With the release of 14 more properties for housing, Public Services and Procurement Canada (PSPC) says it’s “using every tool at its disposal” to support affordable housing and the conversion of federal properties into housing units. But representatives from the Building Owners and Managers Association (BOMA) Canada and Ottawa chapters say it’s “not that easy.”
The federal government’s latest announcement about the addition of 14 properties to the Canada Public Land Bank brings the total up to 70 properties that the government has identified as being suitable to support housing.
Jennifer Arbuckle, broker of record at Metcalfe Realty and president of BOMA Ottawa, said she has questions about the timelines and municipal engagement that has occurred to mark these properties for housing conversions. Additionally, some of the buildings on the disposition list are heritage buildings, she said, making them unsuitable for conversion.
Details like floor plates and existing infrastructure will also influence whether or not the properties can be successfully converted, she explained.
Shawn Hamilton, a BOMA veteran and principal at Proveras Commercial Realty, echoed her concerns, arguing there are several factors that need to line up to support the conversion of federal properties to housing — and right now, not many of them are.
“In my view, there are two distinct realities of what’s happening. There is the politicization of the putting of buildings in the Land Bank and saying that this will solve housing,” he explained. “And then there’s the reality of what potential these buildings could or would bring to alleviate the housing crisis in our region.”
Not all properties are created equal when it comes to conversions, he explained, with factors like floor plates and existing infrastructure to location within the city.
“So there’s the physical bricks and mortar issue. Then there’s the timing: when are these buildings going to be available?” he continued. “And we have no idea on the process of how the private sector is to engage with these buildings, or to acquire these buildings in the future.”
The announcement from the PSPC confirmed that the buildings were not being sold, but instead would be available for long-term leases.
“I don’t think they’ve really consulted the realities of how that impacts the liquidity of those buildings for a developer looking to own something,” Hamilton explained. “Add the layers on top of each other, and it doesn’t create a fast track for solving any housing problem.”
Another factor, Hamilton explained, is the challenges that are facing the private sector and its ability to effectively jump at conversion opportunities.
“The development world’s in a bit of a struggle right now because of interest rates. They’ve still been high. Construction costs are high. The math doesn’t work for a developer to build a building based on the costs that are associated with building.”
Conversions aren’t necessarily less expensive in the end, either, Hamilton said. While it might save time, and some costs through the reuse of materials like concrete, the conversion of materials, infrastructure, floor plans and other features of the building add up.
“There wouldn’t necessarily be a stampede to buy them because of current economic conditions, so really, it’s just not as easy as just adding properties to the disposal list,” he said. “There’s a long way to go, but it’s much easier to politicize it, saying ‘here are the properties’ and pointing to the private sector.
“What they’re doing now is getting rid of buildings and disguising it as a solution to housing.”
