Whereas the Speculation and Vacancy Tax generated an estimated 81 million in revenue for the Province during the 20192020 fiscal year to be directed towards affordable housing initiatives; And whereas local governments are taking on a greater role in addressing affordable housing needs in their communities: Therefore be it resolved that UBCM request the provincial government to distribute directly back to each municipality a portion of the revenue collected, up to the amount collected from each local government, under the Speculation and Vacancy Tax to further affordable housing initiatives within those jurisdictions.
Ministry of Finance The Speculation and Vacancy Tax Act and the Special Accounts Appropriation and Control Act require the revenue from the Speculation and Vacancy Tax SVT to be spent in the regional district where it is collected. The province took a regional approach with respect to the SVT revenue spending because housing unaffordability does not affect one municipality in isolation. What is occurring in one municipality affects an entire region. Requiring the funds to be spent in the regional district ensures that the money will be spent quickly and efficiently on affordability issues affecting the entire region. The Province understands that municipalities would like to see net new social housing units being constructed in their municipality. The revenues from the SVT can be used for new housing initiatives, but funds may also be used to support existing housing, rental, or shelter programs, as outlined in the legislation. Our government is making the biggest investment in housing affordability in BC history with 30,000 homes already completed or underway throughout the province Over the next three years, the Province plans to invest 3.4 billion in housing and homeless support. Revenues generated by the SVT only account for a small fraction of the Provinces 1.1 billion housing operations budget. For the 2020 fiscal year, the SVT is expected to raise 81 million, bringing the three- year total revenue to 231 million. At the same time, the Province has invested approximately 2.8 billion in housing in the five regions covered by the SVT as part of the 10-year housing plan Homes for BC. The Province has also introduced new legislation, that took effect in April 2019, that requires local governments to collect data, analyze trends and present housing needs reports every five years that describe current and anticipated housing needs. Housing needs reports help ensure that local governments have up-to-date information about current housing gaps to help us work together to proactively address future challenges. Local governments are encouraged to work with BC Housing to discuss the housing priorities in their communities, which may include options for affordable housing.