Strata Leaseholders Society Members Vote 91% in Favour of Approving the Memorandum of Understanding to Extend and Modify Strata Leases in False Creek South

On September 21, 2022, at a general meeting of the membership, the Strata Leaseholders Society (the Society) members approved a Memorandum of Understanding (MOU) with the City of Vancouver to extend and modify existing leases for leasehold stratas in False Creek South.

General Meeting Vote Results

477 (86.7%) of the 550 Society members voted

435 votes (91.2%) were cast in favour of the MOU

The MOU was strongly supported by leaseholders, with the votes in favour greatly exceeding the 75% threshold required for approval. This vote was the final step in approving the MOU after it was approved by the Society’s Board of Directors and Vancouver City Council, as announced on August 2, 2022.

The MOU

The MOU provides for 20-year lease extensions for strata leaseholders, subject to their prepayment of the extension and individual acceptance of a lease modification that provides a method to calculate their fair market value of the leaseholder’s interest in the strata lot at eventual lease end. The rent prepayments for the extension are based on the current market value of the unimproved land, with no subsidy.

The 20-year extensions will take existing leases currently ending in 2036 to 2056, 34 years from now; current 2040 leases to 2060, 38 years from now; and, current 2046 leases to 2066, 44 years from now.

NEXT PHASE

The City of Vancouver will offer each of the 669 individual residential strata leaseholders in False Creek South the option to accept the lease extension and modifications. The offer will be open for five years from the effective date, which could be as soon as October 2022, making the option available to whoever is the owner during those five years through October 2027.

ROLE OF THE SOCIETY

The Society was formed in 2018 as a bargaining agent for member strata leaseholders to negotiate lease extension and renewal with the City of Vancouver. Membership has grown over the past four years, now representing 550 (82%) of the 669 residential strata leaseholders in False Creek South. Formal negotiations with the City started in November 2021 and concluded in July 2022. With negotiations complete and the MOU approved by members, the Society will continue to engage with the City as it develops the individual lease modification offers for all 669 leaseholders to implement the terms agreed to in the MOU, through the launch of the offer. The Society will also provide members with comments regarding the lease modifications.

For more information, to read the MOU, and for detailed Frequently Asked Questions, please visit our website: http://www.falsecreeksouth.org/2022/07/sls-information-sessions-2022/ or contact the Society at *email is hidden, JavaScript is required*