MARK MACDONALD
BRITISH COLUMBIA – Construction and development is mired in a quagmire of duplicity and bureaucratic red tape in the vast majority of cities and towns in British Columbia.
It’s a well-known fact within the industry, although consumers are slow to catch on that the quagmire adds substantially to the cost of housing, due to added costs of carrying financing on property for two to three years – or more – before projects can proceed. Why is housing in B.C. so much more expensive than most provinces in Canada?
There are several reasons, but the duplication of professional services within cities is one of the biggest. Not only is it a waste of taxpayers’ money, but it makes each jurisdiction legally liable for construction deficiencies. While every project requires professional sign-offs on everything from architecture to engineering and geotechnical services that guarantee their work, the cities have created another layer of duplicate services to needlessly check that work and sign off. Except signing off on it makes the city liable for any problems with the structures.
This is expensive in terms of staff, slows the development process immensely as “busy staff” can’t approve projects as fast as necessary, and puts the city, aka taxpayers, on the hook for possible future legal action. Why? Because the city’s own professionals have taken the liability by being the last to sign off on any project.
A keg of dynamite has appeared on the horizon, however, which could blow up the logjam and completely change this situation, and ultimately, hopefully, drive down the cost of housing. It’s a piece of legislation being introduced in the B.C. legislature by Nanaimo-Lantzville MLA George Anderson, who is preparing to light the fuse and potentially blow up the logjam.
It’s called the Professional Reliance Act. That a New Democrat MLA is behind such potentially game-changing legislation is surprising, considering the party’s standard anti-development mindset.
Anderson, however, is a former Nanaimo City Councillor who was practicing corporate and commercial law with Miller Thomson LLP and MLT Aikins LLP prior to tossing his hat into the provincial politics ring and winning a seat in the last election.
Debate in the Legislature begins October 27, but Anderson gave its first reading on October 21.
His introduction stated: “…good projects are delayed because qualified, provincially regulated professionals are required to have their work reviewed multiple times at the local level. The Professional Reliance Act is a practical solution to this problem.
“It allows local governments to accept certified work from licensed professionals: engineers, architects, and others regulated under the Professional Governance Act so that projects can move forward faster, without sacrificing safety, quality, or accountability.
“This legislation strengthens local governments by freeing up their staff to focus on planning, community engagement, and long-term vision, while reducing duplication and costs.”
Refreshing isn’t strong enough. Revolutionary is more like it, if the Act becomes law.
To do so, it would need to pass muster within the NDP and likely need support from the opposition. While the BC Conservatives may want to resist any NDP legislation on the principle that it is the NDP, the MLAs who have deserted the apparently sinking ship could be ripe to support it.
It could be problematic for the BC Conservatives if they decide not to support legislation that will benefit British Columbians, just because it is the NDP. If the “free enterprise” representatives in the legislature vote against what they often advocate for – reducing red tape – it would be hypocritical.
The BC Conservatives/BC Liberals/Social Credit parties are recognized for their desire to create an environment for business to succeed. So it’s up to those that remain under the BC Conservative banner and the newly proclaimed independents to do the right thing and support legislation – any legislation – that aims to support their own ideals.
It also behooves the NDP to rally their own troops behind the Professional Reliance Act, if only to support their own initiative. Surely grassroots supporters will realize that this will ultimately, positively, affect them by making housing of all forms more affordable.
Reducing bureaucratic duplicity makes for faster building, less time spent on financing, and ultimately, lower housing costs for families.
Earlier this year while speaking at a Macdonald-Laurier Institute luncheon in Victoria, Casey Edge, Executive Director of the Victoria Residential Builders Association, explained that the provincial government is primarily responsible for high housing costs by refusing to cap fees like DCC’s, amenity contributions, and annually ratcheting up building code regulations and costs.
He wasn’t targeting the NDP, as he noted that B.C. governments of all stripes – the NDP, BC Liberals and Social Credit, have played a part in creating legislation that is affecting the current housing supply.
“Why are we unable to boost supply?,” Edge asked the crowd. “Government controls market housing. Three levels of government tell us where and what to build (zoning); when to build (permits); how to build (Building Code); and how much revenue they require (taxes, fees and amenities.)”
If the Professional Reliance Act becomes law, Anderson envisions more housing coming to market sooner, meaning families can have a better chance to live in their community of choice.
Local governments would be able to re-focus staff priorities, and hopefully, devote their time to worthier and less obstructive actions to the betterment of the city.
“This bill is about using every tool we have to make housing more attainable,” Anderson spoke. “This bill is about helping build the future of this province together: faster, smarter, and with hope.”
Developers will undoubtedly applaud if Anderson’s bill becomes law. But it will be prospective homeowners that will likely end up clapping loudest, as this will ultimately benefit them the most.
Mark MacDonald writes for the Business Examiner News Group in British Columbia. mark@businessexaminer.ca
