A. He was against the idea of so many services behind located in the DTES — he likened it to putting a AA location on top of a bar.

    I’m not sure what the best way is to help/support all of the dtes residents/victims, but surely gettoization — barring anyone who is the slightest bit more able to cope with life — isn’t one of them.

  • Michael Geller

    This is a very creative concept and should be applauded and supported. However, before promoting the ‘shared maintenance’ aspect of the project too aggressively, the proponents may want to speak to some of the coops who discovered that after a while, it was necessary to bring on professional maintenance services.

    I’m disappointed that Wendy Pedersen could not find it in her heart to support this project, but I’m not surprised. Fortunately, she will not be able to stop it.

    Legal covenants can address some of the other concerns noted above.

    Hopefully this project will also rekindle the debate over whether it is better to own or rent. Recently, I have started to feel that too many people are celebrating rental tenure, when in fact, affordable homeownership is a much nobler goal. Just ask those who own their homes.

    On a related matter, Frances, perhaps you can survey how Vancouver City Councillors compare with other past and current municipal politicians in terms of owning vs. renting their homes. I’ll go out on a limb here and suggest that the current Vancouver council has a higher percentage of renters than previous councils, and other councils in the region.

    Does this affect city policies? Yes, I think it does.

  • Dan Cooper

    Perhaps I missed this question and answer (it’s happened before!), but: Does anyone have information on how many square feet these various units will be, and how they compare with the average downtown condo? Putting it another way, will the “affordable” units be a livable size?

    I like many of the ideas behind this building. My strata, where I serve on the council, recently replaced a portion of our parking ramp, and it was a major chunk of money. Less than half of the units seem to actually use their parking anyway, on a daily basis; lots of bicyclists and bus riders it seems. It’s nice to have parking freely available when I (rarely) take a work vehicle home, or when guests come, but I could get by without it.

    My big concern in the arrangement described would be around the maintenance issues. It’s one thing to do painting and change lightbulbs, another to do boilers, electricals, or major concrete work in a safe, effective and lasting way. And what will they do when (not if) some people don’t pull their weight?

    Another question – anyone have an idea what unavoidable condo fees per unit or square foot (e.g. insurance, hydro…) would be on a building like this? Even if the maintenance can be done by the residents, I doubt they’ll be running the building on locally generated wind and solar!

  • Joe Just Joe

    Looking at

    http://vancouver.ca/commsvcs/developmentservices/devapps/66wcordova/l2lscape.pdf

    It doesn’t show sqftage but it does show enough to know these aren’t 325sqft SROs and that the units are a liveable size.

  • Gassy Jack’s Ghost

    On the face of it, I applaud developers for trying new models to achieve affordability, but the reality is, the cooling market and rising interest rates are doing far more than this building or the nearby micro condos ever will.

    A couple of blocks away at 168 Powell, the Concorde condos that completed in late 2009 with high-end finishings and parking have not sold well (14 unsold), and the prices in the suites have dropped to pretty much the same $$$ as this project: 624 sq ft for $318K, $295K for 583 sq feet, etc. Ginger in Chinatown is in a similar boat. The strata maintenance fees are not outrageous, in the $150 per month range on Powell. I assume the 60 W Cordova suites generally have less SF per suite, though don’t know for sure, but if they do, the price per sq foot of buying into Gillespie’s “affordable” building will likely end up being higher than buying into a high end condo in the same neighbourhood!

    So, I wonder how popular or affordable this project is going to be if you can pay the same and get more SF, better finishing, parking, no covenant on retaining the suite, and don’t have to fret every time a lightbulb burns out? The only thing that’s better presumably is the proximity to Woodwards, although it will live in that monstrous shadow for most of the year…

    But the parking and maintenance relaxations are not the end of the story. This building is also applying for a building height relaxation for 100ft, pushing 33% higher than the Gastown maximum of 75ft. The street frontage is also substantial, and with the added height, will create another imposing streetwall only a block from the gargantuan W. After all the BS around the Historic Area Height Review, and all the BS about Woodwards being the exception, we see the trend continue towards the DoP and developers ignoring height restrictions, even the ones they recently raised through HAHR! Dangerous precedents, indeed.

    Lastly, this building is proposing very different building materials than Gastown, with public art built into the frontage, and a row of trees at the top acting like a cornice. This is decidedly out of character with the rest of Gastown (as is the Concorde building), and required approval/relaxation from the advisory panels and DoP. Personally, this is the part of the project I applaud, as I am all in favour of creative architecture in the HA on sites that aren’t designated heritage, and I agree with Henriquez that the last thing we need is more faux heritage brick buildings.

