Council urged to reject strata conversion

Frances Bula
Sun

Vancouver city staff have made an unusual move to preserve what they say is desperately needed rental housing, by saying that council should refuse to allow the owner of a relatively new condo building to convert his rental building to strata units.

That’s even though two-thirds of the 36 tenants at the Maguire building on West Broadway in Kitsilano have said they’re okay with the conversion, the current rents in the building range from $1,300 to $2,900 a month, and the owner has offered to pay the city almost half a million dollars towards its affordable housing fund.

Housing director Cameron Gray says the last time the city refused a similar conversion request was “when Carole Taylor was on council, sometime between 1986 and ’88.” Vancouver was going through a similar housing crunch then.

“The vacancy rate in Kits, which is where this is, is now zero. These renters are going to have to find homes somewhere else if this happens,” Gray said.

The building, which was only occupied in 2004, is not in any of the areas that Vancouver has tried in the past to preserve from demolitions or conversions and it’s not even in one of the broad swathe of apartment zones that council will be deciding in May should also be protected from demolition or conversion.

But councils do have the right to stop any landowner from converting to strata because the provincial Strata Property Act allows them to regulate conversions and to take into account “the priority of rental accommodation over privately owned housing” in an area. The city did allow a similar conversion by the same owner of a building on West 12th two years ago.

Gray noted that Vancouver isn’t likely to see a rash of this kind of conversion attempt or political debate, because there aren’t many buildings in this situation. Most developers stratify their buildings when they’re being built, even if they plan to rent them out for a while, so that they don’t have to come to council later for permission to convert. But a few developers have decided they would rather have them classified as rental buildings, which helps them save some money on insurance costs with the Homeowner Protection Office.

“This is an unusual recommendation, but it’s unusual to have large applications like this,” Gray said.

It is a sign, however, of how concerned city staff and politicians are about the increasingly difficult housing market.

NPA Coun. Suzanne Anton, whose party generally prefers to see a minimum of government interference and a maximum of market solutions to housing problems, said this will be a “tough decision to make” given the shortage of rental housing in the city. “It is an expression of our general anxiety over the loss of rental housing.”

Coun. Raymond Louie, with Vision Vancouver, said he will support the staff recommendation. “We cannot have a continuous loss of rental stock.”

Building owner Les Sallay’s representative, Chuck Brook, said Sallay has offered to pay $15,000 per unit, the amount that Downtown Eastside hotel conversions are charged, which would put $440,000 in the affordable housing fund. As well, the building hardly represents affordable housing in Vancouver, with rents up to $2,900, Brook said.

However, Gray notes the low-end rents of $1,300 are what is considered affordable — 30 per cent of gross income — for someone making $52,000 a year.

Voting on the recommendation has been put off until May 17.

© The Vancouver Sun 2007

 

UBC CAMPUS: Students, profs live under same roof in central, classy apartment

Kerry Moore
Province

When a location boasts as many advantages as Galleria, it attracts a wide range of people.

Situated a block south of the “village” at the University of B.C., Galleria is walking distance from Pacific Spirit Park, the UBC Aquatic Centre, Thunderbird Stadium, the UBC Botanical Garden, the Museum of Anthropology, numerous cafeterias, UBC Hospital, the university public golf course and, of course, the university itself.

“We are seeing a real mix of people buying in here,” says sales manager John Caldarella.

Parents are buying units as investments and letting their university-attending children live there, he explains. Others are buying them as investments and renting them out. University personnel are moving in, as are people from the area who are downsizing.

“It’s an all ages, all types mix,” says Caldarella.

Galleria, which features Scandinavian-inspired architecture, is ready to move into, says Caldarella. In the interests of quick completion, washer/dryers are now part of a standard package that includes stainless appliances — refrigerator, electric Ceran-topped stove, hood fan, dishwasher and in-sink disposal.

Wall colours are two-toned coffee shades, there are wood laminate floors in living areas, porcelain tile in bathrooms and carpet in bedrooms.

In the one-bedroom suites, laminate counters replace the granite counters, which are standard in the two-bedroom units.

All suites come with their own parking spot, with hard-wired smoke detectors, and are pre-wired for a security system and high-speed Internet access.

