SUPPORTS ITEM NO. 4 
                                                       P&E COMMITTEE AGENDA
                                                       JUNE 29, 1995       


                                 POLICY REPORT
                           BUILDING AND DEVELOPMENT

                                                 Date:  May 2, 1995        
                                                 Dept. File No: STRATHE2.PR


   TO:       Standing Committee on Planning & Environment

   FROM:     City Building  Inspector, in consultation  with the  Associate
             Director of  Planning - Land Use  and Development (Subdivision
             Approving Officer)

   SUBJECT:  Building By-law Amendments to Exempt Strata 
             Title Compliance for Some Heritage Buildings


   RECOMMENDATION

        A.   THAT  the Building By-law not be amended to exempt an existing
             heritage  one-family  dwelling   from  life-safety   upgrading
             through  the use  of  residential sprinklers  when  it is  not
             otherwise being  altered, but seeking strata  title conversion
             to separate  the heritage  dwelling and infill  development on
             the site.

        B.   THAT   in   calculating  an   equitable  heritage   bonus  for
             development  proposals  involving  conservation   of  heritage
             buildings  and  for which  designation  or  protection of  the
             building through  a heritage revitalization agreement  will be
             required  as a  condition of  approval, staff  include in  the
             calculation  the  cost  of sprinklering  and  other  requisite
             upgrading as might be anticipated in future strata  titling of
             the premises.

        C.   THAT  in  the  case  of  the  heritage  building  with  infill
             development proposal approved at  2005 West 16th Avenue, being
             a corner site,  the applicant  be encouraged to  enter into  a
             heritage  revitalization agreement  through which  Council may
             vary the Subdivision  By-law to permit consideration  of a fee
             simple site subdivision by the Approving Officer as opposed to
             strata titling of the premises.


   GENERAL MANAGER'S COMMENTS

        The General Manager of Community Services RECOMMENDS approval of A,
        B and C.

   COUNCIL POLICY

   The  Condominium  Act mandates  that  Council,  as Approving  Authority,
   require a building being converted to  strata lots first be upgraded  in
   order to "substantially comply"  with municipal by-laws, with particular
   regard to building regulations.   This obligation includes a  one-family
   dwelling being converted to a strata lot when stratification is proposed
   to deal with an infill development on the same site.


   BACKGROUND

                                     - 2 -

   On  February 24, 1994 the Standing Committee on Planning and Environment
   considered  a report  regarding a  heritage retention  and  strata title
   conversion proposal at 2005 West 16th Avenue  and the owner's request to
   exempt  the heritage building  from the  sprinklering requirements.   In
   considering the report, Council approved the following recommendation:

        "C.  THAT  staff report  back  on possible  amendments to  the
             Building By-law  to exempt  heritage  buildings from  the
             sprinklering requirement in  situations limited to infill
             proposals on  sites  occupied by  single-family  heritage
             dwellings."


   DISCUSSION

   During the past few months, staff have reviewed:

        -    their interpretation of intent of the Condominium Act;

        -    what  "substantial  compliance"   with  the  Building   By-law
             reasonably implies; and

        -    what  options are available to Council should it wish to avoid
             life-safety  upgrading  as  an  unnecessary  imposition  on  a
             heritage one-family dwelling not otherwise being altered.

   The Requirements for Substantial Compliance

   The Condominium Act deals with strata title approval, including existing
   buildings, and states:

        "9.(1)  On the conversion into strata lots of a previously occupied
        building by an owner developer, the approving authority may approve
        the strata  plan, refuse  to approve the  strata plan or  refuse to
        approve the strata plan  until terms and conditions imposed  by the
        approving authority are met.
        "9.(2)  The approving  authority shall  not approve  the conversion
        unless the building substantially  complies with the applicable by-
        laws of the municipality...." (emphasis added).

   The  Subdivision  Approving Officer  has  also  previously advised  that
   strata titling is a  form of tenure preferred by the  market in order to
   create  separate  ownership  for  an infill  building  and  a  remaining
   principal  dwelling.  Fee simple subdivision of these sites is virtually
   impossible in all but a very few cases.

   Typical Areas of Fire Safety Deficiencies in Older Dwellings

   A  study of fires in  older buildings indicates  that most single-family
   dwellings  in our  city were  designed with  a  high fire-risk  style of
   construction, known as "balloon-framing".  This entails a framing system
   with  extra-long wood studs continuous from basement to attic, clad both
   sides  with wood-lath strips for plastering, and with no firestopping at
   floor,  ceiling or  wall  lines.    These stud  and  joist  spaces  were
   intentionally  kept wide  open,  to provide  continuous ventilation  and
   prevent dampness  throughout the  framing members,  both to inhibit  the
   growth of fungus.   These  spaces also facilitated  the installation  of
   plumbing  and electrical wiring.   Unfortunately,  the "free  air space"
   within  the  walls in  this form  of  construction became  the principal
   reason for the spread of fires in dwellings.

