Archive for April, 2008

West End landlord accused of evicting tenants to raise rents

Wednesday, April 16th, 2008

Residents of building plan to appeal mass eviction notices by Hollyburn Properties

Gerry Bellett and Chantal Eustace
Sun

VANCOUVER – Tenants living in the Glenmore Apartment building on Barclay Street say they are planning to appeal a mass eviction by Hollyburn Properties Group.

Twenty tenants have received eviction notice from Hollyburn, which claims it needs to do extensive renovations to their bathrooms that require them to leave.

But Craig Adlard, who has lived in the 40-suite building for over four years, said Tuesday the evictions were predatory and designed to get rid of tenants paying lower rents, so they can be replaced with others who would pay more. “It’s no accident that the only people to get eviction notices are those who have been in the building the longest, including a woman who has lived here for 20 years,” said Adlard.

Tenants who have moved in within the last two years weren’t evicted, he said.

“When a tenant leaves, Hollyburn have been renovating their suites and putting up the rent. What we have here is a mass eviction of people paying the lowest rents,” he said.

“They don’t need to replace my bath or plumbing, it’s fine and I’m happy with it. And if they did I would gladly move out for a few weeks while they fixed it and then come back at my present rent.”

He pays $1,176 a month to rent a one-bedroom suite in the building, west of Denman Street in a quiet corner of the West End near Stanley Park and close to English Bay.

“I’ve been told that if I left they could rent the place out for $400 to $500 a month more. This is nothing but a money grab,” Adlard said.

Adlard and 13 other residents planned to file an appeal with the Residential Tenancy Branch later this week asking the branch to overturn the eviction order.

Hollyburn can do it because of a loophole in the regulations that allows a landlord to evict people if they plan to carry out renovations which make it impossible for tenants to continuing living in their suite,” he said.

Martha Lewis, executive director for the TRAC Tenant Resource and Advisory Centre, said the onus will be on the landlord to prove that tenants need to move out so repairs can be done.

“The landlord is going to have to bring the evidence showing they can only do these repairs if people are moved out,” Lewis said. “The courts in B.C. have said that if the landlord requires vacant possession to do the repairs then so be it, the tenants will be evicted.”

However, Lewis added, it can’t be solely about convenience.

When Hollyburn tried to evict tenants from another West End apartment building two years ago, a dispute resolution officer with the residential tenancy office said the renovations were not significant enough to warrant the evictions.

“By the landlord’s own testimony, the proposed renovation of the rental units requires nothing more than an electrical permit … [and] no drywall is being removed,” the November 2006 ruling noted. That building was in the 1400 block of Harwood.

Hollyburn Properties did not return The Vancouver Sun’s calls Tuesday.

Adlard said that with a near-zero vacancy rate in Vancouver, it would be unlikely for him and the other evicted tenants to find similar accommodation in the West End at the same rents they are paying now.

In the eviction notices, Hollyburn said the displaced tenants could reapply for their old suites.

But Adlard said he expects the rents will go up substantially.

“We have one tenant who’s got AIDS and is living on a medical pension. How can he expect to be able to afford a heavy increase in his rent? This is his home and he is close to where his medical help is. Why should he be evicted?”

© The Vancouver Sun 2008

E-mail carriers deliver gifts of nifty features to lure, keep users

Wednesday, April 16th, 2008

Jefferson Graham
USA Today

4-way battle among e-mail rivals heats up as Gmail makes gains

Gmail is the fastest-growing online e-mail offering in an increasingly competitive market

You’ve got Gmail.

If you use online e-mail programs, chances are you’ve added Google’s free Gmail to the mix. Since leaving “by invitation only” status in early 2007, Gmail has seen its usage rise 47%. It’s the fastest-growing online e-mail offering.

That’s intensified a four-way battle in the lucrative market between Google, Yahoo, Microsoft  and AOL. They’re all offering a barrage of new e-mail features to get you to switch — or stay. Need to send big video files with your e-mail, as large as 5 gigabytes? That’s now possible. Want to read your webmail in an Outlook-like e-mail program, and on your phone? Easy.

“There is a much stronger sense of competition now,” says Tom Austin at researcher Gartner. “The big four are anxiously trying to build share not just to provide e-mail, but to keep you in their network.”

Advertisers spend more marketing to e-mail customers than anywhere else on the Web after search advertising, according to market tracker Nielsen Online. In March, advertisers spent $302 million, 34.8% of non-search online spending, up from 30.9% the previous March, Nielsen says.

Microsoft and Yahoo dominate webmail. They’re virtually tied for the top spot. In February, the most recent statistics available, they had 256.2 million and 254.6 million users, respectively, according to researcher ComScore Media Metrix.

