ADMINISTRATIVE REPORT

Date: June 13, 2000
Author/Local: DMurphy/7556

RTS No. 1537

CC File No. 5311

Council: July 4, 2000

TO:	Vancouver City Council
FROM:	Subdivision Approving Officer
SUBJECT:	Delegation of Approving Authority for Strata Title Conversions

RECOMMENDATION

THAT pursuant to Section 242(10) of the new Strata Property Act, which becomes effective July 1, 2000, Council delegate to the Approving Officer or Deputy Approving Officer, from and after July 1, 2000, the exercise of the powers and performance of the duties of the approving authority under Section 242 of the Strata Property Act with respect to the following types of strata title conversion applications:

(i) previously occupied residential buildings containing less than six dwelling units; and

(ii) all previously occupied commercial, retail, office, industrial, institutional, recreational or mixed-use buildings which have never contained residential accommodation;

FURTHER THAT the Strata Title and Cooperative Conversion Guidelines be amended, as described in Appendix A, to reflect this resolution and the new Strata Property Act (and Regulation), and that these amendments come into effect on July 1, 2000.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

Council policy is reflected in the City's Strata Title and Cooperative Conversion Guidelines, which outline factors which Council will consider in reviewing applications for converting previously-occupied buildings to strata title or cooperative ownership.

PURPOSE

This report recommends that Council delegate its approval authority for certain types of strata title conversion applications to the Approving Officer or Deputy Approving Officer.

BACKGROUND

On July 1, 2000 the new Strata Property Act (and Regulation) will replace the Condominium Act as the legislation governing condominiums in British Columbia. The new Act (and Regulation) will introduce significant new concepts regarding conversions, phased, bare land and leasehold strata title developments, and create new powers and procedures that impact municipalities and regional districts and their approval processes.

Under Section 9(4) of the Condominium Act, City Council is the "approving authority" for conversion of all previously-occupied buildings into strata lots. Under Section 242(1) of the new Strata Property Act, Council will continue in that role. However, Section 242(10) of the new Act allows Council to delegate, by resolution, its approving authority to an approving officer or other delegated person with respect to specified types of previously occupied buildings. Council may also impose limits or conditions on the exercise of the powers and performance of the duties delegated by the resolution.

This new provision fully responds to a recommendation from the Approving Officer, endorsed by Council in 1998.

With respect to strata title conversion applications, the new Strata Property Act requires that the approving authority must consider, in making its decision, the following:

· the priority of rental accommodation over privately owned housing in the area;
· any proposals for the relocation of persons occupying a residential building;
· the life expectancy of the building;
· projected major increases in maintenance costs due to the condition of the building; and
· any other matters that, in its opinion, are relevant.

The Condominium Act contains similar provisions, the only notable difference being in the second point above, which now specifically applies only to residential buildings.

Under the City's Strata Title and Cooperative Conversion Guidelines, for Council to givefavourable consideration to a strata title conversion application, at least two-thirds (2/3) of the households occupying the building must have given their written consent to the conversion; and the interests of all tenants must have been adequately respected in the conversion process. Staff notify commercial and residential tenants following receipt of applications, but only solicit comments from residential tenants. Council may refuse an application where in its opinion there appears to be an intent to circumvent these guidelines, or the interests of the rental tenants were not adequately respected in the change of occupancy.

With respect to the priority of rental accommodation over privately owned housing, the Housing Centre currently provides comments only on applications involving six or more residential units. Conversions involving five or fewer units are not reviewed in terms of their impact on the rental housing stock. These procedures, which have been in place since 1990, were established because:

· five units is the upper limit achievable for the majority of conversions in the City's RT Districts, and CMHC only uses projects of six or more units in its survey of rental stock;
· strata title conversion of residences in RT Districts is an incentive for owners to upgrade rather than demolish, thus helping to preserve the character of these neighbourhoods; and
· these strata title conversions provide for relatively moderately priced home ownership in districts where single-family home prices have become prohibitively high for the majority of residents in Vancouver.

DISCUSSION

Delegation of certain types of strata title conversion applications as permitted by the new Strata Property Act will streamline the strata title conversion process, by eliminating the need for administrative reports to Council in most cases. It is recommended that the following types of applications be delegated to the Approving Officer or Deputy Approving Officer:

· previously occupied residential buildings containing less than six dwelling units; and
· all previously occupied commercial, retail, office, industrial, institutional, recreational or mixed-use buildings which have never previously contained residential accommodation.

The majority of strata title conversion applications reviewed by staff involve fewer than six residential units, or involve buildings previously occupied for commercial, industrial or other non-residential uses. Typically, these applications are not contentious, and are generally approved by Council subject to completion of all upgrading work being done to thesatisfaction of the City Building Inspector to ensure that buildings substantially comply with all relevant by-laws.

