Condo Conversion and Rental Shortages

Last week the Municipal Planning Commission (comprised of the Mayor and four councillors) had to consider a request to convert one of Athabasca's few apartment buildings (with 12 units) to a condominium.

The conversion of apartments to condominiums is a hot issue in Edmonton and other parts of the province, as renters are pushed out of their homes to make way for condo buyers. This has resulted in a huge shortage of affordable rental accomodations, and a rent hike squeeze for those who are lucky enought to have a place to live.

Under the Municipal Government Act council cannot deny a condo conversion, but other cities, concerned about keeping a good supply of rental apartments available, have intervened and shown civic leadership to protect renters, and especially to encourage Apartment Building owners to assist renters to become condo owners.

Other cities have worked with owners and money lenders (such as Credit Unions and the CMHC) to make every effort to assist renters to become condo owners. According to the editorial in last Saturdays Ed. Journal, some cities have brought in tax penalties and other measures to slow or control the process of condo conversion. In other words, a socially conscious council can express its concerns about condo conversion and its support for renters and affordable housing as a social issue, not simply defend the status quo as the free market at work, and roll over as if councillors are powerless to address decisions by property owners, or worse, ignore the impact on our community. According to one of my friinds looking for an apartment in Athabasca last week, the wait list may be almost 50 people long, and getting longer, just to be considered for a rental.

I brought up these issues for discussion (it did not make the paper because the Advocate reporter does not attend MPC) and I proposed a motion that we draft a letter encouraging a social commitment from the owner (who lives in Edmonton) to the renters (who live in Athabasca)and ask him to consider at least to approach the current mortgage holder of his building about helping renters get affordable mortgages so they could have first dibs on the condo unit. My motion did not receive a seconder.
No interest.

Why should that bother Athabascans?

1) If not the Mayor and Council, who is supposed to show civic leadership and put the collective or community needs ahead of private self-interest. Councillors should draw on their backgrounds as lawyers or business people, or bankers, or professors, but in the end we are supposed to also be open to all aspects of an issue, to see things from the point of view of local citizens, especially those citizens who are most vulverable such as youth, the aged, and those whose housing security is tenuous. That is civic leadership.

2) Mayor Verhaeghe and Councillor O'Farrell had to ask the CAO where the building was located before they offered their opinions supporting owners rights and explaining how council should stay out of what, to them, was an owners decision. Councillor Hawryluk felt that the market would sort it out, and people would find places to rent.

3) Nobody was interested even in a letter of concern to the owner expressing our support for the renters who live and work in our own town, even if, according to the Town's own sub committee on Community Economic Development, there is a major shortage of affordable housing and rental housing in Athabasca.

Go figure.
MikeG