Marleny Ozuna Felix appears to have struck luck in the realm of landlords. As a single mother of three residing in Burnaby, B.C., she enjoys the assurance that her housing costs will stay reasonable for the duration of her tenancy. Felix currently pays $964 monthly for a one-bedroom apartment, a significant $1,390 less than the typical rent for a similar unit in the area. The rent may remain unchanged in certain years based on building maintenance requirements, and any increases will not surpass provincial guidelines.
When the building was put on the market, the expectation was that a profit-driven landlord, be it a small equity firm or a large corporation seeking investor returns, would acquire it. However, the new owner turned out to be Aunt Leah’s Properties, a non-profit entity committed to maintaining affordable rent and safeguarding Canada’s dwindling stock of inexpensive housing. The acquisition was made possible through a provincial grant aimed at achieving the same goal.
In a recent interview with CBC, Felix expressed her relief, stating, “I would be homeless with my children if we were forced to leave here. I simply cannot afford any other housing options in this neighborhood or elsewhere.” Her experience reflects that of numerous renters nationwide facing soaring rental costs, while those in below-market properties live under the constant threat of eviction to facilitate rent hikes or property redevelopment.
This narrative transcends Felix’s personal story to encapsulate the potential of the building as a blueprint for addressing Canada’s affordable housing crisis. While some advocate for increased housing construction as a solution, others argue that government funding and non-profit organizations can play a crucial role in preserving existing affordable housing inventory.
In the 1990s, the government largely withdrew from subsidized housing, transferring housing responsibilities to the private sector. Since then, private landlords have dominated property acquisitions and developments, occasionally shouldering blame for the scarcity of affordable housing as governmental involvement waned. The Ontario Non-Profit Housing Association estimates that community housing represents around 12% of Canada’s rental sector, with non-profits owning a fraction of these units.
However, a shift is occurring, particularly in British Columbia. The introduction of the B.C. Rental Protection Fund in 2023, with a $500 million investment target to aid non-profits in acquiring existing occupied buildings, marks a significant step. Katie Maslechko, the CEO of the Rental Protection Fund, emphasized, “The most cost-effective approach to affordable housing is preserving existing stock. We were losing four to five affordable units for every new one built.”
Non-profits can seek a one-time capital grant from the fund to facilitate acquisitions. Once qualified, organizations can initiate property purchases. The program effectively freezes rents at purchase levels, with minimal increases tied to maintenance costs or capped by provincial regulations. This stability benefits both current tenants and prevents rent spikes upon turnover, a scenario common in the private sector where vacant apartment rents have no limits.
According to Maslechko, this model caters to middle-income renters such as teachers and nurses who often earn too much for subsidized housing but struggle with market rates. Notably, the fund has shown promising results in preserving affordable units and addressing the housing crisis.
In a broader context, the fund aligns with efforts to safeguard existing affordable housing stock, a critical aspect of counteracting the housing crisis. While some critics advocate for new construction over property acquisitions, proponents argue that maintaining affordability is more cost-effective than rebuilding once affordability is lost. This multi-pronged approach involving government subsidies and non-profit initiatives is seen as pivotal in accelerating solutions to the housing dilemma.
Overall, the B.C. rental protection fund exemplifies a strategic intervention in the housing crisis, emphasizing the importance of preserving affordable housing and leveraging existing assets to secure long-term affordability for tenants.
