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CITY OF VANCOUVER POLICY REPORT
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Date: |
May 18, 2004 | |
Author: |
Celine Mauboules | |
Phone No.: |
6198 | |
RTS No.: |
04234 | |
CC File No.: |
4657 | |
Meeting Date: |
June 8, 2004 |
TO: |
Vancouver City Council |
FROM: |
The Director of the Housing Centre and the Director of Current Planning in consultation with the Director of Legal Services |
SUBJECT: |
Single Room Accommodation By-law: Status Report |
RECOMMENDATION
A. THAT Council, having issued conversion or demolition permits for the following designated rooms and the work under those permits having been completed, approve the removal of such rooms from Schedule A to the Single Room Accommodation By-law:
· All 33 designated rooms at the Plaza Hotel (806 Richards Street);
· All 8 designated rooms at 511 Union Street;
AND THAT Council, having authorized exemptions from the requirements of the Single Room Accommodation By-law for the following designated rooms, approve the removal of such rooms from Schedule A to the Single Room Accommodation By-law:
· All rooms in the Howard Johnson (1176 Granville Street);
· All rooms in the Ramada Inn and Suites (1221 Granville Street);
· All rooms in the Global Village Backpackers (1018 Granville Street);
· All rooms in the Cambie International Hostel (310 Cambie Street);
· All rooms in the Seymour/Cambie Hostel (515 Seymour Street);
· 38 out of the 42 rooms at the Ambassador Hotel (1212 Granville Street);
FURTHER THAT Council authorize the Director of Legal Services to bring forward an amendment to the Single Room Accommodation By-law removing from Schedule A the rooms listed in this Recommendation A."
B. THAT Council receive, as information, the overview of policy issues set out in this report that staff will report back to Council on in spring 2005.
CITY MANAGER'S COMMENTS
The City Manager RECOMMENDS approval of A and B.
COUNCIL POLICY
On May 16, 1991, Council reiterated its intent to ensure one-for-one replacement of Single Room Occupancy (SRO) rooms in the Downtown South and endorsed the principle of developing new social housing, constructing unsubsidized SRO replacement projects, and retaining and upgrading the existing SRO stock as required in the absence of new replacement housing, with priority given to housing long-term Downtown South residents.
On June 3, 1997, Council approved a motion requesting the Provincial Government to amend the Vancouver Charter to enable the City to regulate the conversion and demolition of SRO hotel rooms providing residential accommodation. The Provincial Government amended the Charter (S. 193D) in July 1997.
On October 1, 1998, Council approved "A Program of Strategic Actions for the Downtown Eastside." Key recommendations included improving existing SROs, maintaining and upgrading housing for existing residents, and building replacement low-income housing.
On October 16, 2001, Council adopted a policy to maintain and expand housing opportunities in Vancouver for low and modest-income households with priority being given to: families with children; seniors on fixed incomes or in need of support; SRO residents; the mentally ill; the physically disabled; and, others at risk of homelessness.
On March 26, 2002, Council endorsed the City's involvement in the Vancouver 2010 Olympic Winter Games and Paralympic Winter Games bid and Council moved that the City of Vancouver urge the Vancouver 2010 Bid Corporation to work with community members to minimize the negative effects and to maximize the opportunities of hosting the Winter Games. The Inclusive Intent Statement (included in the Guarantees of the Bid Book) states that the goal is to ensure no evictions will occur as a result of the 2010 Winter Games.
On October 21, 2003, Council enacted the Single Room Accommodation By-law to manage the rate of change in the low-income housing stock.
On October 23, 2003 Council amended the Zoning and Development By-law to require an SRA Permit prior to the issuance of a Development Permit.
PURPOSE AND SUMMARY
This report serves to update Council on the Single Room Accommodation By-law (to view a copy of the By-law, visit http://www.city.vancouver.bc.ca/bylaws/69669v1.pdf). More specifically the report:
· Proposes an amendment to Schedule A of the By-law to remove properties with designated SRA rooms that have been exempted by Council;
· Proposes amendments to Schedule A of the By-law to remove properties with designated rooms for which Council has approved SRA permits to convert or demolish designated rooms; and,
· Describes a number of issues that have arisen with respect to the By-law and proposes a work program for the next year to address the issues that have arisen.
