Outrage follows revelations over affordable housing program abuse

Outrage across B.C.'s political spectrum followed revelations Tuesday that more than a dozen people including a real estate agent allegedly abused a government program meant to help middle-income families find affordable housing.

NDP Housing Minister Ravi Kahlon said the news that at least 13 people allegedly lied to get a crack at below-market price units in a Victoria condominium building was "outrageous" but also proof that B.C. Housing's audit system was working.

Meanwhile,B.C. United finance critic Peter Milobarcalled the situation a "total mess" that Premier David Ebyshould answer for since hewas housing minister at the time construction on the project was completed.

Ron Usher, general counsel for the Society of Notaries Public ofB.C., saidlying 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 prosecutions," 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, people would like to see confidences flow.And this is a particularly egregious one."

5 cases still in court

The reaction came after CBC reported that B.C. Housing 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 residences for at least two years.

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

In 2021,B.C.Housingcalled Vivid a "pilot project" for partnerships between the private and public sector to boost "the supply of affordable home ownership options for middle-income families and individuals in Victoria."

The province said it gave a $52.9-million low-interest loan to Chard Developments to build the project.The developer was then expected to "pass the savings on to qualifying buyers so units could be purchased at below-market prices."

As a result, thegovernment claimed homes at Vivid sold for anaverage 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 government.

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

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

"If found not to be in compliance, 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 'shocking'

Kahlon saidworking with developers to provide affordable housing presents "challenges."

"Those types of developments 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 implemented new safeguards to its affordable home ownership program since the discovery of irregularities at Vivid in 2021.

"The reason why individuals were caught in this case is that B.C. Housing has oversight and audit in place," he said.

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

Milobarsaid the lawsuits were proof of the government's ineptitude.

"The fact that there was such little oversight and double checking people's applications 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 thingsdon'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 industry said it is aware of allegations contained in a civil claim against real estate agent Janet Yu, who allegedly earned $53,000 in commissions from sales tobuyers named in the lawsuits.

Yu who has denied theallegations against her also owns a unit in the development.

The regulator told CBC Tuesday that it became aware of the situation following recent complaintsand is"currently reviewing this matter to determine if regulatory action under theReal Estate Services Actis appropriate."

Usher said notaries are often called to court to confirm that a client swore a declaration 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 something, 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."