BC’s Rental Protection Fund Secures 147 New Affordable Rental Homes Across the Lower Mainland
Three non-profit housing providers are expanding their reach with support from the Rental Protection Fund
September 13, 2024 12:15 ET| Source: Rental Protection Fund
VANCOUVER, British Columbia, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Today the Rental Protection Fund (the Fund) announces three acquisitions in communities throughout the Lower Mainland. In Vancouver, a four-storey, 24-unit rental building will be protected in the Marpole neighbourhood. In Burnaby, the affordability of 79 more homes will be secured through non-profit ownership, and in Maple Ridge 44 townhomes, that will all remain affordable to families.
“Every dollar invested in the Rental Protection Fund is worth at least three dollars towards solving the housing crisis,” said Katie Maslechko, CEO of the Rental Protection Fund. “With each acquisition, the non-profit now has equity they can leverage to provide even more housing without displacement, and the former owner has freed up capital they can redeploy into new supply – all while delivering housing security for thousands. It is a proven model with a profound impact, and given the stakes, is one of the most strategic housing investments you can make.”
Parkwood Gardens, Burnaby
Burnaby is facing a severe shortage of childcare and affordable rental housing. The City has the second highest rental prices in Canada, and, in the southeast Highgate/Edmonds neighborhood, the fewest childcare spaces per capita in Burnaby. The acquisition of Parkwood Gardens addresses both of these growing needs. Comprised of 79 units renting at about half the local market rates and a 25-space childcare facility accessible to the neighbourhood. The homes at Parkwood Gardens are large, family-friendly units, with 75 of the 79 units having three bedrooms. Catalyst Community Developments Society, the new non-profit owner of the property, is committed to maintaining the affordability of the units and providing long-term rent stability for Parkwood Gardens’ residents.
Catalyst acquired Parkwood Gardens in May 2024 with approximately $15.9 million in capital contributions from the Rental Protection Fund and more than $18,000 per home in grants to support building renewal. This property is also a strategic acquisition, adjacent to 1.5 acres of vacant city-owned land, and is well-positioned to deliver more affordable housing in the future.
“Catalyst is thrilled to be operating more homes in Burnaby,” said Luke Harrison, CEO of Catalyst Community Developments Society. “This acquisition of 79 homes by a non-profit was impossible without the collaboration of the new Rental Protection Fund and an accommodating vendor that shared our objective of ensuring Parkwood Gardens remains affordable to its current community members.”
Since 2013, Catalyst has partnered with community organizations, non-profits, municipal governments and market developers to create or acquire housing that will deliver on their mission. The organization is committed to building community by developing, owning, and operating vibrant, affordable, and inspiring places to live and work.
Brookside Gardens, Maple Ridge
Brookside Gardens is uniquely suited for families and is the only purpose-built rental townhome housing in Maple Ridge. All 44 units are large three-bedroom homes with fenced yards and space for families with children and multi-generational households to grow and thrive.
Homes that meet the needs of growing families are in short supply across Metro Vancouver and finding affordable family-oriented homes is even more challenging. Rents at Brookside Gardens are approximately 46% below market rates, with a three-bedroom townhome renting for an average of under $1900 per month. Connective will continue to keep these homes affordable to families by capping rent increases below the annual allowable increase and prioritizing new tenants with household incomes below the BC Housing Income Limit.
"I was pleased that Connective has purchased this complex. The staff that I have met have been friendly and helpful,” shared Brookside Gardens resident, Sandy Burley. “It is nice to know Connective has made a commitment to keep their homes affordable, with everything going up in price it is sometimes hard to afford everything."
Connective has nearly 100 years' experience as a steward of affordable housing in BC and the Yukon. With more than 1000 units under ownership and management, this organization draws on deep experience in the sector, well-refined growth and management policies, and an economy of scale that allows them to keep administrative and maintenance costs low.
“This exciting addition to Connective’s affordable housing portfolio allows us to apply our expertise in response to an identified community need. Brookside Gardens, as the only purpose-built rental townhomes in Maple Ridge, are an important resource for families looking to build a life in the region,” said Mark Miller, CEO of Connective. “We’re grateful to the Government of British Columbia and the Rental Protection Fund for allowing us to secure its affordability and shield generations of residents from potential displacement or redevelopment.”
The Rental Protection Fund provided a capital grant of $8.9 million to Connective Support Society for the purchase of Brookside Gardens at 20834 Dewdney Trunk Road. The property was acquired from CAPREIT – one of the largest institutional housing operators in Canada – at below the appraised value. CAPREIT invested in regular maintenance and upgrades between tenancies, ensuring the homes remained in excellent condition. This enabled Connective to acquire the property without the need for a renewal grant.
8820 Cartier Street, Vancouver
8820 Cartier Street is the first acquisition through the Rental Protection Fund in the City of Vancouver. Despite the high land values common in the city, Lookout Housing and Health Society successfully secured this property below both list price and the appraised value showing the Fund’s commitment to value and social outcome-driven investment.
The Rental Protection Fund provided a capital contribution of just over $5.3 million and a renewal grant of $240,000 towards the purchase of this property. Lookout also contributed $40,000 of their own equity towards building upgrades and renovations.
In a city where finding a safe and affordable home is becoming increasingly difficult, rents at 8820 Cartier Street are on average 62% below the market rates for the neighbourhood. The average rents in the building are affordable to households earning approximately $46,000 per year, well below median renter incomes for the region. Now part of the community housing sector, this property fills a critical gap in the housing continuum, allowing individuals and families who may currently be living in supportive housing but no longer rely on these supports to access safe and secure housing at rents they can afford. This creates a positive ripple effect by freeing up supportive housing spaces, allowing people to move off the streets into homes with the services and support they need.
“The support received from the Rental Protection Fund to preserve affordable housing is critical for non-profit organizations like Lookout Housing and Health Society,” said Shayne Williams, CEO of Lookout Group of Non-Profits. “These investments help address the need for the full continuum of housing in communities like Vancouver, where it's needed most.”
Since 1971, Lookout Housing and Health Society has offered services that meet the needs of the most vulnerable citizens in our community. The organization’s mission is to be a social safety net providing a range of housing, health, and support services that promote improved wellbeing for those in need. Lookout serves thousands of individuals annually through its 144 programs in 19 municipalities across Vancouver, Fraser Valley and Vancouver Island.
This announcement follows two others last month in Victoria and North Vancouver and brings the number of homes protected in the Lower Mainland to 676 announced to date. The Rental Protection Fund has approved funding for nearly 1500 homes in 19 communities across British Columbia, with more announcements to follow as these homes move into the community housing sector.
Through one-time capital contributions provided by the Fund, non-profits and housing co-operatives can secure, revitalize, and safeguard current rental units against escalating market rents. With the anticipated launch of the Federal Rental Protection Fund, and opportunity for recapitalization support from the Provincial Government, the Fund will be able to continue to expand its role – and the community housing sector – ensuring the affordable rental homes we have today homes remain affordable for generations to come.
About The Rental Protection Fund:
Endorsed by the provincial government with a groundbreaking investment of $500 million, the Rental Protection Fund stands as B.C.'s direct response to the housing crisis. Under the leadership of CEO Katie Maslechko, the Fund is dedicated to protecting tenants and ensuring the availability of affordable rental homes for future generations. By providing capital contributions to non-profit housing organizations and cooperatives, it facilitates the acquisition of existing rental buildings. This initiative is committed to maintaining housing affordability and stability for renters in B.C. in the long run. Those who wish to have a property considered for acquisition through the Rental Protection Fund can submit them at www.RentalProtectionFund.ca