    All in all, however, there are significant relaxations being granted to this building in the name of affordability, yet despite all these “giveaways”, the building is likely going to end up being less affordable than similar buildings in the area that had few or no relaxations. This sets a very dangerous precedent, and makes me really question how altruistic the developer and architect are really being here, and why the DoP is apparently not blinking an eye. There’s no way these guys are clueless about the current market in the area, right?

  • Dan Cooper

    Thank you JJJ. Those do appear to be reasonably sized.

  • Canuckistanian

    Wendy Pederson’s comment makes it incontrovertibly clear how much weight we should give her opinion: Zero!

  • Bill McCreery

    @GJG.

    “All in all, however, there are significant relaxations being granted to this building in the name of affordability, ……….. This sets a very dangerous precedent, and makes me really question how altruistic the developer and architect are really being here, and why the DoP is apparently not blinking an eye.”

    You have raised a very important point. 1 project, in this case in a Heritage Area, is perhaps an exception or, is it a precedent? But, 2 is a trend or, is it riding roughshod over policies which have been carefully crafted over time by the combined efforts of politicians, staff & communities?

    Whatever rationalization Mr. Henriquez may have for ignoring the Gastown guidelines, he should be required to justify any relaxations he may request within the peramiters of the GHA. Are the proposed exceptions to the rule justified? Why? What will the impact be on the integrity of the GHA? If not beneficial, they should not be granted. If they are, well & good. But, how many exceptions does it take to throw the baby out with the bathwater?

    It’s a slippery slope &, not many.

  • Lewis N. Villegas

    I was referred to a friend to the Globe and Mail for an on line review of The Woodwards, February 2010. This is the the exchange that caught my attention:

    Skip Towne from Vancouver writes: 

    How is architecture ‘ethical’ if a neighbourhood’s stakeholders, apparently solely for financial gain, cavalierly disregard and circumvent heritage protections that have been carefully preserved for generations? In the case of Woodward’s, for many years the site and its surroundings were designated part of a unified historical district.

    Ceremonial plaques were placed on important buildings (including Woodward’s) and height and density restrictions were rigidly enforced. Immediately prior to approving the project, which allowed 40+ stories to rise incongruously (and hideously) in the midst of this heritage, the City of Vancouver had posted official assurances on its website that the height and density restrictions, in place for years, would be retained and respected. But as condo values soared the plan for the current development by Millenium was deployed, and all of the protections were swept away in an instant. Oddly, not a single dissenting opinion to this heritage destruction was published at the time in the predominant media voice, The Vancouver Sun.

    Did the Sun foresee the massive injection of advertising revenues that the weekly full-page colour sales ads for Woodward’s would bring to its coffers? This entire project is tainted by a shameful process, and the players should be held accountable.

    Gregory Henriquez: 

    Two comments: First, the developer’s name is Westbank/Peterson Investments. Second, there are many European cities like Berlin, Frankfurt or Barcelona who all have much more meaningful heritage contexts and have no problem in contrasting the present with the past.

    The future health of a neighbourhood can not be mothballed by nostalgia. What Hasting Street requires is real density and body heat.

  • Gassy Jack’s Ghost

    Bill, Lewis, thanks for your comments. What’s disturbing about this is that Henriquez apparently justified the height relaxation by referencing his own project at Woodwards on the next block and essentially saying, “it’s not THAT high.” I find it extremely problematic that a developer would cite an exception to justify another one. That’s a very disturbing trend.

    As for the quote, Lewis, well, as others say, this is Vancouver. Berlin, Frankfurt and Barcelona have heritage everywhere, we have a small concentration continuously under threat. Big difference. But to say that Hastings has no “real density and body heat” is pure nonsense.

  • Bill McCreery

    I’m not sure where the comments attributed to Gregory Henriquez came from but, I take exception to both of his cavalier assertions.

    1] While Berlin, Frankfurt & Barcelona all have meaningful heritage contexts, so do we in Vancouver. To say the heritage of those cities is more valuable than ours is wrong. Our heritage is just as important to us & to Vancouver’s urban fabric than that of those European cities. What is different is how much ‘heritage’ fabric we have as compared to those cities. We have much less &, much of it is concentrated in 3 small, Provincially protected areas [Gastown, Chinatown & Yaletown]. We have also designated individual buildings as having heritage value. We need to protect those areas & buildings precisely because we have relatively few by comparison. That was the purpose of the original legislation in the 1970’s, the creation of which I supported as a Park Commissioner @ the time. Our City is much richer for it. It is as important today as it was when it was created.