Google is No. 3, with 91.6 million users. No. 4 AOL, the company that first popularized Internet mail in the 1990s, has 48.9 million.

Here’s what’s new at four e-mail providers:

Google:

Chat and sync outside of Gmail

Gmail fans can now send instant messages directly from Gmail to both Google’s GTalk and AOL’s AIM, and sync Google Calendar with Microsoft’s Outlook program.

Colored labels are available to tag different types of e-mail (friends, soccer team, etc.). Keyboard shortcuts let you click “c” to compose a new e-mail or “r” to reply.

Gmail began in 2004 as a private beta, or test, available only to those who were lucky enough to be “invited” in by friends who already used it.

Gmail is still in beta, but that’s more of a private joke at Google; it’s expected to leave beta sometime this year.

Gmail’s dramatic growth in a year (at a time when Microsoft and Yahoo saw increases of 10% and 5%, respectively) stems from the overall rise of Google, analyst Austin says.

“People spend so much time with Google that adding Gmail was natural. You could argue that Yahoo Mail has a better interface and is easier to use, but Google is the brand right now,” Austin says.

AOL:

Send more photos

One big consumer gripe about e-mail — the frustration inherent in trying to send large files — has been solved. Ever try to send a group of photos or a video clip only to have your inbox slow to a crawl? More likely, your e-mail provider wouldn’t let you send it at all because of strict size limits on attachments.

Now, AOL will let you send up to 5 gigabytes of data via your e-mail, but not as a traditional attachment. Instead, it’s via a link to its Xdrive online backup service.

Warning: This could take anywhere from a few minutes to two days, if you truly put up 5 GB of data.

Meanwhile, want a new e-mail address but find that your name is already taken? AOL is offering a new form of vanity e-mails in the AOL network. You can choose among 30 domains, such as [email protected], and [email protected].

“You don’t have to be some number at AOL.com; you can be who you want to be,” says AOL Mail Vice President Richard Landsman. “We’ll be doing a lot more of this. We feel it’s very important to give people choice.”

Yahoo:

Faster contact search

Looking for all the e-mails from one contact? Yahoo Mail has a shortcut that’s much faster than typing a name into a search box. Double-click the contact’s name in the e-mail, and previous e-mails from that person show up. In development: a feature that will help users target the e-mail from their most important recipients. “We know the people you e-mail the most,” says John Kremer, Yahoo’s vice president of mail. “We could surface them to the top of the inbox.”

Microsoft:

New look and new name

The old Hotmail is now called Windows Live Hotmail and has been redesigned to resemble the desktop Outlook Express program (now renamed Windows Mail). Contacts and calendar are part of the inbox. Live mail is part of the new Live network, home to not just Hotmail, but also Live Messenger and Spaces, a place to share photos via the SkyDrive virtual hard drive. Like AOL’s Xdrive, SkyDrive also offers 5 GB of shareable online backup. However, Microsoft has strict file-size limits — 50 MB per file — that will knock out anything beyond a handful of photos.

 

City revising EcoDensity draft to ensure low-cost housing built in

Wednesday, April 16th, 2008

The public wants to hear more about affordability, top planners tell council

Frances Bula
Sun

TENANTS FIGHT EVICTIONS IN A TIGHT RENTAL MARKET: Craig Adlard is one of the 19 people being evicted from the West End’s Glenmore Apartment (background). The tenants accuse the landlord of serving mass evictions so the company can raise rents for new tenants. Story, B5 Photograph by : Ward Perrin, Vancouver Sun

Vancouver residents need to hear more about how EcoDensity is going to provide affordable housing, the city’s top planners told city council Tuesday.

That means a new draft of the city’s EcoDensity Charter — which will set directions and guidelines for making the city denser with more environmental design — will have to show that not all the new housing is going to be more condos for the rich.

And it will set the city in a direction towards ways to “manage the market” in order to create lower-cost housing, said chief planner Brent Toderian and housing-centre director Cameron Gray.

They were speaking to council about where the city’s ambitious new policy goes from here, after seven nights of public hearings that attracted a record 150 speakers.

Gray acknowledged that many who came to council to present their views on the last draft expressed worry about the kind of housing that has been and will be built in the city.

“The concern is that the city is in danger of losing its social diversity and becoming a city of house-rich if cash-poor empty nesters, double-income-no-kids couples, yuppies, second-home owners, etc., with everyone else scrambling to make ends meet, paying too much, living too far away, or living in housing that is inadequate and insecure,” said Gray.

