BURST
Residents of a long-standing Vancouver housing co-op face an impossible choice: secure their homes for the future or trigger a $1.036 million tax bill that could jeopardize their community’s affordability.
Helen’s Court, which provides housing for 98 mixed-income residents in Kitsilano, must pay the province $1.036 million in property transfer tax by June 1 when it renews its lease with the City of Vancouver, which owns the land and the buildings.
Co-op members are furious, warning that this unexpected financial burden could displace vulnerable tenants and undermine the sustainability of the affordable, co-operative housing model.
“We don’t own the land or anything, we’re just a not-for-profit housing co-op,” said David Diamond, 71, who has lived at Helen’s Court for more than 40 years. “After you sign a lease with the city, you register it with the province, and that’s when the tax is due in full.”
Helen’s Court consists of six buildings at 2137 West 1st Ave. with a total of 44 units, with about half reserved for low-income households paying no more than 30 per cent of their income on rent. The rest are set at a minimum of 70 per cent of Kitsilano’s average market rent, which the latest CMHC data places at $2,685 a month for a two-bedroom apartment.
The co-op paid off its long-term CMHC mortgage in 2019, a milestone that members say should have marked a new era of financial stability. Instead, they’re now facing an unexpected seven-figure tax bill simply to renew their lease.
The tax stems from a provision in provincial legislation that treats lease renewals for terms over 30 years as if they were property sales, triggering the tax, even though ownership does not change hands.
B.C. has no exemptions for non-profit housing providers or co-ops facing these kinds of lease renewals.
Residents say the million-dollar tax bill could threaten the financial stability of the co-op, forcing them to take on unaffordable debt, delay critical repairs or raise rents beyond what many members can pay.
“Our members are a mix of low- and moderate-income seniors and families,” said Diamond. “If nothing changes, we’ll be forced to raise rents by six per cent a year for many years — pushing out our most vulnerable members.”
Resident Carla Pellegrini, 38, said the co-op tried to work behind the scenes, talking to government officials.
“We pushed for the legislation to change privately, in meetings with the premier and finance minister, but now that we’re up against this June deadline, we’re feeling forced to speak out,” she said.
The province didn’t answer questions from Postmedia News about Helen’s Court or whether it plans to take any steps to exempt housing co-ops. In a written statement, Finance Minister Brenda Bailey pointed to the province’s promises to strengthen the co-op sector with measures including “examining the issue of upcoming lease expirations.”
In an email, a spokesperson for the City said it remains committed to working closely with co-ops to address the financial challenges posed by the property transfer tax on lease renewals.
“The city recognizes the critical role housing co-ops play in providing secure, affordable housing for low- and moderate-income residents.”
For Pellegrini and her husband, both of whom work in the non-profit sector, the co-op has made living in Vancouver financially possible.
“I’ve been at the co-op for five years. I feel like I hit the lottery every day when I know I have affordable housing,” she said. “It allows us to continue to work supporting the community while living in Vancouver.”
But now, that stability is in jeopardy.
And Helen’s Court may just be the beginning.
Pellegrini warned that at least 15 other Vancouver housing co-ops will face similar lease renewal challenges in the next three years, with another 20 in the next 15 to 20 years. Provincewide, more than 260 co-ops could be affected.
“In the middle of a housing crisis, the province needs to be building more affordable housing, but it also needs to preserve the existing affordable housing we already have,” she said.