Of REITs and Rents: Latest on Vancouver’s housing fights
The Thorn on Thursdays | Feb 11 2021
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Photo by Nathan Shurr on Unsplash
Vancouver City Council passes motion to protect tenants from Real Estate Investment Trusts
On Wednesday, February 10, Vancouver City Council passed a motion from Councillor Jean Swanson on “Protecting Tenants from Real Estate Investment Trusts”.
Real Estate Investment Trusts (REITs) are companies composed of many small investors who pool their money to buy up properties, which they then rent out at a profit. In Vancouver, as in many other cities, REITs are buying up properties, renovicting existing tenants, and significantly increasing the rents for new tenants, contributing to the ongoing loss of affordable housing in the region.
Jean Swanson was interviewed by the issue of REITs and her motion, in an interview with Stephen Quinn on CBC Radio’s The Early Edition. Listen to the full interview here.
Below is the full text of the amended motion, as passed by City Council:
Motion B. 1
1. Protecting Tenants from Real Estate Investment Trusts.
Submitted by: Councillor Swanson
WHEREAS
1. Across Canada and the globe, government policies and financial pressures have shifted housing away from a necessity and human right into an asset and financial investment;
2. In Canada, this shift has included a transformation of smaller landlords to larger, investment-oriented companies, including real estate investment trusts (REITs);
3. As of 2017, REITs owned 20% of units in Canada; in BC they own 4%;
4. Studies show that REITs are deterred by tenant protections. In Manitoba, where rent control is tied to the unit in some buildings, REITs own 0% of units;
5. REITs’ portion of the housing market locally and nationally continues to grow, exposing more tenants to landlords that are motivated to displace existing tenants in favour of wealthier ones who can generate the income expected for their portfolio. This process feeds gentrification, poverty, and homelessness;
6. In 2019, the Government of Canada adopted the National Housing Strategy Act (NHSA), which recognizes that housing is a fundamental human right;
7. Canada Mortgage and Housing Corporation (CMHC) recently committed to ensuring secure and affordable housing for all by 2030;
8. Cities like Vancouver continue to bear substantial responsibility for addressing the housing crisis without sufficient resources from higher levels of government;
9. Cities like Vancouver must create innovate solutions to ensure that our residents’ human rights are protected and to keep higher levels of government accountable to their commitments;
10.It appears that 10 Vancouver apartment buildings are now for sale in a portfolio that could be attractive to REITs;
11.REITs’ have a tax advantage of not having to pay business tax as long as their taxable income is distributed to unit
THEREFORE BE IT RESOLVED THAT
A. THAT the Mayor write to the federal government on behalf of Council to:
A. Express concern at the growing share of units that Real Estate Investment Trusts (REITS) and other big investors own across the country and their impacts on human right to housing, the commodification of housing, housing security and affordability for Vancouver residents;
d. Ask that the federal and provincial governments take more measures to protect and reinvest in existing rental stock and to facilitate their acquisition by non-profits and co-operatives.
B. THAT staff investigate ways the City could mitigate harm to affordability of older housing
stock by Real Estate Income Trusts (REITs) and other investors using actions such as, but not limited to, vacancy control, right of first refusal, and supporting a non-profit acquisition strategy to report back as part of ongoing work.
FURTHER THAT pursuant to Vancouver Charter 656A or similar statutes, staff report back on any potential by-law remedies that might apply conditions on development permits, in order to mitigate harm to affordability of older housing stock and in particular low capitalization high yield REIT renovations.
Subsections b and c of section A of the motion were defeated by council, which significantly weakens City Council’s request from the federal government on this matter. They read as follows:
b. Urge the federal government to base the tax rate for REITs and other big investors on the amount of affordable housing they provide or destroy.
c. Urge the federal government to ensure that any CMHC-backed financing or insurance for Real Estate Income Trusts (REITs), private equity firms, pension funds, and other investors has clear conditions to prevent rent increases on tenant turnover.
During debate on the motion, Jean read out the following excerpt from Patrick Condon’s letter in support of the motion:
“While this trend may benefit investors and equity holders, their gains are drawn from the pay envelopes of our city's moderate and low income wage earners. The very same service industry workers we need to keep our city alive: grocery store workers, orderlies, delivery workers, food service workers, bus drivers, retail clerks and many others. The financialization of housing, especially the financialization of currently affordable rental buildings thus constitutes an existential threat to the sustainable city of Vancouver we all hope for.”
Photo by Kelly Sikkema on Unsplash
BCTF news release on latest COVID-19 measures in schools
The following is a news release issued on February 4 by the British Columbia Teachers Federation (BCTF), in response to the latest updates to K-12 COVID-19 guidelines from the province.
Changes to K–12 COVID-19 guidelines include some important positive steps, but more can be done
BCTF President Teri Mooring responded to the government’s changes to the K–12 COVID-19 guidelines today with praise for some key changes and concern that some steps were not taken.
“Overall, BC teachers will be relieved to see the government and health officials finally move on key safety measures like a stronger mask mandate and the potential to improve access to much-needed layers of protection like barriers,” said Mooring. “BC teachers have been pushing for critical improvements to the health and safety guidelines in our schools since they were first implemented in September. These changes are long overdue and took a tremendous amount of advocacy from our members and representatives on the government’s steering committee and working group.”
