I’ve received emails recently asking for Victoria City Council to implement a 15% foreign buyers tax. Council cannot do this. What seems to be missing from public understanding is that the foreign buyers tax was implemented by the Provincial government for all of Metro Vancouver. And that it’s Provincial legislation. The City cannot enact the tax.
Council could lobby for the tax to be implemented here, but where exactly is here? The Finance Minister created the tax for Metro Vancouver not the City of Vancouver. If the Province implemented a foreign buyers tax here it would be for the entire Capital Regional District.
That fact changes the nature of the City’s lobbying efforts. At a recent meeting, Council postponed until April a motion to ask local governments from across the region, and the CRD itself, to request the Province to introduce legislation mirroring that passed for Metro Vancouver in the summer – a 15% foreign buyers tax and vacancy taxation authority.
If we have any hope of a foreign buyers tax in the Capital Regional District, the request has to come from the CRD Board. And, in order for CRD directors to consider such a request they’ll likely need a bit more data. By April, we’ll have eight months of data since the tax was implemented in Metro Vancouver.
If implementing a foreign buyers tax is beyond municipal and regional authority, what can we do to address affordable home ownership?
The City of Victoria recently held a workshop on affordable home ownership programs from Calgary, Canmore, and BC Housing. The Canmore Community Housing Corporation delivers one to four bedroom townhomes and condos from between $145,000 and $400,000. That is affordable home ownership. Calgary has a similar program, as does Toronto. And BC Housing provides low-cost financing to developers to help with affordability. The workshop was packed by both for profit and non-profit housing developers wanting to be part of the solution.
The good news is that when faced with a crisis, the regional government can respond swiftly. Last year, the CRD acted quickly to set up the $60 million Regional Housing First Program to build affordable workforce rental housing and supportive housing for those who are chronically homeless.
We must now act quickly as a region on affordable home ownership. We need to look at what’s working elsewhere and design a made-in-the-CRD solution to address local market conditions. The affordable home ownership solution we implement must not further burden already burdened taxpayers.
And then we need to implement quickly. What’s at stake if we don’t make affordable home ownership a top priority? The wellbeing of our citizens and the economic prosperity this region is currently experiencing. In order to keep the economy strong, working people and their families must be able to afford to live here.
Originally published in the Victoria News.