ADMINISTRATIVE REPORT


                                                        Date: May 31, 1996 
                                                        Dept. File No. 3213

     TO:       Vancouver City Council

     FROM:     Manager of the Housing Centre

     SUBJECT:  Assignment of Long-Term Leases - 1960 Robson Street



     RECOMMENDATION

          THAT Council, in accordance with Section 2(3) of the Residential
          Tenancy Act, approve a by-law as requested by 1960 Robson Ltd. to
          permit 1960 Robson Ltd. to enter into and assign 99-year leases
          at 1960 Robson Street; and instruct the Director of Legal
          Services to bring forward the necessary by-law.


     GENERAL MANAGER'S COMMENTS

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


     COUNCIL POLICY

     Council policy is to protect the interest of tenants in any loss of
     rental housing through stratification, redevelopment, or conversion by
     other means such as long-term leases.


     PURPOSE

     This report recommends Council approval of a by-law to permit
     1960 Robson Ltd. to enter into and assign long-term leases.


     BACKGROUND

     Prior to the introduction of the Condominium Act in 1967, the sale of
     individual units in multiple residential buildings was accomplished
     through  the creation of companies or co-operatives to own the
     building collectively, and through the subsequent sale of the
     individual units by way of long term, usually 99-year leases.  These
     are commonly referred to as 'apartment companies', and there are
     approximately 100 of them (3,000 units) in the City of Vancouver.


     The Condominium Act was introduced to provide a more secure legal
     framework for the ownership of individual units in multiple
     residential buildings.  One of the issues addressed by the Condominium
     Act is the conversion of rental buildings to ownership.  Under the
     Condominium Act, conversion requires municipal approval.  Since the
     introduction of the Condominiun Act, there have been few new
     'apartment companies' created.  Under the Companies Act, the
     conversion of rental buildings into 'apartment companies' requires the
     same approval process as does conversion to Condominiums.

     In 1990, in response to an attempt to market long term leases in an
     existing rental building outside of both the Condominium Act and the
     Companies Act, the Province amended the Residential Tenancy Act to
     require municipal approval for the creation or assignment of any lease
     longer than 20 years.


     DISCUSSION

     1960 Robson Ltd. is an 'apartment company' incorporated in 1959.  Its
     sole asset is the apartment building at 1960 Robson Street which
     consists of 21 units, one of which is a caretaker suite.  All but the
     caretaker suite is owner occupied.  Rentals require the approval of
     the other owners and none have been permitted to date.

     The owners of 1960 Robson Ltd. have asked the City's permission to
     enter into a long term lease of the caretaker's suite for which a long
     term lease had never been created.  As there has never been a lease
     longer than 20 years in place for the caretaker's suite, the approval
     of the City of Vancouver is required.  The owners' are using a
     management company to maintain the building and have no need for a
     caretaker.  They want to sell the unit and use the proceeds for some
     major maintenance projects.

     The request of the owners of 1960 Robson Ltd. is supported.  The
     building is in principle the same as a condominium project, and the
     caretaker suite the same as a condominium unit that has never been
     sold.  The project is owner occupied and the caretaker unit has not
     been part of the City's overall rental stock.  The amendments to the
     Residential Tenancy Act to control long-term leases gave
     municipalities authority to approve long-term leases in recognition
     that there would be cases such as this where such a lease would be
     appropriate.

     It is recommended that a by-law covering the whole building be
     approved, in recognition of the existing long-term leases, and to
     avoid the necessity of requiring a new by-law in the event the
     building is ever renovated and units reconfigured.  As well, if any of
     the units ever are rented, and the owner wishes to assign the lease,
     then a new by-law would be required for each unit if there is no
     by-law in place covering the whole building.


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