ADMINISTRATIVE REPORT

                                           Date: February 12, 1997
                                           Dept. File No. GL
                                           C.C. File: 5311-1


   TO:       Vancouver City Council

   FROM:     Director of Land Use and Development

   SUBJECT:  Strata Title Conversion: 2036 York Avenue


   RECOMMENDATION

        THAT the application to convert the previously-occupied building at
        2036 York Avenue (Lot F, Block 205, D.L. 526, Plan LMP10255) to
        strata title ownership be approved in principle, but that pursuant
        to Section 9(1) of the Condominium Act, the Certificate of Approval
        (Form 10) shall not be issued unless the following conditions have
        been met within one year of the date of this approval:

        A.   Completion of all work required by the City Building
             Inspector, under the required permits, at no cost to the City,
             and issuance of an Occupancy Permit, in order that this
             previously-occupied building substantially complies with all
             relevant by-laws; and

        B.   Execution of a Section 215 covenant, to be registered
             concurrently with the strata plan, prepared to the
             satisfaction of the Director of Legal Services, to serve
             notice on title regarding the uncertainty of site
             redevelopment.

   GENERAL MANAGER'S COMMENTS

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

   COUNCIL POLICY

   Council policy is reflected in the City s Strata Title and Cooperative
   Conversion Guidelines, which outline factors 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 2036 York Avenue (Lot F, Block 205, D.L.
   526, Plan LMP10255) to strata title ownership.


   BACKGROUND

   The site is zoned RM-4 and is developed with a four-storey multiple
   dwelling building constructed ca. 1930, which is currently being altered
   under Development Permit Nos. DE214419 and DE401432 and Building Permit
   No. BU321255 to contain 20 dwelling units.  The building is
   non-conforming with respect to the floor space ratio regulations of the
   RM-4 District Schedule.  Prior to issuance of the permits and
   commencement of the renovations, the approved use for the building was
   as a multiple dwelling containing 15 dwelling units.

   The current owner purchased this property in December, 1996.  Although
   the previous owner, and original applicant for this strata title
   conversion, indicated that notices to vacate were issued to existing
   tenants in November, 1992, a Permits and Licenses Department inspection
   report for the site dated July 16, 1992, indicates that tenants were
   given eviction notices effective September 30, 1992.  A subsequent
   inspection in early October indicated that the building was vacant and
   that the interior of the building was being gutted.  Since this
   demolition work was being done without permit, a Stop Work notice was
   posted on October 7, 1992.  The building sat empty until the renovation
   work began in the summer of 1993, following issuance of a partial
   building permit for excavation, foundation and structural work.  The
   building has remained vacant since that time.

   City records substantiate the previous owner s claim that the building
   was in a state of disrepair at that time and required substantial
   renovations.  File records detail a long history of Standards of
   Maintenance By-law deficiencies and numerous Electrical and Building
   By-law contraventions.  Further, in April, 1992, the District Property
   Use Inspector found that the building had been effectively converted to
   provide for 2 dwelling units, 13 housekeeping units and 33 sleeping
   units without permit, in contravention of the Zoning and Development and
   Vancouver Building By-laws.

   The site location is shown below in Figure 1.

   Figure 1



   DISCUSSION

   Section 9(2) of the Condominium Act states that Council shall not
   approve the conversion unless the building substantially complies with
   applicable City by-laws.  In this case, the RM-4 District Schedule
   allows for multiple dwellings as an outright use on sites which exceed
   550 m2 (the area of Lot F is approximately 647 m2).  However, the floor
   space ratio (FSR) of the existing building is approximately 2.35, which
   exceeds the maximum FSR of 1.45 for multiple dwellings, as contained in
   the District Schedule.  Therefore, there is some uncertainty as to
   whether twenty dwelling units at the existing density could necessarily
   be redeveloped under the RM-4 District Schedule, should this building be
   extensively damaged or destroyed by fire, although the Board of Variance
   would have jurisdiction.

   It is doubtful that the market would be cognizant of the uncertainty of
   redevelopment in these situations.  There is no indication of unit
   prices reflecting this uncertainty. In 1984, in considering an
   application to convert a 3-unit multiple conversion dwelling in the RS-2
   Zoning District (the District Schedule conditionally permitted 2 units),
   Council opted to approve the conversion subject to a Section 215
   covenant being registered against title of the property, advising
   prospective purchasers of the redevelopment uncertainty.

   STAFF ANALYSIS

   In addition to Planning Department staff, the City Engineer, the City
   Building Inspector and the Manager of the Housing Centre have reviewed
   this application.

   The City Engineer has no dedication or servicing requirements for this
   site.  The City Engineer advises, however, that the building encroaches
   onto the lane abutting this site.  Registration of a volumetric easement
   to contain the encroachment will be required prior to the strata plan
   being deposited in the Land Title Office.  This requirement will be
   addressed in a concurrent report to Council from the City Engineer.

   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 building will substantially comply
   with all relevant City by-laws.

   The Manager of the Housing Centre reports as follows:

   "The situation of an owner vacating a rental building and then seeking
   approval to convert to strata is a matter of real concern.  The (strata
   title conversion) guidelines are intended to ensure that the interests
   of the tenants are addressed.  This is clearly not possible if the
   tenants have been evicted before the application is made.  Normally in
   these circumstances, the Manager of the Housing Centre would recommend
   that the applicant be required to make a contribution to the City s
   Affordable Housing Fund to compensate for the inadequate process. 
   However, given the time that the building has sat vacant, it is doubtful
   that the former applicant deliberately abused the approval process.  It
   would be unreasonable to penalize the current applicant who has only
   recently purchased the building.  Therefore, the Manager of the Housing
   Centre is prepared to forego requiring a financial contribution.

   The latest CMHC rental survey (October, 1996) indicated a vacancy rate
   of 0.4% in Kitsilano.  A vacancy rate of 2% is considered the minimum
   desired to ensure a balance of supply and demand.  Over the past year,
   there have been 21 residential rental units converted to strata title
   ownership, only 5 of which were in the Kitsilano area.

   Although the loss of purpose-built market rental housing in the City has
   been low, very little purpose-built rental is being built today; most
   new rental stock consists of condominiums, many of which are rented at
   some risk of being sold to owner-occupiers and hence less secure.  The
   proposal would increase the housing stock from 15 to 20 units.  If the
   conversion is not approved, it is possible that the applicant would
   demolish the building and develop the site with new condominiums that
   would be more expensive than the renovated condominiums.  The Manager of
   the Housing Centre is prepared to support the proposed conversion, but
   notes the continuing need to monitor the loss of the purpose built
   market rental stock."

   CONCLUSION

   Based on the foregoing, and on the applicant s compliance with the
   City s Strata Title and Cooperative Conversion Guidelines, the Director
   of Land Use and Development supports this application.


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