B.C. Housing probe may have an effect on complete non-profit housing sector

Article content material

A outstanding advocate stated the overhaul of how B.C. Housing doles out funding — really useful in a scathing report into battle of curiosity between the housing company’s former CEO and his spouse — can have implications throughout the non-profit housing sector.

Article content material

Jill Atkey, CEO of the B.C. Non-Revenue Housing Affiliation, stated whereas the really useful adjustments are essential to make sure public funds are spent correctly, she doesn’t need to see the pendulum swing to this point within the different path that “the pliability and the power to reply shortly (to the housing disaster) is misplaced.”

Article content material

An investigation by Ernst & Younger, launched Monday, discovered Atira Ladies’s Useful resource Society acquired preferential remedy for housing contracts as a result of its CEO, Janice Abbott, is married to B.C. Housing’s CEO Shayne Ramsay.

The report discovered Ramsay repeatedly despatched textual content message to employees, which had been later deleted, directing that Atira obtain authorities funding. That violated battle of curiosity guidelines that barred him from discussing these initiatives due to his relationship with Abbott.

Article content material

Ramsay resigned in August after 22 years as B.C. Housing’s prime boss.

Atira has grown to develop into B.C.’s largest non-profit housing supplier and oversees housing for nearly 3,000 individuals in 28 buildings within the Decrease Mainland.

The federal government has frozen any extra funds to Atira for purchasing new buildings or doing renovations, nonetheless operational funding will proceed to make sure individuals dwelling in Atira-run buildings will not be left with out companies. The federal government has ordered one other evaluate into Atira’s funds.

Given the myriad issues detailed within the report, Atkey stated freezing funds to Atira is an “acceptable response.”

Nevertheless, she’s involved freezing Atira’s funds may tie the arms of an company that fills a singular function within the sector by offering housing to susceptible ladies and youngsters.

Article content material

Article content material

“We actually do want all arms on deck,” Atkey stated. “So it’s regarding.”

Two former B.C. Housing board members — who had been fired by Premier David Eby final July after he requested for Ramsay to be positioned on administrative go away after the battle of curiosity issues first got here to his consideration — informed Postmedia Information some choices to award housing contracts to Atira had been accomplished shortly with out a formal bid course of due to the urgency to deal with individuals dwelling in encampments and different harmful conditions.

Andy Yan, director of the Metropolis Program at Simon Fraser College, stated the issues dealing with Atira and the shortage of oversight by B.C. Housing echoes scandals involving non-profit housing companies together with Portland Lodge Society, which in 2014 ousted a number of senior managers after audits revealed they spent hundreds on luxurious journey, limos, spas, household holidays and presents, and the Downtown Eastside Residents Affiliation, which disbanded in 2010 after allegations the society mishandling public cash.

Article content material

These issues, Yan stated, span throughout B.C. Liberal and NDP governments which factors to a “systemic failure of attempting to take care of non-market housing to deal with a few of the most challenged people in our society.”

Successive provincial governments, Yan stated, have taken a reactive strategy to the housing disaster, scrambling to “throw cash into the issue” within the hopes of “tamping it down for one more time period” in workplace.

Throughout query interval Wednesday, B.C. United finance critic Peter Milobar questioned why Eby, who was minister accountable for housing till he stepped down in July to run for the NDP management, didn’t ask for the investigation to incorporate Atira’s for-profit property-management firm, Atira Property Administration Inc.

Article content material

The corporate manages a number of single room occupancies buildings in Vancouver and managed the Winters Lodge, the place two individuals died following a fireplace on April 11, 2022.

“Can the premier inform the victims of the Winters Lodge hearth why they aren’t entitled to a complete investigation into the funds of Atira and all of its subsidiaries?” Milobar requested.

Housing Minister Ravi Kahlon didn’t instantly reply why the investigation didn’t embrace the property administration firm however concerning the Winters Lodge hearth, he famous there’s a class motion lawsuit underway.

Milobar identified {that a} vital report by accounting agency BDO Canada, accomplished in 2019, discovered monetary mismanagement at each Atira and its absolutely owned subsidiary, Atira Property Administration.

Article content material

The for-profit arm was created by Abbott in 2002 to generate earnings from managing strata buildings round Metro Vancouver, with these earnings donated to the charity. As a result of it’s a personal company, Atira Property Administration Inc.’s funds will not be out there, and it’s unclear what earnings they make and move again to Atira.

Milobar additionally attacked the NDP for having “mates and insiders” on Atira’s board, together with Forestry Minister Bruce Ralston’s spouse, Miriam Sobrino.

Ralston stated in an announcement that he has been recusing himself from all conferences associated to Atira.

“Because of this I used to be not a part of any cupboard choice or dialogue on this matter and I didn’t obtain or evaluate any materials upfront of the report being made public,” he stated.

Article content material

B.C. Housing is finishing up bodily inspections of Atira-operated buildings, which began Tuesday. The federal government has additionally requested for an appointee to be positioned on Atira’s board however Atira has not but dedicated to doing that.

— with information from David Carrigg

kderosa@postmedia.com

Help our journalism: Our in-depth journalism is feasible due to the assist of our subscribers. For simply $3.50 per week, you will get limitless, ad-lite entry to The Vancouver Solar, The Province, Nationwide Publish and 13 different Canadian information websites. Help us by subscribing at the moment: The Vancouver Solar | The Province.