Real eState

B.C. real estate: Co-op has to leave after private land sold

Published

1 year ago

June 6, 2023

Fifty-eight families and individuals are facing eviction if they don’t soon agree to close to a tripling of their monthly rents after their housing co-operative failed to secure a deal on the land it was built on — a rare occurrence in B.C.

“I’m looking for everything and anything. But we have a small dog, which narrows 90 per cent of the places we might be able to afford, albeit not eat very well,” 60-year-old Dayna White explained of her ongoing search for housing.

“I’m looking at PadMapper, Marketplace, REW, and we’re looking from here to Mission and Abbotsford, all the areas. …But there is nothing affordable,” said White, who lives off a low income due to a disability with her husband, a delivery driver.

For 40 years, Totem Co-op had largely sheltered its members from Metro Vancouver’s rising housing costs. The co-op was established in 1982 and, according to former board member and resident Judy Patka, obtained a dirt cheap 40-year leasehold for about $4,000 from a pension fund until December 2022. The co-op then built 58 townhouse units, and in 2017, it fully paid its mortgage on the buildings.

With the building mortgage gone, Patka told Glacier Media a deal was in reach for the co-op to buy the land for about $6.5 million in 2017; however, to her frustration, a majority of members voted against it, as the new mortgage would have raised monthly rates a few hundred dollars.

In 2022, some co-op members were interested in trying to buy the land. Still, a deal was never struck, leading to the lease’s expiration and a temporary six-month extension to July 1 for $65,000 per month, plus utilities, taxes and maintenance.

Patka said the co-op has provided a “nice sense of community.”

“There’s a little common area where we used to have happy hours. Kids would play here; there’s a little playground there; there’s lovely gardens in the back. I mean, where are you going to find that?” said Patka.

During the lease, White paid $850 for a two-bedroom unit while a one-bedroom unit went for about $650, said Patka.

The relatively low cost set by members had been a double-edged sword, said Patka, noting the units themselves are beginning to show significant wear and tear due to a lack of investment.

But the affordability has allowed people to get by, including Patka, who lives off a low income of $2,100.

Colette Coulter and her husband, who are raising three young children and completing further post-secondary education, said her family’s only option appears to be to move back in with her parents.

Coulter said her father, a developer, offered to buy the land last year for about $10.5 million, plus provide each tenant $50,000 with a two-year notice to vacate.

But the landowner chose a better deal in the end.

The land was sold by Four Local Pension Asset Holding Society, which is held by the CSW Medical Plan & BC Labourers Pension Plan, serving Local 1611 of the 500,000-member Laborers’ International Union of North America.

The buyer is Munish Katyal, the principal of KVA Developments Ltd. in Surrey and a former director of Indo-Canadian Voice, an online local news publication.

Katyal paid $15.5 million cash for the land on March 29 and sent a letter informing tenants of new rates as of July 1: $1,600 for a one-bedroom, $2,100 for a two-bedroom, and $2,750 for a three-bedroom.

Based on the rate proposal sheet tenants received, the monthly revenues would be roughly double the monthly payment for a $15.5-million 30-year loan — with a 20 per cent down payment — at a five per cent interest rate.

Tenants Glacier Media spoke to on June 1 said they have not received any formal notices, and Katyal, who declined to comment when reached by phone at his business, has not inspected the units.

“When the new owner says the co-op has to leave, there’s nothing the members can do about it. It’s a strange thing, and very seldom does this happen,” said the co-op’s lawyer Geoffrey Dabbs, who pitched an extension of the six-month lease terms to Katyal, who refused.

“It will still be a co-op; it just won’t have any assets. The co-op has to leave, so whether individuals squat, that’s their call, but I’m not representing them,” said Dabbs.

According to Thom Armstrong, CEO of the Co-operative Housing Federation of B.C. (CHFBC), which represents 96 per cent of the 270 co-ops in B.C., Totem Co-op is one of only eight co-ops on private land. Otherwise, 190 own their land, 50 are owned by the City of Vancouver, the Canadian Mortgage Housing Corporation owns 22, and trusts own the remaining.

“If anything, there’s the good news, this is a very rare instance,” said Armstrong, who said allowing an institutional investor to lease the co-op was “a bad idea to begin with.”

Armstrong said the CHFBC tried to assist Totem Co-op with its purchase attempt in 2017 via a loan; however, the co-op declined in a vote. Instead, the members chose to lower their rents, representing the tension co-ops face between short-term affordability and long-term viability.

“It’s awkward for me. We spend 99 per cent of our time defending decisions co-ops make,” said Armstrong, noting co-ops are subject to the same financial pressures of owners of private rental apartments.

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Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

1 week ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Homelessness: Tiny home village to open next week in Halifax suburb

Published

3 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Real eState

Here are some facts about British Columbia’s housing market

Published

4 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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