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Short term help for struggling tenants

Coquitlam-Port Coquitlam MP confirms one month remaining on subsidy unless agreement reached
Hoy Creek
A photo of the Hoy Creek Housing Co-op townhouses, which had to be demolished after a fire. The future of redevelopment plans and subsidies to low-income residents is currently up in the air.

The clock is ticking for Hoy Creek Housing Co-op residents seeking a last-minute reprieve that would protect their rental subsidies for a year.

And Coquitlam-Port Coquitlam MP Ron McKinnon is stepping into the issue with a meeting planned for next Tuesday.

“The message I would like to get across to the tenants is there is one more month of subsidy coming. They really need to put pressure on their board to co-operate with CMHC,” — MP McKinnon

The federal Liberal MP intends to meet with the board of the Hoy Creek Co-op to hear their side of the issue that has divided residents in the Glen Drive housing complex.

In an interview with The Tri-City News last week, McKinnon confirmed that residents would continue to get their subsidies until the end of July and said an extension to March 2018 could be arranged if the board works with Canadian Mortgage and Housing Corporation (CMHC) on a new operating agreement.

“The message I would like to get across to the tenants is there is one more month of subsidy coming. They really need to put pressure on their board to co-operate with CMHC,” McKinnon said.
 

TRIPLE RENT

Without the subsidy, 35 residents in the 97 units would pay a lot more — one disabled tenant last week said his $350 rent would go up to $1,100 — which could leave them homeless, and many are anxiously awaiting a resolution to the situation.

At issue appears to be a disagreement between the board and CMHC over who should be responsible for redeveloping the property.

Failing an agreement, the issue has also landed in the courts.

In recent court filings, it was noted that Pricewaterhouse Cooper (PwC) was appointed receiver to oversee the demolition and decontamination of five townhouses burned in a fire; that work is nearly complete. Now, CMHC wants PwC to have its role expanded to include working with CPA Development Consultants to redevelop the site.

CASE IN COURT

In an application to the B.C. Supreme Court on June 14, CMHC stated the co-op “lacks the financial resources to implement and complete the redevelopment process on its own.”

The court has yet to decide on expanding PwC’s powers to include planning and redeveloping properties at 2905 Glen Dr. and 1205 Johnson St. But according to the court application, the co-op has been pursuing a redevelopment plan for the property since 2009.  

Remus Herman, chair of the volunteer board that the runs the co-op, said the board will provide a statement later this week.

“What the board thinks and what the people think are two different things,” — Bobbi Style

But at least one resident would like the issue to be resolved so residents can continue to get their subsidies.

“What the board thinks and what the people think are two different things,” said Bobbi Style, a 12-year tenant who was born with cerebral palsy and uses a wheelchair. He would like to see the board concede to CMHC so the operating agreement can be renewed and the subsidies continue. In a statement, CMHC said it has already spent $2 million on the demolition and to protect the health and safety of the residents. It maintains as well that it is owed $3.7 million by the co-op, not including the demolition costs. 

“We would encourage the Hoy Creek Co-op board to consider the extension of our operating agreement so that the tenants can remain in their affordable homes,” — CMHC 

“The operating agreement between CMHC and Hoy Creek Co-op is scheduled to end on July 1, 2017. CMHC will consider extending the agreement until March 2018, under the condition that the co-op collaborate with the court-appointed receiver in moving forward with a redevelopment of the property,” a media relations officer for CMHC stated in an email to The Tri-City News.

“We would encourage the Hoy Creek Co-op board to consider the extension of our operating agreement so that the tenants can remain in their affordable homes,” the statement by Audrey-Anne Coulombe added.

Even if the co-op agrees to CMHC’s plan, the subsidies can’t continue beyond March 2018, CMHC says in the court application. But the federal agency maintains that by supporting its redevelopment plan, a second mortgage would be forgiven, it would have access to other federal initiatives and the co-op would be in a better position to preserve affordable housing at the property.

— with files from Gary McKenna