ADMINISTRATIVE REPORT

Date: December 8, 2000
Author/Local: FAScobie/7399

RTS No. 1690

CC File No. 5311

Council: January 9, 2001

TO:	Vancouver City Council
FROM:	Subdivision Approving Officer
SUBJECT:	Strata Title Conversion - 800-816 Hawks Avenue

RECOMMENDATION

THAT the application to convert the previously-occupied building at 800-816 Hawks Avenue (Parcel A, Block 99, D.L. 181, Plan LMP42025) to strata title ownership be approved in principle, but that pursuant to Section 242(3) of the Strata Property Act, the Certificate of Approval (Form T) shall not be issued unless the following condition has been met within one year of the date of this approval:

Completion of all work in accordance with the approved plans and permits, and issuance of an Occupancy Permit, all at no cost to the City and to the satisfaction of the City Building Inspector, in order that the previously-occupied building will substantially comply with all relevant by-laws.

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

Council approval is required for an application to convert the previously-occupied building at 800-816 Hawks Avenue (Parcel A, Block 99, D.L. 181, Plan LMP42025) to strata title ownership, consisting of nine residential strata lots.

BACKGROUND

The site is zoned RT-3 and contains a two-storey multiple dwelling building, built circa 1910 and listed as a category "B" building on the Vancouver Heritage Register. Council will recall dealing with this property at a Public Hearing on July 25 when approval in principle was given to heritage designation and a Heritage Revitalization Agreement (HRA) to assist in the protection and restoration of the existing building.

The location of the site is shown below.

MAP HERE

Historically, the building has been in use as a multiple dwelling since its construction. The building has been vacant since November, 1999. The applicant has submitted a letter detailing the process and timing by which the building became vacant. Appropriate notices of termination were given; there is no evidence to suggest that tenants were treated unfairly as part of the conversion process.

Extensive interior and exterior alterations to the building are currently being undertaken pursuant to Development and Building Permit No. DB407633. Further work, as contemplated in the HRA, is proposed under DE404642. This permit should be issued shortly.

STAFF ANALYSIS

In addition to Development Services, the City Engineer, the City Building Inspector and the Manager of the Housing Centre have reviewed this application.

In reviewing the approved plans forming part of DB407633, Development Services staff note that several substantial relaxations were granted in the approval of the Development Permit for this project, on the basis of heritage merit. In many instances, such zoning relaxations create future uncertainty with respect to the potential to re-build in the event of building destruction. The attendant risks are potentially significant and probably not transparent to prospective strata lot owners. However, in this instance the matter of future redevelopment uncertainty that previously existed under the RT-3 zoning has already been addressed. Following Council approval at a Public Hearing on July 25, the City designated this buildingas protected heritage property and entered into a Heritage Revitalization Agreement (HRA) with the owner which permanently varyied the by-laws and regulations applying to this site, thereby enshrining its redevelopment potential. In fact, the HRA mandates replication in the event the building is destroyed.

The City Engineer has no dedication or servicing requirements for this site. The City Engineer advises, however, that the building encroaches onto both Union Street and Hawks Avenue. Registration of volumetric easements to contain the encroachments will be required prior to the strata plan being registered in the Land Title Office. The requirement will be addressed in a subsequent report to City Council from the City Engineer. The City Engineer has indicated support for the volumetric easements.

The City Building Inspector reports that when all work has been completed in accordance with the approved plans and permits, and an Occupancy Permit has been issued, the previously-occupied building will substantially comply with all relevant City by-laws.

The Director of the Housing Centre advises that, based on CMHC's 1999 Rental Market Survey, the vacancy rate for 2-bedroom units in the East Hastings sub-area, in which the project is located, was 2.1%, and in the City as a whole 1.3%. The average rents for 2-bedroom units in the East Hastings area was $689 per month and in the City $975 per month. Two bedroom units represent 18% of both the 10,000 rental units in the East Hastings area and the 56,000 rental units in the City surveyed by CMHC (CMHC surveys approximately half the rental units in the City). There were 253 2-bedroom townhouses in the City with a vacancy rate of 4% and average rents of $1,011 per month.

The project at 800 Hawks consists of nine 2-bedroom units that rented for $450 per month prior to the building being vacated. This is a very affordable rent for 2-bedroom units, which are a very scarce form of rental housing in the City. On the other hand, with the renovations underway, the rents would have been substantially increased if the 9 units were to remain rental, probably well in excess of the average in the area. It is unfortunate that the request for conversion to strata title ownership was not dealt with at the same time as Council's consideration of the property's designation and the HRA. It is not possible to know for certain whether the renovations would have been undertaken if strata conversion was not supportable. While the loss of affordable 2-bedroom rental units suitable for families is regretted, the preservation of this housing stock in the long term is some compensation.

CONCLUSION

Section 242(6) of the Strata Property Act states that in making a decision to convert a previously occupied building, Council shall consider, amongst other things, the life expectancy of the building and any other matters that, in its opinion, are relevant. In many instances, strata title conversion may assist in achieving retention and re-investment in anolder building that might otherwise be demolished. In this case, the future of this building has recently been secured through the existing HRA. The nine units of affordable rental housing stock were effectively lost at that time.

Conversion to strata title will provide nine units of additional housing for those seeking to purchase a residence of this type. It will apparently be more advantageous to the owner as compared to nine units at rental rates which would, in any event, only be affordable to that segment of the public having many other choices available in the marketplace.

Subject to satisfactory completion of all construction, and based on the applicant's compliance with the City's Strata Title and Cooperative Conversion Guidelines, the Subdivision Approving Officer supports this application.

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(c) 1998 City of Vancouver