A5 ADMINISTRATIVE REPORT Date: July 5, 1995 Dept. File No. 3213 TO: Vancouver City Council FROM: Manager of the Housing Centre SUBJECT: Lease of Caretaker's Suite - 1878 Robson Street 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 long-term leases of units at 1878 Robson Street and instruct the Director of Legal Services to prepare the necessary by-law. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY City policy is to protect the interests of tenants when rental housing is lost through stratification, redevelopment, or conversion by such means as long-term leases. PURPOSE This report recommends that Council approve a by-law to regularize a 99- year lease of the former caretaker's suite at 1878 Robson Street. BACKGROUND In response to concerns over the loss of rental housing through conversions to long-term leases, the Province in 1990 amended Section 2 of the Residential Tenancy Act to state that: "(3) No Landlord, other than an individual who is the holder of a lease under a tenancy agreement for a term exceeding 20 years and is the occupier of the rental unit shall enter into a tenancy agreement for a term exceeding 20 years, or assign a tenancy agreement with 20 or more years of its term yet to run, except with the prior approval, by by-law of the municipality in which the premises are located."CARETAKER SUITE AT 1878 ROBSON STREET Belmanor Apartments located at 1878 Robson Street is owned collectively by its occupants in a form of tenure predating the Strata Title (now the Condominium) Act commonly referred to as an 'apartment company'. The company, incorporated in 1950, is called Belmanor Apartments Limited and 1878 Robson Street is its sole asset. When the units were originally leased to the first purchasers, the company retained one unit to rent to a caretaker. In 1991 the occupant/shareholders of the building wanted to raise funds for renovations and entered into a long-term lease (longer than 20 years) with a purchaser. Subsequently, the company became aware that the long- term lease required the approval of City Council, and they have written to seek Council approval to enter into the long-term lease under Section 2(3) of the Residential Tenancy Act to regularize the current arrangement. It is recommended that Council approve a by-law to permit Belmanor Apartments Limited to enter into and assign the long-term leases of the units at 1878 Robson Street. The RTA was drafted to provide municipalities with the flexibility to permit long-term leases where justified by individual circumstances. The caretaker unit was never part of general rental housing stock and is located in an otherwise owner occupied building. With the advent of property management companies, live-in caretakers are no longer necessary. As has been done in the past, a by-law covering the whole building is recommended, rather than just for the caretaker's suite, to avoid the need for similar by-laws in the future for the assignment of the long- term leases in the building. This eliminates uncertainty for future vendors and purchasers, and administrative costs for the City. * * * * *