Report calls for more protection for buyers of converted condos

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This article was published 02/06/2011 (4711 days ago), so information in it may no longer be current.

A city report calls on the province to introduce more protection for people who purchase apartments that have been converted into condos.

Winnipeg’s public administration investigated strategies to address the city’s rental shortage last year, and its report was posted online this morning. Winnipeg’s apartment vacancy rate is among the lowest in Canada, and is currently hovering at 0.8 per cent. The vacancy rate has been at or below two per cent since 2000.

The report says the conversion of existing apartments into condos is contributing to the rental shortage. It suggests that city council urge the provincial government change the Condominium Act to require developers who convert apartments into condos to put seed money in the building’s maintenance reserve fund in advance. The reserve fund’s balance should also be disclosed to potential buyers, the report said.

The province regulates condo conversions, and the report said Winnipeg has no authority to curtail condo conversions.

It also calls on the city to stimulate new rental construction by revising federal tax policies to remove barriers that discourage rental developers from building new units.

Council’s property and development committee will consider the report’s recommendations at a meeting on Tuesday.