In an unusual expenditure, the British Columbia provincial government has allocated more than $500,000 over a span of two months to provide accommodation for two remaining tenants at the Colonial Hotel, a single-room occupancy (SRO) facility in Vancouver. This financial decision comes after the government initiated the closure of the hotel, citing inadequate maintenance by the property’s owner.
Significant Financial Outlay
The provincial administration disclosed that Atira, the organisation overseeing the Colonial Hotel, received a total of $3.9 million from BC Housing during the fiscal year concluding on March 31. This translates to an average monthly cost of approximately $325,000, even when the hotel’s occupancy had dwindled to just two residents. Following the closure, Atira was granted an additional $222,000 in April to aid in the winding down of operations, which included the continued accommodation of the same two individuals. In total, this amounts to a staggering $547,000 spent over two months to manage the needs of these tenants.
Claire Rattée, the critic for Mental Health, Addictions, and Housing Support in B.C., expressed her concerns regarding the substantial financial implications of this situation. “The problem with this is simply that those two tenants that are currently residing in this building, of course, need to have access to safe shelter, that’s not negotiable,” she commented. “The problem is that I can’t wrap my head around is at what cost. This is an insane cost to shelter two people.”
Current Status of Tenants
As of now, one of the two tenants has secured alternative housing, while the other, identified as a long-standing occupant of the original landlord’s premises, is reportedly resistant to relocating. This scenario raises questions about the effectiveness of the government’s housing strategies, especially in the context of rising homelessness and the urgent need for affordable accommodation in urban areas.

The B.C. government previously decided to close the Colonial Hotel due to the owner’s failure to maintain the property adequately. The closure has sparked a wider debate about the responsibilities of both landlords and the government in addressing the housing crisis.
Atira’s Role and Future Engagement
Despite numerous attempts to engage with Atira regarding its management of the Colonial Hotel, Global News has yet to receive a response. The lack of communication has left many questions unanswered about the organisation’s involvement and the rationale behind such high costs for a minimal number of tenants.
This incident also reflects broader issues within the housing sector, where limited resources are often stretched thin, and the financial burden of homelessness and inadequate housing continues to rise.
Why it Matters
This situation underscores the complexities surrounding housing policy and the management of public funds in the face of a pressing homelessness crisis. The significant expenditure for a mere two tenants raises critical questions about prioritisation and accountability within the provincial government. As cities struggle to provide safe and affordable housing, the implications of such spending decisions resonate far beyond this single case, highlighting the urgent need for effective strategies that ensure both fiscal responsibility and the welfare of vulnerable populations.
