The sleepy cul-de-sac on Lilac Drive in Chilliwack used to represent the quintessential suburban dream for Mandy Puhallo and her family. Today, their two-storey home stands as a cautionary tale about climate change’s hidden costs and the bureaucratic labyrinth homeowners face when disaster strikes.
Walking through her kitchen last week, Puhallo pointed to the widening crack running along her foundation. “We’ve lost everything we’ve worked for,” she told me during my visit to the property that’s now valued at just $2 by BC Assessment – down from $800,000 last year.
The dramatic devaluation comes after geotechnical engineers identified serious landslide risks following heavy rainfall that triggered ground movement beneath several properties in the Eastern Hillsides neighborhood. What began as minor foundation cracks last year has escalated into a full-blown emergency, with the City of Chilliwack issuing evacuation orders for five homes in February.
“We’re essentially homeless with a mortgage,” Puhallo explained, her voice steady despite the circumstances. The family continues making payments on a property they can no longer safely occupy while covering rent elsewhere.
The situation in Chilliwack highlights a growing challenge facing homeowners across British Columbia. Climate change is accelerating slope instability in regions previously considered safe for development. Data from Emergency Management BC shows a 40 percent increase in landslide incidents across the province over the past decade.
City councilor Jeff Shields acknowledged the difficult position these residents face. “These homeowners did everything right – they purchased property that was properly permitted, inspected, and approved for development,” he said during last month’s council meeting. “Yet they’re bearing the complete financial burden of what appears to be a natural disaster.”
The technical explanation for what happened involves complex geological factors. Dr. Marta Bustin, geotechnical engineering professor at UBC, explained that prolonged rainfall can saturate hillsides, increasing soil weight while reducing friction between soil particles. “What’s concerning is that development often alters natural drainage patterns,” she noted. “When combined with more extreme precipitation events, areas previously stable for decades can suddenly become vulnerable.”
The crisis has exposed significant gaps in disaster assistance programs. While the provincial Disaster Financial Assistance program exists, it explicitly excludes coverage for landslide damage to principal residences when private insurance is theoretically available. Yet insurance companies have largely withdrawn coverage for landslide risks in susceptible areas.
“We’re caught in an impossible situation,” said neighbor Craig Monley, whose home has also been devalued. “The province says get insurance, insurers won’t cover it, and meanwhile we’re making payments on worthless property.”
Local MLA Dan Coulter has been working with affected residents to navigate potential solutions. “These families shouldn’t bear this burden alone,” he told me. “I’m pushing for a review of our disaster assistance frameworks to address these gaps.”
The problem extends beyond immediate financial concerns. Mental health impacts are mounting among affected families. Puhallo described the toll of displacement and uncertainty: “My kids ask when we’re going home, and I don’t have answers.”
The City of Chilliwack has commissioned additional geotechnical studies, but preliminary findings suggest mitigation would cost millions – far exceeding the combined property values. Mayor Ken Popove has requested provincial assistance, citing the municipality’s limited resources to address such large-scale infrastructure challenges.
Meanwhile, these homeowners find themselves in property limbo. With assessments at $2, they can’t sell. Banks won’t refinance homes with no value. And rebuilding elsewhere means carrying two mortgages.
Climate resilience experts point to this situation as a warning for communities across Canada. “We need to rethink how we approve developments in potentially vulnerable areas,” said Jennifer Crawford, director of the Climate Adaptation Institute. “And we need comprehensive safety nets for those caught in these disasters.”
The Eastern Hillsides development received all necessary approvals when built in 2007. Geotechnical assessments at that time deemed the area safe for residential construction. What’s changed is the climate – and our understanding of associated risks.
For families like the Puhallos, policy discussions offer little immediate relief. They’ve joined with neighbors to seek legal options, though lawyers have cautioned that liability may be difficult to establish given the multiple parties involved in development approval and the role of changing environmental conditions.
“Someone approved building here,” Puhallo said, looking up at the unstable slope behind her home. “Someone said this was safe.”
As winter approaches, these families watch weather forecasts with heightened anxiety. Each rainfall brings fears of further slope movement that could render even property remediation impossible.
The province’s recently announced Climate Preparedness and Adaptation Strategy acknowledges increasing landslide risks but doesn’t directly address how to help those already affected.
For now, these Chilliwack families continue piecing together temporary solutions while carrying mortgages on homes officially worth less than a cup of coffee. Their story serves as a stark reminder that as our climate changes, the foundations we’ve built upon may not be as solid as we once believed.