From 1995 to 1999, staff received 110 strata title conversion applications, 30 of which involved six or more units. Out of 110 applications, 107 were approved, 1 was refused, and 2 were withdrawn by the applicant. Of the 30 applications involving six or more units, only three involved residential properties requiring comments from the Manager of the Housing Centre (i.e., 27 involved primarily or exclusively non-residential units) . All three of those applications were approved. Many of the larger conversions were in areas such as Yaletown, and involved buildings previously used for commercial or industrial purposes, but converted to residential or mixed use developments.

In 1979, Council delegated its strata title conversion approving authority to the Approving Officer in cases where owner-occupied one-family dwellings are added to or altered to provide two or more dwelling units, under approved development and building permits. As there are no tenancy issues in these cases, the role of the Approving Officer has been limited to ensuring that these buildings substantially comply with relevant by-laws.

It is recommended that Council continue as the approving authority for applications involving previously occupied residential buildings with six or more dwelling units, and that the current procedure of forwarding these applications to the Manager of the Housing Centre for comment be maintained. Council may also be requested to provide advice to the Approving Officer for any application where the Approving Officer (as delegated approving authority) is of the opinion the interests of residential tenants were not adequately respected in the change of occupancy, or there appears to be an attempt to circumvent the Strata Title and Cooperative Conversion Guidelines. Pursuant to Section 50(5) of the Real Estate Act, Council will also continue as the approving authority for conversion of previously occupied buildings into cooperative units.

CONCLUSION

The changes recommended in this report will streamline the strata title conversion process by delegating smaller residential conversions and all non-residential conversions to the Approving Officer. Council will retain its role as approving authority for larger residential conversions requiring input from the Housing Centre, to allow for proper consideration of the priority of rental accommodation over privately owned housing. Notwithstanding this delegation of approving authority, the Approving Officer may seek advice from Council for any application where the Approving Officer is of the opinion the interests of residential tenants were not adequately respected in the change of occupancy, or there appears to be an attempt to circumvent the Strata Title and Cooperative Conversion Guidelines.

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APPENDIX A

Proposed Amendments to Strata Title and Cooperative Conversion Guidelines
(Deletions in strike out, additions in bold italic)

STRATA TITLE AND COOPERATIVE CONVERSION GUIDELINES

Adopted by City Council April 29, 1986
Amended February 10 and December 15, 1987, November 29, 1988, January 23, 1990,
July 30, 1991, October 1 and November 1, 1992, April 19, 1993, May 7, 1996, February 4, 1997,
November 1, 1998, and February 1, 1999 and July 1, 2000

Application and Intent

These guidelines outline various factors which Council the approving authority will take into consideration in reviewing an application for converting a previously occupied building to strata title or cooperative ownership, and note certain conditions which will be applicable to both types of applications. The guidelines are intended to protect tenants who may not wish, or who are unable, to purchase their proposed strata lot or cooperative unit and to ensure that the building proposed for conversion is in a reasonable state of repair.

Under section 9(4) of the Condominium Act section 242(1) of the Strata Property Act of British Columbia, City Council is the approving authority for conversion of previously occupied buildings into strata lots. Pursuant to Section 242(10) of the Strata Property Act, Council has delegated its approval authority to the Approving Officer for the following types of strata title conversion applications:

(a) previously occupied residential buildings containing less than six dwelling units; and
(b) all previously occupied commercial, retail, office, industrial, institutional, recreational or mixed-use buildings which have never contained residential accommodation.

City Council is the approving authority for applications involving previously occupied residential buildings with six or more dwelling units. Council may also be requested to provide advice to the Approving Officer for any application where the Approving Officer (as delegated approving authority) is of the opinion the interests of residential tenants were not adequately respected in the change of occupancy, or there appears to be an attempt to circumvent these guidelines. Under section 50(5) of the Real Estate Act of British Columbia, City Council is the approving authority for conversion of previously occupied buildings into cooperative units.

Statutory Provisions
With respect to strata title conversion applications, the Condominium Act Strata Property Act requires that the approving authority shall must consider, in making its decision, the following:

(a) the priority of rental accommodation over privately owned housing in the area;
(b) the any proposals of the owner developer for the relocation of persons occupying the a residential building;
(c) the life expectancy of the building; and
(d) projected major increases in maintenance costs due to the condition of the building; and
(e) The approving authority may also consider any other matters that, in its opinion, are relevant.

City Guidelines
(1) For Council the approving authority to give favourable consideration to an application for converting a previously occupied building to strata title or cooperative ownership:

(a) At least two-thirds (2/3) of the households occupying the building must have given their written consent to the conversion; and
(b) The interests of all tenants must have been adequately respected in the conversion process.

