Finding Solutions: A Forum on Properties Used in Drug Operations
On November 23, 2016 BCREA hosted a forum to discuss the problematic issues related to properties that have been used for drug operations. When a building is used in a drug operation—whether legal or illegal, cannabis or synthetic drugs—there are often implications for health of future inhabitants, and challenges in obtaining insurance and mortgage financing.
Over 50 stakeholders attended the forum, representing the financial, insurance, real estate, home inspection, business and government sectors. The goals were to better understand finance and insurance sector concerns about these properties and to plan next steps for improved disclosure and remediation processes.
The consistent conclusion drawn throughout the forum was that provincial standards for remediation and professional certification for those remediating former drug operations are needed. Those two initiatives would provide financial institutions and insurance firms with a greater level of comfort to offer consumers financing and insurance on these properties. Collaboration between private and public sector stakeholders is an absolute necessity to move this issue toward workable solutions.
With federal legislative changes to recreational cannabis use expected in April 2017, what impacts will there be on property owners whose tenants grow and consume cannabis for personal use? At what level will there be impacts sufficient to create health and structural risks? The lack of clarity around the potential impacts on a property from a large-scale drug operation to growing cannabis for personal use increases the stigma of former "drug houses" and impedes the ability of current and potential owners to buy, sell and insure their properties.
BCREA thanks the Canadian Mortgage Brokers Association - BC, the Home Inspectors Association BC and the Insurance Bureau of Canada for their assistance and support in hosting this successful event. For more information about BCREA's position, click here.
