Without a tax exemption, co-ops face a tough choice

Good morning,

Nate with you today. One of our readers, a friend of mine, moved back home yesterday after being in Vancouver for about eight years. He lived in a co-operative housing complex in Kitsilano, where residents, ranging from octogenarians to toddlers, own the land and the buildings (presumably the toddlers don’t have their own ownership stake, but you get what I mean). 

At a going-away party over the weekend, I got to experience firsthand the depth of community that can be fostered in co-op living, with roommates, neighbours, co-workers, and friends showing up en masse to revel and celebrate. The turnout was also a testament to our friend’s deep spirit of generosity and hospitality, which seemed to flourish in a communal living situation. 

“Who’s going to cook for us now?” was the half-joking refrain among the nurses, pilots, teachers, and servers in attendance, even as our friend efficiently pumped out appetizers for his guests. 

It does feel like there’s a nature vs. nurture dilemma at play — does co-op living engender this sort of mutualism, or are the people who seek this arrangement out and are chosen to join predisposed to thrive in a collective environment? As is often the case, it’s likely a bit of both. 

There’s no replacing our dear friend, but the 60-some-year-old co-op will carry on, with a new member eager to move in. 

Serendipitously, today’s main story is about a different co-op, just a couple of blocks away, struggling with a much less certain future.

Let’s get to it!

— Nate Lewis, Vancity Lookout     

P.S. I wrote our two stories today, while Geoff helpfully jumped in on all the other sections. Teamwork! 🤝

P.P.S. If you find this newsletter valuable, please consider forwarding it to your friends. New to the Lookout? Sign-up for free. 

WEATHER

Wednesday: 24 🌡️ 12 | ☀️

Thursday: 17 🌡️ 8 | 🌧️

Friday: 19 🌡️ 13 | 🌤️

THE LOOKOUT RECOMMENDS

One big story: That booming real estate market? Well, it ain’t booming as much. There’s apparently a real buildup of inventory in the city, with sales at their lowest point since 2020. From my cursory glance on Realtor.ca, I’ve definitely noticed more places for sale, especially two-bedrooms, which, while still not affordable for most, do appear to be lower in price than in recent years. [Global News]

Italian markets: I was reminded while visiting Mercato di Luigi in Chinatown how much I love Italian markets. The aforementioned spot in Chinatown has some great food, and most importantly, exceptional products. Benny Foods at 598 Union is my personal favourite, with a variety of options for locals. Of course, who can forget Cioffi’s at 4156 Hastings St., just outside Vancouver proper. 

New theatre: Vancouver’s Performing Stars has a new theatre at 102 E 4th Ave. The group is a real local success story, having started in 2012 as a class for parents and kids. The 5,000 square foot theatre will host youth arts classes. It’s the type of space that every city needs, where kids can discover the joy of performance and art. Spring and summer enrollment is now open.

What to do: One reader in our recent survey suggested featuring more local wrestling shows. Destruction Wrestling is on this Friday, with tickets for as low as $40. I’m not even going to try and sell it because, come on, it’s live wrestling! You know it’ll be fun. 

HOUSING

Without a tax exemption, co-ops face a tough choice

By Nate Lewis

It’s an overcast, rather chilly spring day, and standing on the sidewalk of a tranquil Kitsilano side street, I’m not sure exactly where to go. Luckily, walking out of Helen’s Court Housing Co-op, which I’m standing in front of uncertainly, Carla Pellegrini welcomes me warmly, inviting me into the co-op’s courtyard.      

Pellegrini and David Diamond, who are both residents at the co-op, direct me to the “Bus Stop,” a nickname for the small covered patio at one end of the complex’s courtyard. Near the other end, past the blossoming rhododendrons that line the pathway, kids are using the playground while parents sit and chat. There are also pallets of lumber, window panes, power tools, and scaffolding – the unmistakable markers of ongoing construction that somewhat mar the otherwise serene surroundings of Helen’s Court. 

Diamond, Pellegrini and I are here to talk about a $1 million tax that the co-op will soon owe the province once they sign a new long-term lease with the city. Helen’s Court was established in 1984, after the city bought the property two years early for $1.2 million and signed a 41-year lease with the co-operative. 

