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                             ADMINISTRATIVE REPORT

                                           Date: July 4, 1995
                                           Dept. File No. 3422

   TO:       Vancouver City Council

   FROM:     Manager of the Housing Centre

   SUBJECT:  Demolition Fee Refund - 3424-3446 West Broadway


   RECOMMENDATION

        THAT the  Demolition  Fee  of $18,000  paid  by  Khatsalano  Equity
        Housing Co-operative be reimbursed,  with the funds to be  paid out
        of the Demolition Fee Reserve.

   GENERAL MANAGER'S COMMENTS

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

   COUNCIL POLICY

   Council  Policy is  to charge a  demolition fee  of $1,000  per multiple
   residential unit and $500  per single family unit demolished.   The fees
   are held  in the  Demolition Fee Reserve.   Social housing  projects are
   exempt, as are  rental projects  where the rental  units demolished  are
   replaced. 


   PURPOSE

   This report recommends that the demolition fee paid by Khatsalano Equity
   Housing Co-operative at 3424-3446 West Broadway be reimbursed.

   BACKGROUND

   In  1990 CMHC  began  the redevelopment  of the  344  units of  post-war
   veterans   rental  housing  in  16  projects  along  West  Broadway  and
   West Fourth.  The sites  were underdeveloped and the number  of veterans
   declining.    CMHC intended  to replace  the  housing for  the remaining
   veterans and their  families on 4 or 5  of the sites, and to  market the
   remainder to pay for the replacement housing and earn a return on CMHC's
   assets.

   In  1992  Khatsalano Equity  Housing Co-operative  leased one  of CMHC's
   veteran's  housing sites  at  3424-3446 West  Broadway.   The  site  was
   occupied with 18 rental units.  It was the first non-replacement project
   that  CMHC  marketed,  in  this case  by  way  of a  60  year  lease for
   affordable ownership housing.DEMOLITION FEE

   When applying for their Demolition Permit, which required the demolition
   of the 18 units, the Co-op paid the demolition fee of $1,000 per unit or
   $18,000 in total.  

   Subsequently  CMHC  approached  the  City  seeking  an  exemption   from
   Demolition  Fees for their remaining sites.  Exemptions are permitted if
   units are replaced by rental  housing on a 1-for-1 basis or if  they are
   replaced by social housing.  CMHC  argued that while some of their sites
   were being developed for market housing, 239 units of replacement rental


   housing for  the remaining veterans and  their families and  36 units of
   social  housing was being built on the  others, and their project should
   be  treated as a single project for the  purpose of the by-law, in which
   case it  would  be exempt  from  demolition  fees.   This  position  was
   accepted  by Housing & Properties and  subsequent developments on CMHC's
   sites have not paid demolition fees.

   Khatsalano  Equity Housing Co-op has  asked that they  be reimbursed for
   the demolition fee they paid.   On the basis of equity  and consistency,
   it  is recommended  that the fee  be reimbursed.   No  interest would be
   paid.  The Demolition Fee Reserve would be the source of funds.


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