(2) Council The approving authority may refuse an application where in Council's its opinion there appears to be an intent to circumvent these guidelines, or the interests of the rental tenants were not adequately respected in the change of occupancy.
(3) Council The approving authority may refuse an application involving a building which is non-conforming as to use or regulation pursuant to the provisions of the City's Zoning and Development By-law.
(4) Council The approving authority may approve an application, or approve it subject to terms and conditions, or refuse it, or refuse to approve it the strata plan until terms and conditions imposed by Council the approving authority are met. Terms and conditions will ordinarily require that the building substantially comply with applicable City by-laws, and that the owner provide for the needs of disadvantaged tenants residing in the affected building.
(5) Conditions imposed by Council the approving authority must be fulfilled within one year from the date of the approval in principle. Thereafter a new application shall be required to be submitted to the Director of Land Use and Development Subdivision and Strata Title Group.
(6) Council's The approving authority's decision on any application is final and where an application is refused, no similar application will be considered until one year from the date of Council's the approving authority's refusal.

Application Procedure

(1) Prior to filing a conversion application, the applicant should contact the Zoning Counter Enquiry Centre (873-76l3) on the Second Floor, East Wing of City Hall, to discuss whether development and building permit applications are first required for change of use, alterations or additions to the building. An applicant must secure any required permits before submitting a conversion application.

(2) The applicant should submit a conversion application to:

Director of Land Use and Development Subdivision and Strata Title Group
City of Vancouver
Planning Department
453 West 12th Avenue
Vancouver, B.C. V5Y 1V4

APPENDIX A
Page 3 of 4

The applicant shall include the following:

(a) A letter stating the property address and legal description of the site and providing the names and mailing addresses of the persons occupying the building, together with the proposals by the owner developer for the relocation of persons who may be affected by the proposed conversion;
(b) A site plan, drawn to a scale of at least l/l6-inch to one foot (l:200 in metric), including a northpoint and an indication of the scale, and showing:

· The location and dimensions of the site boundaries and the area of the site;
· Adjoining street names;
· The location, size, shape and siting (including setbacks) of all existing and proposed buildings or additions, including accessory buildings; and
· The location and dimensions of all off-street parking and loading spaces, manoeuvring aisles and access driveways from streets and lanes.

(c) Floor plans, drawn to a scale of at least l/8-inch to one foot (l:l00 in metric), including a northpoint and an indication of the scale, and showing:

· The dimensions of all rooms and halls, and all outside dimensions including balconies and decks; and
· The areas of the building designated as strata lots, common property and limited common property.

(d) A notarized declaration stating:

· That each person occupying the building has been given written notice of the intent to convert the building into strata lots under the Condominium Strata Property Act or cooperative units under the Real Estate Act together with the date of notice;
· The number of units occupied on the date of the notice;
· That notices have been posted in conspicuous places in the building, advising of the intent to convert the building into strata lots under the Condominium Strata Property Act or cooperative units under the Real Estate Act; and
· That each person occupying a unit in the building has been provided with prospective sale prices, example management fees and a copy of the declaration of the building quality outlined in (e);

(e) A written report from a registered architect, engineer, or any other person, in a form acceptable to the City Building Inspector, that the building is of a reasonable quality for its age, including reference to the state of repair, general workmanship and measure of compliance with relevant City By-laws.
(f) A non-refundable processing fee of $444.00 plus $10.00 for each unit proposed for conversion, payable to the City of Vancouver.

(3) Upon receipt of a conversion application, the Planning Department Subdivision and Strata Title Group will provide the applicant with response forms which are to be completed by every household in the building. (A household comprises a person or group of persons occupying a unit.) The applicant will return the forms to the Planning Department Subdivision and Strata Title Group. In order that the application can be processed, the forms should be returned as quickly as possible.
(4) Concurrently with (3) above, the Director of Land Use and Development Subdivision and Strata Title Group will inform all persons occupying the building of these guidelines and other pertinent facts relating to conversions by sending them an information brochure.
(5) The Director of Land Use and Development Subdivision and Strata Title Group willforward the application to the City Permits and Licenses Building Inspector, Housing and Properties and Engineering Departments and request comments based on an assessment of the application. The application will also be sent to the Manager of the Housing Centre for comment if the building previously contained six or more residential units.
(6) If applicable, the Director of Land Use and Development Subdivision and Strata Title Coordinator will prepare a report to City Council, and the City Clerk will forward a copy to the applicant before the application is considered by Council.
(7) For strata title conversion applications, if Council the approving authority grants approval in principle to the application, the applicant may then engage a British Columbia Land Surveyor to prepare strata plans in accordance with the provisions of the Condominium Act Strata Property Regulation. The strata plans are to be forwarded to the Planning Department Subdivision and Strata Title Group for execution by the Approving Officer.
(8) Before the strata plans are signed, the applicant must comply with the conditions imposed by Council the approving authority. Once signed, the Planning Department Subdivision and Strata Title Group will retain one set of paper prints for the record, and return all remaining copies to the applicant for deposit with the Registrar at the Land Title Office.
(9) For cooperative conversion applications, if Council grants approval in principle to the application, the applicant must comply with the conditions imposed by Council before the Approving Officer can grant final approval to the application.

Applications take a minimum of eight to ten weeks to process. For further information regarding these guidelines, please contact the Land Use and Development Division at 873-7102 or 873-7721 Subdivision and Strata Title Group at 873-7721 or 871-6627.

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(c) 1998 City of Vancouver