   As  a result  of thousands  of fires  starting and  spreading throughout
   these highly combustible spaces, balloon framing is no  longer permitted
   anywhere  within North  America, having  been replaced  with firestopped

                                     - 3 -

   framing methods.  Many other changes were also made to building codes in
   order to minimize potential fire deaths:

        -    new types of exterior cladding and roofing materials have been
             designed  to  resist  conflagration   and  fire  spreading  to
             neighbouring buildings;

        -    new  interior finishes  have  been restricted  to those  which
             resist flashover during fires; and

        -    most  of  the wood-panelled  interior  finishes  would not  be
             permitted in new homes today without sprinklers.

   In addition:

        -    modern  electrical wiring  methodology has  been substantially
             improved to  cut down  on potential electrical  fires starting
             within the stud spaces;
        -    "hard-wired" smoke alarms  have been required for the  last 17
             years  for residential-type  buildings  to try  to warn  their
             occupants  during those times when no one in the dwelling unit
             would otherwise be aware of  incipient fires.  However,  smoke
             alarms neither contain nor put out fires; and

        -    currently  within  new  dwellings,  extra  means   of  egress,
             balconies,  or  decks are  now required    to come  within six
             metres  of ground level and  the overall height  of wood frame
             construction has  been restricted, to permit  safe egress from
             the uppermost floors.

   One of the remaining  areas of concern is access for rescue work or fire
   fighting  from the fronting street, around or by the principal building,
   to a rear  infill unit(s).  This access for  fire fighters or stretchers
   is inhibited in many cases due to narrow sideyards beside buildings that
   are not  fire-protected.  This restricted  access can be offset  by good
   fire  suppression from sprinklers in the principal building at the front
   of the infill  site, in  order to carry  out the rescue  work of  other,
   potentially incapacitated, occupants around or past this building, if it
   were involved in a fire incident.

   The New Sprinkler Technology

   The installation of quick-response sprinklering - developed in the early
   1980s -  has become the  only way to  (virtually) assure life-safety  in
   dwellings of all ages.   To date, no fire deaths have occurred in any of
   the estimated 15 million  dwellings constructed throughout North America
   that have been equipped with these residential sprinkler systems.  Staff
   concluded there was  no other equivalency to  residential sprinklers for
   the life-safety deficiencies that occur most frequently in single-family
   dwellings, which is where most of the fire tragedies occur.  Over 50% of
   the  recorded  fire deaths  in  single-family  dwellings involve  senior
   citizens, young children and persons with disabilities.

   The above are  typical of the  range of problems  considered by  Council
   before  it decided  to  amend the  Building  By-law in  1990  to mandate
   residential sprinklers.   Their excellent success  rate has also  raised
   the fire protection  engineers' comfort levels when  considering them as
   equivalencies for  many  fire and  life-safety deficiencies.   No  other
   methodology would  come close  to residential sprinklering  in providing
   the same degree of life-safety within any of these dwellings.
   Current Practice

   During the  past five years there  were 10 similar proposals  for strata
   title conversion  of properties containing an  older one-family dwelling

                                     - 4 -

   and a  new infill dwelling.  Of this number, three involved dwellings of
   heritage  quality.    Except  for  one,  which  preceded  the  sprinkler
   amendment of April 1990, all 10 were sprinklered and upgraded internally
   for  their   life-safety  deficiencies  in  order   that  the  buildings
   "substantially comply"  with the  Building  By-law, as  required by  the
   Condominium Act (See Appendix  A).  In reviewing the  major deficiencies
   of the  older one-family dwellings  in these projects,  sprinklering was
   the  only methodology  that could  provide a  sufficient level  of life-
   safety, relative to full Building By-law compliance.

   Staff  also  reviewed  previous  proposals  for  upgrading  of  heritage
   buildings of many  different uses over the years and determined that the
   majority  have  taken  advantage  of  the  sprinklering  alternative  to
   increase their life-safety to overcome most deficiencies of the Building
   By-law.   In case of  fire, sprinklering certainly  improves the chances
   that such heritage buildings will survive for future generations to view
   and  enjoy.  In fact, even with  the installation of sprinklers, many of
   these  buildings  also maintained  high  quality  finishes within  their
   interior.   The Council Chamber itself is a good example of the delicate
   and unobtrusive placing of sprinklers, as is the Orpheum Theatre.

