A review of BC Housing FOI response 30-11318

To:  Malcolm McNaughton, Armin Amrolia,  BC Housing

CC::  Mayor and Councillors, Oak Bay Municipality. Dr. Andrew Weaver, MLA Oak Bay

 February 7 2019

A review of the FOI response from BC Housing (30-11318) leads to the following observations on its contents.  

 On 17 September 2018, just over one month after the development team for Oak Bay United Church (DT-OBUC) delivered its rezoning/development package to Oak Bay’s Planning Department, they submitted a request for further funding to BC Housing under RFP1070-1819/016.

The covering letter for this submission says “On August 2018 we applied for rezoning and development permit for 96 residential units. Of these 39 units are market rental and sale units, income from which subsidizes 57 affordable housing units. This will replace and expand an existing 9-unit affordable housing operation.” (emphasis added)

This is a surprising statement given that (a) the rezoning and development permit applications to Oak Bay Municipality did not contain this information and (b) there are several factors that make their RFP submission ineligible for BC Housing funding.

As there is a significant investment of taxpayers’ money in this project, this RFP submission raises the following concerns:

  •  The “existing 9 unit affordable housing operation” is a building that is currently rented to and operated by the Threshold Housing Society as transitional housing for youth-at-risk. OBUC Minutes dated August 20, 2017 state that Threshold Housing Society has 4 years remaining on a five year lease with the church. Threshold provided $60,000 for repairs before moving in and their loan is being repaid in the form of $1,000 rent reduction per month with a current balance as of August 1 2017 of $47,000.

  • The OBUC Minutes state “the building is in good repair with the exception of the roof”. Coast Capital and other sponsors agreed to sponsor Threshold for the next five years.

  • It is a misrepresentation of the facts for the DT-OBUC to claim this as “existing affordable housing”.

  • The Minutes of the AGM of OBUC (June 10, 2018) state “It has been determined that Threshold House cannot be maintained on site while also positioning the Affordable Neighbourhood Housing on the property”

The development submission to Oak Bay Municipality shows the building will be demolished.

 In OBUC Minutes (August 20, 2017) under “Background to the motion to borrow $500,000 from BC Housing for the Planning Phase of Affordable Rental Housing”, they list the following reasons for the need to borrow this money (under the guise of Affordable Housing)

“If the development is to be considered feasible for the OBUC – it has to

  • Require no funding from OBUC

  • Provide a benefit to the community

  • Provide approximately 5,000 square feet of replacement space for church offices and programs

  • Provide funding to retire the mortgage and make repairs to the sanctuary

  • Upgrade the kitchen

  • Provide on-going income of at least $100,000 a year.”

One might think that the Church’s governing body could help provide the required funds but, according to the Oak Bay United Church Minutes of August 20, 2017, the United Church of BC Conference Property Resource Team was consulted to see if they would fund a development feasibility study as they had for other congregations and they declined.

The Minutes show:

“Based on the known information at the time, PRT declined as redevelopment was considered unlikely based on zoning and density”. The Minutes then state “Not to be deterred, the congregation of OBUC allocated approximately $20,000 to hire consultant Chris Corps of Pivotal IRM and Waymark Architects to do our own development feasibility study. Subsequent work by the consultants has refined the business case to the point where BC Housing is prepared to provide an initial loan for project development funding UP TO $500,000 for the project development phase”.

DT-OBUC were permitted by the congregation to borrow a further $300,000 from BC Housing for development funding (OBUC Minutes September 18, 2018) for a total of $800,000.

On September 17, 2018 DT-OBUC submitted an RFP for more funding from BC Housing knowing that their submission failed to meet eligibility requirements. Their letter of application says that they were encouraged by BC Housing to submit this non-conforming proposal anyway.

When the proposal to build an affordable housing project on the OBUC’s small piece of excess land was first raised in the community, it was universally considered to be a good idea. Some months later, neighbours attended meetings and an open house organized by the DT-OBUC that revealed no meaningful community input was being sought. The plans were already drawn, even though the DT-OBUC had told the community (on 16 August 2017) they were working with a ‘blank sheet of paper’. Oak Bay United Church had clearly already decided what they had to build in order to generate the cash flow from such a project. The community’s suggestions of a compromise on size and density were ignored.

In December 2017 neighbours were asked to rubber-stamp one set of drawings or another, out of several alternatives none of which reflected any of the local concerns about the size and impact of this massive project on a single-family zoned block.

The DT-OBUC, having engaged a public relations company funded by BC Housing, has attempted to discredit anyone who doesn’t agree with them as a vocal minority and/or ‘an organized opposition group’

Organized? Yes. Minority? No. A quick walk around the neighbourhood shows increasing opposition to this project. The protest signs that once graced only a yard or two now appear in abundance. Again, you are invited to review the web-site www.ccn-oakbay.com

What should citizens do when their collective voice as stakeholders in the community is overlooked? Should we sit back and watch BC Housing throw money at a project that ostensibly is to provide affordable housing but where the real agenda is something more prosaic – to build a ‘community space’ to be paid for by tenants and to provide a revenue stream for an institution whose congregation is declining and its revenue base shrinking. The DT-OBUC continue to quote manipulated data from their self-created and self-serving public relations polls to push an aggressive, overreaching and inappropriate proposal.

Isn’t it time for someone at BC Housing to engage with the local community and to examine this proposal more closely?

Is anybody listening?

Is anybody listening?

B. G. Judson