THE DEAL

What: Galleria is an apartment complex with nine units in a four-floor building.

Where: 5689 Kings Road, University of B.C.

Developer: Orca West

Developments

Sizes: 600 to 803 square feet, one bed-one bath and two bed-two bath units.

Prices One bedrooms from $409,900, two bedrooms

from $493,900.

Open house: Daily from noon to 5 p.m., closed Fridays.

On the web:

www. orcawestdevelopments.co

Phone: 604-225-2220

© The Vancouver Province 2007

 

Buyer protection: Get it in writing

Jeani Read
Province

While B.C. may have the best new-homebuyer protection in Canada, that’s not a licence to be smug, says Jan Calkins, manager of communications for the Homeowner Protection Office.

People still need to educate themselves and take responsibility for their homes.

“People know they have to maintain their cars, but with their homes they think they’re forever,” says Calkins. “When they purchase a home, people don’t put the same due diligence into that investment.”

If owners don’t do the correct maintenance on their homes, it may affect their warranties.

“Warranty providers can limit the insurance if the the proper maintenance has not been done,” says Calkins. If the warranty providers want to make the coverage contingent on proper maintenance, they’re required to provide a maintenance manual to the owner; if the owners fail to follow it, their insurance may be limited.

“Make sure you do it properly,” says Calkins.

The Homeowner Protection Office’s tips on home maintenance are available at www.hpo.bc.ca, or by calling 1-800-407-7757.

The Homeowner Protection Act was passed in 1998, and in 1999 regulations were brought into effect to give homebuyers an excellent level of protection: a two-five-10-year warranty. This means two years of coverage on labour and materials, five years on the building envelope and 10 years on the structure. Builders must be licensed with the Homeowner Protection Office and have insurance from a warranty provider before they begin construction.

But homeowners should be vigilant, Calkins says. If they don’t receive documentation for their new home within a month, for example, they should get in touch with their insurer to make certain they receive it.

As well, buyers should remember strata-titled homes have two warranties: one on the unit and one on the common property. It’s important to be aware that the commencement dates for the two warranties can be different.

The two-five-10 warranty goes into effect when the first unit of the development is occupied. Some owners who pre-buy into a big development that may take two years between first-occupancy and completion may only be insured for eight years, which may affect the price.

“It’s good to know and ask and be informed,” says Calkins. “It’s a big question and a good negotiating point.”

When you buy your new home, do your homework, says Calkins. Talk to the builders, developers and real estate agents. Some homes that people assume are single-family detached dwellings are, in fact, strata-titled homes, which brings up the issue of common property.

“In this hot market, people often leap before they look,” says Calkins. “Ask questions and get it in writing.”

© The Vancouver Province 2007

 

Development will sit kitty-corner to the public library, with Yaletown, theatres and shops nearby

Mia Stainsby
Sun

ATELIER ON ROBSON

Location: Downtown Vancouver

Project size: 202 homes

Residence size: 525 sq. ft. – 1,500 sq. ft., 1 bedroom, 1 +den, 2 bedrooms, 2 +den

Prices: From $339,000

Presentation centre address: 400 Robson, when it opens end of May

Phone: 604-228-2020

Web: atelieronrobson.com

Developer: Magellen 20/20

Architect: IBI/HB Hancock Bruckner

Interior design: Robert Ledingham

Tentative construction completion: Fall, 2009

Atelier on Robson will rise on one of the last remaining residential sites on Robson Street, the buzz of urban Vancouver outside and a cool, contemporary calmness inside.

Developer Henry Man completed many condo projects as former senior vice-president and COO of Concord Pacific Developments in Vancouver and COO of Concord Adex Developments in Toronto (at the same time) but he’s particularly hands-on with this one. He wants it to be something of a legacy for him and the word ‘iconic’ is a recurring part of the Atelier lexicon.

“Architecturally, it’s going to be very strong and fitting of an iconic location,” he says.

“It’s at a very strong, international corner. Construction costs, being so high, it’s hard to spend as you wish, but this is an iconic location and it’s going to be my flagship location.”

It stands kitty-corner to another Vancouver icon, the Vancouver Public Library with its Roman coliseum reference.