“The [revised] EcoDensity needs to address whether the market needs more direction regarding the kind of housing being developed.”

Gray said that means every aspect of the charter will be looked at and potentially rewritten to clarify what the impact on housing affordability will be. As well, the charter could ask staff to explore ways to regulate the market to create types of low-cost housing that are in short supply now.

The city could, for example, require that all new projects require a certain number of three-bedroom units, or that a certain percentage be designated as rental units instead of being sold.

The city could also look at whether to move to inclusionary zoning.

That’s a policy that requires developers to build into major projects units that rent at affordable rates.

It’s an idea that was pioneered in some American cities in the 1970s and has since spread to many others, including Richmond.

Toderian said planning staff will be making some serious revisions to the charter to answer the public’s questions about that issue, along with others about how the city will include parks, community centres and other public services in increasingly dense settings.

Council debated whether to hold another set of public hearings or ask for public views by e-mail on the next draft, with responses posted on the city’s website.

Opposition parties and EcoDensity opponents argued there should be live public hearings, which allow for dialogue and exchange of information.

But councillors from the ruling Non-Partisan Association said it would be just as good and less wasteful of people’s time to get public input through written submissions.

The new, third draft of the EcoDensity charter will be made public May 13 and people will have four weeks to send in their written comments on the revised document.

© The Vancouver Sun 2008

 

Economic Update

Tuesday, April 15th, 2008

Other

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Housing crunch in Vancouver continues on – will ecodensity create a new Real Estatate Development Rush?

Tuesday, April 15th, 2008

Anxiety grows over EcoDensity in Vancouver

Charlie Smith
Other

Vancouver mayor Sam Sullivan isn’t shy about touting the benefits of higher densities, which sets him apart from most nicipal politicians in the region.

A major difference between municipalities and higher orders of government is the level of public participation before decisions are made. In Parliament or in the B.C. legislature, bills routinely become laws without public input. At the municipal level, there is sometimes a legal requirement to hold public hearings.

At times, elected officials will listen quietly to public input and do what they intended all along. On other occasions, hordes of speakers will descend on a council chamber and force politicians to take notice if they want to keep their jobs after the next election.

It happened 12 years ago when more than 1,000 speakers showed up at Chilliwack city council and forced then-mayor John Les to abandon a proposal to create a new community of 40,000 people on agricultural land at Ryder Lake. Public pressure also stopped another major development on the Spetifore agricultural lands in Tsawwassen in 1989 after the longest public hearing in Canadian municipal history.

The City of Vancouver has been going through a similar exercise—and hearing considerable public angst—over EcoDensity, which is a plan to enhance sustainability with more concentrated, ecologically friendly development. Scores of speakers showed up in the council chamber for a public hearing that lasted over seven evenings. On Tuesday (April 15), Vancouver city council will vote on a staff recommendation to instruct the director of planning, “in response to public input”, to revise the draft EcoDensity Charter and 16 proposed “initial actions”.

<>Mayor Sam Sullivan launched the EcoDensity Initiative in June 2006, suggesting that it could help improve environmental sustainability, enhance housing affordability, and improve livability. “Many people who are upset about building decisions, zoning decisions, blame EcoDensity for any new developments,” Sullivan told the Georgia Straight in an April 8 phone interview. “In fact, we’ve gone two years since I announced this process, and not one bylaw has been changed. So we have the most extensive public-consultation process that I’ve seen in my 15 years on council.”

Brent Toderian, the city’s planning director, says EcoDensity will help residents cope with rising energy costs and the growing impact of climate change. “Right off the bat, higher density reduces your energy signature: the amount of energy you use and the amount of greenhouse gases you generate on a per-unit basis,” Toderian told the Straight in an interview after the public hearing concluded on April 3. “Smaller units with shared walls—right off the bat—emit less greenhouse gases per unit and per square foot. The density also creates a critical mass of economics that allows you to do greener technology, district energy systems, et cetera.”

Toderian said that the “vast majority of our carbon footprint” results from buildings and transportation. “The density, of course, makes the other modes of transportation work much better—the sustainable modes—starting with walking, biking, transit, et cetera,” he said. “Density is necessary to make those more sustainable modes of transportation viable.”

The draft EcoDensity Charter calls for environmental sustainability to become “a primary consideration in decisions about density, design, and land use”. It also calls for “a range of housing types, needs, and costs”. The three-page draft charter emphasizes improving environmental performance and sustainability, suggesting that this is “critical for Vancouver’s long term resiliency and is the foundation for future social, cultural, and economic sustainability”.

