Dozens exploit Victoria's housing initiative, including one real estate agent
A scandal has erupted in British Columbia around a government initiative designed to provide affordable housing to middle-income families after it was discovered that over a dozen individuals allegedly exploited the program. Among those implicated is a real estate agent, who was accused of benefiting from below-market price units in a Victoria condo project named Vivid.
NDP Housing Minister Ravi Kahlon described the alleged fraud as "outrageous" but highlighted that the discovery of these cases is evidence that BC Housing's auditing measures are effective.
The controversy stems from 13 lawsuits filed by BC Housing in an attempt to reclaim ownership of condos from individuals who allegedly did not fulfill their promise of making the units their primary residence. Some of these individuals reportedly own multiple properties worth millions. The Vivid project was initiated as a "pilot project" to increase affordable homeownership options in Victoria, supported by a $52.9-million low-interest loan from the province to Chard Developments.
Only five of these cases are still ongoing, as other owners have agreed to sell their units back to the government, according to Kahlon. However, details on whether punitive damages were pursued remain unclear. BC Housing stated that the project was launched under the previous Liberal government and that buyers were vetted by Chard Development and an independent third party.
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BC United’s finance critic Peter Milobar claimed that the responsibility falls on Premier David Eby, who was the housing minister when the project was completed. Milobar called for more thorough oversight and application verification to prevent such abuses.
Following this, BC Housing has implemented additional safeguards to its affordable homeownership program to prevent future abuses, while the BC Financial Services Authority is reviewing allegations against real estate agent Janet Yu, who has denied the claims against her, to determine if regulatory action is necessary.
For Ron Usher, general counsel for the Society of Notaries Public of BC, those who lied on statutory declarations—a requirement for purchasing a condo at the Vivid building—should face criminal prosecutions.
"It's one thing to have all these laws, which are made in good intent for the public good. The public needs to have confidence that the laws are enforced," Usher said.
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