Union says property sale restrictions protect tenants in Burnaby co-op
The pension fund of the union that is selling a property in Burnaby where a co-op is involved says restrictions in the purchase-sale agreement protect residents from eviction and renoviction, and cap rents at below-market rates.
The lease between the 115 Place Housing Co-operative and Local 115 of the International Union of Operating Engineers expires at the end of October. The property on which the two towers at 9380 and 9390 Cardston Pl. are located is owned by Local 115.
Postmedia News has reported that the union pension plan is looking for more than $100 million for the property. The sale is a private listing, which means any likely buyer has to sign a non-disclosure deal to get the details.
Lee Riggs, administrator of the pension plan, described as “categorically untrue” a statement by Thom Armstrong, CEO of the Co-operative Housing Federation of B.C., that residents of the co-op could face rent increases of between 40 and 100 per cent once the new owners take over.
Riggs said the union’s pension plan has “included specific restrictions in the purchase-sale agreement that prevents the successful buyer from engaging in evictions, renovictions and continues to cap rents below market rates.
“Purchase contract restrictions are common practice in real estate transactions,” Riggs said in the letter to Postmedia. “The restriction is registered against the property’s title and mortgage, and is therefore enforceable.”
Postmedia asked to see the clause covering the purchase contraction restrictions. Claudia Ferris, a spokeswoman for the pension fund, said the clause is part of the non-disclosure deal.
“So unfortunately, I can’t share it with you,” she said by email.