   The  City Building Inspector believes that the appropriate time to carry
   out required life-safety  upgrading is when the  owner is in  receipt of
   funding  made possible  because  of Council's  support  for a  heritage-
   related  density   increase  and  extra  buildable   equity.    Heritage
   designation  should only  be  given to  a  deserving building  that  our
   citizens  expect to  remain  forever; designation  should  not be  given
   lightly  nor should  the owner  expect to  reap financial  gains without
   assuring  its lasting  retention.   Consequently, monies  spent  on such
   projects should give priority investment to life-safety upgrading of the
   existing building, not just cosmetic renovations.

   Because of his concerns  for life-safety and the fact  that sprinklering
   will  substantially  increase  the  chances  of  the  heritage  building
   surviving a fire, the City Building Inspector is recommending A and B.

   COMMENTS from the PLANNING DEPARTMENT

   Before considering the pros and cons of various options, the "facts", as
   we understand them, should be noted:
   "Facts"

   1.   Before Council (as Approving  Authority) approves the conversion of
        a previously  occupied building  into strata lots,  the Condominium
        Act mandates that the  building substantially comply with municipal
        by-laws, with particular attention to building regulations;

   2.   A  building to  be converted  to a  single strata  lot (such  as an
        existing  one-family dwelling, with a  new infill dwelling  to be a
        separate strata  lot) is, under the Interpretation  Act, a building
        subject to the upgrading requirements of the Condominium Act;

   3.   The City Building Inspector has determined that sprinklering of the
        existing building  will bring  it into substantial  compliance with
        the life-safety requirements of the Building By-law;

   4.   Upgrading of an unrenovated  existing one-family dwelling would not
        be required if the new  infill dwelling was left as a  rental unit,
        under the same ownership as the one-family dwelling;

   5.   Strata titling of the property (i.e., the existing dwelling and the
        infill dwelling as separate strata lots) increases the value of the
        infill dwelling;

                                     - 5 -

   6.   Infill dwelling development will be less attractive to the owner of
        a heritage dwelling if  it cannot be strata titled  (or subdivided)
        and  sold, and may be  an insufficient incentive  for retention and
        restoration   of  the  heritage   dwelling,  thus   increasing  the
        vulnerability of  many heritage  dwellings to  possible demolition;
        and

   7.   The upgrading requirement of the Condominium Act can be overcome in
        two possible ways:

        (a)  through Building By-law amendment; or

        (b)  through  a  Heritage  Revitalization  Agreement  (under recent
             heritage legislation)  that would allow subdivision  of corner
             parcels as opposed to creation of strata lots.

   Based on the foregoing, three apparent options are available:

   Option 1   -   Require sprinklering of the heritage  one-family dwelling
                  as  a  condition  of   final  strata  approval,  per  the
                  Condominium Act.
   The advantages of this option are:

        -    it satisfies the requirements of current legislation;

        -    the heritage dwelling is  improved in terms of  occupant life-
             safety;

        -    the longevity of  the heritage building is enhanced insofar as
             possible destruction by fire; and

        -    emergency personnel  can more  safely access the  rear, infill
             dwelling and  its occupants  in the  event  of a  fire in  the
             heritage dwelling.

   The disadvantages of this option are:

        -    it requires upgrading  of the heritage  dwelling, at cost  and
             inconvenience to its  owner noting that it  is often difficult
             and costly to retrofit a heritage building  and that important
             interior surfaces and features may be altered;

        -    required life-safety upgrading, if "essential" for the sake of
             the building's occupants, should be  mandated retroactively on
             City-wide  basis,  irrespective  of an  application  initiated
             solely to enable sale of the new infill dwelling; and

        -    upgrading  required   for  strata  title   approval  may,  for
             financial, aesthetic or other  reasons, result in the heritage
             building owner's decision to abandon development of the infill
             dwelling,  leaving the  heritage building  at greater  risk of
             future  demolition.   However,  the financial  concern can  be
             addressed  by  calculating the  compensatory  heritage density
             bonus in a manner  that includes consideration of the  cost of
             sprinklering  and  other  requisite  upgrading  as  might   be
             anticipated in future strata titling.

   Option 2   -   Amend the Building By-law  to exempt from sprinklering an
                  existing  heritage dwelling  on a  corner site,  which is
                  otherwise  not being  altered but  which is  proposed for
                  strata  title conversion  to separate  it from  an infill
                  dwelling.

