Open Letter to Lorne Doerkson re: Homeowner Grant Program

 Dear Premier Elect Doerkson, 

For many years I have been encouraging the provincial government to make changes to the Homeowner Grant Program. Whye? Because it is a relic of the past. It is a misuse of public funds. Last year, it cost the government $938 million. 

While I know it would be political suicide to cancel the program, I believe there are some reasonable changes that could be made which would allow your government to redirect half a billion dollars from homeowners who are often mortgage free and don't really need the money, to help address the needs of the homeless around the province who desperately need the money.

 

In 2024 Richard Zussman prepared this report regarding the program which included some of my concerns. https://globalnews.ca/news/10202834/home-owner-grant-bc-changes/

 

The same year, CBC's Justin McElroy made this video which describes the program and includes some of my concerns. https://www.youtube.com/watch?v=uPSC7bRI4ts

 

In it, he noted this program has been in place since 1957 and BC is the only Canadian province that offers such a program. 

Below are the key program details.

 

Regular Grant (Under 65)

• Up to $570 for homeowners living in Metro Vancouver, the Fraser Valley, and the Capital Regional District. 
• Up to $770 for homeowners living in all other areas of B.C. (northern or rural communities). (Note: Starting January 1, 2027, the northern/rural top-up ends, and the grant will become a flat $570 province-wide).

Additional Grant (Seniors 65+, Veterans, or Persons with Disabilities)

• Up to $845 for those living in Metro Vancouver, the Fraser Valley, and the Capital Regional District. [1, 2]
• Up to $1,045 for those living in northern or rural areas. [1, 2]

The price threshold for the British Columbia Home Owner Grant program in 2026 is $2,075,000. This applies regardless of where you live in the province.

• Full Grant: Available for properties with an assessed or partitioned value of $2,075,000 or less. 
• Reduced Grant: For properties above $2,075,000, the grant is reduced by $5 for every $1,000 of assessed value over the threshold. 
• Elimination Values:
• The regular grant is completely phased out (reduced to $0) at $2,189,000 ($2,229,000 in northern and rural areas).
• The additional grant is completely phased out at $2,244,000 ($2,284,000 in northern and rural areas). 

To my mind, this program is a totally inappropriate use of public money for so many reasons. 

• ·  Why are we giving grants to homeowners, many of whom are mortgage free, when so many renters are in far greater need? 
• ·  Why are we giving grants to homeowners when we can't afford to provide shelter for the homeless on the streets?
• ·  Why is the price threshold over $2 million, when in October 2026, the benchmark price of homes in Metro Vancouver was reported to be $1,068,600?
• ·  Why is there only one price threshold for the entire province, especially since a $2,075,000 home in Castlegar or Houston or virtually anywhere outside of the Lower Mainland may be one of the nicest houses in town?
• Furthermore, there is no income testing.

 

I know it would be political suicide for your new government to suddenly cancel the program. But ultimately,the program should be phased out. Income testing is complicated, and to my mind not necessary. 

Although the hour is late, here is an idea that could easily be implemented for 2027

As a minimum the government should establish regional price thresholds that reflect the median value of homes in each region. 

 

In the past BC Assessment has claimed this would be too complicated. That's ridiculous, BC Assessment just has to push a few buttons to determine median house values in key regions and cities around the province. In Castlegar, the threshold will be around $519,000. In Prince George, it will be around $400,000.

 

I've been going on about this for more than a decade, without success. (Although, as you may know, I did manage to convince the NDP to revise the Property Tax Deferral Program which you now want to change back. :-))

 

Since you will soon be premier, and there is a significant provincial debt, and we need to provide money to support Mark Carney's pledge to end homelessness, surely it is time to make a couple of modest changes. 

By establishing reasonable regional price thresholds, the province could easily save $500,000 and put this money towards housing the homeless. 

 

I hope you will seriously consider effecting this change. I'll be happy to discuss it further. I can be reached at 778 997 9980. With my best wishes, Michael Geller