But it’s the new windows, specifically the greater width of their interior dividers, that Diamond has on his mind as we sit down to chat. Diamond, who’s lived there since the beginning in ‘84, is concerned the new window design will let less light in, while Pellegrini points out that the new triple-pane configuration will be far less drafty than the current ones. 

Fenestrations aside, the co-op also needs to replace part of the foundation slab between the courtyard and the underground parkade. 

“We've been saving up money proactively [since 2019, for the] $2 million slab project,” and they’ve saved just over $1 million so far, Pellegrini said, allowing the co-op to pay for half the project up front and secure a loan for the remainder. 

It’s a little peek into the coordination, compromise, and consent-building that’s required in co-op living, where everything from basic maintenance, major renovations, and overall finances are handled by its members. But it’s an illustration of the unique challenges of this sort of co-op arrangement, where members own neither the land nor the buildings, but have all the responsibilities of ownership.  

“In exchange for tenure of housing and very affordable rent, we maintain the buildings and the land,” for the City of Vancouver, Pellegrini explained. Helen’s Court is one of 57 co-ops in Vancouver that are on city-owned land.  

But a provincial tax is now poised to consume the co-op’s entire savings for the slab project. It’s a property transfer tax (PTT), which is triggered when a co-op registers a new lease with the city. Since the tax applies to the value of the land, and due all at once, Vancouver co-ops like Helen’s Court are on the hook for a big bill – just over $1 million in this case. It’s something that can pose a significant threat to a co-op’s financial health and affordability for its members. 

Sixteen co-ops (980 units) have had or will have their leases expire between 2020 and 2029, while, from 2040 to 2044, another 10 co-ops (719 units) will see their leases with the city end, and will need to pay the same tax on the “fair market value” of the property. 

Helen’s Court is home to about 100 people, with 44 units, but “​this isn't just about us,” Diamond said, adding that, “if the legislation doesn't change, this affects leasehold co-ops not just in Vancouver, but all across the province.”

“We'll have to increase rents by significant amounts. We're usually increasing rents by 2-3% a year. We'd be looking at 4-7% a year, every year for multiple years in a row, to afford [the slab project]. Yes, it is a mixed-income community, [and] some people might be able to weather that. Others definitely would not,” Pellegrini explained. 

Most co-ops on city-owned land have members with a mix of income levels, ranging from those who make under $34,000 to others who make over $130,000 a year. According to a city estimate from 2015, about 40% of co-op members earned $53,000 or less per year. 

In 2021, the city identified the PTT as a “considerable financial cost that impacts housing affordability,” as part of changing its framework for co-op housing lease renewals. The city makes it clear they will not cover the PTT, though they did agree to advocate for the province to either waive or offset the tax. 

The folks at Helen’s Court, as well as larger groups like the Co-operative Housing Federation of BC, have been campaigning for the province to change the tax rules too. There are already over 20 qualified situations which are exempt from the tax, according to the province. 

In the summer and fall of 2024, leading up to and during the provincial election campaign, Diamond and Pellegrini said they met once with Premier David Eby, and multiple times with South Granville NDP candidate Brenda Bailey (whose riding includes Helen’s Court) about the property transfer tax applying to co-ops. 

In a zoom call, Premier Eby, “told us clearly that it needed a legislative change and that it would be a priority if they got re-elected,” Diamond said, with Bailey telling him the same thing over multiple virtual and in-person conversations, which led to Bailey being invited to and attending the co-op’s 40th anniversary party. 

“I introduced her to people, and that was clearly going, ‘she's on board with [changing] the tax,’ as a not-so-hidden message, like, vote for this person,” Diamond recalled. 

Bailey was elected as the MLA for South Granville in the fall of 2024 and was appointed as Eby’s Minister of Finance. “After they got elected, it went silent,” Diamond said.  

“I feel betrayed,” Diamond said. “All the work that's gone into managing this, keeping the buildings as well-maintained as they are, [though] we've got issues. The financial situation of the co-op is really healthy. And [a lot of] people have put a lot of blood, sweat and tears into this place, and to be faced with this now feels like a betrayal.” 

When reached for comment, the BC Ministry of Finance declined Vancity Lookout’s request for an interview with Minister Bailey. 

