macushlaw offers affordable commercial conveyance services for housing providers.
British Columbia announced in early January, 2023 the formation of a new $500M fund (“Rental Protection Fund“) for the purpose of allowing non-profit housing providers to purchase and make improvements to apartment buildings listed for sale, as well as renovate to add additional housing units.
The fund will be operated by long-time BC affordable housing champions the British Columbia Non-Profit Housing Association (“BCNPHA“), Co-operative Housing Federation of British Columbia (“CHFBC“) and the Aboriginal Housing Management Association (“AHMA“).
Though real estate investment, and investors, play an important role in the operationg of market housing, for-profit operators are often operating under the errant assumption that shareholder primacy and profit maximization are the laws applicable to corporate fiduciaries in Canada.*
Non-profits are centered around fulfillment of purposes, altogether untethered to profitability and shareholder returns, making non-profits an equally important market actor to ensure housing is delivered in culturally appropriate, safe, respectful and affordable way to those unable to access for-profit market housing.
Free markets often operate ineffeciently, failing to fully account for the costs of operations (such inefficiencies known as externalities), which appears to be the economic driver of BC’s decision to adopt a protection fund.
At macushlaw, we have years of experience in commercial real estate matters, including commercial leasing, commercial conveyancing, and in particular the purchase and sale of apartment buildings.
In support of the Rental Protection Fund, macushlaw is offering its lowest rates to non-profits seeking to access this fund to acquire, improve or expand apartment building assets. Organizations qualifying for macushlaw’s equity rates will receive support from our team at 20% lower than standard rates, and on fixed, limited scope retainers.
We look forward to working with our non-profit housing providers to further this important policy aim and congratulate British Columbia, BCNPHA, CHFBC and AHMA for this strong first step towards solving the province’s housing crisis.
Interested clients can contact James Struthers ([email protected]) for more information about our experience and pricing.
*Divergent from more rigid American conceptions of shareholder primacy, Canada has adopted a more balanced shareholder and stakeholder approach to corporate fiduciaries.
Shareholder primary began as an academic concept, promulgated by Hansmann and Kraakman, popularized byMilton Freedman and co-opted by Delware courts and beyond in the United States. The Supreme Court of Canada has summarily rejected shareholder primacy in Canada, adopting a different, more thoughtful and staekholder leaning approach, in BCE Inc. v. 1976 Debentureholders, 2008 SCC 69:
“Directors, acting in the best interests of the corporation, may be obliged to consider the impact of their decisions on corporate stakeholders, such as the debentureholders in these appeals. This is what we mean when we speak of a director being required to act in the best interests of the corporation viewed as a good corporate citizen.“