BACKGROUND
The Single Room Accommodation By-law approved by Council last fall designated 9,482 rooms in 198 buildings in the downtown core as SRA accommodation, as set out in Schedule A to the By-law.
An owner wanting to convert or demolish designated SRA rooms must apply for and obtain a Single Room Accommodation Permit. The owner must pay an application fee of $100/per designated room that s/he is seeking to convert or demolish. The decision whether or not to approve the application rests with Council. Council can refuse the permit, approve it outright or attach conditions to it. In making a decision, Council must consider a number of factors including the supply of low cost accommodation, the quality of the SRA stock, and the future availability of low cost singles accommodation. Conditions that Council may attach to the approval of the permit include the owner entering into a Housing Agreement, a Heritage Revitalization Agreement, and/or paying $5,000 per room into a reserve fund for the creation of replacement housing.
The By-law also provides for exemptions subject to the production of evidence, satisfactory
to Council, that the designated rooms meet the exemption conditions. Owners must provide
evidence that:
· A permanent resident does not occupy or customarily occupy the room as living accommodation;
· The room is not in a building or portion of a building classified under the Assessment Act and its regulations as Class 1 - residential; and
· The room is in a building or portion of a building in respect of which the owner has an obligation to pay or remit hotel room tax under the Hotel Room Tax Act and its regulations.
There is no application fee for owners seeking an exemption of designated rooms.
Council instructed staff to report back in 6 months after enactment of the By-law to remove those buildings with designated rooms that had been exempted or granted SRA Permits to demolish or convert designated rooms from Schedule A of the By-law. Staff will report back in the next 12 months with a comprehensive review of the SRA By-law.
PROPOSED AMENDMENTS TO SCHEDULE A OF THE SRA BY-LAW
Council Approved Exemptions
In developing the Single Room Accommodation By-law, the list of buildings with designated rooms was based on the Housing Centre's 2003 Survey of Low-Income Housing in the Downtown Core. The purpose of the bi-annual survey is to monitor the low-income housing stock and to track changes to the stock (number of buildings and rooms), vacancy rates and rents. However, it does not identify which rooms in a building are used for non-permanent resident purposes such as tourist use. As well, some buildings on the list had already been converted to transient guest or other non-residential uses prior to enactment of the By-law. Those buildings remained on the list since they may have included rooms rented to permanent residents all or part of the year even if their primary focus was tourist use.
The By-law was structured so that affected property owners could request that all or a portion of rooms in their buildings be removed from the SRA list by submitting the necessary documentation. In order to be eligible for an exemption, owners must complete an application form and provide the following evidence:
A. Floor plans showing rooms larger than 320 sf. (29.73 sq. metres).
B. Hotel Guest Registration Act or Hotel Room Tax Act records.
C. Property tax assessment records.
D. Receipts for daily rents.
E. Guest ledgers.
F. A sworn affidavit stating that since the date of enactment, the rooms have been used primarily for transient guest accommodation or that the room is a self contained dwelling unit larger than 320 square feet.
G. Other information as staff may require or as the applicant may wish to submit.
To date, six completed applications for exemption have been submitted and processed. Staff reported each application to Council and Council subsequently approved exemptions for:
· All rooms in the Howard Johnson (1176 Granville Street) on November 18, 2003;
· All rooms in the Ramada Inn and Suites (1221 Granville Street) on November 18, 2003;
· All rooms in the Global Village Backpackers (1018 Granville Street) on February 10, 2004;
· All rooms in the Cambie International Hostel (310 Cambie Street) on March 23, 2004;
· All rooms in the Seymour/Cambie Hostel (515 Seymour Street) on March 23, 2004;
· 38 out of the 42 rooms at the Ambassador Hotel (1212 Granville Street) on March 23, 2004;
Each owner was advised that Schedule A (the list of buildings with designated SRA rooms) to the SRA By-law would be amended in accordance with Council's decision.
Council Approved SRA Permits to Convert and/or Demolish Designated SRA Rooms
Council also approved a number of SRA Permit applications. Each proposed project involving the conversion or demolition of single room accommodation has been dealt with on a case-by-case basis to respect the particular circumstances of the application.
