|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
March 9, 2004 | |
Author: |
Rob Whitlock | |
Phone No.: |
7432 | |
RTS No.: |
03776 | |
CC File No.: |
1203 | |
Meeting Date: |
March 23, 2004 |
TO: |
Vancouver City Council |
FROM: |
Director of the Housing Centre |
SUBJECT: |
Housing Agreement for 1966 East 19th Avenue (New Chelsea Society) |
RECOMMENDATION
A. THAT the Housing Agreement for 1966 East 19th Avenue summarized in this report be approved, provided that this resolution does not create any legal rights or obligations and none shall arise until the agreement as authorized by a by-law is signed; and
B. THAT the Director of Legal Services be instructed to bring forward a by-law to enter into the Housing Agreement.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
Council's housing priorities are to maintain and expand housing opportunities in Vancouver for low and modest income households with priority being given to families with children; seniors on fixed incomes or in need of support; SRO residents; and the mentally ill, physically disabled, and others at risk of homelessness.
PURPOSE AND SUMMARY
Council gave approval in principle to changes to the existing CD-1 for 1966 East 19th Avenue on March 27, 2003. The terms of the Housing Agreement have been agreed upon, and it is necessary for Council to review and approve, before a by-law can be presented for approval.
This report overviews the terms of the agreement.
BACKGROUND
Amendments to the existing CD-1 for 1966 East 19th Avenue were considered and approved by City Council at a Public Hearing held on March 27, 2003. Amongst the conditions was a requirement that prior to enactment of the CD-1 by-law, the owner is to:
- enter into a Housing Agreement, to the satisfaction of the Director of the Housing Centre and the Director of Legal Services, to comply with the exemption provisions for social housing in the relevant DCL By-law and Interim City-wide CAC Policy.
Development application DE407597 is being processed and is ready for issuance, with one of the few remaining conditions being completion of a Housing Agreement. The project involves demolition of a portion of the existing social housing project and construction of 84 new units. Forty-nine existing units will remain, 37 of which will be secured for low income seniors through the proposed housing agreement. The project will continue to be owned and operated by the New Chelsea Society, a non-profit association.
DISCUSSION
Terms of the Agreement: The major features of the proposed Housing Agreement are noted below. The Agreement is attached as Appendix A.
_ The project is intended for seniors, over the age of 65;
_ 37 units out of the existing 49 units to remain on the site will be occupied by individuals or couples whose household income shall not exceed the core need income threshold, as defined by BC Housing; in the case of couples, one individual must be over the age of 65;
_ the Society will verify the income of residents at the point of tenancy; and
_ the Society will submit to the Director of the Housing Centre, bi-annually, a statement identifying the 37 units and the incomes of the tenants of those units; where a tenancy has not changed, the statement need only indicate the income status is unchanged for that unit.
The City acknowledges the need for the agreement to be changed if and when the Society moves forward with re-development of the remaining 49 units; and the Society acknowledges the need to meet the requirements of the Vancouver Charter in regard to the exemption provisions for Development Cost Levies (at least 30% of units are to be occupied by persons on government income assistance and where a covenant restricts the use to such housing) and similar exemption provisions for Community Amenity Contributions.
Next Steps: The development permit is ready for issuance, and will be issued immediately upon signing and registering of the Housing Agreement. The Agreement requires that a by-law be passed by Council, and this will be brought forward later this Council day. The text amendments to the CD-1 By-law will be brought forward shortly as well.
CONCLUSION
A Housing Agreement is necessary for the New Chelsea Society to be exempt from the Vancouver Charter requirements for the payment of a Development Cost Levy. As the terms of the agreement outlined in this report will fulfil those requirements, the Director of the Housing Centre recommends that the agreement be approved.