“The need for deeper and more rapid change has become clear as our achievements are being challenged by accelerating environmental threats,” the draft charter states.

The draft actions include such things as: requiring LEED (Leadership in Energy and Environmental Design) Silver equivalency rating in rezonings for buildings larger than 600 square metres; providing incentives, such as excluding space for “green” mechanical equipment from a developer’s floor-space ratio; allowing site-specific rezonings in low-density areas for EcoDensity demonstration projects, including on city land; and providing more options for secondary suites, new options for laneway infill housing, and new options for mid-rise housing on arterial streets.

The Straight presents the following report about the final night of the public hearing, on April 3, to provide some insights into why EcoDensity has aroused such passions. On this evening, the speakers included developers, a former city planner and development consultant, neighbourhood and heritage advocates, a construction manager, and political activists, as well as ordinary citizens.

The first two speakers were Robert Brown and Heather Tremain, partners in reSource Rethinking Building Inc., a green development firm that included a car cooperative at the Verdant, a 60-unit townhouse development on Burnaby Mountain. Brown, who said he shops in his Main Street neighbourhood and uses transit, said that he strongly believes density and livability are “very easy bedfellows”.

He cited a project at 11th Avenue and Yukon Street, just two houses away from Vancouver City Hall, where his company built four units on a 50-foot lot. It added 25 percent more density than would exist in a single-family neighbourhood. He then mentioned a six-unit townhouse project that his company developed in Strathcona that provided 50 percent more density than a single-family neighbourhood. His own home is in a multi-unit complex at 27th Avenue and Quebec Street that has 100 percent more density than nearby single-family areas.

Brown suggested in his own understated way that the rhetoric around densification had gotten a little bit out of hand. “It’s interesting that we move from discussions around coach-house infill to eight-storey high-rises right next to single-family [homes],” Brown noted wryly. “I don’t think that’s what the EcoDensity Charter is about.”

Tremain said that some of the draft actions, such as requiring LEED Silver designation through rezonings, are quite readily achievable. “These things won’t be a stretch for folks,” Tremain said. “It will be kind of a base-line requirement.”

She urged council to pay attention to affordability, emphasizing that this can be achieved through creative zoning. She cited one example on the West Side in which the city gave additional density for a 10-unit project. She noted that this enabled four of the units to be sold at below-market prices. “So you have some precedent here already,” she said.

COPE councillor David Cadman then asked Tremain if there should be energy-rating systems for buildings similar to the energy-rating systems for appliances. Tremain replied that it’s very costly and complicated to reduce energy costs in green buildings. “The rest of the pieces are fairly easy to achieve,” she noted.

Next up was blunt-speaking heritage advocate Anthony Norfolk, chair of the Gastown Historic Area Planning Committee. He told council that his committee supports the draft EcoDensity Charter but opposes two draft actions proposed by council that are “targeted at Gastown”. One is to set up a panel to advise on furthering the goals of EcoDensity; the other is to develop a program that will provide a citywide context for determining where and how to make land-use changes “beyond existing plans and policies, in order to further improve sustainability, affordability, and livability”.

“Now it seems someone wants to blow the lid off Gastown again,” Norfolk said, referring to previous efforts to develop a soccer stadium and build a freeway through the historic district.

Norfolk was followed by East Vancouver resident John Colenutt. He claimed that he was a “victim” of EcoDensity two years ago—even though EcoDensity hadn’t been proposed at that point—when his annual property taxes increased by $1,000. The land in his neighbourhood near Kingsway and Knight was rezoned. He cited this rezoning as the cause of a 50-percent tax hike.

“The shock hit me a couple of years ago,” he told council. “I sort of saw the writing on the wall.”

A few minutes later, in the lobby outside the council chamber, Colenutt told the Straight that he thinks EcoDensity will cause homeowners’ taxes to increase across the city after their land is rezoned and B.C. Assessment slaps on higher values. “What I see is a massive tax grab disguised as EcoDensity,” Colenutt declared. “It has already happened to me. I’m one of the first people locked into this new zoning.”

The speaker after Colenutt, Katherine Reichert of the Shaughnessy Heights Property Owners Association, told council that her group opposes the draft EcoDensity Charter because it would override existing policies. She specifically mentioned the First Shaughnessy Official Development Plan, Shaughnessy Design Guidelines, and the neighbourhood’s single-family zoning, “which currently serves Shaughnessy, its residents, and the city with great success”.

“The EcoDensity Charter has the potential to change the historical character of Shaughnessy and ruin its streetscape,” she said.

