SLS FAQ2018-03-07T22:15:09+00:00

Strata Leaseholder FAQs

1. If it is difficult for the City to negotiate with all individual leaseholders, what are the options?2018-03-07T21:33:09+00:00

Strata leaseholders could consider consolidating leases at the enclave or community level, by establishing a homeowner corporation/association to achieve collective strength to negotiate future lease modifications or extensions. *RePlan is investigating what’s involved in this option.

2. At what point is it my responsibility to negotiate with the City? When do I become the player?2018-03-07T21:33:20+00:00

Each leaseholder will make their own decisions as they have the final say for their own lease. Our ask has been that leaseholders be given options to consider by the City by June 2018.

3. What can we do to help move this process along with the City, given the upcoming fall elections?2018-03-07T21:33:32+00:00

community members examine a very large map on a table with City staffBy being and staying informed and by talking to your neighbours about the issues and options.

4. Is the City looking to redevelop our older buildings as part of the 6th Avenue redevelopment?2018-03-07T21:33:46+00:00

No, the City plans to consider options for infill development in the “neighbourhood edge” area along 6th Avenue to increase affordable housing, where the first phase of community planning will take place. Planning and any redevelopment of existing housing is not part of this phase. The planning process for existing FCS sites under long term land leases doesn’t begin until the second phase, and that timeline is still to be determined.

A picture of the "community edge" as outlined in the FCS Terms of Reference. The area includes the 6th Ave. corridor, including the railway corridor.

5. Is there any indication what the length of the lease renewal might be?2018-03-07T21:34:01+00:00

The City has not yet indicated the length of term it is considering. But we are requesting a total remaining lease term that extends an existing lease to a minimum remaining term of 60 years.

We would also like a mechanism in place for future lease extensions that ensures the remaining term does not fall below 30 years – a kind of “rolling renewal” – without impairing the ability to redevelop lands as required. And so mortgages can be amortized over 25 years. (Financial institutions will amortize for five years less than the lease term.) This approach will preserve affordability for purchasers and for maintaining and improving buildings.

6. If we agree to lease modification and renewal, would the current lease be collapsed? Would we pay then? Or at the end of the prepaid lease?2018-03-07T21:35:39+00:00

We are seeking different options to suit different leaseholders’ preferences and needs. Payment options could include:

  • Monthly payments
  • Full pre-payment which would integrate cost savings
  • Deferring payment, with interest applied, until transfer of title upon sale or transfer to an estate (similar to a reverse mortgage)
  • Sharing future incremental equity with a governing body, or capping or limiting the sale price of leases as part of the lease payment

If the City decides to modify the lease payment terms, this would be negotiated by agreement with leaseholders.

7. What assurance does a strata have that investing hundreds of thousands in maintenance will be recognized in lease renewal?2018-03-07T21:35:54+00:00

We have no guarantee from the City, but strata delegates are seeking pricing for lease modification and extension that recognizes the value of capital improvements leaseholders implement to extend the life of buildings beyond the lease term, such as building envelope repairs, roofing and sustainability improvements like green roofs and energy efficient retrofits.

8. Do you think the City will decide to renew or not to renew leases?2018-03-07T21:36:05+00:00

Our hope is that the leases will be renewed to ensure FCS residents have security of tenure. 

9. What was the intent of the language “… leaseholder’s interest in strata lot at fair market value as if the lease did not expire …”?2018-03-07T21:36:16+00:00

Our sense is that this language was the result of some negotiation between the City and developers to make the neighbourhood work. The intent of the developer was to sell strata lots. The intent of the City was for the initial development to work financially without giving up the City’s freehold interest in the land. The language has made the market think there might be a relatively big lease end payment that would help with sales and re-sales. This is an important issue in the SLS’s discussions with the City.

10. What will the impact of the fall 2018 civic election be on this process?2018-03-07T21:36:26+00:00

*RePlan has always sought the support of all municipal political parties.  It also requested official Council liaisons from two of the parties. This has helped result in unanimous Council support for recommendations in five City reports.  In keeping with this practice, we are sharing our draft report on proposed options for strata leases with councillors across the parties. This practice is all the more important, given the fact there will be significant changes in Council membership after the fall election.

We are also trying to get policies in place before the election to have City staff working to make basic options available for leaseholders. Most of the staff in City departments doing the work will carry on, and there’s a lot of momentum behind this process. There has been a huge commitment on the part of City staff and community volunteers in time and resources, and we are asking Council to capitalize on that commitment to keep the work moving forward.

 

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