- - - - -
APPENDIX A
Housing Agreement for 1966 East 19th Avenue [New Chelsea Society]
THIS AGREEMENT dated for reference the ____ day of ___________, 2004
BETWEEN:
NEW CHELSEA SOCIETY,
300- 3640 Victoria Drive
Vancouver, British Columbia
V5N 5P1
(the "Owner")
OF THE FIRST PART
AND:
CITY OF VANCOUVER,
453 West 12th Avenue,
Vancouver, British Columbia
V5Y 1V4
(the "City")
OF THE SECOND PART
WHEREAS:
A. The Owner is the registered owner of all and singular those certain parcel or tracts of land and premises situate in the City of Vancouver, in the Province of British Columbia, legally described as:
City of Vancouver
Parcel Identifier: 007-990-278
Lot 1, Except Part in Statutory Right of Way Plan 17162
Blocks D and 13
District Lot 195
Plan 13938
(herein called the "Lands")
B. The Owner has requested a rezoning of the Lands to increase the permitted floor area for residential accommodation. The Owner proposes to build out the increased floor area by replacing the existing northern most building.
C. The Owner is a non-profit organization.
D. The Owner is wishing to have the new construction qualify as social housing under the City's Development Cost Levy By-law thereby making the new construction exempt from the assessment of a development cost levy.
E. In this agreement the existing buildings and all new buildings from time to time are together called the "Buildings".
NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the sum of Ten Dollars ($10.00) now paid by the City to the Owner and for other good and valuable consideration (the receipt and sufficiency of which the Owner hereby acknowledges) the Owner and the City each covenant with the other pursuant to Section 565.2 of the Vancouver Charter as follows:
1. In this Agreement the following terms have the definitions now given:
"Annual Gross Income"means either
(i) the total income or payments from all sources received at any time during the past calendar year regardless of whether taxable including wages, salary, Self Employment Net Income, rents, fees, interest, dividends, pension payments, annuity payments, awards and payments in compensation for lost income, capital gains, bequests, lottery winnings and winnings from gambling and wagering; or
(ii) the current total monthly income or payments from all sources regardless of whether taxable including wages, salary, rents, fees, interest, dividends, pension payments, annuity payments, awards and payments in compensation for lost income, capital gains, bequests, lottery winnings and winnings from gambling and wagering multiplied by twelve (12);
"Core Need Household" means either one adult (without children) whose Annual Gross Income as disclosed by his or her current Income Statement is less than the current CNIT for a suitable dwelling unit in the Greater Vancouver Region or two cohabiting adults (without children) whose Annual Gross Incomes as disclosed by their current Income Statements together add up to less than the current CNIT for a suitable dwelling unit in the Greater Vancouver Region;
"Core Need Income Threshold" or "CNIT" is the maximum annual gross income from time to time at or below which a household (including single person household) occupying a particular type of dwelling unit is considered by the provincial government as being in core need. The CNITs are set annually by British Columbia Housing Management Commission ("BCHMC") for different regions of the province on the basis that a household is in core need if it is required to pay monthly more than two and one half percent (2.5%) of its Annual Gross Income to rent suitable accommodation. The suitability of accommodation is determined by the composition of the household and the number of bedrooms provided. The CNIT for a particular type of dwelling unit is determined by estimating the average monthly market rental value for accommodation of that type in a particular market area, dividing that average by 0.30 (30% of income), and multiplying the quotient by 12 (months). If the provincial government (through BCHMC or otherwise) ceases to set CNITs annually or at some other regular period acceptable to the LESSOR then the LESSOR shall set the CNITs annually using the same criteria and methods last employed by the provincial government;
"Income Statement" means a written statement made under oath of a person's Annual Gross Income for the preceding calendar year and if the person filed an income tax return, it shall include a true copy of such return as well as Revenue Canada's assessment of such return. The form of the Income Statement shall be as the LESSOR may approve from time to time;
"Qualified Resident" shall mean a person who has completed a current Income Statement disclosing that he or she either alone or together with his or her cohabiting partner constitute a Core Need Household;
"Self Employment Net Income" means the total income or payments received from all sources for the calendar year resulting directly or indirectly from self employment activities less the total costs and expenses legitimately incurred in undertaking such self employment activities as allowed by the income tax laws, regulations and authority.
