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 news at least 13 people allegedly lied to get a crack at below-market price units in a Victoria condominium building was "outrageous" — but proof B.C. Housing's audit system was working.

Meaanwhile B.C. United Opposition Finance critic Peter Milobar called the situation a "total mess" that Premier David Eby should answer for since he was housing minister at the time construction on the project completed.

Ron Usher, general counsel for the Society of Notaries Public of B.C., said lying 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."

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. Housing called 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, the government claimed homes at Vivid sold for an average 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."