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Reported real estate flipping has opposition blasting Quebec housing minister

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One of Quebec’s opposition parties, Québec solidaire, has blasted the province’s housing minister after reports surfaced late last week that she was involved in real estate flipping with a business partner who now lobbies the provincial government.

“She herself is part of [what] is causing us to live in a housing crisis,” said Québec Solidaire (QS) MNA and co-spokesperson candidate Ruba Ghazal on Saturday.

“The phone in my riding never stops ringing with people getting evicted and having no place to live.”

The reports first surfaced on Thursday, when La Presse, Ricochet and its French counterpart Pivot revealed that the CAQ’s housing minister France-Élaine Duranceau’s recent business partner, Annie Lemieux, has an active lobby mandate with the housing ministry.

Lemieux is president of a company that owns hundreds of rental apartments, according to Ricochet and Pivot’s reporting, and she and Duranceau flipped an apartment building together and made close to $2.5 million.

This is the same ministry that just tabled Bill 31, a legislation that would end tenants’ right to make lease transfers, which is a means of informal rent control in a province where the population is increasingly struggling with the cost of housing, especially in Montreal.

The bombshell reports revealed that Minister Duranceau, who herself is a former realtor, and Lemieux have been business partners on several projects, including the 2019 purchase of a two-storey Montreal building on De Chateaubriand Avenue in Rosemont-La Petite-Patrie.

They allegedly bought the building for $517,000 and then renovated and converted it into five luxury condos dubbed “Le Briand.”

The units sold for between $400,000 and $800,000 each. La Presse reported that they made about $3 million in total on the sale of the condos. The project listed both women as administrators and Duranceau as a shareholder.

“What bothers me about this is realizing that our politicians are close to the elite. They’re not close to the issues Quebecers are dealing with,” said former QS MNA and another co-spokesperson candidate, Émilise Lessard-Therrien, on Friday after the controversial story surfaced.

Québec solidaire has consistently advocated for tenants’ rights and affordable housing in Quebec and has been vocal about being against renovictions and real estate flipping.

“Is [she] the minister of the real estate industry, or a minister with the common good at heart” wrote QS MNA Andrés Fontecilla in a Twitter statement. “Her past alleged real estate practices show us that the interests of tenants are not her primary concern.”

“[This news] is dripping with contempt for citizens who are doing what they can in the face of the housing crisis,” said another QS MNA Christine Labrie.

Legault stands by his minister

On Monday, Premier François Legault commented on the story and reiterated his support of Duranceau, saying, “Listen, people in real estate buy and sell, it’s part of what goes on in the industry. It’s [known] that France-Élaine Duranceau has a past in [that sector].”

He continued by saying that it’s a “a plus” that the housing minister knows the real estate sector, and that it’s her responsibility to develop affordable housing as fast as possible.

“If someone can successfully manage those projects and be innovative, it’s her,” Legault said to reporters on Monday. About the lobbying appointments between Duranceau and Lemieux, the premier said they were discussing the construction of a seniors’ residence.

“It had nothing to do with their dealings in the past.”

Bill 31

This comes after Duranceau apologized earlier last week for remarks she made during an interview on Quebec’s Noovoo television network where she defended Bill 31, saying tenants can’t “use a right that isn’t theirs, to assign a lease to someone else, on terms they decide on when it’s not their building. Any tenant who wants to do that has to invest in real estate and take the risks that go with it.”

After that quote was called tone deaf and offensive, the minister said she was “sorry if it seemed insensitive. It was a legal and economic description of things. On the contrary, I’m very sensitive to what’s happening in housing.”

If Bill 31 is adopted, landlords will have the right to refuse and terminate lease transfers. The current law requires that landlords must have a “serious reason” for doing so.

The bill has been described by housing advocates as a setback to tenant rights and a further step to reduce access to affordable housing.

Global News reached out to the housing minister’s office for comment by email and by phone but did not hear back.

— with files from The Canadian Press

 

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Mortgage rule changes will help spark demand, but supply is ‘core’ issue: economist

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TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.

The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.

The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.

CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.

However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.

Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.

This report by The Canadian Press was first published Sept. 17,2024.

The Canadian Press. All rights reserved.

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National housing market in ‘holding pattern’ as buyers patient for lower rates: CREA

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OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.

The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.

On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.

CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”

The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.

The number of newly listed properties was up 1.1 per cent month-over-month.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.

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Two Quebec real estate brokers suspended for using fake bids to drive up prices

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MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.

Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.

Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.

She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.

The two brokers were suspended in May 2023 after La Presse published an article about their practices.

One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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