Opinion: Surrey needs to get involved in affordable housing

Surrey has been relying on other levels of government and non-profits to deliver subsidized housing to the citizens of Surrey and it has fallen short. The City of Surrey needs to step in with a solid plan to support subsidized housing for its citizens, writes Pat McCutcheon. Photo by Jason Payne /PNG

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With a municipal election just around the corner, Surrey’s main political parties are tripping over themselves to provide better policing, more parks and more frequent transit.

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While these are important issues, most Surrey residents rate affordable housing much higher on their priority list and for good reason. Average house prices and monthly rental rates remain out of reach for many.

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Affordable housing has traditionally been the responsibility of the provincial and federal governments. Both levels of government have failed terribly to deliver and this record of underperformance is unlikely to change.

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Also, we have to stop believing private developers will one day build affordable housing. Unless they’re regulated, they never have and never will build affordable housing. Their business model prioritizes profits and there is nothing wrong with this. It just doesn’t result in affordable housing.

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Cities can, and do, play an important role in providing affordable rental housing. Where it has been done successfully, the city, in partnership with non-profit organizations, collaborates to purchase or build a large block of affordable rental housing.

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Vienna, one of the world’s most livable cities, provides a blueprint for how this can be accomplished. The city directly owns about 201,000 housing units, roughly 22 per cent of the city’s total housing stock. Non-profits own roughly another 200,000 units. Monthly rent for a 600-square-foot, one bedroom condo in Vienna costs about $1,000. In Surrey, it averages $1,800.

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Surrey currently has between 9,500 and 10,500 subsidized housing units managed by a fractured assortment of government departments and non-profits. Total rental units in Surrey number about 60,000, with 70 to 75 per cent being secondary market rentals (suites, rented condos, etc.); 13 to 14 per cent being purpose-built rentals; and 13 to 14 per cent being subsidized rentals.

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Surrey has been relying on other levels of government and non-profits to deliver subsidized housing to the citizens of Surrey and it has fallen short. A commitment by higher levels of government to build more units doesn’t materialize unless we’re in crisis mode. Currently, there are over 30 non-profits and 14 co-ops doing their best to operate subsidized housing in Surrey but their funding isn’t stable. The City of Surrey needs to step in with a solid plan to support subsidized housing.

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Like Vienna, the City of Surrey needs to become the city’s largest landlord. Over time, this would shrink the number of players in the subsidized housing market, resulting in a more streamlined operation. It would also allow the city to respond more rapidly to changing subsidized housing requirements. The plan should be structured so that rental revenue covers the program’s operating costs. If this is done properly, the average subsidized rent should be at least 30 per cent below market rent.