November 2, 2018

Berkeley Squared – A West End Precedent?

 

Price Tags noted in this post that The Berkeley at 1770 Davie may be the first test for the new council on permitting ‘transformation by renovation’ (what some call ‘renovictions’) of the post-war highrise rental housing stock.

The green-and-tan tower was one of the first to be built at the start of the two-decade boom that saw more than 200 rental highrises constructed within the square mile of the West End – one of the largest concentrations of such accommodation in Canada.  Tens of thousands of modest units still serve a lower-middle-income population in a city where it is effectively impossible to replace such a housing stock without subsidy or massive bonus density.

The owner, Reliance Properties, in its June release noted that it is “a challenging time for renters … as it embarks on major reconstruction and structural work … over 2.5 years (30 months). The work will result in all apartments being open to the elements and be without heat, water and fire safety systems for a significant period.”

“Reliance knows this is difficult news for tenants, and to reduce impacts – and set the highest industry standards – we are significantly exceeding our regulatory obligations under BC’s Residential Tenancy Act and City of Vancouver’s tenant relocation policies,” said Jon Stovell, who also recently advised BC’s new Rental Housing Task Force.

“Reliance is providing more than double the financial compensation under a tenant’s regulatory entitlement, far exceeding the timeline for providing notice to end tenancy, providing compensation for moving costs, and additional relocation assistance for those who need it.

“Once The Berkeley project completes, tenants will have the first right of refusal at market rates, as per the provincial government’s recent changes to the Residential Tenancy Act.”

Since the renovation doesn’t require a rezoning, Council has no direct say in the process unless it intervenes.  And then it would be faced with the larger question about what to do with an aging building stock that, after a half century, needs major work.

The West End has recently completed a community planning process, the consequence of which is apparent on the blocks east of The Berkeley as new towers pop up.  The intent was to accommodate some additional growth while still maintaining the character (and hopefully the affordability) of most of the West End.  If the Berkeley is just the beginning of the renovation and repricing of that existing 1950-70s housing stock, the political pressure will be excruciating.

I know from experience.  In the late 1980s, there was demolition of a few 1950s three-storey walk-ups in Kerrisdale, to be replaced by condo towers, resulting in the eviction of long-term elderly tenants (as well as a loss of density and affordability.)  It was something that as a councillor I could see spreading throughout the city, particularly the West End.  It couldn’t continue.  Council responded with changes to the Zoning and Development Bylaw, including a rate-of-change provision, that effectively ended redevelopment.

The question now is whether The Berkeley is a precedent, even if the rental stock remains and the density is unchanged.  Reliance thinks this may be a unique or at least limited opportunity – but so far there is no estimation of how many buildings could be impacted.  The company has offered tenants more than double the compensation required by government, on average $10,000 for each unit, with assistance in relocation and moving.  It may have moved the bar up for such response, even as it has for rental rates to justify the investment.

While we await more response from tenants and landlords, the most important voices to hear will be the new mayor and councillors at 12th and Cambie.

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