   The advantages of this option are:

                                     - 6 -

        -    it recognizes that development of a rear yard infill 
             dwelling  on a  corner site  can be  more readily  accessed by
             emergency  personnel in the event  of a fire  in the principal
             dwelling,  than can a rear yard infill dwelling on an interior
             site; and
        -    the existing  dwelling would, by virtue of the Building By-law
             exemption, substantially comply with the by-law without having
             to be upgraded, thus facilitating approval of the strata title
             application.

   The disadvantages of this option are:

        -    it would create a  unique exemption in the Building  By-law to
             circumvent the  intent of the Condominium Act,  which seeks to
             ensure that every strata  lot created through conversion of  a
             previously occupied  building, will  contain a unit  which, at
             the time  of strata approval, substantially  complies with the
             prevailing  municipal by-laws.   This provincial  objective of
             providing  a  degree of  consumer  protection  for strata  lot
             purchasers,   will  be   sacrificed  through   this  approval.
             However, staff  note there  is no similar  consumer protection
             provided to purchasers of existing one-family dwellings or any
             other building located on its own site; and

        -    the City  foregoes the opportunity to  improve the life-safety
             of an  existing heritage dwelling, increasing  the future risk
             to both occupants and the building.

   Option 3   -   Suggest that owners of heritage buildings on corner sites
                  wishing to sell the rear yard infill dwelling be directed
                  to  pursue   the  option  of  a  Heritage  Revitalization
                  Agreement   (HRA),  through  which   the  site  might  be
                  subdivided as opposed to strata titled.

   The advantages of this option are:

        -    under recent  heritage legislation,  Council may enter  into a
             HRA with the owner of a heritage building.  The provisions  of
             this  agreement  may  vary  zoning  and/or subdivision  by-law
             regulations that would otherwise apply;

        -    the upgrading  requirement imposed  by the Condominium  Act is
             avoided since  creation  of  separate  legal  parcels  through
             subdivision is  pursued, rather than creation  of strata lots;
             and

         -   if  subdivision is  approved,  the heritage  dwelling and  the
             infill  dwelling  can  be  sold independently  with  no  legal
             interrelationship, unlike  a strata lot which  remains as part
             of a strata corporation with attendant responsibilities.
   The disadvantages of this option are:

        -    the subdivision of  a corner site,  if approved, would  create
             two  substandard parcels in both  area and depth,  and the new
             corner parcel would lack secondary access to the rear lane;

        -    the subdivision,  if approved, would create  two legal parcels
             that  would  remain  indefinitely,  long  after  the  heritage
             dwelling and the  infill dwelling have  been demolished.   For
             all intents  and purposes  the subdivision would  be permanent
             whereas the Condominium  Act addresses the demise  of a strata
             plan; and

        -    each of  the proposed  parcels created through  subdivision in

                                     - 7 -

             this manner  would be  regulated by the  zoning provisions  in
             effect  at  the time  of  redevelopment  (i.e., if  two-family
             dwelling is  an outright permitted  use, each parcel  could be
             developed  as such), except as may  be provided for in the HRA
             (with respect to the replication of a heritage building or the
             replacement of the infill building).


   COMMENTS FROM THE DIRECTOR OF LEGAL SERVICES

   The Director of  Legal Services  is concerned that  Council's policy  of
   requiring  sprinklers as  a life-safety  measure not  be compromised  by
   exempting certain  residential buildings, thereby  placing its occupants
   at a potentially greater risk.  In these terms, there does not appear to
   be any justification for the exemption alluded to in Recommendation A.


   CONCLUSION

   Staff  have studied  the problem  and have  found that  many outstanding
   life-safety  deficiencies exist  within most  older existing  dwellings,
   whether  "heritage" or not.  In addition, many other fire-safety hazards
   may  be created  within  the  same  and  adjacent  properties  by  these
   dwellings whenever infill units are constructed.

   As long  as the  City is  in the  position where  it cannot approve  the
   conversion  unless  the  building  "substantially  complies"  with   the
   Building  By-law, we must enforce  the current Building  By-law or amend
   it.  

   However,  staff  have  explored  the   option  of  using  the   Heritage
   Revitalization Agreement,  which  has become  available  through  recent
   heritage legislation  and will not require strata titling conditions for
   an existing  Heritage home on a  corner site since it  may be subdivided
   off to create two separate parcels.
   A heritage Revitalization Agreement may be appropriate in  this instance
   to enable consideration of  site subdivision (fee simple) as  opposed to
   life-safety upgrading of the  principal building required through strata
   titling (with costs unanticipated by the owner at the outset).  

   However,  future infill proposals should  be assessed in  a fashion that
   incorporates  the costs  of life-safety  upgrading as would  be required
   upon strata titling, to  ensure that the property owner  receives infill
   approval  sufficient  to  compensate for  this  additional  work to  the
   principal building.




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