2. At all times 37 of the dwelling units in the Buildings shall be occupied only by Core Need Households. Each Core Need Household shall be comprised of either one Qualified Resident who is 65 years of age or older or two adult cohabiting Qualified Residents, one or both of whom are 65 years of age or older.
3. The Owner shall maintain a waiting list of prospective Qualified Residents and all Core Need Household vacancies shall be filled from the waiting list with priority given to those who have waited the longest.
4. The Owner shall demand an Income Statement from all prospective Qualified Residents. Where the household of the prospective Qualified Residents is comprised of more than one adult, each adult of the household shall provide an Income Statement. If the Income Statements of a prospective Qualified Residents disclose that he, she or they will not qualify as a Core Need Household, such prospective residents shall not be treated as Qualified Residents and shall not be allowed on the Core Need Household waiting list and shall not be permitted to take up residence in the dwelling units reserved for Core Need Households.
5. Not later than June 30th of each year, the Owner shall demand and receive from each adult occupying a Core Need Household dwelling unit an Income Statement for the preceding calendar year. If such statements disclose that the household income of those occupying any of the 37 Core Need Household dwelling units have Annual Gross Incomes in excess of the Annual Gross Income required to qualify to occupy a Core Need Household dwelling unit, then forthwith such residents shall not be treated as Qualified Residents and in their place as soon as vacancies permit the Owner shall establish replacement Core Need Households so as to fulfill the requirement of 37 dwelling units occupied by Core Need Households at all times. If residents become disqualified as Qualified Residents then forthwith the Owner is free to charge such residents whatever rent as to the Owner seems appropriate.
6. The Owner shall charge each Core Need Household monthly in advance a rent equal to two and one-half (2.5%) percent of the Annual Gross Income of each adult occupant of the dwelling unit, provided that such monthly rent does not exceed ninety (90%) percent of the market rental value of the dwelling unit and provided further that such monthly rent shall not be less than the maximum shelter component for a single person or a couple, whichever the case may be, provided under the B.C. Benefits (Income Assistance) Act or successor legislation as such monthly maximum shelter component may lawfully vary from time to time.
7. Rent shall only be charged and payable on a monthly basis. There is no restriction on the levy of a reasonable amount for security deposit.
8. Qualified Residents may only subsublease their dwelling units upon the following conditions:
(a) the party granting the subsublease must not be in default of rent or other payments owing to the Owner or otherwise in default of her obligations to the Owner;
(b) the party taking the subsublease shall be chosen from the Owner's waiting list of Qualified Residents provided that such party shall not be struck from the waiting list regardless of whether such party does or does not choose to take up the subsublease;
(c) the subsublease may not exceed a period of twelve (12) months and shall not allow any rights of holding over beyond twelve (12) months;
(d) the party granting the subsublease shall continue to remain liable to the Owner for payment of rent and performance and observance of all occupancy terms and conditions; and
(e) the party taking the subsublease shall pay her rent directly to the Owner which shall be a credit on the rent payable by the party granting the subsublease.
9. The Owner shall give to each adult resident a copy of this agreement. Qualified Residents who can show that they have been overcharged for rent shall be given a credit on their monthly rent equal to one hundred fifty percent (150%) of the overcharge.
10. All tenancy agreements with Qualified Residents shall expressly be made subject to this agreement and the Owner's obligations herein.
11. The Owner shall keep a rent roll showing for all Core Need Households and for each month the name of the Qualified Residents, the identity of the dwelling unit occupied and the current monthly rent. The rent roll shall include the latest Income Statements taken from each Qualified Resident. The Owner shall deliver to the City on March 31st and September 30th of each year the current rent roll (including all latest Income Statements) covering the past twelve (12) months.
