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.


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