Times Colonist E-edition

Government should take an equity stake

Re: “Catherine Street rental-housing project gets green light despite concerns,” Aug. 5.

I don’t have a strong opinion about the specific pros and cons of the rental development on Catherine Street. However, one sentence in the report caught my eye.

“When the project starts will depend on government financing, as doing a rental project with a traditional lender is not feasible at current rates.”

It is taken as a fact that governments have to finance this project, either from existing revenue or by borrowing at market rates, then subsidizing projects at less-than-market rates.

If taxpayers are funding new rental projects, governments should ask for equity stakes in those projects.

It makes no sense to invest in new rental housing for zero equity, then to talk about contributing millions more to a special fund, so governments (or their agencies) can purchase existing rental properties and provide homes at lessthan-market rents.

It is a good idea for governments to become owners of rental property for their citizens — or part owners, in deals with commercial companies.

Why shouldn’t that ownership begin with an equity stake for every dollar invested to finance construction of new rental projects?

George Jamieson Victoria

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2022-08-10T07:00:00.0000000Z

2022-08-10T07:00:00.0000000Z

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