As well, it will be walking distance to Yaletown, theatres, shopping on Robson, and of course, the library. Depending on the position of the suites, there are views of the North Shore mountains, Coal Harbour, Burrard Inlet, Stanley Park and the majestic, glaciated Mount Baker.

The City has plans for a park on an adjacent property.

“There are two Starbucks nearby,” he says, as if it were Vancouver’s barometer of street life.

Its proximity to shopping, sports and entertainment centres, the Canada Line (once completed) and a famous street (Robson) will appeal to international buyers, he says.

“During the 2010 Olympics, residents have a view from the observation deck, of Library Square where Olympic

festivities will be taking place,” he says, although he isn’t marketing internationally.

As a developer, Man stands at a different place in life from his former days of juggling up to 10 projects at a time. The deeply religious man retired in 2002 to devote more time to family and church. “I was making 20 trips a year to Toronto and five to Asia,” he says. “I wanted to spend time with the family, watch soccer games; I want to achieve a balance, which is very elusive.”

But one thing led to another and he was back in the game. But now he oversees only one property at a time. The last one was Freesia at Seymour and Helmcken.

Atelier, designed by IBI/HB Hancock Bruckner, riffs on the circular curves of the Vancouver Public Library and the Westin Grand Hotel which limns the curves of a piano. “Our building therefore has flowing curves to respect the neighbourhood buildings,” he says.

“The look and feel will be contemporary and high-end. The podium level will be 50 feet high with the clean look of glass and not a lot of framing. We’ve pulled the tower back from the podium for a feeling of space around the building.”

Upon walking through the door, you enter a lobby, designed for memorable first impressions with a 20-feet ceiling, limestone walls, granite floor, chandeliers resembling crystal balls and a 12-feet-wide fireplace. Off to one side, there will be a lounge area with Corbusier-style furniture. “When visitors go in, I’d like to think they’d be very impressed,” says Man. “I’m spending a lot of time working with the interior designer [the top-notch Robert Ledingham].”

Other amenities include a gardening deck, restricted elevator access where residents can only go to their own floor, and a parking spot, included in the price. “People can travel and be away and have peace of mind,” Man says of the restricted elevator access. (For that matter, they could live in another country for part of the year.)

There will be a 24-hour concierge service, not only for the exclusivity but for security. “They’ll be able to monitor various parts of the building by video.”

Part of Man’s impact on design is in its space efficiency, maximizing the usable over wasted space. “People talk about dollars per square foot but if some of the square footage is in extra long corridors, you’re paying for corridors space that’s not usable, so I try to minimize that. It takes a lot of gymnastics because you have to balance mechanical elements,” says Man, who has an engineering degree as well as a MBA.

“Now that I’m doing one project at a time, I can pay more attention to details. I think the architect thinks I spend too much time there,” he laughs.

Individual suites are outfitted with high-end Sub-Zero, Liebherr and AEG appliances, which will be integrated into the wood cabinetry. Buyers can choose colours and stone countertops. Condo ceilings are commonly 8-feet but Atelier ceilings will be 8 feet, 6 inches and some will be as high as 9 feet, 6 inches.

Eastern suites will have floor-to-ceiling glass frontage but western exposures will have more solid panels and “fins” which will act like shallow awnings to cast a shadow in the afternoon as protection from the summer heat. “The placement of the balconies was important and we tried to use it to advantage on the west side,” Man says.

As for pricing, he says his approach is aggressive. That is, lowered cost for faster sales. “The price is a little lower than market so the selling period is shorter, therefore, I can start construction sooner. It compresses the cycle.”

For a guy who can sound all business, he waxes poetic when it comes to Atelier: “I’m incredibly lucky to have this site. I’m blessed, I tell people. It’s not only on Robson St., it all lines up, like the Sun and the Moon.”

Atelier will go on the market sometime next month , he says and be completed by Fall, 2009.

© The Vancouver Sun 2007

Yvonne Jeffery
Sun

The federal government’s EcoENERGY Retrofit program went into effect April 1, and has some significant differences from the EnerGuide for Houses Retrofit Incentive that was cancelled last year.