General guidelines have been used to determine whether an SRA Permit is required for proposed work being completed on a building with designated SRA rooms. An SRA Permit is generally not required if:
1. The work involved is of a cosmetic nature only (i.e., the applicant is updating existing fixtures only and is not demolishing walls, or installing new fixtures, drywall, etc.), AND
2. The number of designated SRA rooms is NOT being reduced; AND
3. The nature of the renovations does NOT result in "conversion" as defined under the SRA By-law (ie. No material effect on the well being of tenants).
To date, Council has approved four SRA Permits, two of which have been issued because all conditions have been met and a Development Permit has been issued.
SRA Permits have been issued for:
The Plaza (806 Richards Street):
The Plaza Hotel contained 33 designated SRA rooms. It was to be demolished as part of a larger redevelopment project that had been scheduled for the Development Permit Board before the SRA By-law was enacted.
In response to the enactment of the SRA By-law, the applicant proposed rezoning the property. As part of the rezoning, the applicant offered a contribution to the City's Affordable Housing Fund of $1.08 million, in addition to a cultural amenity.
511 Union:
511 Union contained 8 designated SRA rooms. A development permit had been applied for before the SRA By-law was enacted. Council approved an SRA Permit to convert 8 SRA rooms to 4 self-contained dwelling units in exchange for a Heritage Revitalization Agreement and a $20,000 contribution to the City's Affordable Housing Fund.
Council has approved SRA Permits subject to conditions for the following properties. Once the conditions have been met, SRA Permits will be issued and staff will seek Council's approval to remove the designated rooms from the By-law.
The Grand (24 Water Street):
The Grand contained 44 designated SRA rooms that had been closed for 30 years. The owner proposed to renovate it as part of a larger redevelopment project. Council approved the SRA Permit on the condition that the owner enter into a Heritage Revitalization Agreement.
The Ambassador (1212 Granville Street):
The Ambassador contained rooms that provided accommodation for tourists (38 rooms) and for permanent residents (4 rooms). The owner of the Ambassador (and the Canadian Hotel (1203 Seymour St.) submitted an application to exempt 38 rooms, as well as an application to convert the remaining 4 designated SRA rooms in the Ambassador to tourist use. Council granted the SRA Permit on the condition that the owner enter into a 5 year Housing Agreement that would require the owner to maintain monthly rent rates of all 26 SRA-rooms in the Canadian Hotel at current levels and current tenant services (housekeeping and 24-hour presence at front desk for security).
ISSUES TO BE ADDRESSED IN THE REPORT BACK IN A YEAR
Heritage Incentives and the $5,000 Per Room Fee
There has been concern about the possible expectation on the part of building owners and developers that the conversion in heritage SRA buildings will, in general, be allowed to proceed without payment of the $5,000/room fee. The City must balance SRA, heritage and economic revitalization objectives. Generally Council may choose to impose the $5,000 per room fee for conversion or demolition of heritage SRA rooms, but in some circumstances where heritage and other objectives can be achieved, Council may choose not to impose the fee.
To date, the following policies have guided staff recommendations to Council:
· Each application should be considered on a case-by-case basis.
· In deciding each application, Council can require both a conditional payment of $5,000 per SRA room being demolished or converted, as well as an Housing Agreement, Heritage Agreement and/or other conditions.
· If Council requires payment of $5,000 per room for issuance of an SRA Permit, those monies cannot be recouped through the heritage incentives (i.e., SRA costs cannot be added into the pro forma for the project).
Council can adjust the fee over time in keeping with changing conditions. The Vancouver Charter does not restrict Council from charging different amounts for different types and extents of conversion. The staff report back next spring will include a review of the fee and whether or not to amend the amount or introduce a range of fees.
Amending the SRA Permit Application Fee
There is a $100 per room application fee for owners seeking an SRA Permit (separate from the $5,000 per room that Council may charge as a condition of the issuance of the SRA Permit).
The fee is to recover the cost of processing the applications. Staff are tracking the time it takes to process an application and will report back to Council in a year on whether the $100/room application fee should be changed. Consideration will be given to a minimum fee for small projects and a maximum fee for large projects with a sliding scale for those in between.
