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Yes, you read that right. Property values are rising daily. Yet the government is not only losing out on any future increases in property values, but taxpayers will also pay to NOT own land that was purchased years ago when prices were low.

If, in perpetuity, the land could solely be used for housing where the cost would not exceed 30 per cent of renters’ income, it might make some sense. But that’s not the case.

Once non-profits’ operating agreements with the government end, or the covenants on the title expire, Bellringer said the land can be sold and new owners can do whatever they want, including building luxury condos.

So far, 114 of 345 government-owned properties have been leased and two buildings in Vancouver sold – the 375 units of family housing at Stamps Place and the 220-unit seniors residence Nicholson Tower – for a net profit of $238 million.

That money will be used for 4,000 new units and to expand rental assistance programs.

But, as the auditor points out, most of the new units won’t be rent-geared-to-income (i.e. rent capped at 30 per cent of income). Most will charge low-end-of-market or full-market rent, while others will be for the hardest to house.

As for the increased reliance on rental assistance programs, Bellringer noted that it means the government has no direct oversight for the safety or appropriateness of the units. She also quoted the ministry’s own research that indicates tenants who receive rental subsidies “pay consistently more than 30 per cent of their income.” This is particularly so when vacancy rates are as low as they are currently.