It still requires an independent energy evaluation of your home before and after the renovations — the evaluation is no longer paid for by the program (it will likely run you approximately $300, depending on your home) — but there’s a list of standard grants available for specific renos, which makes it easier to plan your budget.

If you’re installing a certified heat recovery ventilator, for example, you’re eligible for $300; improving your attic insulation could net you $100 to $600. And, for the first time, alternative energy sources such as solar hot water heating, and grey water heat-recovery systems are part of the program.

The government says 17 per cent of all energy used in Canada goes to running our homes. Reducing energy not only helps the environment, but could mean big savings on your energy bills — an average of 35 per cent annually if your home’s more than 25 years old.

Calculating your potential energy savings is where government-approved energy advisers, come in, but Stephen Farrell. owner of Calgary-based VerdaTech Energy Management and Consulting Inc. says the energy evaluation deals with much more than just dollars.

“The evaluation is a two-hour education process, one-on-one with the homeowner, helping them to understand their house as a system,” he says, explaining that when you change one thing in a house — such as draftproofing — it can affect other things, such as ventilation.

Understanding the relationship between the elements that make your house safe, comfortable and energy-efficient, he adds, helps you to choose the most effective energy-reducing measures. “The biggest bang for your buck is always conservation,” Farrell says.

The initial energy evaluation will show you where your house is “leaking” energy, and what you can do to solve the problem.

You’ll receive estimated payback times (based on energy savings potential) for various renovations, how much of an ecoENERGY grant you’d receive, and what kind of products you should be looking at.

In most cases, expensive renovations such as replacing siding or windows aren’t worth doing solely for their potential energy savings.

Farrell notes that if you’re re-siding anyway, it’s a great opportunity to add insulation to the house exterior. Replacing older windows, with energy-efficient new models or draftproofing your house can work wonders, as can adding attic insulation and choosing Energy Star-rated products such as appliances.

If you’re building a new house or embarking on a renovation, it’s worth looking into alternative energy sources such as solar thermal systems for heating water, now eligible for grants.

How the ecoENERGY Retrofit program works

Step 1: Contact NRCan to find an approved, licensed energy adviser to conduct an energy assessment of your home. The service includes a detailed energy evaluation; a “blower door” test to find air leaks; a printed report that shows how your home is using energy and the measures you can take to improve it; and an energy efficiency rating that shows how efficient your home is compared with others in your region.

Step 2: You have 18 months from the assessment to complete your energy-saving renovations, and yes, you can do the work yourself.

Step 3: Have your home re-evaluated to show which of the recommended measures you’ve completed. Your energy adviser will then fill out and submit the paperwork for your grants.

© The Vancouver Sun 2007

 

Sales declined from last year, but rising prices mean overall value is up

Derrick Penner
Sun

B.C.’s real estate markets are no longer sellers’ markets for the most part, although they aren’t buyers’ markets just yet, according to statistics compiled by the B.C. Real Estate Association.

The association released its first-quarter provincial sales report Thursday, which showed that the ratio of Multiple Listings Service real estate sales to the number of homes in the inventory declined to 29 per cent in March compared with 39 per cent in March of 2006.

“This year, at least for March, [the sales-to-listing ratio] is on the higher bounds of a balanced market,” association chief economist Cameron Muir said in an interview.

That means there were enough people selling homes to meet the demand of buyers, though not so many that they flooded the market.

MLS-recorded sales declined six per cent to 22,198 units in the first quarter of 2007 compared with the same months of 2006, the real estate association reported.

Steady demand, however, continued pushing prices up in the same period to hit $415,765, which is 12 per cent higher than the same point last year. So the total value of real-estate transactions for the quarter reached $9.2 billion, some $462 million higher than the total in the first quarter of 2006.

Muir added that provincial unemployment remains at a record low (3.9 per cent at the end of March), the economy is growing and still adding jobs, average wages are rising faster than inflation and mortgage rates remain relatively low and are not projected to rise quickly.

“Those are all positive for the housing market,” Muir said.

“What’s not as positive is [high] home prices. Low-equity buyers, typically younger people buying their first home, some of them are facing a price-lead affordability squeeze.”

That, Muir added, is cutting into demand.