12. The Owner shall keep all financial records concerning the operation of the Lands and Building in accordance with good accounting practise. All of the Owner's financial and business records including the rent rolls and the records described in paragraphs 3, 4 and 5 shall be open to inspection by the City upon reasonable notice and all such records shall not be destroyed unless the City gives its written consent to such destruction, which consent may only be given for records more than five (5) years old.
13. If in its reasonable opinion the City determines from time to time that there is or has been a pattern of overcharging residents contrary to the requirements of this agreement, the City may appoint and install a receiver/manager to operate an manage the Lands and the Building in the place of the Owner or any party which the Owner may have installed. The receiver/manager shall operate and manage the Lands and Building for so long as the City deems advisable.
14. The Owner shall keep and maintain the Buildings in good repair and in a safe, clean, neat and tidy condition.
15. The Owner shall make itself a reporting society.
16. The Owner shall continue as a reporting society for the continuance of this agreement.
17. The Owner shall operate and manage the Lands and the Buildings directly or through party managers but nevertheless the Owner may not lease, licence, set over or part with possession of the Lands or the Buildings in whole or in part except for the letting of individual dwellings units to the occupants thereof.
18. The Owner may only sell or transfer its ownership of the Lands to a British Columbia non-profit society which has made itself a reporting society.
19. The City will grant in registerable form to any first registered mortgage of the Lands priority over this agreement. In any foreclosure action or other action by any mortgagee of the Lands, the City shall have first opportunity to acquire such mortgage.
20. If a court of competent jurisdiction finds that any part of this agreement is invalid, illegal or unenforceable, then so long as such finding shall prevail such part shall not be of force or effect but nevertheless the rest of this agreement remains in force unaffected by that holding. This agreement may be enforced by mandatory and prohibitory orders of the court. In any action to enforce this agreement the City shall be entitled to court costs on a solicitor and own client basis.
21. All notices, demands or requests of any kind which a party may be required or permitted to serve on another in connection with this agreement must be in writing and shall be served on the other party by registered mail, fax or by personal service to the following address for each party:
(a) City of Vancouver
453 West 12th Avenue
Vancouver, British Columbia V5Y IV4
Attention: General Manager of Community Services and
Manager, Housing Centre
(b) New Chelsea Society
300 3640 Victoria Drive
Vancouver, British Columbia V5N 5P1
(c) If made by registered mail service of any such notice, demand or request will be deemed complete seven days after the day of mailing except where there is a postal service disruption during such period in which case service should be deemed be completed upon actual delivery of the notice, demand or request.
(d) If made by facsimile transmission service of any such notice, demand or request will be deemed complete on the third business day after the day when the facsimile transmission was transmitted.
(e) If delivered service of any such notice, demand or request will be deemed complete two days after the day of delivery.
Any party from time to time, by notice in writing served upon the other party, may designate a different address, or additional persons to which all notices, demands or requests are to be addressed.
22. This agreement shall enure to the benefit of and be binding upon the City and its successors, trustees and assigns and this agreement shall enure to the benefit of and be binding upon the Owner and its successors and trustees and all parties claiming through them and this agreement shall charge and run with the Lands and enure to the benefit of and be binding upon the owners from time to time of the Lands and their respective heirs, executors, administrators, trustees and successors and all parties claiming through them.
23. Whenever the singular or masculine is used herein, the same shall be construed as meaning the plural, feminine or body corporate or politic and vice versa where the context or the parties require.
IN WITNESS WHEREOF the Owner, by its authorized signatories, and the City, by its authorized signatory, have signed this agreement as set out hereunder:
Parties:
NEW CHELSEA SOCIETY
by its authorized signatories:
____________________
____________________ __________________
Print Name Date
CITY OF VANCOUVER
By its authorized signatories:
____________________ _________________
Joe Stubbs, Solicitor Date
___________________ _________________
Frances J. Connell/Graham P. Johnsen Date
453 West 12th Avenue
Vancouver, BC V5Y 1V4 Authorized by By-law No. _______
(604)873-7504
END OF DOCUMENT
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