Brantford looking for ways to limit condo conversions

City officials will soon be looking for ways to regulate the conversion of rental apartments to condominiums.

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Mayor Kevin Davis and Coun. Richard Carpenter (Ward 4) on Tuesday said regulations are needed to protect those interested in purchasing newly-converted condominiums. They’re also needed to ensure the city has enough rental apartments available to those not yet ready to purchase a home.

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“We’re not trying to take anyone’s rights away,” Carpenter said at the April 16 council committee meeting. “We’re trying to make sure everyone’s rights are protected.

“Our job is to protect the community as a whole, not just one group.”

Both Carpenter and Davis said the regulations aren’t aimed at discouraging or prohibiting condominium conversions. Rather, they will be aimed at making sure they’re done in a way that doesn’t leave condo owners in a bad spot.

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Under some scenarios, a person purchases a condo for $300,000 or $400,000 only to find that the condo fee – money needed to help pay for maintenance and repairs – is about $400 or $500 a month because major repairs are needed, Carpenter said.

The person then finds themselves in a situation where they can’t sell their condo and are paying much more than they expected in condo fees, he added.

Such conversions, if left unchecked, could leave the city with a shortage of rental units.

Davis said he is familiar with a rental building that was converted to a condo and there are now problems with the infrastructure. The owners are now facing special assessments of more than $50,000 to correct the problems.

There have also been cases in the past where an owner of a rental building, recognizing that major repairs are needed, converts the building to condos to pass on the expense to condo owners, Davis said.

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Rental apartments are an important part of the city’s housing strategy and there hasn’t been much by way of new rental housing construction in recent years, largely because developers get a better return on condo construction, Davis said.

The federal government has taken steps to address the issue but it will take a while for those initiatives to have an impact, Davis said.

“In the meantime, I think it’s reasonable to protect the rental stock that we have and that we take a look at when we will allow condo conversions and when we won’t,” Davis said.

“Perhaps it will be tied to the vacancy rate, that is when it drops below a certain level then perhaps we wouldn’t allow a condo conversion.”

Councilors have recommended for approval, a plan that will have city staff look for ways to limit conversion of rental apartments to condominiums. The plan is expected to be approved by city council when it meets April 30.

If approved, city staff will be expected to have a report for councilors to consider later this year.

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