City’s affordable housing strategy: gentrification

Vision Vancouver, Vancouver’s ruling party, won an election in 2008 by promising to “end homelessness.” But since that time, the party has adopted a housing strategy that only causes homelessness: gentrification of the Downtown Eastside.

City hall is actively pushing condo development eastward. In 2009, the city placed a de facto moratorium on condo development in much of the central business district. Simultaneously, they have been incentivizing gentrification of the Downtown Eastside (DTES) through tax breaks (see our previous article “Lowest corporate taxes in the world at heart of Vancouver’s housing crisis“).

What is most concerning is that this model of gentrification is a major component of Vision Vancouver’s “affordable housing plan.” Affordable housing tops most issue polls, but instead of creating true affordability, Vision has deployed the popular issue of affordability in order to market gentrification. Land is relatively inexpensive in the inner city, so developers can make unprecedented profits building condos for less costs than in the central business district. These condos remain unaffordable, and are far more expensive than the units they replace.

The City’s long-overdue housing plan released this summer highlights the Westbank Corporation’s gentrification project at 60 W. Cordova as a “Pilot Affordable Home Ownership Project.” The city planning department is now expending significant resources to work with developers to roll-out this gentrification model. Here are four examples:

1. After the illegal eviction of low-income tenants from the American Hotel, the city worked with the developer to convert the building into condos and market the development as “Affordable Home Ownership” (see here for an article on the American Hotel conversion). Recently, Vision councilor Kerry Jang has gone on record promoting the redevelopment of the American Hotel as evidence of council’s commitment to “affordability.”

2. The Salient Group is preparing to begin selling condo units at their newest gentrification project called “21 Doors,” at 334 Carrall across from Pigeon Park. The building used to house low-income families, and the owner allowed the site to fall into disrepair. In March 2008, the 20 low-income households living in the building were evicted by developer Robert Wilson. (Wilson had been buying up properties in the Downtown Eastside and ‘flipping’ them for profit. He sold seven buildings to the province for $28 million, for a profit of a estimated $12 million). Robert Fung of Salient Group, developer for 334 Carrall, is now marketing the units as ‘affordable’: “This is really ‘small A’ affordable housing. It’s much more affordable than our other product. The unit sizes are small but livable.” Again, these units of are far more expensive than those they are replacing.

3. This past week, Westbank Corp. announced it is planning a 17-story condo tower at the corner of Main and Keefer in Chinatown. The tower will include 145 “regular” condo units. This is one of many towers that developers and City Council have planned for Chinatown. Westbank claims that their tower will contain 24 units of senior housing in addition to the 145 condo units. It is important to recognize that these token units will not make up for the lost affordable units throughout the neighborhood. There are about 350 Chinese seniors in Chinatown alone, and over 10,000 low-income residents in the DTES/Chinatown area. A recent report by Tsur Somerville, Azim Wazeer and Jake Wetzel of UBC’s Sauder School of Business shows that the need for Chinese seniors’ housing is “overwhelming.”

4. A similar fate faces the old Pantages Theatre, next to the Carnegie Centre and across from Insite. After twice rejecting plans to save the Theatre and build social housing on adjacent lots, Vision City Council has been working closely with developer Marc Williams to build 80 condo units on the site. The low-income community has mobilized strongly against the project (see here for details). This week, COPE candidate Ellen Woodsworth came out against the project, saying “The hundred block of Hastings is not a place for high end condos.” The NPA and Vision have remained supporters of this gentrification project.

#OccupyVancouver? Look to Hong Kong housing activists for inspiration

As protests in solidarity with #OccupyWallStreet spread across the continent, the “99%’ers” here are beginning to think about what #OccupyVancouver might look like. This is a good thing. Left-wing movements have always known that since capitalism itself is global, resistance to it ought to be global.

For New Yorkers, the most obvious and logical target is Wall Street. Staging a protest camp adjacent Wall Street in downtown New York city is no small feat. New York police are highly militaristic in quashing protests. One can only imagine the intensity of police desire, under pressure from New York power-brokers, to disperse the camp. The bravery of the activists is one of the things from which to draw inspiration.