“Today’s changes will make schools safer and that is welcome news. However, the changes do not include improvements to school density, ventilation, or the ongoing inadequacy of contact tracing. We need the government, school districts, and health authorities to step up and make improvements in those areas as well. More can be done to protect teachers, other education workers, students, and the families we all go home to. The employer and health officials have the power to take those steps.”
Mooring added that some of these changes can and should be implemented within a matter of days.
“Teachers, support staff, students, and parents have waited a long time for safety improvements. We can’t afford any more delays.”
Here are some of the changes the BCTF supports:
The increased clarity for key safety measures that will reduce uneven implementation across the province.
The stronger mask mandate for middle and secondary schools.
The removal of the term “not recommended” for mask wearing in elementary schools.
The clear emphasis on the importance of all safety measures and the need for improved layers of protection like barriers for those that need them. The BCTF has had to take the issue of barriers to the Labour Relations Board troubleshooting process because some districts refuse to provide them.
The additional guidance for physical health education and music classes that address key concerns and allow those classes to proceed in a safer manner. These changes were done in consultation with the Federation’s Provincial Specialist Associations and set a good example of how health officials can work with the expertise within the teaching profession.
The emphasis on a positive and inclusive approach to enforcement that focuses on prevention and not punitive or stigmatizing approaches.
The BCTF’s outstanding concerns include:
The stronger mask mandate does not apply to elementary students. However, the removal of the term “not recommended” will make it easier for teachers and school staffs to encourage more mask wearing. Parents and caregivers can help by ensuring their children go to school with masks. Districts should supply additional masks to students and staffs.
The lack of action to reduce school and classroom density will not help staff and students maintain physical distancing. However, it is good to see the recommended distance revert to two metres after public health changed it to one to two metres in the fall. Despite that positive change, distancing rules still don’t apply in classrooms.
The learning group cohort model has not changed and has proven to be a weak safety measure.
The absence of clear directives to improve ventilation.
The inaction on improving the contact tracing system.
The BC Teachers’ Federation continues to work proactively on the government’s K–12 Steering Committee and Health and Safety Work Group, on ongoing efforts to improve the safety of our schools.
For more information, contact Rich Overgaard, BCTF Communications and Campaigns director, at rovergaard@bctf.ca.
Photo: A Tribute to Ernie Tate
Remembering Ernie Tate
Northern-Irish born Canadian Marxist Ernie Tate died on February 5, 2021. Tate was a member of the Socialist Educational League in Canada beginning in 1955, and following a move to Britain in 1965, was a founding member of the International Marxist Group and the Vietnam Solidarity Campaign in Britain. Following a return to Canada in 1970, Tate was a member of the League for Socialist Action (LSA), and later a member of and author with the Socialist Project, a regrouping of former Trotskyists in Toronto. Tate died from Cancer at his home in Toronto at the age of 86.
In 2014, Ernie Tate released a two volume memoir “Revolutionary Activism in the 1950s and 60s.” Volume 1 covers Tate’s activism in Canada from 1955-1965. Volume 2 covers Tate’s activism in Britain from 1965-1970.
Below are links to a couple of articles that pay tribute to Ernie Tate:
A Tribute to Ernie Tate|Phil Hearse
Fare thee well, comrade: A tribute to Ernie Tate|James Clark and Pam Frache
Ecuadorian left wins first round of presidential elections
Andrés Arauz, leftist economist and presidential candidate for the Movimiento Revolución Ciudadana, has emerged in first place in the first round of Presidential elections held in
Ecuador on February 7. Arauz seeks to reignite the citizens revolution that was started under former President Raphael Correa, who held office from 2007 to 2017.
With 97.8% of the votes cast, the results are:
Andrés Aruz 32.23%
Yaku Pérez 19.71%
Guillermo Lasso 19.65%
Xavier Hervas 16.01%
General election results in ecuador
The results suggest that there will be a runoff election, which will be held in April. They also suggest a strong repudiation of neoliberalism.
Yaku Pérez Guartambel is an indigenous activist and presidential candidate for the Pachakutik Party, an openly ecosocialist political party. Guillermo Lasso Mendoza is a right-wing banker and candidate for the Alianza CREO-PSC, a coalition of the Movimiento CREO and Partido Social Cristiano. Xavier Hervas is the candidate for the Democratic Left.
The following Article from Telesur provides a good overview of the three main candidates and their policies: Meet the Main Candidates in Ecuador's Presidential Elections.
Benjamin Norton from The Grayzone traveled to Ecuador to report on the February 7 election. Watch his great news video published on the eve of the election on February 6: Ecuador’s Citizens Revolution.
International Criminal Court rules against Israel
On February 5, the International Criminal Court (ICC) in the Hague ruled that it has jurisdiction over the crimes committed by Israel and its army in the occupied Palestinian territories. Gus Shalom (Israeli Peace Bloc) released the following press release on February 6, in support of the ruling: The Ruling By the International Criminal Court is a Game Changer.
Upcoming Events
Ecosocialist Dialogues: Growing the movement inside and outside electoral politics
Join the Socialist Unity Assembly at their inaugural two hour event via Jitsi and hear perspectives on this topic from our three esteemed panelists: Dimitri Lascaris, Radhika Desai, and Gary Porter.
Feb 21. 4:00 pm PST.
https://www.democraticsocialistsyvr.ca/dsv-news/ecosocialist-dialogues
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