Court documents allege that a number of units from an affordable housing project built for middle-income families in Victoria, British Columbia were sold to people who had already owned property, with some even owning multiple properties worth millions of dollars.
The 135-unit Vivid condominium development was completed in 2021, and it was built by Chard Developments as a pilot project for the Affordable Home Ownership Program. The program provided a $53-million low-interest loan from the province to ensure that the homes would be available for below-market prices — something then-housing minister and current premier David Eby touted as a way for British Columbians to finally afford to buy a home.
One of the conditions of buying a unit at the below-market price was that it was to be used as the buyer’s primary residence. Another was that buyers should have a combined household income of not more than $150,000. The intention of the project, after all, was to make home ownership available for Canadian citizens or permanent residents who otherwise would not have been able to afford it.
However, BC Housing claims that as many as 13 buyers never lived in these homes, or that they were below the required maximum income. At the time of their purchase, the units were sold at 12% below market value. Court documents reviewed by CBC News reveal that the agency is accusing these buyers of “egregious and reprehensible” conduct.
In one case, a unit was leased to a Chinese student for $1,800 monthly. The lawsuit also claims that the owners of this unit own six other homes in the province’s capital worth a combined total of $7.75 million. Another unit was bought by a couple who also had a million-dollar home in Nanaimo and four condos in Burnaby and Victoria worth over $2.2 million. Another is a retiree who they claim owns a general contracting company. And yet another couple who own two other Victoria condos plus a company that owns or operates nine properties in the Saanich area.
“The defendant has intentionally undermined the purposes of the Affordable Home Ownership Program for personal benefit,” they state in the lawsuits. “The conduct of the defendant has negative repercussions for all of the people of British Columbia.”
BC Housing also filed a lawsuit against real estate agent Janet Yu, who they claim made $53,000 in commissions for 12 units, and “realized significant personal profit by acting as the realtor for a number of purchasers in the Vivid building.” Lo and behold, the 13th unit is hers.
“Nearly all the purchasers for whom [Yu] represented as a realtor have also failed to comply with the terms of the Affordable Home Ownership Covenant,” the agency state in the lawsuit against her. She has denied all allegations.
The lawsuits, a bulk of which were filed in 2022 according to CBC, seek to have the titles of the units be transferred back to BC Housing, with the buyers getting back what they paid minus fees and disbursements. The agency also seeks to collect all the money made from rentals on top of punitive damages.
Information for this story was found via CBC, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
