‘Infuriating’: BC Housing suing 22 people who bought affordable housing units, but allegedly did not meet criteria

Numerous people are being taken to court after purchasing units in The Vivid, a building offering affordable housing units, without meeting the criteria.

Vivid at the Yates is a residential development in downtown Victoria with condominiums at a below-market price. Criteria for ownership stated that buyers had to live in the unit, and could not sell it for a period of two years. Buyers were not to have a gross combined annual income exceeding $150,000, and could only purchase one unit in the building. Buyer were allowed to own other property.

However, BC Housing is taking several buyers to court after an audit showed that they violated the agreement.

“It is infuriating that the old government left loopholes that allowed investors and speculators to take advantage of the system and fraudulently purchase units at the Vivid at the Yates building in Victoria,” said Minister Ravi Kahlon in a statement to NowMedia.

“The building is intended to supply much-needed affordable housing to people with middle-incomes so they can afford to live in the community they know and love.”

Kahlon added that the government is taking further action to ensure that the homes are available to people that need them.

“We won’t stop taking on wealthy speculators and investors – making sure the housing market in BC works best for people, not speculators.”

A total of 22 civil lawsuits are underway to enforce the terms of the covenant in the Vivid building. BC Housing says it will continue to initiate lawsuits in the coming weeks.

The government organization is demanding owners sell the properties back to BC Housing for the original purchase price, less legal costs and taxes, and is also pursuing punitive damages.

So far, 19 units have been returned to BC Housing, and of those, nine have been re-sold to qualifying middle-income households. An additional 10 are currently listed for sale.

Vivid at the Yates was initiated by the previous government in 2017 through the Community Partnership Initiative.

“The safeguards in place to prevent violations of the terms of ownership clearly were not enough,” said BC Housing. “That’s why the government and BC Housing created the new affordable homeownership model, known as Affordable Home Ownership Program (AHOP) in 2018.”

AHOP has more criteria, including limits on homeownership elsewhere, which BC Housing says is closely overseen to ensure these homes stay out of the hands of speculators.

The Province took action to fix the system created by the old government. The Province added that they were first made aware of the situation in 2021, when it was discovered that some units were being rented, which is a violation of the covenant. The building owners were audited, and litigation started in 2022.

In one civil claim filed against real estate agent Janet Yu, BC Housing alleges that she took advantage after realizing “significant personal profit,” purchasing a unit for herself and also making commission on the sale of 11 other units. The estimated amount of commission made on the condominium sales was said to be around $52,000.

Notably, BC Housing claimed that most of Yu’s clients in the building did not meet the criteria and are also facing litigation.

“The defendant gave incorrect advice to her clients regarding their obligations in respect of their respective purchase agreements and the Affordable Home Ownership Covenant,” reads court documents.

Yu was also alleged to own or co-own several other properties in Victoria. One property was assessed at over $1 million in 2021. Two other properties were assessed at $831,000 and $956,000.

In addition to returning her own unit, BC Housing also demanded Yu return the commission she made on the sales.

In her response to the lawsuit, Yu claimed in court documents that she has “limitations with respect to her understanding of English.”

She also claimed that she was a resident of the unit, minus short visits with family. It was also said that she relied on the “advice and representations” provided by the Affordable Housing Program Education Session and the solicitor.

The Vivid at the Yates website currently states criteria for ownership is:

• You must be a Canadian citizen or a permanent resident;
• Have been living in BC for the past 12 months;
• Currently do not own an interest in a residential property anywhere in the world;
• Plan on living in the unit as your primary residence for a period of five years (no rentals);
• Have a household income (combined, worldwide) that is less than $126,050 for a unit with fewer than two bedrooms, or less than $173,700 for two-bedroom units