Reichert also claimed that the charter is “not transparent”, and then she said a few words on her own behalf, not speaking for the association. “The city needs to ask itself why the EcoDensity Charter has created a fear—and a letter opposing the charter signed by 25 neighbourhood groups,” she said. “The charter should be written to alleviate fears and have the neighbourhood communities work together to create EcoDensity initiatives.”

The next speaker, Harvey Des Roches, ramped up the criticism of EcoDensity. He described the CityPlan Community Visions process as a democratic exercise and wondered why EcoDensity was being pushed through the initial stage so quickly. “Is it because it’s an election year?” he asked. “Is it because of the lobbying power and campaign funding provided by…developers?”

He was followed by Elizabeth Murphy, a former city employee in the housing and properties department and a board member of Heritage Vancouver. “Last year, I won a City of Vancouver heritage award for a project I completed in Point Grey, which includes a restored heritage house with secondary suite and infill,” she said. “However, I oppose the density charter and initial actions because they use density as the number one tool to reduce our ecological footprint—with density having priority over affordability and livability.”

Murphy delivered a detailed criticism of EcoDensity, emphasizing that the city should simply rely on its existing Community Climate Change Action Plan and the CityPlan Community Visions process. The city’s climate-change plan calls for reducing greenhouse-gas emissions in residential buildings and supporting the principles of smart growth, including increasing density around rapid-transit stations.

She argued that the “density charter” and the proposed initial actions are skewed toward new construction and the demolition of existing structures. “The greenest building is one that is already built,” Murphy noted. “What is the point of recycling our pop bottles if we throw out our largest consumer item, our buildings? Retaining and reusing existing buildings is recycling at a grand scale.”

Murphy went on to say that there is already greater zoning capacity than is necessary to house the number of residents expected to live in Vancouver by 2021. She noted that the Community Visions process was undertaken to identify more housing types and would likely add more capacity in the future. She pointed out that there are 18,000 vacant suites in the city and thousands of homeless people. “It shows we are building the wrong product for the wrong demographics,” she said.

The next two speakers were quite concise. Robert Angus said he was neither for nor against EcoDensity. He claimed that he just wanted to warn council to make sure that the federal and provincial governments are onside to ensure there will be adequate public services, including hospitals and judges, to cope with a larger population. In one of the shortest presentations ever before council, Angela Woo took only one sentence to state that she doesn’t believe the draft EcoDensity Charter represents the wishes of a majority of Vancouver residents.

After Woo, COPE’s Ellen Woods-worth delivered a much longer address. She focused a lot of attention on homelessness and claimed that there is no “eco” in EcoDensity. Woodsworth also maintained that EcoDensity is a plan to enrich developers and put more density into poor neighbourhoods, leading to more evictions and more homelessness.

She was followed by former COPE council candidate Mel Lehan, who spoke on behalf of Neighbourhoods for a Sustainable Vancouver. Lehan brought up the mayor’s roundtable meeting with 20 Dunbar residents last February. “Mayor Sullivan said about EcoDensity: ‘If neighbourhoods don’t want to be involved in this, it’s not going to happen,’ ” Lehan said. “The neighbourhoods want to make it clear that we do not support the EcoDensity Initiative.”

He read from a letter submitted to council by more than two dozen neighbourhood groups that urged the city to withdraw the draft EcoDensity Charter and proposed initial actions. Lehan was followed by development consultant Jim Lehto, who questioned whether or not the city has the authority in the Vancouver Charter to link zoning to improved environmental performance. Lehto, a former city planner, suggested that desirable environmental objectives should be made mandatory in the city’s building bylaw rather than be left to the zoning process.

“The negative side of EcoDensity is the elevation of so-called green technology to a righteous moral plateau at the expense of meat-and-potato issues affecting the city, such as affordable, nonmarket rental housing, homelessness, health care, employment, and expeditious rezoning and permit-processing,” Lehto said.

After the meeting ended, NPA councillor Suzanne Anton told the Straight that she thinks there has been sufficient debate on the actions and that it may be time to vote on them. “Each action item itself requires more process,” she noted. “If the lane-oriented housing is one we move forward on, we’re not going to start building lane-oriented housing the next day. It has to go out again [for public discussion] to figure out where it should be built.”

Anton claimed that it would take another decade and a half to implement new housing forms through the Neighbourhood Centres Program, and the EcoDensity Charter is necessary to accelerate the process. She added that she is “totally convinced” that many more people will migrate to Vancouver because of environmental problems elsewhere, including in “those dry American cities”.

“That will drive our prices really high,” she predicted, noting that the only way to address this is to ensure there are new supplies of housing.

