Charlottetown renters told co-op is not an option — their homes will become condos
Belvedere Terrace residents had been hoping complex could be run by a non-profit
The owner of a Charlottetown apartment complex is still planning to convert the units to condos, but the housing minister is suggesting some buyers might rent the suites back to the long-time tenants.
Norray Properties owns the 16 units of row housing called Belvedere Terrace, on Belvedere Avenue near the Atlantic Superstore.
Back in late May, renters received a letter telling them their units would soon be going up for sale as condominium units. The same letter offered them the option to buy their units for $329,000 each, saying they had until June 30 to decide to do that before the suites would be listed for sale.
"This has been my home for well over 36 years and I am happy here," renter Gene Cross told CBC News earlier this week.
She said she would like to see the building purchased by a non-profit group to keep rents affordable, or see the units turned into a housing co-op, "to be able to stay here with someone who is going to be concerned about our wellbeing, making sure things are kept up."
But on Friday, Cross and other residents got a letter from P.E.I. Housing Minister Rob Lantz that dashed those hopes.
"Unfortunately, the non-profit housing corporation was unable to come to an agreement to purchase Belvedere Terrace," the letter said in part.
"I'm sure this news is very disappointing for you but a serious effort was made to negotiate the purchase."
The letter said tenants do retain some rights when their apartments are sold, and encouraged the Belvedere Terrace renters to educate themselves on the options laid out in the Resdential Tenancy Act. Unless the new owners or their relatives intend to move into the units, it is possible some current tenants could stay and just pay rent to a different entity.
Minister had spoken to tenants about co-ops
Housing co‑ops typically provide at-cost housing for their members and are controlled by tenants who have a vote in decisions. Cross said Lantz came by to talk to residents about the idea a few weeks ago.
"Basically it was that the government was introducing, or had introduced, a program to help a non-profit housing corporation buy the units, and if that were the case we'd be able to stay," she said.
I have boxes in every room except the bathroom and I can't do any more than that. I'm just on hold, basically.— Gene Cross
Even before getting the letter from Lantz, Cross was making plans to move out if she has to.
"I have purged a lot, I've sold a lot, I've given away a lot and I've donated a lot. I have boxes in every room except the bathroom and I can't do any more than that. I'm just on hold, basically."
Some of Cross's neighbours had previously decided to move to other rental units in the province.
Earlier in the week, the province confirmed Lantz had spoken with residents of Belvedere Terrace on June 21.
"The province did announce a Community Housing Expansion Program to help the non-profit and co-op housing sector create permanently affordable housing solutions for Islanders," said an emailed statement from government officials. "The program aims to support 120 units for acquisition this year, while building a pipeline for new construction and acquisition projects in future years."
The expression of interest on the fund closed on June 17 and groups are now identifying properties they might buy, the email said.
Cory Pater with the P.E.I. Fight for Affordable Housing approves of turning rental complexes into co-ops, but says the government needs to do more work on the concept.
"It's the right type of solution that is being pursued, looking at non-market options, but it's not a complete solution. They are taking a chunk of money and setting it aside, but the burden is being put on these non-profits. They are not investing in the community capacity to run these co-ops," Pater said.
"It would be great if we could pull people together, run workshops, teach people how co-ops run, how to start one and how to keep one running — and then guide them in the direction of these funds."
When rental units are switched to condos, as is happening at Belvedere Terrace, it causes further issues in the lower end of the accommodations market, Pater said.
"It's a worry because we are going to lose units people otherwise would be able to rent, and there is a significant gap in affordability between a rental and a condominium," he said, since many tenants would not be able to come up with a down payment or qualify for a mortgage.
"Even though rentals are very expensive right now, it's not $300,000."
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