Robert Helsley, an economist and professor in the Sauder School of Business at the University of B.C. said the sales-to-listings data reported by the B.C. Real Estate Association is the best evidence that real estate markets are slowing.

However, Helsley added that the provincial economy is still doing well and the prospects for population growth, particularly in Vancouver, are so strong “it is hard to forecast a substantial softening.”

It would take a sudden rise in interest rates or a large global economic shock to shake B.C. into a real estate downturn, Helsley said, and the meltdown of subprime mortgage markets in the United States won’t be it.

“Markets are somewhat softer than they were a year ago, sort of taking a breather,” Helsley added. “But it certainly doesn’t appear to have turned down, at least in terms of price.”

© The Vancouver Sun 2007

 

Don Cayo
Sun

The NPA, Vision and COPE all agree that business taxes in Vancouver are seriously out of whack and something has to be done.

So Councillor Peter Ladner had a point when he characterized the political grand-standing surrounding Thursday’s approval of the city’s 2007 tax rates as a quibble over just $5.25 a month of additional cost to each Vancouver homeowner.

But if that’s the case, how did such a trivial change add up to the whopping eight-per-cent increase in residential tax rates?

And, if the amount at stake is so small, how come it matters so much to business?

The answer to both questions is that, although Thursday’s debate was indeed about fairly small increments, there’s nothing small about the total amount involved.

It was already a done deal when councillors walked into the chamber to begin their deliberations that somebody was going to be hit between the eyes. A big tax increase, in one form or another, became a certainty a month ago when council decided it just had to have an extra 3.98 per cent in property tax revenues this year.

So the only question left for Thursday’s meeting was who would have to pay the lion’s share — or, as it turned out, the whole share — of that increase. All parties agreed that the imbalance was so egregious that a significant shift from business to residents was overdue. So the argument boiled down to just this: Would council reduce the business burden by one per cent of the total tax load — as Vision and COPE councillors seemed to favour, although they carefully avoided saying so — or by nearly two per cent, as Ladner proposed and the NPA majority endorsed?

The shift means that the new business tax rate in Vancouver is 5.63 times higher than the residential rate. That’s down from 6.15 times higher, but still the most business-unfriendly rate of any city in Canada.

Thursday’s decision lifted a total of $10 million worth of tax liability from business shoulders and placed it on the backs of residents.

A quick analysis of the numbers shows why that can provide big relief for business while amounting to — in relative terms — a small extra burden for residents. With just under 600,000 residents in the city, $10 million works out to about $17 a head — or perhaps twice that much per residential property. However, with only 43,000 businesses, that $10 million works out to $232 each — nearly 14 times more.

Of course, those are average figures, and in reality the tax load will not be spread evenly across either business premises or residences. Homeowners and businesses whose properties have shot up in value will get hit with much larger-than-average increases, and the tiny minority whose property values have stalled or dropped may even see their tax bills go down.

But an eight-per-cent average increase is a big one, and councillors are braced for a backlash on both sides of the ideological divide — NPA members who voted for the shift, and Vision and COPE members who said they supported a big shift, but voted against this one at this time.

They will hear, no doubt, of some genuine cases of hardship that this increase causes. Residential properties are also vulnerable to “hot spots” of huge tax increases that have plagued business owners in locations that suddenly become trendy. And they will hear, too, from people who are simply fed up seeing their tax bills rise so much faster than their salaries.

I have some sympathy for that latter view, but I’m afraid I can’t offer any words of comfort. Indeed, I fully expect it to get worse before it gets better.

Prior to the shift, businesses in Vancouver were consuming 24 per cent of civic services, yet paying 55 per cent of the costs. Now they’ll still be consuming 24 per cent — possibly a little less as residential growth continues to outpace business development — and they’ll be paying 47 per cent of the costs.

So no one should delude themselves that the inequities are fixed. The situation has simply been made a little more tolerable — and a powerful signal has been sent. But there’s still a huge reform task to be undertaken when the city’s Property Tax Commission comes up with final recommendations in June.

All of which brings me back to my first point — that the real root cause of the eight-per-cent increase in residential tax bills is not to be found in Thursday’s tinkering, but rather in the March 13 decision to increase the total property tax levy by 3.98 per cent. If council hadn’t done that — if they’d held the line on spending — they could have had a zero increase for business and a zero increase for residents as well.