What does it mean, then, to hold a protest in solidarity with that in New York? In part, it means to be inspired by their courage. That means to take spaces that challenge the real seats of power in our local situation. That may mean taking the steps of the Vancouver Art Gallery, but probably not: the reason protests are often held there is that the space is relatively easy to book. An #OccupyVancouver truly inspired by the original would take a space that is non-bookable, that directly challenges power-brokers.

Throughout Canada, there are many appropriate targets: Bay Street in Toronto, the headquarters of tar sands-related energy corporations in Calgary, and so on. In Vancouver, Coast Salish territories, there are many things to consider. Most importantly, the violence of colonization is felt acutely here, where European settlement began more recently than most other regions of the continent. (Indeed, the word “occupy” is often associated with European colonization of the land; it’s possible that the term, with its multiple meanings, may confuse or distract some from the spirit of #OccupyWallStreet: to stage a collective protest that challenges the 1% who run the capitalist economy).

Arguably the dominant function of Vancouver’s economy is that its housing market acts as a ‘sink’ for global capital accumulation. Investors, most of whom are locally-based, store their extracted wealth in Vancouver’s inflated real-estate market. The inflation of housing prices is managed by a realty oligopoly. This has created an affordability crisis for the working-class. While property-owners rely on the development monopoly to keep their home prices inflated, renters, who constitute the majority, are exploited. The city which most resembles Vancouver in these respects is Hong Kong. Vancouver and Hong Kong rank together as the most unaffordable cities in the world, with the median house price costing more than three times the median household income. As a result, residents are being driven out of their homes, onto the streets, out of the city. In Hong Kong, they have clearly identified the seat of power, and began their own #Occupy-like movement earlier this year. The story may serve as yet more inspiration for those thinking about our own solidarity movement.

Toppling property hegemony: “Down, down with the property tycoons!”

Just this past March 26 2011, Hong Kong activists staged a protest in one of [developer] Li Ka-Shing’s supermarkets “because property developers, not the government, were the ‘real enemies of society'” [1]. As an act of creative civil disobedience, protesters filled shopping carts with items, then stood in line without buying anything, to “paralyse property hegemony for an hour.” One protester said: “We chose ParknShop because it is owned by Mr. Li Ka-shing and we all know Mr. Li is the real boss of Hong Kong…We are not expecting this to change the world, or beat down Mr. Li or the property-developer hegemony. But we want to make it a start of a new satyagraha campaign. We used to protest against the government. But it is no use. We target developers because they are the boss of the government and the real enemy of the society.” Another protester, a recent university graduate, said: “Even if we want to rent a flat, the rents are beyond our reach. It is because the influence of developers is too big.” [1]

Readers may know that Li Ka-Shing’s Concord Pacific bought Vancouver’s massive Expo Lands in 1988, developed Yaletown, and still has long-term plans for 10,000 to 20,000 more high-end condos on North False Creek. Concord Pacific, now run by Terry Hui, remains a major player in Vancouver’s developer oligopoly, with most new housing inventory planned beyond 2013 in Vancouver under its control. Concord’s ‘land bank’ comprises a large portion of Vancouver’s undeveloped lands, including much of False Creek, as well as 58 West Hastings – the site of 2010’s Olympic Tent Village. Concord exerts its power over Vancouver housing prices by developing its ‘land bank’ very slowly as high-end condos. These and similar undeveloped properties and empty condos controlled by Vancouver’s monopolist developers (such as the Aquilini Group, Wall Financial Corp., Concert Properties, Holborn Properties, and marketing ‘coordinator’ Bob Rennie) are reasonable targets for #Occupy. So too is the mostly empty Olympic Village.

Civic election kick-off: false choices

This weekend, Vision Vancouver declared its official kick-off of the 2011 civic election campaign. The party sent members a video of a speech by Gregor Robertson, in which he distinguished Vision from its “political opponents.” Election campaigns are in large part about strategically distinguishing oneself from opponents. In this sense, the campaign promises to be a fascinating one, given that the two parties capable of forming a majority agree on all core policy matters.

The opponent to which Robertson refered is the NPA, which he called “highly negative, well-funded.” Both the NPA and Vision are well-funded, so the remaining distinction is that the NPA is ‘negative.’ That claim may seem unfair, given that the NPA isn’t any more negative about Vision Vancouver than vice versa. In the video, Gregor’s critique of the NPA’s negativity is in fact negative.

