By Nadine Robitaille
A proposed plan to convert a Centretown apartment building into condominiums is causing a stir at both regional and city councils.
The Stonecliffe apartment building, located at 175 Bronson Ave., caught the eye of local property managing firm the Regional Group, who submitted an application to the region to convert the 129-unit building into condos.
Ottawa is currently in a housing crisis says Somerset regional Coun. Diane Holmes; reacting to the region’s rental vacancy rate which, at 0.7 per cent, is the lowest in the country. She says “it’s really unconscionable” of the Regional Group to plan to remove more rental units from an already stressed rental market.
Somerset city Coun. Elisabeth Arnold echoes this concern.
It is both Ottawa council and regional council’s policy to refuse applications for apartment conversions when the rental vacancy rate is below three per cent.
The councillors say they believe the application will be rejected but worry the Regional Group may be able to challenge the decision and win.
The Ontario Municipal Board recently decided that a Toronto landlord was allowed to convert an apartment building into condos, despite the city’s rejection of his application.
Regional Group senior vice-president Jeff Gould said though he understands the councillors’ position he doesn’t agree with their opposition to his company’s plans.
“It’s true that we need low-income rental housing but there is also a need in this city for middle-cost housing,” he says adding that the condos the Regional Group has planned will meet that need.
But Holmes says the problem with the conversion is a loss of much-needed rental units.
Though nothing has been finalized, Gould confirms there may be fewer units available after the conversion.
Despite an obvious need for more rental housing buildings, developers have been concentrating on building housing for sale, not rental.
“There hasn’t been any new rental housing buildings built in 12 years,” said Holmes. “Condos bring immediate revenue. With rental units (property managers) sometimes have to wait 20 years before generating a profit.”
Though Stonecliffe is not a low-income housing building, the loss of its rental units would hurt the low-income population says Catherine Boucher, executive coordinator of the Centretown Citizens Ottawa Corp, which owns and manages social housing.
“For most people who have lower incomes…rental housing is the only housing they can afford,” says Boucher. “When we lose any rental housing, rent goes up and what’s left becomes less and less affordable.”
Holmes and Arnold say the federal and provincial governments have repeatedly refused the demands of social housing lobbyists. The councillors say the only solution to the region’s housing crisis is government-built social housing.
“We are the only country in the Western world to not have federal social housing,” said Holmes.
The regional government announced earlier this month that they will build 150 social housing units. The federal government has not offered any financial help with the project.
The regional council will vote on the Regional Group’s application in the spring.