The Vancouver city council is currently discussing the possibility of establishing a city-owned corporation dedicated to constructing rental units in order to boost the city’s revenue stream.
Under the proposed plan, six city-owned land sites valued at $411 million would be transferred to this new development corporation, which would be wholly owned by the city itself.
The primary goal of this corporation would be to oversee the development of around 4,000 units of market rental housing, aiming to create a steady income source for Vancouver.
Mayor Ken Sim expressed his optimism about this initiative during a recent council meeting, highlighting the potential benefits such as generating revenue to support public infrastructure, housing, and other essential programs.
Brad Foster, the director of the Vancouver Housing Development Office, echoed Mayor Sim’s sentiments, emphasizing that once these units are built, they could contribute significant annual revenues to the city.
Despite these positive outlooks, some housing experts have voiced concerns about the risks involved, particularly due to the current instability in the housing market. Professor Penny Gurstein from the Housing Research Collaborative at UBC cautioned that the city might face losses, citing the high number of unsold condominium units as a troubling sign.
While a report to the council acknowledged the potential risks associated with rental housing development, it also suggested that these risks could be mitigated with appropriate safeguards.
Gurstein, however, remained skeptical, questioning the city’s competency in assuming the role of a landlord and expressing doubts about the timing of such a venture.
She emphasized the urgent need for affordable housing and criticized the lack of focus on addressing this crucial issue with the city’s land resources.
The council is set to reach a decision on this matter later today.