On Wednesday, March 27, residents across the city joined together to walk 14.5km across Vancouver for Welfare Justice. The walk was organized by the Raise the Rates coalition to highlight the need for a significant increase in welfare rates as well as a comprehensive anti-poverty plan in the lead-up to the provincial election this May. The walk commenced at Christy Clark’s office on West 4th Ave in Kitsilano and ended almost 8 hours later outside Adrian Dix’s office at the Joyce Street skytrain station.
Homeless Dave joined the walk for Welfare Justice on the sixth day of his hunger strike against displacement and gentrification. Welfare and housing are intimately connected and as Vancouver’s low-income housing stock erodes, people on income assistance are being hit the hardest. In 2012 alone, 426 SRO units in the DTES became unaffordable for people on welfare. A recent article by Seth Klein shows that despite government press releases, the actual increase in the social housing stock in BC has been negligible since 2006.
Heather Place is a non-profit housing complex built in 1982 by the Metro Vancouver Housing Corporation (MVHC). Today it includes 86 homes, two thirds of which rent to tenants at non-market rates while the remaining third of tenants are subsidized on a rent-geared-to-income basis.[1]
In 2010 it was publicly announced that Metro Vancouver Housing Corporation was contemplating either the demolition or repair of Heather Place. In a letter from September 29th, 2010, MVHC Manager Don Littleford explained to tenants that the difference between Heather Place and other housing complexes that have been repaired is that at Heather Place, “the land under the buildings is very valuable.” In February of 2012, Terra Housing Consultants advised Littleford that redevelopment plans “would generate approximately $7,000,000 in additional value.”
Littleford is pitching the planned densification of the site as a contribution to the city’s affordable housing stock. Yet in his own words, “market rents for new suites will be substantially higher.” In a letter to MVHC, City of Vancouver Rezoning Planner Karen Hoese informed Littleford that, “City-wide policy supports consideration of new affordable housing and other public benefits such as child care” but that Littleford’s Heather Place proposal “does not provide a directly identifiable public benefit.”
Significantly, the planner decided that replacing 26 of the 86 non-market units cannot be considered a public benefit of rezoning given that the current zoning requires these units.[2] The public benefit of non-profit housing would be lost if 60 non-market units were replaced with housing at “substantially higher” rates. Nonetheless, Littleford and Vancouver’s politicians have thrown their support behind the redevelopment plan.
At noon on Friday March, 22nd, Homeless Dave began a hunger strike in support of housing rights and social justice in the Downtown Eastside. The strike was announced in front of the controversial Sequel 138 development site at Main and Hastings, where a developer is planning to build unaffordable market condos using a financial subsidy from the BC Liberal government.
Homeless Dave, who is now housed and goes by the name “the artist formerly known as Homeless Dave,” has put three demands at the front of the indefinite hunger strike: that the city decline the development permit for Sequel 138; that the former Main Street police station be used for social housing; and that the Downtown Eastside be declared a “social justice zone.” “We’re not about smashing windows,” stated Dave, “we’re about smashing the old broken paradigms and building new paradigms that are more just and equal.”
This past week newspapers reported on Vancouver’s high number of empty condos. The reports were based on new research by Andy Yan of BTAworks. Yan is known for an earlier 2009 study that used BC Hydro statistics to track the number of empty condos in downtown Vancouver. Yan’s new research essentially confirms the 2009 study: as of 2012 Vancouver has an average of 7.7% empty condo units, with an exception for downtown’s Coal Harbour, at 23% empty.
Many of the empty units in the ultra-luxury towers of Coal Harbour are seasonal homes and secondary suites for Canada’s high net worth elite. Canada’s tax cuts have unleashed billions of dollars into luxury real-estate near to home. After ten years of neoliberal reforms since the election of the BC Liberals in 2001, an unprecedented amount of wealth has been freed up for circulation and reinvestment in British Columbia. Profit rates have soared while the corporate income tax rate in BC has been reduced from 16.5 to the current 10%. Today the upper 20% of BC pay a lower total provincial tax rate than the remaining 80%, and the provincial government now collects more revenues from a regressive sales taxes than from income tax.
Since the election of Gregor Robertson and Vision Vancouver, the city has boasted the lowest corporate tax rate in the world, combined with millions in targeted tax breaks, subsidies, and fee exemptions for local billionaires. In each of the next four years, corporate profits in BC are projected to continue climbing and reach $31.3 billion in the year 2015 alone. Over the course of three decades, billions of dollars of surplus capital have produced flat wages, growing inequality and bloated financial markets. Is there a lot of freed-up capital moving into Vancouver’s speculative real-estate economy? Certainly.