Buyers who already had homes snapped up affordable BC development

Chard/Courtesy

Buyers who already owned property scooped up units in an affordable housing project meant to help middle-income Victoria residents buy their first home.

Vivid at the Yates was completed in 2021 after the provincial government awarded Chard Development a $53 million low-interest loan. The building’s 135 units were sold at 8% below market value to buyers who were supposed to meet stringent requirements.

Purchasers were supposed to be first-time homeowners with a family income not exceeding $150,000 per year. Prospective buyers attended an education session about their obligations, including the requirement to live in the building for at least two years.

But that’s not what happened, according to court documents that reveal a breakdown between the project’s purpose and its execution. BC Housing alleges one realtor, Janet Yu, helped a dozen buyers secure units in Vivid at the Yates by giving them incorrect advice about their obligations to meet the affordable housing requirements.

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In a lawsuit filed in 2022, BC Housing said many of Yu’s clients already owned homes, many of which were detached houses valued at more than $1 million.

A chart from the court documents suggests Yu made more than $52,000 in commission by securing units in the building for her clients.

Notice of Civil Claim

BC Housing noted that the rate of non-compliance among purchasers represented by Yu was “significantly higher” than for the building overall.

BC Housing’s lawsuit demanded Yu return her commission and have clients pay the difference between their discounted purchase price and market rate. It also sought punitive damages.

In a response filed in court, Yu claimed a language barrier impacted her understanding of the rules.

“The defendant does not speak English as her first or principal language, and has limitations with respect to her understanding of English,” her court filing reads. “At all times material, the defendant relied upon the advice and representations made to her … by the presenters of the Affordable Housing Program Education Session.”

BC Housing also initiated legal proceedings against the buyers who went against the rules.

“It’s frustrating that people have been violating the terms of ownership,” BC’s Housing Ministry told Daily Hive in a statement. “If found not to be in compliance, the owner could be required to sell the property back to BC Housing for the original purchase price, less legal costs and taxes.”

BC Housing and the province have introduced a new model where buyers qualify for a second priority mortgage through BC housing. The revised Affordable Home Ownership program has new criteria, including:

The buyer must make the unit their primary residence and physically live there
The buyer must not own a residential property anywhere else in the world
The buyer can only purchase one unit
The buyer must intend to live in the unit for at least five years

Daily Hive has reached out to Sutton Realty — the agency Yu worked for — for comment.