    2] I am not sure what GH is dealing with re: ‘Hastings Street’. It is not part of the Gastown or Chinatown Heritage Areas. There are a number of heritage buildings along it &, it has a certain architectural character of its own which should be respected. Gastown, Yaletown & Chinatown have not been ‘mothballed by nostalgia’. Quite the opposite. The creation of the heritage areas was precisely what permitted their economic revitalization & preservation. Recent evolution has made adjustments to be necessary in these areas & their surroundings to supplement & provide support to them to ensure their continued viability.

    I would suggest to GH that there are many ways to make adjustments to urban fabrics & many ways to increase density. High rise intrusions are but, one but, are not necessarily the best. If there is a valid due process in place, hopefully the best solution will be realized.

  • Gassy Jack’s Ghost

    “Hastings needs more density and body heat”

    Bill, I wholeheartedly agree with your assessment regarding the heritage in Vancouver, and was very disheartened to read Henriquez’s comments.

    Regarding density in the HA or on Hastings: Lewis has shown in the past that each of the original 5 neighbourhoods could hold up to 10,000 people with no need to increase any building heights from the 1970s regulations (let alone the increased heights thanks to the HAHR being approved in Janurary). In fact, at the HAHR open house last year, Planner J. Chen confirmed to me that this area is one of the densest in the city, and the raising of heights through HAHR really wouldn’t add significantly more capacity because of how well-designed the area already is. All that’s needed is to better utilize what is already there.

    If the DTES is viewed as 5 linked quartiers, then there’s a max potential for 50,000 people in an area that currently has somewhere around 16,000-17000. Enough new “body heat” for you? There’s absolutely no need for towers or added density here.

    The DTES is an excellent, home-grown example of five walkable, high-density, human-scaled quartiers linked together by a transit corridor (Hastings). We should be learning from it and using it as an example to follow as we look at developing TOD concentrations along Cambie and Broadway.

    Unfortunately, architects like Henriquez, the DoP, and council all seem to be wilfully ignoring these historical lessons to the long-term detriment of the liveability of this, and other, neighbourhoods.

  • Lewis N. Villegas

    Bill, here’s the link to the Woodward’s comment & response:

    http://www.theglobeandmail.com/archives/article971237.ece

  • Bill McCreery

    @ Gassy. Thank you for fleshing out my meager thoughts. This misguided carpet bombing form of urban development agenda is now clear. It’s not being well received throughout Vancouver. People throughout the City are very unhappy with what & how all this is being done. They’re not going to get away with it there, if not in the short term, definitely in the long term.

    I find it particularly troubling when the same kind of proposals are attempted to be foisted into a troubled area with the justification that they are ‘doing good work’. The same density can be accommodated within the existing fabric. That is the correct thing to do.

  • Lewis N. Villegas

    The quartier, or pedestrian shed, is the cellular unit for designing the city.

    Measuring 120 acres, or 0.5 km2, it can be home to 10,000 people at a density of 83.33 people per acre. If we assume an average Vancouver household of 2.2 people/800-s.f. unit, then we can house 10,000 people in 37.87 units per acre—say 40 units per quartier, plus commercial space.

    The building types we presented at FormShift achieve densities of 60 units per acre in buildings with retail on the ground floor; and 69 units per acre with fee-simple, zero-lot-line houses. Both retain human scale. We felt that by introducing a more robust density, we could achieve much needed revitalization of the arterials at the same time that we preserved the values of the Vancouver neighbourhood streets.

    The shift we had in mind was a shift in scale from thinking one building site at a time, to designing at the scale of the quartier as a whole. Co-ordinated neighbourhood intensification, arterial revitalization, and transportation implementation is only possible if we think in terms of the quartier(s)—rather than one site at a time.

    We believe this represents a fundamental change in planning paradigm that can only be achieved by injecting the timeless and verifiable values of urbanism into the planning process. It is by identifying verifiable facts and testing them in a consensus-driven processes that the new planning paradigm is open, transparent, and consultative.

    “The future health of a neighbourhood can not be mothballed by nostalgia. What Hasting Street requires is real density and body heat.”

    —Gregory Henriquez

    Of course, I disagree that changing the planning paradigm is nostalgic, or amounts to mothballing the neighbourhood. Our FormShift density is real density, and what Hastings Street could really use in my opinion is some relief from the blighting dominance of the automobile
    Transit implementation and a long overdue revitalization will inject public investment along Hastings of the kind that will attract private sector re-investment in the lots fronting. This would reverse a long trend of disinvestment that was triggered when the freeway was planned in the 1960’s. A set of circumstances that winning the freeway fight did not reverse.

