A developer’s cash offer to tenants facing eviction from two low-income East Vancouver apartment complexes has been met with anger and frustration by the tenants, who say they are losing some of the last affordable rental housing left in the city.

Last week, tenants from 4550 Fraser St. and 4545 Prince Albert St. received a letter from building owner Sergio Cocchia offering them $2,500 each, plus their damage deposit, if they agree to move out by March 31. The deal is contingent on all tenants signing by February 10.

With the help of Ledingham McAllister Developments, Cocchia has applied for permits with the city to demolish the 78-unit Fraser Villa and the 48-unit Prince Albert Plaza. If the permits are granted, the properties will be transferred to Ledingham McAllister, which will evict the tenants and build condominiums, townhouses and market rental units on the sites.

“I think the offer is a very good deal for the developers and not for the tenants,” said Laura Stannard, a housing coordinator with the Jewish Family Service Agency, who is helping the tenants with their case. “And [Ledingham McAllister’s] apparent lack of understanding of what the tenants are going through is an insult to the tenants.”

While many of the tenants have already moved out of the building since learning about the development plan last fall, at least 34 units are still occupied. Renters in the building pay between $510 and $750 a month for mostly two- and three-bedroom apartments. The buildings are considered rundown and in need of major repairs.

Although the compensation is more than the developer is legally required to offer—it only has to give the tenants from the Prince Albert building two months rent, plus moving expense, and tenants from Fraser Street building one months rent—many of the remaining tenants say the money does little to cover the cost of having to move into a more expensive apartment.

“There are no affordable places in the city,” said Roberta Pierro, who pays $700 a month for a two-bedroom apartment in the Prince Albert Plaza and lives with her partner and 10-year-old daughter. “I’ve looked at basement apartments that are charging $1,200 and [they’re so small] my daughter can touch the ceiling.”

In 2007 city council passed a rate of change bylaw that requires developers to replace every demolished or converted rental unit. But because of zoning differences between the two buildings, Ledingham McAllister will only have to replace the rental units from the 48-unit Prince Albert apartment. There is no requirement that forces the developer to keep the new rental units affordable.

In 2007 city council passed a rate of change bylaw that requires developers to replace every demolished or converted rental unit. But because of zoning differences between the two buildings, Ledingham McAllister will only have to replace the rental units from the 48-unit Prince Albert apartment. There is no requirement that forces the developer to keep the new rental units affordable.

When asked to respond to the tenants’ frustration of losing affordable housing in a city with an expensive rental market, O’Donnell said it is an issue that governments need to tackle.

“One of the major problems that should be addressed is why the legislation has not been changed to encourage construction of new rental accommodation so there can be new accommodation created year after year,” he said.

However, housing advocates say Ledingham McAllister is not considering the harsh reality these tenants—many of whom are immigrant families or single mothers—will face when they lose their homes. According to the most recent Canada Mortgage and Housing Corporation report, the average two-bedroom apartment in Vancouver costs $1,318 a month and the city’s vacancy rate is a mere 0.3 per cent.

“It’s like ships passing in the night,” said NDP MLA David Chudnovsky, who is representing the tenants in negotiations with the Ledingham McAllister. “At this point the developer has no answer with respect to affordable housing in general and, in particular, with respect to these people continuing to have affordable housing.”

Tenants also argue that the developer is not considering the emotional attachment they have to neighbourhood. Many have lived in the buildings for more than 10 years and have children who go to school in the area.

“My kids are always asking, ‘Dad, what is going to happen? I don’t want to change my school. I’m not going to move to Surrey or Burnaby, I want to stay here,” said Haroon Asadullah, who has lived in a two-bedroom apartment in Fraser Villa with his wife and four kids for seven years. “Money isn’t my issue.”

City council is expected to hold a hearing on the development later this month and tenants hope council will halt or delay the demolitions since Vision Vancouver and COPE were elected under a promise to end homelessness and protect low-income renters.

Adding an interesting twist, Mayor Gregor Robertson recently appointed Ward McAllister, president and CEO of Ledingham McAllister, to chair of the Mayor’s Advisory Group on the Olympic Village.

In an email to The Tyee, Vision councillor Geoff Meggs, who has met with the tenants, said council is expecting a staff report later this month and would not be able to comment until he reviewed the options.

“I don't think I can say much beyond our determination to find policies that will generate more affordable rental housing,” he wrote.

The tenants will now make a counter-offer to Ledingham McAllister and hope they will push back the deadline until after the council meeting.

Sean Condon is the editor of Megaphone Magazine.