Don’t let one man’s property rights outweigh the needs and will of an entire community

DTES Community organizing against Sequel 138 condos shows united opposition to displacement by gentrification.

The date is looming for the City’s Development Permit Board meeting to decide the fate of the Sequel 138 condo proposal. It’s been a year since nine major Downtown Eastside (DTES) community organizations formed a coalition to stop Sequel 138 condos. Their campaign involves thousands of DTES residents, workers, social housing providers, artists… united in opposition to a bad proposal for a destructive condo project in the heart of the most vulnerable urban community in the country.

In the midst of a gentrification storm in the Downtown Eastside with more than 688 new condo units proposed or planned this year, the Sequel 138 proposal at the Pantages site might seem like a strange project to target. It’s only 79 condos, it doesn’t require a rezoning, and it includes 9 units of welfare rate social housing. But the Sequel project is different because it is the first condo proposal ever made in the DTES Oppenheimer District, where 80% of the residents are low-income and most live in substandard SRO hotel rooms.

Most importantly the Oppenheimer District was highlighted by city planners and lawmakers (back when they actually talked about social housing) as the area expected to host most of the needed social housing for the DTES. To make this goal possible they drew up an “inclusionary zoning” bylaw to keep land prices and rents low and keep the real estate speculators at bay: any new development in the area must include 20% social housing. Now, if the city gives a green light to the Sequel project, speculators and developers will swarm over the cheap land as investment opportunities.

Downtown Eastside residents sound the DISPLACEMENT alarm

UNCEDED COAST SALISH TERRITORY, VANCOUVER: On Tuesday April 10th more than 100 Downtown Eastside residents gathered for a rally in the theatre of the Carnegie centre to sound an alarm: Displacement, they said, is happening. And worse, if city council does not take immediate and serious action, it will quickly become a desperate crisis.

The rally was motivated by developer Marc Williams’ proposal to build 79 quarter-million-dollar condos on the 100-block of East Hastings Street, between the Regent and Brandiz hotels and across the street from North America’s only legal supervised injection site. The proposal is years in the making and was rejected by two separate city bodies last year but is back and scheduled to go to vote at the city’s Development Permit Board on Monday April 23. That board, made up of developers, business investors and other political appointees, will vote on the project based on its measure within existing building policies. The DTES Not for Developers Coalition has been organizing against the project for about a year, and Tuesday’s rally continued their call for City Hall to reject the project.

Sixteen community groups gathered with the DTES Not for Developers Coalition to speak in one voice from their diverse specific perspectives and demand that the city say no to “Sequel 138″ condos and to buy the site and dedicate it entirely to welfare and old age pension rate social housing.

The rally was opened with statements from people who live in SRO hotels on the 100-block of East Hastings, where the condo project is proposed. Washington Hotel residents are “illicit drinkers, drug users, and we struggle with our mental and physical health. We are the people who are not wanted by developers and condo owners.” Their statement was read by John Skulsh, who said, “We don’t have housing options, we have housing ultimatums: Live in this 10×10 room without the privacy of your own bathroom, and without the health, food, and hygiene choices of having your own kitchen, or go back to the street.”

Seniors fight 45% rent increase at Lions Manor, building owner gives interview to The Mainlander

Three dozen seniors living on fixed incomes in the Lions Manor building at 6th and Main have been served with a 45% rent increase. In a city with an ever-worsening housing crisis, the tenants could be faced with the possibility of having nowhere to go.

The Mount Pleasant Housing Society (MPHS), a non-profit organization set up by the Mount Pleasant Lions Club, has applied to the Residential Tenancy Branch for permission to exceed the annual rent-increase limit by more than ten times, arguing that rents at Lions Manor are below market value. In reality, the 36 residents of Lions Manor already pay between 35-45% of their income on rent, which is higher than the one-third cut-off rate defined by the City of Vancouver as affordable.*

The rent-increase hearing is scheduled for today (February 10) at the Residential Tenancy Branch. The hearing will take place by phone, adding even more anonymity to the fact that the building owners have not yet met face-to-face with the seniors to discuss the increase. Despite pressure to revoke their application, including a rally outside the Lions Manor yesterday, the Mount Pleasant Housing Society has confirmed that it will pursue the rent increase as planned.

In an extensive conversation with The Mainlander, Mount Pleasant Housing Society president Christine Norman confirmed that if the hearing comes down in favor of the tenants, her organization will appeal the decision. “We will do whatever we have to do to win the case,” said Norman by phone.

Rents have already increased within the allowable legal limit for at least the past two consecutive years at the Lions Manor. This year, however, the owners are seeking a special exemption from the Residential Tenancy Act (RTA) beyond its allowable yearly limit of inflation-plus-two-percent. Under Section 23(1)(a), the geographic area loophole of the RTA, the Mount Pleasant Housing Society is applying for an additional 45% rent increase. The section reads:

A landlord may apply under section 43 (3) of the Act [additional rent increase] if one or more of the following apply: (a) after the rent increase allowed under section 22 [annual rent increase], the rent for the rental unit is significantly lower than the rent payable for other rental units that are similar to, and in the same geographic area as, the rental unit.

This loophole puts all renters in gentrifying areas at risk. The neighborhood surrounding Lions Manor is part of what the Vancouver planning department calls the Main Street revitalization corridor, stretching from Alexander Street south to 36th Avenue. The advancement of the condo frontier up Main Street has widened the rent gap between the ground rent and highest-best use capitalized rent, increasing the return on capital in the area. As such, market rents bear no reflection of the actual costs of tenancy but rather of the opportunity cost of capital. The Residential Tenancy Act exists to protect renters from the most exploitative aspects of the housing market, but Section 23(1)(a) cancels out the very purpose of the Act.

MPHS states that it needs a 45% revenue increase to funds its renovations, although Norman would not speak further for fear of “jeopardizing” her case before the Residential Tenancy hearing. According to Norman, the building should have been repaired 10 years ago. Balconies were left to decay by the Lion’s Club and only repaired when they became a safety hazard.

ON THE RADIO | The Downside of Gentrification – Upscale

The Mainlander is featured in the civic politics segment every Tuesday morning between 7am-8am on Vancouver Co-op Radio 102.7

This Tuesday Dec 20 2011, The Mainlander’s Sean Antrim interviewed Ivan Drury of Carnegie Community Action Project.

The two discussed the report The Downside of Gentrification – Upscale, written and researched by Jean Swanson and Ivan Drury, about the upscaling and gentrification of the Downtown Eastside.

Click here to listen