COPE’s Cadman told the Straight that Sullivan has always supported higher densities, and he put the eco prefix in front of it to make this concept more friendly to residents. When asked about Anton’s comments, Cadman replied, “I would love to believe that Councillor Anton is thinking about the future of the city. I think she is thinking more specifically about her donation base.”

Sullivan later told the Straight this was “a cynical comment” by Cadman. “It is not easy politically to support density,” Sullivan insisted. “There is no mayor on the continent that I know of that is willing to put their name with the word density. So no one who knows municipal politics would ever believe that a mayor would endorse higher densities for political reasons. It’s ludicrous.”

 

B.C. non-residential building drops in first quarter

Tuesday, April 15th, 2008

Statistics Canada reports activity lower in first three months of 2008 than in 2007

Sun

Non-residential building activity in B.C. declined in the first quarter of 2008 from the last quarter of 2007, Statistics Canada reported on Monday.

And B.C.’s dip, some $31 million to $1.42 billion from $1.45 billion in the last quarter, was the biggest drop among the provinces, which on balance, saw non-residential building increase.

The reason, the statistical agency said, was that large industrial and institutional projects begun in 2006 and early 2007 are reaching completion.

“The industry expects this kind of ebb and flow,” Philip Hochstein, president of the Independent Contractors and Business Association of B.C., said in a news release.

He added that Monday’s report from Statistics Canada represented “just a snapshot of a strong construction market.”

And while non-residential construction dipped during the start of this year, the pace is still ahead of the $1.41 billion invested during the first three months of 2007.

Hochstein said buildings are expecting to start on a number of projects, both public and private sector, that are still in the planning stages.

The Vancouver Regional Construction Association, in a news release, said that while some areas of non-residential building might have seen a dip, investment in commercial buildings across the Lower Mainland hit a record $620.5 million in the first quarter of 2008.

And the total investment in non-residential construction, while down from the last quarter, remains 6.5 per cent above the first quarter of 2007 at $836.2 million.

“Strong growth in the commercial sector indicates strength in private investment and confidence in the economy,” says Keith Sashaw, Vancouver Regional Construction Association president. “We anticipate this sector to set more record highs this year and next.”

Across Canada, major building activity in Alberta and Ontario lifted investment in non-residential construction 1.6 per cent to $10.3 billion in the first three months of the year, Statistics Canada reported.

Investment increased in all three segments of the sector compared with the previous three months, representing the 20th-consecutive quarterly gain.

The biggest provincial increase occurred in Alberta, with investment rising 5.1 per cent to $2.5 billion from the fourth quarter of 2007. In Ontario, it rose 3.1 per cent to $3.8 billion.

The federal agency credited low office vacancy rates, a vigorous retail sector and strong corporate profits for the gains.

Of 34 consensus metropolitan areas, 15 registered quarterly growth, with the biggest gains in Toronto, where investment rose 4.2 per cent to $1.9 billion.

© The Vancouver Sun 2008

 

Vacant-land sales in 2007 see 12,000 properties change hands

Tuesday, April 15th, 2008

The number of B.C sales last year were more than five times higher than in 2000

Derrick Penner
Sun

British Columbia experienced a residential land rush in 2007 with buyers snapping up more than 12,000 vacant properties over the year worth more than $3 billion, according to research by Landcor Data Corp.

Vacant land sales were only a fraction of the 158,272 properties worth a record $62.2 billion that traded hands in 2007, but sales of lots rose substantially while overall residential sales waned.

That $62.2-billion value, however, eclipsed 2006 by 15 per cent.

And the number of vacant-land sales in 2007 were more than five times higher than the 2,011 properties that sold in 2001. The value of land sold in 2007 was more than 11 times higher than the $250 million sold in 2001.

“What’s really happening is there is a heck of a pile of developers out there making vacant-land subdivisions,” Landcor president Rudy Nielsen said in an interview.

Landcor compiles the data from the B.C. Land Title Registry, which registers all sale transactions in the province, not just those conducted to the Multiple Listing Service operated by realtors.

Nielsen noted that overall residential real estate sales have grown from 90,704 properties worth just under $19 billion in 2001. Total sales peaked at 164,315 properties in 2005, though their total value of $47.6 million was below 2006 and 2007.

“We’ve really come a long way in the last several years,” Nielsen said.

The province has also seen some growth in the amount of the land base being carved out and turned into residential real estate. Nielsen said the inventory of vacant properties jumped by some 21,000 over the last year.

Most of those new subdivisions, he said, would have been started two to three years ago, which is typically the length of time Nielsen said it takes to bring a piece of land through the regulatory steps to turn it into housing.