© The Vancouver Sun 2007

 

Council votes to protect businesses by shifting burden to residences

Frances Bula
Sun

City of Vancouver homeowners will pay all of the tax increase for the city this year, after a precedent-setting shift of taxes away from business.

That means the average tax increase for homeowners will double to eight per cent from four per cent, while the overall business tax contribution will essentially be frozen.

This is the first time in the city’s history that taxes have shifted so dramatically.

Opposition councillors argued that the decision should have been deferred for two weeks to allow council to fully understand all the impacts of the move and to hear from the public.

“I’ve got some major concerns that this process is flawed,” said Vision Vancouver Coun. Raymond Louie. His colleague, Tim Stevenson, pointed out: “This is a huge increase. This is going to be a tremendous hit.”

But ruling Non-Partisan Association councillors said the public has known for a long time that council was considering a tax shift and that it was time to show leadership in order to protect the city’s small businesses.

The shift will mean that the overall tax contribution from business will remain frozen at 2006 levels, even though individual business taxes may drop, stay the same or even rise.

“This would certainly take us boldly where no council has gone before,” said Coun. Suzanne Anton

She and fellow Coun. Peter Ladner both acknowledged the move, which will see homeowners now paying 47 per cent of the city’s total tax bill instead of 45 per cent, is going to be a tough political sell to voters.

Some higher value properties — with assessed values that have increased more than the 24-per-cent average since last year — will take a significant tax hit.

One sample calculation done by the city’s finance director showed that a house near 43rd Avenue and Vine Street with an assessed value that increased to $3.7 million in 2007 from $2.9 million in 2006 would end up with a tax bill of $7,666. That’s $791 higher — or 11-per-cent more — than the previous year. About $310 of that would be due to the business tax freeze.

But NPA councillors noted that the owner of the average $740,000 house in Vancouver will only pay an additional $5.25 a month because of the freeze, which they believe Vancouver taxpayers are willing to accept.

“People get it. They want to protect their neighbourhoods,” said NPA Coun. Kim Capri.

NPA councillors lean heavily on the argument that the tax freeze will help support neighbourhood businesses, although it will actually benefit all businesses in Vancouver because the city is not able to set different tax rates for small and large businesses.

As well, the freeze will have wildly differing effects, depending on whether a building is in a hot commercial zone that rose in value or not.

Sample calculations showed a retail business at 18th Avenue and Dunbar Street will pay almost $3,000 less in taxes under the freeze.

One at Broadway and Laurel Street will see an increase of $8,000, instead of $17,000, and a major office building in the downtown business district will see its taxes drop by $113,000 instead of the $61,000 drop it would have seen with no freeze.

The final report on the tax shift was available to the public about 36 hours before council meeting Thursday. Only six persons came to council to speak to it, all business people supporting a tax freeze for businesses.

Several councillors noted that they were already starting to get dismayed and angry e-mails.

Business groups were thrilled with the decision, however, which they have been lobbying for intensely over the past two years.

“The City of Vancouver is currently engaged in the largest commercial property tax revolt in the history of Canada,” said Fair Tax Coalition member Paul Sullivan, as he urged councillors to vote for the freeze. “This is a very nominal cost for residents to accept.”

However, some residents are already expressing some dissatisfaction.

Laura Quilici, who lives in a Strathcona townhouse with her artist husband, said the tax increase is difficult to take for a family like hers.

“We have a daughter who’s three and our daycare rates have gone up too.”

But she’s mainly upset by the process, which she feels was sprung on taxpayers.

“I don’t remember them talking about doing this. I just remember their election promise was to keep taxes low. If you know things like this are coming, you can mobilize to protest it or you can at least plan for it.”

But, she said, she had no idea the council was planning anything like this.

TAX TIME

Vancouver homeowners are being hit with an 8% tax hike.

AVERAGE HOME PRICE $750,000

AVERAGE ANNUAL TAXES 2006

$1,449

AVERAGE ANNUAL TAXES 2007

$1,575

An increase of 8%

© The Vancouver Sun 2007