For us the key term ‘negative’ should be replaced by ‘awkward’. The awkwardness stems from the fact that Vision has adopted the NPA’s policies and is, as a result, at a loss. When the NPA goes on the attack, too, they are found attacking their own policies. Worse, the NPA is now forced to use pseudo-progressive rhetoric when attacking Vision – rhetoric that Vision would have used in the past, but now is forced to reject. The whole game of false distinctions is awkward.

Consider the Vancouver Sun‘s first of eight civic election briefings, also published over the weekend. In the first briefing, about affordable housing, Vision councilor Geoff Meggs discussed some of the implications of the housing crisis. Indeed, when The Mainlander met with Meggs for an in depth discussion last week, he emphasized the need for consensus around recognizing and prioritizing the housing crisis. Excellent. The question remains: what are Vision and the NPA going to do about it?

In big upset, Tim Louis wins COPE nomination

Today, 614 COPE members cast ballots to nominate candidates for this fall’s Vancouver civic elections. The turnout was large, at least when compared to the nomination meetings of the other two major parties, NPA and Vision, neither of which brought out much more than 100. Throughout today’s nomination meeting, not a few COPE executives pointed to the turnout as testimony to COPE’s strength, appeal, and democratic vibrancy.

The truth is that the party establishment was extremely anxious about the meeting, especially its large turnout. The party establishment, including incumbents and the executive, had preselected slates to recommend to the membership – for City Council, Parks Board, and School Board. Indeed, the Parks Board slate-of-two was uncontested, and rubber-stamped by acclamation. The establishment School Board slate was only contested by a single SFU student, who forced an election in that category. The establishment much prefers preselection and acclamation to elections – the latter signifying lack of “unity” and loss of control.

The reason for the large turnout was that the race for council was hotly contested. In general, the 614 members were of two tendencies: one group supported of the establishment slate of Ellen Woodsworth, David Cadman, and RJ Aquino; the other group supported Tim Louis, who recommended that his supporters vote for himself, Ellen Woodsworth, and Terry Martin (previous Chair of the Board of Variance).

Although there are 10 seats on City Council, COPE was only nominating three candidates. The decision to nominate only three candidates was made at the June 26 2011 special meeting, where an electoral agreement with Vision recommended by the COPE establishment was approved – although with a substantial vote of opposition from the membership.

It cannot be emphasized enough that the June 26 vote was the more important one, shaping our city’s government for the near future. The agreement with Vision virtually ensures three more years of a Vision majority. The NPA team is weaker than ever, and is not running a single incumbent for City Council. The only NPA incumbent is Suzanne Anton, who is now running for Mayor, and is likely to be unsuccessful. TEAM was in the exact same position in 1980, and was wiped-out, permanently. Therefore, it made no sense for the COPE establishment try to scare the membership into supporting Vision by holding up the NPA bogey-man. It is true that right-wing parties are based on fear, but as philosopher Alain Badiou notes, “fear of fear” is not a viable alternative strategy.

As for Vision, its city councilors have shown that they will not caucus with, or even work with, COPE councilors. It’s worth recalling that Vision held their nomination meeting, and nominated seven candidates, a week before the COPE membership had even ratified the electoral agreement! Vision is fully supportive of, and funded by, the developer oligopoly that controls housing prices in this city. Vision is committed to the gentrification model of development in the Downtown Eastside. Vision has proven unwilling to take bold action to address the affordability crisis, and on the contrary has taken to neoliberal “solutions” at every turn. The majority of their new “affordable housing plan” consists of free market condos. If there is anything to fear, it is this: around the world, after pseudo-social-democratic parties have done the dirty work of implementing neoliberalism, right-wing parties are sweeping into power on a wave of populism, with the slogan “we can’t possibly be worse than those guys!”

That said, despite the relative unimportance of today’s nomination meeting, something surprisingly interesting happened: the substantial opposition from June 26th became the majority. Many expected the establishment slate to win handily today, but the results for council nominees came in as follows:

534 – Ellen Woodsworth
345 – Tim Louis
316 – RJ Aquino
309 – David Cadman
240 – Terry Martin
98 – Colin Desjarlais

Because of the coalition with Vision, only Woodsworth, Louis, and Aquino, made the cut, while thee-time incumbent David Cadman did not. Many people in the room were visibly shocked. The surprising take-home-message was that Tim Louis had mobilized at least as many members as the entire establishment slate combined.