Nielsen added that his own associated firm, NIHO Land and Cattle Co., subdivides about 100 lots a year itself.

“When you look at all the subdivisions around the province [in] Prince George, Kelowna, Vernon, Penticton with a couple hundred lots here, a couple hundred there, it adds up quickly,” he said.

In the Lower Mainland, however, vacant residential property is more rare, and comes at an increasingly steep price.

“Right now it’s a little tough [to find land], because we’re approaching, if we’re not already at the peak of the market. And land owners see their land as quite valuable,” Ross Gurney, first vice-president of the Greater Vancouver Home Builders’ Association said in an interview,

In the Fraser Valley, asking prices are around $1 million — $1.5 million an acre in Surrey and Langley, Gurney added, which is too high for a lot of developers.

Broken down to building lots for detached houses, 3,000 to 3,500 square-foot lots go for the $270,000 range in Surrey and Langley. Move to south Surrey and they’re more than $300,000, Gurney said.

In Port Coquitlam, a new development in the Burke Mountain area has lots for $350,000 — $450,000, and in Burnaby, Gurney said a quick scan of the MLS system turned up lots ranging from $493,000 to a 6,000-square-foot property with a “breathtaking view” of the North Shore mountains for $868,000.

Gurney, whose day job is manager of business development for TD Bank, said he hasn’t arranged a sale for just vacant land in the last three to six months.

“Right now, land owners’ expectations are probably a bit high,” he said.

Other highlights from the Landcor B.C. 2007 residential sales summary are:

– The median price for vacant properties rose 50 per cent to $150,000.

– B.C.’s Kootenay region experienced the biggest increase in the value of its total sales, 37 per cent to $1.9 billion for 8,021 properties.

– Detached-home sales in the Kootenays declined 9.3 per cent to 3,579 units in 2007, but the median value of homes sold rose 37.4 per cent to $250,000. Condominium apartment sales in the region rose 33.9 per cent to 1,449 units, and their median value rose 23.7 per cent to $190,000.

– Detached-home sales in Greater Vancouver declined 9.3 per cent to 22,730 units, while condominium apartments increased 6.7 per cent to 27,793 units. Median house values, which rose 15.1 per cent to $605,000, however, beat out the rise in median apartment prices of 14.9 per cent to $310,300.

– At least 9,375 out-of-province people bought property worth $3.8 billion in B.C., as measured by where property-tax assessments were mailed.

– Albertans, who bought 6,319 properties worth $2.2 billion were the most prolific purchasers. Calgarians were the most prolific of all Albertans, buying 3,057 second homes worth $1.2 billion.

© The Vancouver Sun 2008

Before you write a cheque, take note of this little-known law

Tuesday, April 15th, 2008

Sun

Without effective consumer legislation, Money Mart is among those that can go after the victims rather than the villains for stopped cheques. Glenn Baglo, Vancouver Sun files

Google “crossed cheques” and “Canada” and you won’t find much.

Crossing is a procedure that is routine in much of the world, but little known here even though it is allowed by the federal legislation that sets the rules for cashing cheques.

Crossing cheques is a technique you should learn, since that same law, the Bills of Exchange Act, set the stage for a nasty surprise that Vancouver Sun columnist Don Cayo and others have encountered recently after stopping payment on cheques to individuals who subsequently cashed them anyway at Money Mart.

The surprise was that despite stopping the cheques through their own financial institutions, Cayo and the others were still liable for payment. When Money Mart discovered that the cheques were no good, it went after the issuers of the cheques, rather than the person who cashed them.

Money Mart was able to go after the victims rather than the villains of the pieces because the Bills of Exchange Act says that if a third party accepts a cheque it does not know has been stopped, it has the right to treat it as if it were still valid and collect from the issuer. It’s unlikely this ridiculous state of affairs will be remedied anytime soon. Canada‘s cheque-cashing rules are set in part according to international convention.

In the meantime, however, you can protect yourself by “crossing” any cheque you issue so that it can only be cashed by a bank, credit union or trust company.

If Money Mart or any other third party accepts such a cheque and subsequently finds out it has been stopped, it has to eat the loss or, as the outlets should, pursue the person who gave it to them, not the original issuer.

You “cross” a cheque by drawing two straight lines between diagonal corners. You can also write “not negotiable” between the lines.

Banks and credit unions could help their customers by issuing cheques that are preprinted with such crosses on them. Such cheques are available in Europe and Asia where they are more commonly used.

It’s sad that we now have to take such action here, but in the absence of effective consumer legislation, individuals have to protect themselves from aggressive cheque-cashing services.

