Kim Kerr of the Downtown Residents Association speaks with (R) Murray Wightman streets operation branch manager for the city of Vancouver about a group of homeless people taking residence on Vacant lot that is owned by the city of Vancouver. they had permission to stay and then were asked to leave on Monday.Carmine Marinelli/The Globe and Mail
Provincial housing authorities filed a lawsuit against Downtown Eastside Residents' Association executive director Kim Kerr to punish him for speaking out on behalf of area residents, says a statement of defence filed by Mr. Kerr's lawyer.
"This action has been brought for the improper purpose of punishing the defendants for the outspoken advocacy activities of the defendants DERA and Kerr and as such is frivolous, vexatious and an abuse of this honourable court," says the statement, filed April 15 in the Supreme Court of British Columbia.
Filed by prominent Vancouver lawyer Cameron Ward on behalf of Mr. Kerr, the statement of defence also contends that if any financial irregularities took place, they occurred under the noses of provincial housing authorities.
Mr. Kerr denies such irregularities occurred, but if they did, "they occurred with the full knowledge and acquiescence of the plaintiffs," the document says. B.C. Housing "routinely" deals with the DERA Housing Society and has had full knowledge of the society's financial affairs "since at least 1988."
The statement of defence was filed in response to a lawsuit brought last month by B.C. Housing against Mr. Kerr, the Downtown Eastside Residents' Association and its housing arm, the Downtown Eastside Residents' Association Housing Society. (Mr. Kerr is the executive director of both groups.)
The lawsuit contains dozens of allegations relating to misuse of government funds, contracts being awarded to insiders and tenants being allowed to jump social housing queues. None of the allegations have been proven in court, and a court date has not been set.
The lawsuit also alleges that the DERA Housing Society owes the province more than $400,000 in rent and property taxes.
The court action rocked the Downtown Eastside, where DERA was founded in 1973 and built a reputation as a powerful, grassroots organization. In recent years, however, DERA was overtaken by other groups on the housing and advocacy fronts. (The province relies on hundreds of non-profit societies, including DERA, to manage social housing projects throughout B.C.) DERA Housing Society now manages three buildings in the Downtown Eastside that provide nearly 300 housing units. Complaints to city and provincial officials about alleged mismanagement at DERA date back to at least 2006.
Last October, the Canada Revenue Agency revoked the charitable status of the DERA Housing Society for failing to file financial statements.
And in March, the province launched its lawsuit, aiming to put a receiver in charge.
Mr. Kerr is known for being outspoken and has often addressed city council on housing-related matters. Last year, a B.C. Supreme Court judge dismissed a defamation suit filed by Mr. Kerr against former city councillor Peter Ladner that related to remarks Mr. Kerr made to another councillor at city hall.
Mr. Kerr did not respond to a message left on his cellphone on Tuesday.