Jul 2, 2023
Tenants worried about Hamilton apartment getting sold form co-op to buy building
The tenants have a year to make a 20% down payment on
the $5.25M building
Surprise and worry lingered when tenants learned, this past winter, their old, downtown low-rise apartment building in Hamilton was up for sale.
"It was a complete shock," said 76-year-old James Reynolds, who has lived in the building for over 30 years.
There were whispers of investment companies eyeing the $5.25-million property.
"We're all working-class people and the thought of facing a big rent increase … was quite daunting," said Emily Power, a tenant in the building.
But Power and her fellow tenants had a different idea — buying the building themselves.
The tenants have a conditional sale to purchase the 21-unit apartment at 272 Caroline St. S., and turn it into co-operative rental housing and maintain affordable rent rates.
'Interesting and innovative approach'
Some of the building's oldest tenants, who have called the apartment their home for decades, pay between $500 and $700 in monthly rent, far beneath market value due to rent control.
Average monthly rent in Hamilton for June 2023 was $1,877 for a single-bedroom apartment and $2,310 for a two-bedroom unit, according to Rentals.ca.
The city has been grappling with an affordability issue and a rising number of encampments.
If the tenants are able to buy the Ward 2 building, it could offer a new solution for others trying to escape the rising cost of living.
"I think this is a really interesting and innovating approach," Ward 8 Coun. John-Paul Danko said during the June 21 city council meeting, adding council may want to incorporate it into policy.
Hamilton Mayor Andrea Horwath and Ward 2 Coun. Cameron Kroetsch also praised the idea.
"We have to prevent the loss of current market affordable rentals because we are losing them significantly," Horwath said.
The deal for the building isn't final though — the tenants have a year to fundraise a 20 per cent down payment and apply for a mortgage.
Power also said the non-profit, rental co-op doesn't operate like a condominium board where residents have shares, but rather, rent (called a housing charge) goes toward building a reserve fund, which can be used for repairs and paying the mortgage.
That means money raised doesn't land in the tenants' pockets — it goes toward the building.
And the group has found success raising funds.
During that June 21 city council meeting, councillors contributed $84,000 through a forgivable loan toward the building's down payment.
Power said they also got a loan through the Canada Mortgage and Housing Corporation and have had community donations.
She said tenants have received lots of support from non-profits and other groups, but the novelty of the idea has been a barrier to get more funding.
"We're hoping we can prove this works and some of these organizations built to help with things like affordable housing can help future groups."
'It's been my home for 30 years'
Andrew Robertson, the building's owner, said he was skeptical when he first heard about the tenants' plan, but said he's supportive of the tenants buying the property.
"Am I confident it'll happen? I'm more confident than I was three months ago," he said.
He noted there's an "impasse" now that the tenants have received inspection records.
Robertson said while he applauds the tenants' efforts, he's not letting emotion cloud his decision.
"They have to pay the price I think is fair or I'm not going to sell," Robertson said.
"I didn't get into owning a building for charity. It's always been a financial process."
For Reynolds, it's more than that.
"This has been my home. It's been my home for 30 years."
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