1 of 1 2 of 1

Rents at a proposed Vancouver development are going to be much higher than those at the apartment building it will replace.

Based on a city staff report to council, the new rates will be at least 100 percent more at the new project at 8599 Oak Street.

The Marpole site is currently home to a three-storey apartment building constructed in 1957. It has 13 rental units consisting of one- and two-bedroom units.

According to the report, monthly rents ranged from $725 to $1,150 or an average of $856 for a one-bedroom unit as of April 2017.

During the same period, rents for a two-bedroom unit were $775 to $1,550 for an average monthly rate of $1,088.

A rezoning application has been filed by NORR Architects Planners Inc. on behalf of Maiway Investment Ltd.

The application proposes a six-storey residential building with 36 units of “for-profit affordable rental housing”. There will be 23 one-bedroom units, seven two-bedroom units, and six three-bedroom units.

The one-bedroom units are proposed to have a starting rent of $1,843.

For the two-bedroom units, the monthly rate is $2,293.

The three-bedroom units will go for $2,866 a month.

If approved by council, these will be the rates set as of the date of the public hearing for the rezoning application, which is scheduled next Tuesday (May 15).

From the time of the public hearing to the initial occupancy of these units, the developer can raise the rents annually based on the increases allowed under the Residential Tenancy Act.

This means that the actual starting rates will be higher than the identified rates in the report to council.

The city staff report on the rezoning application for 8599 Oak Street was prepared by Susan Haid, assistant director for Vancouver-South of the planning, urban design and sustainability department.

According to the report, the proposed starting rates are lower than the maximum set by the city for developers of “for-profit affordable rental housing” in order for them to qualify for a waiver from paying development cost levy (DCL).

For this project, the developer is asking the city to waive DCLs of $485,568.

“If approved, the application would contribute 23 additional secured for-profit affordable rental housing units to the City’s affordable housing goals as identified in the Housing Vancouver Strategy,” Haid wrote.

Haid noted that pegging the starting rents “below the maximum rents outline for For-Profit Affordable Rental Housing in the DCL By-Law” provides “greater affordability compared to starting market rental rates”.

Current tenants have the option to return, but will not have their old rental rates. However, they can have a discount.

“In terms of the comparison to home ownership costs, the proposed rents in this application will provide an affordable alternative to home ownership, particularly for the larger units,” Haid explained.