The next day, Diamond received an email from Bailey saying, “the decision not to waive PTT has been made,” he said. 

Helen’s Court members have now engaged an outside consultant to help them determine the best path forward: either, avoid the $1 million tax by pursuing a lease that’s under 30 years, and potentially shorten the co-op’s lifespan by about 30 years, or move forward with the already approved 40-plus-20-year option and pay the tax. 

Paying the tax means the co-op would need to “increase our rents exorbitantly to afford the project that needs to happen so the courtyard doesn't cave down into the garage,” Pellegrini explained. 

“We understand that some co-ops may be reluctant to increase the housing charges for their higher-income members in order to pay the Property Transfer Tax,” according to the BC Ministry of Housing. “We recommend that co-ops consider this option to protect those paying rent geared to income. We also recommend they begin planning for such costs much earlier,” the Ministry told Vancity Lookout in lieu of an interview. 

When reached for comment, the Premier’s Office referred Vancity Lookout to the Ministry of Finance. 

On a personal level, being members of the co-op and having access to affordable housing has meant Diamond and Pellegrini are able to pursue their careers in less-than-lucrative lines of work; jobs which bring unique and often underserved contributions to the social fabric of a city.  

Diamond was the artistic and managing director of a theatre company for nearly 40 years, while Pellegrini is currently the executive director at Food Stash, a non-profit that redistributes surplus food to organizations and people around the city.

“The co-op has really enabled [me and my husband] to keep serving our community as our career, while living in a very expensive city,” Pellegrini said, explaining that she and her husband have spent their whole careers working for non-profits.    

“The theatre company and the co-op are very intertwined… the theatre company could not have existed in the early days without [the co-op],” Diamond said. 

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THE VANCOUVER NUMBER

44%

The percentage increase in U.S. graduate applications at UBC after President Donald Trump announced funding cuts. UBC’s vice-president of academics says applicants view B.C. and Canada as a safer higher education option. [Vancouver Sun]

THE AGENDA

🔥 One person was injured and others were forced to evacuate after a fire was reported at an SRO on Granville between Davie and Helmcken. One person had third-degree burns while the building had significant damage. [CTV]

🤝 One North Shore, a single Coquitlam, and a united Langley? A combining of municipalities is what former Premier Mike Harcourt is calling for after a governance audit of Metro Vancouver found the regional body’s structure has become unwieldy and cumbersome. Luckily, he didn’t call for Vancouver to be combined with any other municipality! [Vancouver Sun]

🧑‍💻 Vancouver hosted one of the world’s biggest tech conferences yesterday. Web Summit is a popular tech event, called the Olympics of Tech, and had over 15,000 people from 100 countries attend. [CTV]

HOME OF THE WEEK

Well, this is certainly a lovely place! This penthouse suite boasts 1,800 square feet of space, with three bedrooms and three bathrooms. It’s an open-concept space with a wonderfully appointed kitchen and a spa-like ensuite. I’m also a big fan of the location, right in the heart of Robson.

Of course, a home of this design doesn’t come cheap.

HOUSING

City throws in the towel on controversial Arbutus housing project

What happened: The controversial saga of a proposed supportive housing project on Arbutus St. near 7th and 8th Avenue has seemingly come to a quiet resolution. 

Court documents show that on April 30th, lawyers for the City of Vancouver and Kitsilano Coalition for Children & Family Safety Society, agreed to quash the site’s rezoning, housing agreement, and development permit, which had all been approved by the previous city council. 

• The city also agreed to pay Kits Coalition’s legal costs, totalling $3,445. 

A twisting saga: In 2022, the city held six public hearings, heard from roughly 300 public speakers, and received more than 2,000 letters, and ultimately voted 8-3 in favour of the project, according to CBC.  

The Kits Coalition, created in 2021, had been campaigning against the project throughout the public hearing process. After it was approved by council, the coalition turned to the courts, filing for a judicial review of the decision on the basis that council and the public were deprived of key information. 

• The province, at the request of the city, then stepped in and passed legislation in 2023, which specifically said that, despite any court decision, the six public hearing were “conclusively deemed to have been validly held.” 

