WHEREAS the BC Real Estate Association has proposed to the provincial government that the unexpected property transfer tax revenues from increased Property Transfer Tax revenue due to an unexpected rise in the housing market be directed toward affordable housing initiatives: THEREFORE BE IT RESOLVED that the Union of BC Municipalities support the BC Real Estate Associations recommendation to direct a portion of Property Transfer Tax revenues to address the affordable housing infrastructure deficit.
MINISTRY OF FINANCE The government is reluctant to dedicate taxes or a portion of taxes to fund particular programs because a dedicated revenue source rarely generates the appropriate amount of revenue required it either generates too much or too little and constrains the governments ability to adjust spending priorities as circumstances change. Although the government does not directly allocate property transfer tax revenue to housing and homeownership programs, Balanced Budget 2007 provides a comprehensive range of supports for housing and the homeless, including: -an additional 27 million over three years, for a total of 90 million over the next three years, to increase the number of year-round shelter beds by almost 30 percent and provide related support services; -38 million in one-time funding to projects that provide housing and support for people who are homeless, or are at risk of being homeless; -an increase in the shelter rate of 50 a month for people on income assistance; -an additional 6 million over three years, for a total of 84 million over the next three years, to strengthen support for transition houses for women and children fleeing domestic violence; -45 million over four years to convert up to 750 social housing units to supportive housing, to make them more accessible for seniors and others with special housing needs; -an expansion of the Rental Assistance Program by raising the income threshold to 28,000 a year this means that 5,800 additional working families more than 20,000 in total will be eligible to receive up to 563 a month to help with their housing costs; -an increase in the First Time Home Buyers Program threshold to exempt first-time buyers across British Columbia from paying property transfer tax on homes valued up to 375,000; -an extension of the Home Owner Grant to lower-income seniors, regardless of their homes assessed value; and -an extension of the property tax deferral program to persons 55 and older rather than 60 and older. Balanced Budget 2007 also set aside 250 million from the 200607 surplus to establish a Housing Endowment Fund. The purpose of the fund is to encourage innovative housing solutions to homelessness and social housing issues to help address the housing challenges created by a growing economy. The fund will generate approximately 10 million a year in interest that will be used to support projects that meet the diverse needs of those individuals and families that are not being served through existing programs and services.