Langley City Council Approves Beefed Up Compensation and Relocation Policy for Tenants in Purpose-Built Rental Buildings Subject to Redevelopment

Since I can remember, Langley City has had a policy to ensure that the number of purpose-built rental housing units in our city never decreases; in fact, the number of purpose-built rental units has increased over the years. If a purpose-built rental building is ever redeveloped, the number of rental units must be replaced one-for-one.

While this policy was in place for decades, the first significant redevelopment project of a purpose-built apartment building occurred with the Centreville Apartment at 20785 Fraser Highway in 2021. At the time, Langley City Council and staff acted quickly to implement an interim tenant relocation policy that required assisting tenants in relocating to another purpose-built rental home in Langley City, Township, or Surrey and provided a small amount of compensation above and beyond the provincial requirements.

At the time, Council acknowledged that we needed to enhance this policy to increase compensation and provide additional support for tenants in finding new homes. We adopted an enhanced policy in 2022, which you can read in a previous blog post. This policy was in place when Council received our next major redevelopment application for a purpose-built rental building, Pyramid Apartments, at 5360 -204th Street.

Based on the experience of the Pyramid Apartment project and the fact that rents have gone sky-high, Council asked Langley City staff to develop a significantly more robust policy that would maximize compensation, relocation support, and the ability to return to the new building at a below-market rental rate while still making redevelopment projects viable. The City hired a land economist to help us develop this policy.

This first change was an increase in compensation as follows:

Up to 5 years tenancy: 2 months of current rent -> 4 months of current rent
6 to 10 years tenancy: 3 months of current rent -> 8 months of current rent
11 to 15 years tenancy: 4 months of current rent -> 12 months of current rent
16-20 years tenancy: 5 months of current rent -> 14 months of current rent
Over 20 years tenancy: 6 months of current rent -> 16 months of current rent

As with our previous policy, we defined a “vulnerable” tenant. “Vulnerable” tenants qualify for additional support. We broadened who qualifies for additional support to people who have one or more of the following attributes:

• Are seniors aged 55 or older
• Have a recognized disability pension or are considered disabled for income tax purposes
• Qualify for deep subsidy or Rent Geared to Income (RGI) Units, according to BC Housing eligibility criteria
• Are currently paying monthly rent that is equivalent to or less than average monthly rents for RGI units in the City

If a “vulnerable” tenant is relocated to non-market priced rental housing, their updated compensation is as follows:

Up to 5 years tenancy: 4 months of current rent -> 12 months of current rent
6 to 10 years tenancy: 4 months of current rent -> 12 months of current rent
11 to 15 years tenancy: 4 months of current rent -> 14 months of current rent
16-20 years tenancy: 5 months of current rent -> 15 months of current rent
Over 20 years tenancy: 6 months of current rent -> 16 months of current rent

If a “vulnerable” tenant is relocated to market-priced rental housing, they automatically get 16 months of rent as compensation, no matter what.

The updated policy also increased moving expense compensation.

When a building is redeveloped and its replacement building opens, tenants have the right to return at 20% below the current market rent.

Finally, the policy has been enhanced to require developers to find a home for tenants who are being relocated with rents at or less than CMHC’s average rent in the City, suitable for the tenant’s needs, and with the same number of bedrooms as the tenant’s current unit. For “vulnerable” tenants, the relocation support goes further, requiring a developer to find non-market, subsidized units.

I encourage you to read the full updated policy. We must take care of people in our community, and this updated policy further supports people who may find themselves in a purpose-built rental building undergoing redevelopment. Updating this policy was a key priority for Council, and I’m happy it was adopted last night.