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Fernie waives fees in desirable property exchange
By Erin Knutson
The City of Fernie motioned in favour of discharging a property covenant agreement to provide three units of affordable housing to the Elk Valley Family Society (EVFS) while waiving repayment fees at last Monday’s council meeting.
“The purchase of the units by EVFS is supported by BC Housing which has stated that they will be registering their covenant under section 219 of the Land Titles Act restricting the units to a long-term rental,” said a council report.
A rental covenant agreement between the City of Fernie and Veneto Place Properties Ltd. ratified on Oct. 8, 2010, encumbered the properties.
The S.219 Rental Covenant CA1794481 (Strata Lots 18, 32, and 33 Plan EPS199) outlined a 10-year Affordable Housing Ownership (AHO) contract that was set to expire in Nov. 2020.
EVFS, in partnership with BC Housing and the Columbia Basin Trust, requested the transfer of the units located at 102, 103 1092 1st Ave, and 103 1042 1st Ave after recognizing an opportunity to sustain long term affordable housing.
BC Housing’s new section 219 covenant restricts the units to permanently affordable housing in perpetuity and will follow the obtainment of the properties by EVFS.
A recommendation was made that council waive repayment rights to its contributions upon transfer of the properties. The move was suggested by administrative staff, given the 10-month expiry date of the current agreement.
By waiving the repayment rights of its contribution to these units, a sum totalling $338,165 (including other units not listed in the transfer), the City of Fernie ensured that three additional affordable housing units were freed-up.
This move resulted in EVFS being able to acquire the properties without the burden of recouping them at 1/45 per unit, which would have required repayment of $22,544 on behalf of the society.
“This is a win-win scenario as the city’s rights expire in 10 months, and this purchase will result in long term affordable housing that would have otherwise become free-market units,” said a council report.
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