Development Community wary of "uncertain minority government. Business in Vancouver October 20, 2024
Prior to last night's election results were know, BIV Journalist Glen Korstrom called to ask my thoughts on how the election outcome might impact the development community. While there are many others who are more knowledgeable and in a better position to comment, I was happy to offer some thoughts based on my recent experience with Bills 44 and 47 and changes to muncipal bylaws.
Bills 44 and 47. For one thing, if the NDP won, there was no doubt the recent Bills 44 and 47 resulting in considerably more densification in every town and city with more than 5000 people would remain in place. However, if the Conservatives won, these Bills could well be rescinded, prompting great uncertainty as to whether municipalities would also rescind the Bills.
Developers hate uncertainty. I told Glen that just as investors in the stock market hate uncertainty, developers do too. Over the past year, several of my clients have been holding off on projects not knowing the ramifications of the new legislation, especially Bill 47-Transit Oriented Development.
Will higher densities always be allowed? How will Community Amenity Contributions be calculated? Who will determine whether additional sewer and water servicing will be required to accommodate higher densities? Is there enough electrical power to accommodate all these new developments?
Rent controls. What will happen to allowable annual rent increases if the Conservatives get in.
No clear winner? Alternatively, what will happen if there is no clear winner and the Greens hold the balance of power? This, to my mind would be the worst possible outcome.
Vacancy Control. For one thing, in the past, Sonia Furstenau and the Greens have wanted to implement Vacancy Controls/ This means a landlord cannot raise the rent beyond the annual limit even when a tenant moves out. This could be disasterous for many existing and new projects.When I tweeted out this sentiment, I was contacted by her office since she wanted to discuss it further. I eventually had a one-hour discussion with Adam Olson trying to explain why this would be harmful.