44th Parl. 1st Sess.
June 13, 2023 10:00AM
- Jun/13/23 11:08:06 a.m.
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Mr. Speaker, I continue to be confused by the party opposite, the Conservative Party, as to what its members actually believe when it comes to housing. They voted against the housing benefit, the rapid housing initiative and the accelerator fund. They actually voted against the right to housing.
Last week, the member for Calgary Centre actually supported his council's NIMBYism. He supported a council that did not want to increase density or eliminate things like parking requirements.
The party opposite seems to be all over the map when it comes to housing. Therefore, I ask my colleague this. Has he sorted through what the Conservative position is on housing?
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- Jun/13/23 11:42:08 a.m.
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Mr. Speaker, I am very happy to enter this debate about housing, although, like my Bloc colleagues, I got notice that this would be up about 10 minutes before I walked into the House.
I am always happy to talk about housing. What are we talking about here today? We are talking about the accelerator fund as it relates to the national housing strategy.
The Conservatives will have people believe that the way to fix the problem is to say to local governments that we need to stop Nimbyism, as though that is the panacea to fixing the housing crisis. I agree we need to make sure communities do not engage in the not-in-my-backyard approach. I absolutely support that. I was a community legal advocate before I got to this place. For all those years, we were fighting for treating housing as a basic human right for people and calling on local governments to ensure that social housing, co-op housing, was built. When we build this kind of housing in a community, it does not make communities worse. In fact, it makes our communities better, as we are supporting each other and ensuring that people have a place to call home and a place they can afford.
On the local government side, the Nimbyism issue that needs to be tackled is not the only issue. It is very interesting to me that the Conservatives are completely silent on an equally significant issue for local governments, that is, the issue of gentrification. What is gentrification? It is basically developers coming in who want to push out existing residents to get them out of a community. They buy up the stock and develop it into luxury condos, and as a result, people do not have safe, affordable homes to live in anymore. That has added to the housing crisis, no question.
I was on the ground in the community watching that take place. In fact, that was one of the reasons that propelled me into electoral politics, along with the federal government in 1993 cancelling the national affordable housing program. What was the effect of that? Canada, after all those years, lost more than half a million units, which is an underestimation, of social housing or co-op housing that could otherwise have been built had the the national affordable housing program not been cancelled by the federal Liberals.
I should add this by way of context. Before the the national housing program was cancelled in 1993 by the federal Liberals, the Conservatives were in government. What did they do? They gutted funding for the national affordable housing program significantly. The dip in the development of housing went down so deep that it was devastating to see on the ground. I was working as a legal advocate helping people find housing and have their basic rights honoured, and then in one fell swoop, the situation got so bad that people in our community were rendered homeless literally overnight. We were seeing that on the ground. Then we saw gentrification coming in and pushing people out so they could not stay in the housing they needed.
What is happening today with that gentrification process? As it happens, we are now seeing corporations coming in, and not just on the development side. They are also sweeping up existing affordable housing stock. If we look at some of the websites for real estate investment trusts, for example, we see they explicitly say what their purpose is. Their purpose is to purchase up what they call “undervalued assets” or “undervalued properties”. That is the lower-cost housing in the private sector. They buy up this housing stock, and then what do they do? They renovict people. They push people out and they jack up the rent. We saw rents go up from what was affordable, like $750, for example, to $2,500. That is the trend we are seeing. We are seeing rental increases expand and increase exponentially.
In the face of all of that, when the federal government walked away from housing, we started to see the private sector swoop in and purchase this affordable housing stock. We saw those numbers increase steadily. The federal government aided and abetted that process by giving the sector preferential tax treatment. These real estate investment trusts do not pay the corporate tax rate even though they operate as though they are corporations. When they do not pay the tax rate, it only encourages them to get into that market to displace people. Not only that, CMHC, the government's own agency, also helped them finance their projects with mortgage insurance, low-interest loans, and so on. It helped finance the corporate players in displacing tenants and jacking up their rents. That is what is happening. We saw this escalation in the crisis we are living in today in our communities, where people cannot access safe, secure and affordable housing.
If we listen to the Liberals and Conservatives, they will barely talk about the fact that housing is being treated as a commodity. They will not even acknowledge the fact that this special tax treatment needs to stop. Why are real estate investment trusts getting this special tax treatment?