There may be cases where Council may want to waive the application fee. Social housing projects that involve the renovation of a building with designated SRA rooms require an SRA permit if the number of rooms is reduced, and a building with designated rooms that has received RRAP funding may also require an SRA permit. In these cases, the projects could be improving the living conditions of the existing residents and it may be appropriate to waive the application fee.
Incentives
Operating SRAs is becoming increasingly difficult - costs of heating, insurance, repairs and maintenance increase significantly as buildings age and the demographics of the tenants change (many have mental health and/or addiction problems and are hard to house). Staff are reviewing the economic viability of SRAs as part of the work on the Housing Plan for the Downtown Eastside communities, as well as the Victory Square Plan. Staff will report back on the following issues with respect to the SRA By-law and possible incentives for owners providing well managed, affordable housing:
· Ways to support both the physical upgrades to buildings, as well as services to the increasing number of tenants living in SRAs that need support.
· Possible financial incentives for SRA owners such as bonusing partnerships, or possible tax incentives.
In addition, the Downtown Eastside Economic Revitalization Plan will help improve the viability of commercial space within buildings containing designated SRA rooms.
Hostels
Council has approved exemptions for: the Cambie International Hostel, Seymour/Cambie Hostel and the Global Village Backpackers. These hostels are operated on the basis that they provide affordable accommodation to transient guests. Each guest must also provide identification to verify that they are not residents of Vancouver.
Concern has been raised that some hostels are renting to local residents and charging daily rates that amount to the monthly shelter component. Instead of having a private room for $325 per month, these individuals have to share a room with 3 or more other people. This gives rise to two issues. The first issue has to do with liveability in hostels. The issue will be addressed through the Housing Plan for the Downtown Eastside and surrounding areas. The second issue is how they are being operated in relation to the SRA By-law and whether they are providing tourist or residential accommodation and should or should not be eligible for exemptions.
With respect to the SRA By-law, the issue of hostels is complex. Hostels are not currently defined in the City's Zoning and Development By-law (they are classified as "hotel"). Staff will explore various definitions for hostels and their operation in relation the SRA By-law for the report back a year from now.
ONGOING MONITORING AND ENFORCEMENT
Staff continue to refine the policies and procedures put in place to ensure that the By-law is effectively implemented, while also ensuring owners and tenants are aware of the By-law.
SRA staff have undertaken a number of initiatives to inform City Departments (Heritage, Development Services, License and Inspections, etc.) of the SRA By-law and to ensure that policies and procedures are developed to ensure effective customer service. Briefing materials were developed for both staff, owners and tenants. A website was created that includes frequently asked questions and answers and provided an overview of the intent and implications for SRA owners (http://www.city.vancouver.bc.ca/commsvcs/planning/sra/index.htm). Staff also developed a bulletin, as well as a checklist for Property Use Inspectors visiting buildings with designated rooms. This will help monitor the SRA stock and help ensure owners and managers are aware of the By-law and its requirements.
Encouraging owners to complete applications for exemptions
There are some SRAs that were likely providing accommodation for tourists on the day of enactment of the By-law and therefore may be eligible for an exemption, but have not completed applications for exemptions of all or some designated SRA rooms.
Property Use Inspectors are asking to see the Notice of Designation that owners are required to post in a conspicuous location. If there has been no notice posted, SRA staff are re-sending the notices to owners, as well as operators reminding them of the requirements of the By-law. Owners and operators who state that they provide tourist accommodation will be reminded that they must complete an application for exemption and the application must be approved by Council.
CONCLUSION
Since the enactment of the Single Room Accommodation By-law, Council has approved exemptions for six buildings with designated SRA rooms, and four SRA Conversion/Demolition Permits (two of which have been issued SRA Permits since conditions attached to the Permits have been met). Staff will continue to implement the By-law and monitor its impacts and will report back next spring on a number of issues including possible adjustments to the $100/room SRA Permit application fee, the $5,000 per room fee Council may impose for the conversion or demolition of designated rooms, as well as policies regulating hostels and incentives to help with the operation of SRAs economically viable.
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