ADMINISTRATIVE REPORT Date: June 13, 1996 Dept. File No. 3213 TO: Vancouver City Council FROM: Manager of the Housing Centre SUBJECT: Assignment of Long-Term Leases - 1878 Robson Street RECOMMENDATION THAT Council, amend By-law No 6774, and, in accordance with Section 2(3) of the Residential Tenancy Act, to delete the approval for the single apartment and substitute a provision to permit the Belmanor Apartments Limited to enter into and assign long-term leases for all the units at 1878 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 the Belmanor Apartments Ltd. to enter into and assign long-term leases. BACKGROUND The Belmanor Apartments at 1878 Robson are one of approximately 100 apartment buildings in the City where the units were sold individually prior to the creation of the Condominium Act. These buildings are either co-operatives or companies where the units were sold by way of long term, usually 99-year, leases. The Condominium Act was introduced to regularize the ownership of multiple residential buildings, and since its introduction in 1967 few new 'apartment companies have been developed. To ensure that rental buildings were not converted to long-term lease without the municipal approvals required for conversions to condominiums, the Province in 1990 amended the Residential Tenancy Act to require municipal approval of the creation and assignment of leases where the term exceeds 20 years. Last year the Belmanor Apartments Limited, comprised of 14 units that were sold by way of long-term lease in 1950, sought the City s permission to enter into a long-term lease of the caretaker suite for which a long-term lease had never been created. The owners were using a management company to maintain the building and had no need for a caretaker. They wanted to sell the unit and use the proceeds for some major maintenance projects. The owners intended to sell the caretaker suite, a small studio unit, to the owner of the adjacent suite who would consolidate it with theirs. On July 27, 1995, Council approved the recommendation: THAT Council, in accordance with Section 2(3) of the Residential Tenancy Act approve a by-law to permit the Belmanor Apartments Limited to enter into and assign a long term lease of the caretaker suite (formerly Apt. #4, now part of Apt. #5) at 1878 Robson Street and instruct the Director of Legal Services to prepare the necessary by-law. Council enacted By-law No. 7486 on November 7, 1995. DISCUSSION The owners of the Belmanor Apartments Limited have asked to have the previous by-law replaced by one that covers the whole building. They are concerned that the units may be renumbered and recon-figured at some point in the future and a by-law that refers to specific suites will not be applicable. There are no plans registered as in the case of strata corporations developed under the Condominium Act, and it is difficult to describe individual suites. This request is supported. The only concern related to whether any of the other 14 units had always been rental and whether there would be any displacement of tenants. The 14 existing units are all owner occupied, and the owners own the building collectively. Rentals have not been permitted in the building to date. Consequently, in the interests of clarity and simplicity, it is recommended that the amendments to By-law No. 6774, which were enacted by By-law No. 7486, be deleted and replaced with a general by-law that will allow the Belmanor Apartments Limited to enter into and assign long-term leases in the building at 1878 Robson Street. As well, if any rentals are approved in the future, a by-law covering the whole building will allow the assignment (sale) of a unit to new owner with the tenant in place. Otherwise, a separate new by-law would be required. * * * * *