Outrage follows revelations over affordable housing program abuse

Outrage across B.C.'s politi‐ cal spectrum followed reve‐ lations Tuesday that more than a dozen people - in‐ cluding a real estate agent - allegedly abused a gov‐ ernment program meant to help middle-income fami‐ lies find affordable hous‐ ing.

NDP Housing Minister Ravi Kahlon said news at least 13 people allegedly lied to get a crack at belowmarket price units in a Vic‐ toria condominium building was "outrageous" - but proof B.C. Housing's audit system was working.

Meaanwhile B.C. United Opposition Finance critic Pe‐ ter Milobar called the situa‐ tion a "total mess" that Pre‐ mier David Eby should an‐ swer for since he was hous‐ ing minister at the time con‐ struction on the project com‐ pleted.

Ron Usher, general coun‐ sel for the Society of Notaries Public of B.C., said lying on a statutory declaration - like the kind needed to buy a condo at Victoria's Vivid building - is a crime.

"Frankly it might be time for some criminal prosecu‐ tions," Usher told the CBC.

"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. And when there's really obvious breaches of those laws, peo‐ ple would like to see confi‐ dences flow. And this is a particularly egregious one." Five cases still in court

The reaction came after CBC reported that B.C. Hous‐ ing has filed 13 lawsuits in B.C. Supreme Court aimed at wresting ownership of Vivid condos back from people who allegedly never lived in the units they had promised to make their primary resi‐ dences for at least two years.

According to the civil claims, a number of the pur‐ chasers owned multiple properties worth millions of dollars.

In 2021, B.C. Housing called Vivid a "pilot project" for partnerships between the private and public sector to boost "the supply of afford‐ able home ownership op‐ tions for middle-income fam‐ ilies and individuals in Vic‐ toria."

The province said it gave a $52.9-million low-interest loan to Chard Developments to build the project. The de‐ veloper was then expected to "pass the savings on to quali‐ fying buyers so units could be purchased at belowmarket prices."

As a result, the govern‐ ment claimed homes at Vivid sold for an average of 12 per cent below market rates at the time of purchase.

On Tuesday, Kahlon told reporters that only five cases are still before the courts as the other owners had agreed to sell their units back to the government. But he could not say whether punitive damages had been sought against the people no longer before the courts.

B.C. Housing put out a statement saying that the project was initiated under the former Liberal govern‐ ment.

The Crown agency said potential buyers were vetted by Chard Development and an "independent third party appointed by Chard to moni‐ tor compliance."

"It's frustrating that peo‐ ple have been violating the terms of ownership," the statement said.

"If found not to be in com‐ pliance, the owner could be required to sell the property back to B.C. Housing for the original purchase price, less legal costs and taxes."

Lack of oversight 'shock‐ ing'

Kahlon said working with developers to provide afford‐ able housing presents "chal‐ lenges."

"Those types of develop‐ ments certainly need greater accountability measures being put in place because it's not directly in the control of B.C. Housing," he said.

But the housing minister said B.C. Housing has imple‐ mented new safeguards to its affordable home owner‐ ship program since the dis‐ covery of irregularities at

Vivid in 2021.

"The reason why individu‐ als were caught in this case is that B.C. Housing has over‐ sight and audit in place," he said.

"The system we have in place actually does work, it actually catches people who are doing inappropriate things."

Milobar said the lawsuits were proof of the govern‐ ment's ineptitude.

"The fact that there was such little oversight and dou‐ ble checking people's appli‐ cations is shocking," he said.

"Obviously they shouldn't have scammed the system the way they were doing it but that's why a government and an agency is there, it's supposed to be oversight so that these things don't happen in the first place."

'If you lie ... that's a crime'

The B.C. Financial Services Authority - the body which regulates the real estate in‐ dustry - said it is aware of al‐ legations contained in a civil claim against real estate agent Janet Yu, who allegedly earned $53,000 in commis‐ sions from sales to buyers named in the lawsuits.

Yu - who has denied the allegations against her - also owns a unit in the develop‐ ment.

The regulator told CBC Tuesday that it became aware of the situation follow‐ ing recent complaints and is "currently reviewing this mat‐ ter to determine if regulatory action under the Real Estate Services Act is appropriate."

Usher said notaries are often called to court to con‐ firm that a client swore a dec‐ laration that is later found to be false.

"Our system depends on people telling the truth in these things," he said.

"And the whole process of solemnly declaring some‐ thing, that's the whole point of appearing before a lawyer or another officer to whom you say, 'This is the truth.' And if you lie about that ... that's a crime."