WCEL > Issues > Urban Growth and Development > Smart Bylaws Guide > Part 5 > Conversion & Demolition Control

Smart Bylaws Guide – Support Rental Housing – Conversion & Demolition Control

Conversion and demolition controls are used by over 20 local governments to control the rate of loss of existing rental accommodation.  Conversion controls refer to limitations on when and how a rental unit or building can be converted to strata ownership.

Many conversion control policies require the vacancy rate to be higher than a certain threshold for a period of time before a conversion will be approved.  New Westminster placed a complete moratorium on conversions.

In addition, local governments must consider the following criteria when approving the conversion of rental units into strata units (section 242 Strata Property Act):

• the priority of rental accommodation over privately-owned housing in the area;
• the proposals of the owner for relocating the existing tenants;
• the life expectancy of the building;
• the projected major increases in maintenance costs due to the condition of the building; and
• any other matters that, in its opinion, are relevant.

Examples of Municipal Conversion Controls in BC

District of Campell River – Official Community Plan Bylaw No. 2555 p.53

7.11 RENTAL HOUSING Choice in tenure for residents shall be maintained by encouraging an adequate supply of rental housing through: 

• supporting public and private initiatives in this area;
• examining ways to reduce the cost of approvals by speeding up processing times; and 
• conserving the existing rental housing stock by restricting conversions when rental vacancy rates are less than 3%.

City of New Westminster – Official Community Plan Bylaw No. 6680 pp.47-48
Need for Balance Between Rented and Owned Housing

Since 1978, the City has placed a moratorium on the stratification of rental housing units. Council policy states “that a moratorium be placed on the conversion of rental units to strata title units” [see Council Resolution: 1978 November 27]. A consideration to encourage additional homeownership may be addressed through amending this Council policy. There are advantages and disadvantages to lifting the moratorium on the stratification of rental units. An advantage could be Building Code and City regulation upgrades to particular rental buildings. A disadvantage could be the potential displacement of renters. Due to these complex considerations, further study is required. 

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Policies and Priorities

1. Promote high health and safety standards in the rental housing stock as it ages.

• Continue to encourage the upgrading of existing rental stock to current codes (e.g., fire, seismic, handicapped) as well as the replacement of old rental units with new rental housing by considering the adoption of policies encouraging the creation of rental units in multi-family rezoning.
• Regulate the creation of legal secondary suites.
• Encourage existing commercial enterprises to create rental housing units above ground level storefronts.
• Continue to support Police Service initiatives(e.g., Crime Free Multi-Housing Program) and Simon Fraser Health Region programs designed to address housing issues in New Westminster.
• Continue to monitor the affordability and livability statistics of the City’s rental stock.

2. Encourage a balance of rented and owned housing units.

• Examine the effects of the moratorium on conversion of rental units to strata titled units.
• Review the moratorium on strata titled units.

City of Vancouver – Strata Title and Cooperative Conversion Guidelines March 2003, p.2

For the approving authority to give favourable consideration to an application for converting a previously occupied building to strata title or cooperative ownership:

(a) At least two-thirds (2/3) of the households occupying the building must have given their written consent to the conversion; and

(b) The interests of all tenants must have been adequately respected in the conversion process.

City of Vancouver – Artists Studios in Industrial Districts Strata Title Conversion Guidelines September 10, 1996

Council will not entertain any applications to convert previously occupied buildings which have been converted to artist studio use to strata title ownership, with the exception of buildings listed on the Vancouver Heritage Register, which are located in 'let go' industrial areas.

City of Vancouver - Single Room Accommodation Bylaw No. 8733 (2003)

This Bylaw requires Council approval to demolish or convert single room accommodation designated rooms, which include single room occupancy hotels (known as SROs), rooming houses and non-market projects with rooms less than 320 square feet. According to the City of Vancouver's Housing Centre's website, the by-law is "a response to a number of factors:

* Increasing development pressures in the downtown core;
* The provincial government’s cancellation of the Homes BC program; and,
* Council’s commitment (vis-à-vis its role as a signatory to the Inclusive Intent Statement) to the goal of ensuring no evictions occur as a result to the 2010 Winter and Paralympic Winter Games."

City of Toronto - Rental Housing Demolition and Conversion Bylaw and background information

This Bylaw aims to protect from demolition or conversion residential buildings containing 6 or more rental housing units.