ADMINISTRATIVE REPORT

Date: May 28, 2001
Author/Local: J. Scholtz/7848

RTS No.2022

CC File No. 4661

Council: June 12, 2001

TO:	Vancouver City Council
FROM:	Director of the Housing Centre
SUBJECT:	Selection of Operator for Four Rental Housing Units at 5770 Oak Street

RECOMMENDATION

A. THAT the Lion's Gate B'nai B'rith Building Society ("the Society") be added to the list of approved sponsor groups for non-market housing.

B. THAT the above-referenced Society, on behalf of the City, be approved as the lessee of four one-bedroom units in "The Crowne," a 61-unit residential building at 5770 Oak Street, for a 10-year term at a nominal rent and such other terms and conditions as set out in this report and as the Director of Legal Services may approve, noting that no legal rights and obligations shall arise or be created until all legal documentation is fully executed.

GENERAL MANAGER'S COMMENTS

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

COUNCIL POLICY

On April 13, 1993, Council adopted the list of potential sponsor and resource groups for non-market housing.

In a special meeting on January 14, 1999, Council approved a Housing Agreement that provided the City with an option to purchase four units at no cost to the City.

BACKGROUND

As a condition of approving the rezoning the site (formerly the Lubavitch Centre) at 5770 Oak Street to accommodate a project at 1.98 FSR that permitted a total of 61 strata apartment units and social service space, the City required that four units for modest and low income seniors non-market housing be provided. On January 14, 1999, Council approved the condition requiring the transfer to the City of four units and that they be targeted for seniors.
The four units, which are to be held as a Capital Asset, are 652 sf. in size each and are located on each of four floors. They have been identified under the project's Disclosure Statement as strata lot numbers 11, 25, 39 and 53, or, suite numbers 109, 211, 311 and 411. Amenities include an en suite laundry, gas fireplace and walk-out patio. Each unit has both an identified storage area in the basement and an underground parking stall.

The City secured ownership and possession of the completed units in mid-May.

DISCUSSION

The City maintains a list of sponsors for non-market housing on City-owned or controlled sites. The list is updated whenever new societies apply for inclusion on the list. Using a Council-approved weighting system of a series of factors, a score of at least 70 points is required to recommend inclusion.

The Lion's Gate B'nai B'rith Building Society was incorporated in 1974 for the purpose of
assisting needy seniors of Vancouver. The Society currently operates two non-market buildings in Vancouver for low income seniors and those seniors requiring care. The two projects, at 1260 Howe St. and 1233 Haro St., total 241 units. Their waiting list for low income housing for seniors numbers more than 200 and the Society also sponsors student groups in the Jewish Community Center. The Society scored above the minimum 70 points required and staff recommend their inclusion on the list.

The most cost effective way to operate the four units is as part of a larger portfolio. As the building is located in the heart of the Jewish community and next to the Jewish Community Centre, the Society is recommended as the sponsor.

Because no mortgage is required, an unregistered lease with the Society will be struck. Therefore, the City does not become the direct landlord of the tenants. In addition, the Society has prepared a budget for the four units and proposes that the surplus funds be used for possible extraordinary repairs. A typical unit's monthly projected operating costs total $260, which includes property tax, strata fees, replacement reserves, and miscellanies. The SAFER (Shelter Aid for Elderly Renters) maximum rent level of $525 ($575 for couples) yields a monthly surplus of $265, or a combined annual surplus of about $12,700 for all units. At the end of each operating year, any surpluses (rent minus operating costs minus possible extraordinary repairs) from operating the four units by the Society will be forwardedto the Affordable Housing Fund. The Society will control the use of the allocated parking spaces within allowable strata regulations.

It is proposed that a ten-year lease with the Society will be struck on the following recommended terms and conditions:

- occupancy for seniors (55 years of age or over, singles or couples), preference to those from the Oakridge Langara area;

- rental would be a minimum of SAFER maximum rents, or 30% of gross household income;

- household income on occupancy is to not exceed $26,500 per annum, or the current B.C. Housing Core Need Income Threshold (CNIT) for a one-bed unit in Vancouver;

- Society is to pay all operating expenses and additional rent equal to taxes, guaranteeing no operating expenses to be charged to the City; and,

- should extraordinary repairs be required, the Society can seek funds from the Affordable Housing Fund.

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(c) 1998 City of Vancouver