    We should not underestimate the vitality of the pre-1914 urbanism of our historic neighbourhoods, or the walkability of a regular grid platted complete with an urban spine delivering transportation and neighbourhood amenity within easy walking distance of every front door. Getting this urbanism right is not easy. It requires special attention paid to the design of the street, the square, and the park, as well as the individual architectural project.

    Getting this architecture right is clearly beyond the current sensibilities of many among us. It requires rediscovering that principles at play at the scale of the community as a whole ultimately liberate the architecture of the individual building site—maximum freedom within agreed upon boundaries. Only when we combine continuity of character at the scale of the neighbourhood, with diversity of form at the scale of the individual site, can we hope to build a whole greater than the sum of the parts.

    We may not find among the products of human culture a more lasting analogy for the tenuous balance necessary to guarantee individual freedom and collective responsibility.

  • Lewis N. Villegas

    Correction (2nd paragraph)

    … we can house 10,000 people in 37.87 units per acre—say 40 units per [acre], plus commercial space.

  • Elli Davis

    To me it sounds like great idea to build more low-cost houses for people with lower incomes. If the price of the buildings will reflect their real low value I don’t think there will be much space and desire for speculative buying.

  • Decker

    The best way to curb foreign speculation and improve affordability is through property taxes.

    Metro-Vancouver should raise it’s property taxes by at least 10 times. If you are a Canadian citizen & full-time resident whom resides in the residence you own, you will get a discount on your property taxes so that you effectively pay the same as you do now. Foreign speculators would get no discount on taxes.

    Money from the extra taxes will pay for low and medium income affordable housing.

    Our laws and trade agreements would make it impossible for us to preventing foreign speculators from purchasing here. However we do have the power of taxation. This is where jacking up the property taxes comes in. If we make the yearly cost of owning real estate in Vancouver too high, investors will skip purchasing here. This will take pressure off the market for locals whom want to buy here.

    Jacking property taxes right away will probably hurt the real estate market in the short term. So we should start increasing taxes at a moderate rate year after year for those that don’t qualify for a discount.

    Housing should not be an “safe-investment” for foreign buyers who don’t live here full-time. Housing should be for people who live here. Vancouver has limited room for expansion due to the water, mountains, US border & ALR. Let’s keep the housing supply for Canadians.

    I agree with the ripple affect. If a house on the west-side is 2 million, then that means a house on the east-side is 1 million, which means that a house in the burbs is .5 million. If speculators push the price of that west-side to 4 million, then it’s a price domino effect around the region. The poor are the ones who get knocked off the bottom rung of the property ladder as everything becomes unaffordable

    A few of you would argue that foreign investors don’t affect the market here much. I completely disagree. When the stock market/US housing market crashed a couple of years ago, Vancouver real estate prices dropped. Our lending standards didn’t change. Ordinary Canadians whom wanted to purchase could still do so. What happened is that the foreign speculation money stopped flowing in here and our real estate market became a bit more affordable.

    Increasing property taxes by 10 times or more, while giving discounts to Canadian citizens whom live here would curb speculation and lower prices. This is not a new idea. Florida does this.

  • Allison D.

    What about the people in the $36K-$55K income bracket who cannot afford to purchase in the current market and would be disqualified from purchasing in a building of this nature? The housing costs in this city, both rent and purchase, are driving the economy into the ground. Does the term “house-poor” ring a bell? Who can afford to support local businesses, restaurants, artists, charities when all their cash is going to shelter and shelter only?

    In addition, the units are incredibly small. One would be fortunate to fit a double bed in the bedrooms. Dresser or a nightstand? Not likely. I work in the design industry and am increasingly disgusted and shocked at what developers pass off as livable space. They’re not out to solve a housing issue, they’re out to make money, plain and simple.

  • KC

    I recently met with all parties (VanCity, etc) to possibly buy a place in this development with my long-term partner. We were fully approved for a mortgage, but the prices have already gone up from the original promised amount, and we simply could not afford this even within our respectable income tax bracket. The strata fees are still outrageous (the cooperative nature of the original concept is out the window) and the terms are tenuous at best. We are both extremely disappointed that we won’t be able to buy into this project, as it is extremely close to our current home and certainly in the neighbourhood of our choice. We are also saddened that this development is still marketing as “affordable” and co-operative- this is not just a misnomer, but a lie.

  • Westender1

    KC # 35, I’m sorry to hear that your deal fell through on the purchase. Can you provide a bit more detail on your comment: “The strata fees are still outrageous (the cooperative nature of the original concept is out the window) and the terms are tenuous at best.” The recent Courier article indicated that purchasers will be required to particpate in the management and maintenance of the premises…” Presumably this was a way to keep strata fees lower (eg. by not paying a janitorial service?) Is this concept now eliminated? What were you quoted for strata fees?