policy
06. policy With the implementation of the foreign buyer ban and anti-flipping tax, along with a cooling-off period here in British Columbia, governments are mostly watching to see the effects (and unintended consequences) of their new policies. There are, however, some new proposals that are worthy of examination: the provincial government has announced the creation of a $500 million rental affordability fund aimed at preserving rental housing. OSFI, meanwhile, has proposed changes to its lending rules for banks and borrowers with the goal of adding additional restrictions.
SELF PRESERVATION
British Columbia has earmarked $500 million for its new rental affordability fund, to be managed by an external entity called the Housing Protection Fund, consisting of the BC Non-Profit Housing Association, Co-operative Housing Federation BC, and the Aboriginal Housing Management Association. The goal of the fund is to aid the non-profit sector in purchasing older purpose-built rental buildings that come to market, in an effort to preserve that stock. The intention is for non-profit groups to purchase buildings using a mix of grant money and financing, and to grow the fund over time.
Given the relatively small size of the fund, and the previously discussed lack of rental supply for our growing population, it is unlikely that this policy will have much of an impact on the rental market overall, though it may succeed in preserving rental homes for some current tenants.
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