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Originally Posted by jollyburger
So it was $850 two years ago but in their "cheapest" rents for 2018 they list Brandiz at $750 and Pender Hotel was $870.
Places that charge above the $375 shelter component of welfare are "market rental"? Or is it the conditions of the rooms?
Also the 10 year $400 rate mentions "Any rent increases will be proportional to increases to the shelter component of welfare, currently set at $375/month." How are they going to raise the rental of those six units if the shelter component is still the same?
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SRO rooms, as I understand it, are Single Room Occupancy. They're under 320 sq ft, often have shared bathrooms (but not always), and are regulated in the sense that the owner can't just redevelop them. The rents are usually not regulated, alhough more recent non-market, or 'social' housing often does have a rental agreement to ensure a proportion are available at, or close to welfare rates.
The intention is to phase them out, and replace them with new purpose-built non market buildings, but in the past decade or more the market has been so strong that even some market SRO buildings like the Burns Block rent at $1,350 a month, even with tiny rooms and shared bathrooms. So BC Housing when Rich Coleman was minister, and continuing since the NDP took over, have been buying hotels and SRO buildings (often built as hotels a century or more ago) like The American, to ensure the building is safe, and the rents are all, or mostly, available for people on welfare. Some will be replaced in time with newer, larger buildings. The City has been doing something similar on a smaller scale.
I think the average rent at The American in 2018 relects the mix of longer term tenants who will have below $850 rents, and newer tenants paying more. The cheapest $750 rent at Brandiz is for a new tenant. Presumably the average rent at Brandiz (which is a bit run down) will be lower than $750, reflecting lower rents paid by longer term tenants. At $750 for the cheapest room, you can see how welfare rent payments don't come close to covering a market rent, which is why the City and BC Housing have been trying to secure more guaranteed welfare rate apartments through new development like Mirabel in the West End or Strathcona Village, mentioned in the CCAP report.
The 10 year deal for the 6 rooms kept the rent at $25 over welfare rate. As the welfare rate is still $375, the rent should still be $400 but the deal would have ended next year, as it started in 2011. Then all the rooms would have been market rate once the existing tenants moved out.