Just for context, over the years the seven largest real estate investment trusts, as a result of this special tax treatment, did not pay taxes into the general revenues of the federal government to the tune of $1.5 billion. The Parliamentary Budget Officer just did another report to indicate that over the next four years taxpayers in Canada will lose another $300 million. That is a gift to the corporate sector to renovict people, displace people, jack up the rents and escalate the housing crisis. Why on earth would we do that? The Liberals and the Conservatives allowed that to happen and are all silent about it. They say that they cannot talk about it because the private sector has a role to play. Yes, it does. I will tell members what role it has to play: to stop displacing people, renovicting people, jacking up the rents and escalating the housing crisis that we are faced with today. If it does not come to the table willingly, the government has to take action. That is what the NDP has been calling for.
I came from a municipal government, a provincial government, and I am now here at the federal level. When I was at the provincial level, the federal government had walked away. B.C. and Quebec were the only two provinces that continued to do housing on their own without the federal government. I will tell members what British Columbia did. We took our resources and leveraged money from the non-profit sector, some of which had land, and the faith communities, some of which had resources. We leveraged that. We went to the local governments and said that we the province would work in partnership with them to build social and co-op housing for the community if they gave us city land for free. We also said to the developers that if they wanted a rezoning done we wanted them to also provide a community return. In fact, city council could consider upzoning a project on the proviso that they also built social housing. We the province partnered with the private sector in doing some of that and instead of building one building, it built two. It paid for the construction, and then the province came in and provided the subsidies to operate those projects. Instead of the 700 units that we would have built with the federal government's funding, we moved that number to 1,200. Then we moved it to 1,900. Under the NDP, we leveraged and worked in partnership with the private and non-profit sectors and the local government when the federal government walked away.
It is so important for the federal government to play a real leadership role. Yes, they did announce a national housing strategy is 2017, but that strategy has not worked in developing the necessary housing.
It is not just me who is saying it. There is actually a full report from the Auditor General indicating that the federal government does not even know what kind of housing it builds. It has no idea what the level of affordability is for the units that were built.
CMHC, at the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, came to the committee to answer some questions. It actually said that it does not track it. What exactly is it doing if it does not track the affordability of the housing units that it funds? It says, oh, it is not its job. It is infrastructure's job. It is someone else's job.
I thought I heard the government say that it takes a whole-of-government approach to address the housing crisis. Why are they all asleep at the switch? Nobody is taking responsibility and all of them are saying, no, not me.
In the meantime, what is happening? The sad reality is this: people are losing homes. People do not have access to housing. People are displaced. People are living in tents. Come to my community in Vancouver East, in the Downtown Eastside. The crisis is right there before our eyes.
Do not tell me that they are getting to us, that it is going to take 10 years. The government's own homelessness targets are to reduce homelessness by 50% in 10 years. Yippee, that is going to work for the people who are sleeping on the streets right now.
Not only that, it is not even going to meet that poor target. That has been established, not by the NDP but by the independent officer of the House. That is what is going on, as to the magnitude of the crisis.
In the meantime, we have the private sector coming in, buying up low-cost rental apartments, sweeping them up and then pushing people out.
Just to put this into context, for members to think about this number, for every one unit of social housing or co-op housing that is built, we lose 15.
How can we make up for that loss? The only way one can do it is to stop the commodification of housing, the profiteering of housing. Put a moratorium in place for the financialization of housing. Create an acquisition fund for the non-profit sector in land trusts, so they could be the ones to go into the market to buy the private housing that is coming onto the market and to retain it, so that we can hold onto the stock for the community. Put people before profits. That is what we need to do.
I would also add that there are other measures we need to put in place. There is zero justification whatsoever for CMHC and the government to help finance these corporate players who are coming in to displace people. If we are going to partner with them, and we can, as I am not saying we should not, there has to be a return tied to it.
There has to be a no-displacement policy in place. There has to be affordability tied into it so that when they get something from the taxpayers, whether it be insuring their mortgage or any of the benefits that they get, they need to give a return back to the community. We also need to ensure that there is a level of affordability, so that the rent they charge the tenants needs to be below market.
We have to make sure that this is held in perpetuity, so that it is not just a one-time thing. We need to put these measures and policies in place for a return.
One does not get access to taxpayer funds and support doing harm to the community. There has to be a return to help the community, to support the community. In the case of housing, there have to be these measures of no displacement, of affordability in perpetuity, as an example.
There is another thing that would help a lot. Do members know how many tenants I talk to who do not even know who their landlord is? These corporate players hide behind numbered companies because the truth is they cannot show their faces. They do not want people to know that they are the ones who are actually jacking up the rent and displacing people.
We need to ensure that there is disclosure of all landlords. There should be information in public records so people know who their landlords are. People have the right to know who they are renting from. That is another measure that the federal government can take.
We need to stop the preferential tax treatments, stop giving them a benefit, make them pay their fair share and invest that money in the development of true social and co-op housing. That is what the NDP would like to see.
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