Bylaws that give Vancouver first option to buy property not worth it: Report

Article content

Two years ago, Vancouver City Council directed staff to explore the idea of ​​a bylaw that would give the municipality the first option to purchase properties before selling them on the market.

Now, Vancouver staff have reported that, although similar programs in other North American cities have had some success, such a bylaw is not likely to be effective in Vancouver. The main reason: the city doesn’t have enough money.

Article content

Article content

The Council had directed staff to explore the possible development of what they called a “right of first refusal bylaw (also known as a right of first refusal bylaw),” which would allow the city to put a property on hold so that, if it is put up for sale, the owner must first offer it to the city before accepting an offer from the market.

City staff reviewed the concept and its application in a few other jurisdictions, and briefed the council last month with a recently released memo. The report says that while similar preventive bylaws in Montreal and San Francisco have been “effective” in allowing those cities to acquire and preserve affordable housing, in Vancouver “the potential opportunities appear to be outweighed by the challenges.”

City of Vancouver staff reported that a right of first refusal bylaw would not be likely to increase the amount of affordable housing, because “the main barrier to achieving this is the financing available to purchase properties, not the acquisition process itself.” The staff report also says that creating such a program “would likely be legally complex and staff-intensive.”

Article content

Article content

In 2022, the former Vancouver council approved ABC Coun. Rebecca Bligh’s amendment directed staff to explore the preemption statute, and in late 2023, the current council approved a motion from Bligh’s senior staff to expedite this work.

Bligh, contacted Monday, said she wanted staff to explore this concept because she believes it could help the city achieve its goals, “and naturally I was disappointed in the staff report.”

“However, I appreciate the level of analysis that was provided, and as I continue to delve into these details, I am hopeful that we will truly have the conversation,” Bligh said.

The staff report says if more funds were available to purchase properties through a right of first refusal program, there could be benefits to the city and the nonprofit real estate sector.

The city could, under the current acquisition process, acquire existing apartment buildings or properties to convert into social housing, according to the report. But the cost would be high.

“This is equally true for single-room occupancy (SRO) buildings, which many owners are interested in selling to the province or city, but for which existing financing is inadequate to do so,” the report says.

Article content

One of those owners is Christopher Wall, who has said for years that he believes all privately owned SROs, including his portfolio of seven buildings, should be owned by the government.

On Monday, Wall said: “The city has the desire, but it doesn’t have the money. That is why it has to be the province that finances it, possibly with the help of the federal government.”

[email protected]

twitter.com/fumano

Bookmark our website and support our journalism: Don’t miss the news you need to know – add VancouverSun.com and LaProvincia.com to your favorites and subscribe to our newsletters here.

You can also support our journalism by becoming a digital subscriber: for just $14 a month, you can get unlimited access to The Vancouver Sun, The Province, National Post and 13 other Canadian news sites. Support us by subscribing today: The Vancouver Sun | The province.

Article content