STORY about HousingPoverty posted on January 12, 2013 by Maryann Abbs

BC Housing bails out Sequel 138 condos

by Harold Lavender

photo credit: murray bush - flux photo

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Housing Minister Rich Coleman buys BC Housing’s first condo?

BC Housing bails out Sequel 138 condos
BY Harold Lavender

What a shock to read the recent article by Mark Hasiuk in the Province (November 20). He states, “according to BC Housing internal documents the agency gave Sequel 138 developer Marc Williams a $3.75 million loan (at 1.29 interest) for pre-construction costs and may provide around $20 to fund construction.”

We believed that BC Housing provided housing for those who cannot afford to purchase it on the market. This is a necessary role, though BC Housing doesn’t necessarily do it well, including when buildings are not properly maintained and unhealthy slum-like conditions prevail.

The amount of social housing currently being built falls far short of the growing need. However, instead of focusing on the housing emergency of low-income people, BC Housing is shockingly engaging in subsidizing private developers and promoting the gentrification of the DTES.

We condemn BC Housing’s outrageous decision in the strongest possible terms.

There has been fierce DTES community opposition to the Sequel 138 condo development (at the old Pantages site on E Hastings). It would destroy the existing low-income community, and the rising rents will displace hundreds of people from neighbouring SRO hotel rooms.

The 97 unit proposed complex contains a mere (mandatory) 18 units of social housing, only half of which will be available at welfare rates.

Although BC housing will no doubt try to claim it is helping provide housing, the overall reality will be otherwise. This condo project at Main and Hastings will drive up land values, increase rents in the surrounding SROs, and contribute to displacement and homelessness. Instead of funding adequate, accessible and secure social housing for low-income people, BC Housing is aiding and abetting gentrification and the forced, involuntary displacement of people from their community.

Should we expect more deals of this sort from BC Housing, whose 5 member board includes the “condo king” Bob Rennie? Is there a conflict of interest in this arrangement between BC Housing and Sequel 138? Will the increased property values resulting from this condo project benefit Rennie personally, since he owns property (the Wing Sang building on E. Pender) two blocks away? Has Rennie convinced BC Housing to support “bite-sized” versions of Woodwards in the neighbourhood as a way of “revitalizing” the DTES? Has the fox been appointed to guard the hen house?

It is also appalling that BC Housing is bailing out Marc Williams, a condo developer much loathed in the DTES. In effect, it is offering corporate welfare for the developers (which right wing critics can correctly complain is a waste of taxpayers money) while utterly failing to meet the needs and demands of low-income residents.

We have engaged in a protracted campaign to stop Williams’ condos and help save our neighbourhood. We had hoped his ongoing financial problems would lead to Sequel’s well-deserved death.

In recent months the site has been dormant. But recently we heard that a letter had been sent out promising that sales would be ramping up soon. As result the DTES Not for Developers Coalition called for an action at the Pantages site.

Now we have learned the ugly truth of who is keeping the project alive. Stay tuned for upcoming actions.