Kelowna city councillors are set to review new options for tenant protection when it comes to older buildings being redeveloped.
The decision to update the city’s policies around tenant protection and relocation assistance stems from a proposal for a 55-unit townhouse project proposed for Mills Road, which would require the demolition of 20 existing rentals.
The project was put on pause shortly after receiving initial rezoning approval in May.
That townhouse project actually expedited the tenant protection and relocation assistance report, city staff say.
In Kelowna, support for tenants who lose housing due to redevelopment is guided by standards set out in the Residential Tenancy Act, which requires landlords to give tenants four months’ notice to end tenancy for renovations.
“There is a lack of formal assistance beyond these basic requirements,” the staff report says.
.png)
The first option that will be presented to council on Monday would stick with the status quo, which follows those requirements set out in the RTA.
The second option, which is being recommended by staff, would require developers to submit their own tenant relocation plan including a proposal to minimize the impacts of tenant displacement in addition to the RTA requirements.
The third option would be to make a “major shift” in council policies.
That could include having developers include a standardized tenant relocation plan, including mandatory extended notification, relocation coordination services, financial compensation (moving expenses or rent top-ups) and right of first refusal.
City staff say the moderate shift could “achieve a balance between tenant support and development feasibility.”
“Under this option, individual developers would be required to create their own tenant relocation plans, following a set of guidelines outlining what the plan could include,” the report says.
“This requirement would be implemented through a bylaw and would only apply when the vacancy rate falls below 4.0%.”
It is well-known that Kelowna has had a historically low vacancy rate and has only hit 4% a handful of times since the 1990s.
However, staff warn of the potential for inconsistent protection for tenants with the second option, which will require regular updates to council to ensure the process is effective.
At the other end of the spectrum, staff warn that making a major shift in tenant relocation policies could jeopardize the viability of new rental projects in the city.
Once council decides on which option they prefer, city staff will need to finalize the guidelines for the tenant relocation plan and draft the bylaw before bringing it back to council for adoption at a later date.