In December 2024, the BC Court of Appeal found that piece of legislation to be unconstitutional, and the province didn’t appeal to the Supreme Court of Canada. The province “just accepted they overreached,” a Kits Coalition lawyer said, according to the Vancouver Sun. 

Throwing in the towel: Now, with the consent order signed last month, it appears the city has done the same. 

“It’s clear this location wasn’t the right fit for the scale and type of housing that was proposed,” Mayor Ken Sim said in a statement on Tuesday, according to Urbanized.

Sim added that the mayor’s office has reached out to the province about “smaller and better-resourced supportive housing projects to replace the units originally planned,” but had yet to hear back. 

• Earlier this year, Sim and ABC councillors, with the exception of Lisa Dominato, voted to freeze the development of new supportive housing. However, that did not include projects that were already in stream, like Arbutus.    

The Kits Coalition said they’re encouraged by initial discussions with Sim’s office and city staff to develop a better, community-supported solution, and hopes this is the end of legal proceedings, according to CityNews.

What we heard: Abundant Housing Vancouver, one of the groups that organized in favour of the project, told Vancity Lookout they are “disappointed that the City of Vancouver is caving to well-funded NIMBY opponents.”

“Everyone should be concerned that the City is refusing to defend its own decisions; this is an invitation to give wealthy neighbourhoods a veto on housing approvals through lawfare,” the group said, adding that Vancouverites “need housing of all sorts in every neighbourhood.”

Thank you for reading. Share this week’s story at this link, and tell your friends to sign up here.

VANCOUVER ARTS GUIDE

Performance

The three-night experimental live performance series Tremors Festival returns June 6-8 at Process Lab 1422. With fantasy, hip hop, and so much more, it’s a theatre performance and art party all rolled up into one. Tickets start at $5.

Art

Japanese artist Otani Workshop’s exhibit Monsters in my Head just opened at the Vancouver Art Gallery. It’s described as entering a forest of imagination, including ceramic creatures and infused with natural elements. On now until Nov. 9. 

Continuous Fractures Generating New Yields is a show at the Contemporary Art Gallery at 555 Nelson St. by CFGNY, a collective of artists exploring subjectivity. The narrative of the exhibit is around the idea of being “vaguely Asian,” focused on porcelain sculptures and “imprints of cheap household objects manufactured in China.”

Music

The Rio isn’t just a movie theatre. On Saturday, you can catch Hard Rubber Orchestra, an 18-piece jazz group, performing the famed Mahavishnu Orchestra, which at the time was a “ground-breaking fusion of jazz, Indian ragas and high-volume rock.” Tickets start at $19.

The popular Khatsahlano Street Party has announced their music lineup, including alternative rock ban Meltt, French-English rapper Missy D, and many, many more performers. It’s a massive lineup of music, from 11 am to 9 pm on Saturday, July 5. 

Movies

On June 3 you can catch Charlie Chaplin Shorts at the Orpheum, a series of his short movies accompanied by music played live on a Wurtlizer organ. There’s also a pre-show jazz band in the lobby! 

If you haven’t had the joy of seeing any of the famous director Akira Kurosawa’s movies in theatre, then here’s your chance to see Ran, the Japanese director’s version of King Lear. The film’s evocative cinematography is burned into my brain. Multiple showings throughout June. 

It’s an eclectic mix of movies over at VIFF, including Ang Lee’s Lust, Caution, Barry Jenkins’ Moonlight, the Palestinian documentary No Other Land, and director John Cassavetes’ Love Streams.

COMMUNITY HIGHLIGHTS

• Chinatown is hosting a speakeasy this weekend that you’ll want to check out. [Straight]

• Congrats to SFU professor Biruté Mary Galdikas who received a prestigious award for her work studying orangutans. [SFU]

• Arbutus Ridge is home to some very cute coyote babies. [Vancouver is Awesome]

• There’s a new illustrated book out by a local author exploring Chinatown through illustrations. [CityNews]

VANCOUVER WORDLE

Okay, so this is sort of a word for the sake of today’s Wordle. Hopefully that’s enough of a clue! You can play it here.

PHOTO OF THE DAY

If you haven’t checked out Vandusen Botanical Garden, you may want to (at least, based on this video)!

STORIES THIS WEEK