February 8, 2012

Property passes from residents to region

Landmark decision could set legal precedent says lawyer

by Paul Johnston

Residents of a Thornhill housing co-op recently lost their legal battle against York Region to keep control of their community.

“It devastated us,” said Jim Common, president of the Thornhill Green Co-op.

“I’m deeply disappointed with the decision.” In 2006, York Region placed the 101-unit co-op, located at Yonge Street and Royal Orchard Boulevard, into receivership.

The region was brought in by the co-op board for help after property repairs depleted funds. In May 2008, residents were notified that the region would be buying the homes. With support from the Co-operative Housing Federation of Canada, community residents fought to retain control of their community.

Harvey Cooper, manager of government relations with the Co-operative Housing Federation of Canada, said the recent decision has prompted questions and concerns from other co-operatives. This is the first time that a non-profit co-op has been purchased by a region against the wishes of its resident. In the short time the region has been in control of the co-op, the property has started to fall into disarray, Common said.

“It’s not for the betterment of the co-op or the property,” he said. “It’s simply to grab a very, very valuable asset of land at no cost.” Common, a real estate agent for Re/Max, said similar properties in the area had sold in the 20-$50 million range. While rents will remain the same, residents costs are rising, Common said.

Roughly 30 residents were handed bills for maintenance and repair fees recently — services previously provided at no cost by the co-op.

Murray Klippenstein, lawyer for the federation, said the decision could have an impact in similar future cases. “It’s a possibly negative precedence against housing co-ops,” he said. Sylvia Patterson, general manager of housing and long term care for York Region, said that there are currently no plans for redevelopment.

This article appears in the July 2010 issue of Post City Magazines

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