© The Vancouver Sun 2008

The onus for safe online banking falls more on banks than on clients

Tuesday, April 15th, 2008

Sun

Canada‘s banking system rests on a foundation of confidence. Customers must trust that their money is not at risk, that it will be there when they need it.

In the past, that meant massive safes and armed guards. In the e-banking world, the risks have evolved. So too have the security measures. The underlying principle remains: Customers must be confident that banks will not leave their hard-earned funds at risk to robbers, whether they carry a gun or sneak through fibre-optic networks to do their dirty work.

Canadians have warmly embraced electronic banking. It’s easy and convenient and we have been persuaded by our financial institutions that while there are risks, they are generally limited as long as customers do their part to safeguard personal information.

But how safe is our money? Researchers at Carleton University in Ottawa accuse banks of misleading customers by, on the one hand, assuring them that their funds are safe, while on the other binding them to “agreements” that may leave them at risk in case of a loss.

Such agreements — which are really conditions set unilaterally by banks and other financial institutions — list conditions that give them the right to hold customers responsible in case someone fraudulently accesses their money.

The researchers found that a relatively large percentage of computer-savvy users were routinely violating the fine print and concluded that most average Canadians would find themselves ineligible for reimbursement guarantees. In other words, if a hacker steals from your account, it’s your loss, not the bank’s.

Financial institutions argue that customers should be responsible for understanding the terms of the agreement to which they become party to by using electronic services.

But these agreements are often so complicated that they can be understood only with the help of a lawyer. One of the big chartered bank’s Electronic Access Agreement, for example, runs to more than 8,000 words and has almost three pages of definitions alone.

If you actually read the agreement, you will find that not only are the terms difficult to meet, they can be changed at any time unilaterally by the bank. You may learn of such changes only if you regularly read its website.

Among the ways you can void the Online Banking Guarantee is by creating a password that is deemed to be too weak — if it includes your name, for example, or that of a family member, their birthdates, your telephone number or even sequential numbers like 1234.

It can also be voided if you fail to maintain up-to-date virus software or if you access your accounts through any device that you “reasonably ought to know” has been infected with software to steal your personal information.

Most financial institutions have versions of these rules. Frankly, we don’t have time to wade through them all. Neither do most customers.

What customers do have is a right to expect their money is safe without having to jump through a bunch of hoops that can be moved without their knowledge.

It’s worth noting that while the potential risk to consumers appears to be great, we have not heard of any who have actually lost money as a result of failing to meet all of the conditions set by the bank.

But we cannot for long maintain confidence in our financial institutions if an activity that has become as central as electronic banking is deemed too complicated and risky for ordinary people to engage in safely.

Banks either have to make it easier for their customers to use their services safely or shoulder more of the risk — without hiding behind all the fine print.

© The Vancouver Sun 2008

 

Legal advice before amending rules

Sunday, April 13th, 2008

Tony Gioventu
Province

Dear Condo Smarts: We are in a divided strata of a highrise and a commercial division. Several years ago, we voted to create sections so that the costs that were allocated exclusively to each section would be fairly divided.

In March, the residential owners were voting on a bylaw that would limit rentals to a maximum of five units. Several commercial-section owners registered their votes and voted against the resolution, preventing us from adopting a rental- limitation bylaw.

We lost the vote by one. Can you please explain to us why the commercial section has a right to dictate to the residential section how owners use their strata lots ?

— JWV, Vancouver Island

To understand sections you have to understand the legal authority of a strata corporation.

The Strata Act says that a strata corporation has the power and capacity of a natural person of full capacity. In simple terms, a strata corporation can buy or sell property, mortgage, lease, commence lawsuits, create bylaws and enter into contracts for service or operations, like any normal person.

A section is a corporation and has the same powers and duties as the strata corporation. So a section can do all of the same things, but only those that apply to that section. This also means sections can create their own bylaws that only apply to their section, such as your rental-restriction bylaws, and only that section votes on those bylaws.

The commercial section did not have voting authority at the special general meeting of the residential section as it only applied to the residential section.

Furthermore, when I reviewed your documents and minutes, I discovered each commercial strata lot was counted as one vote, but on the registered strata plan, all of the commercial strata lots have less than one vote, in most cases .49 votes. Therefore, the commercial section did not represent enough votes to defeat your resolution.

Commercial strata lots may have fewer or greater than one vote per strata lot as their voting is based on the relevant area of their strata lot.

Always seek legal advice when creating or amending rules or bylaws that pertain to sections.

Tony Gioventu is executive director of the Condominium Home Owners Association.

E-mail him at [email protected]

© The Vancouver Province 2008