The City of Montreal has taken swift action to acquire a rooming house in the Sud-Ouest borough before it could be sold to a private entity. This proactive approach is part of the city’s increasing use of the right of first refusal, a legal power that helps maintain low rents and address the housing crisis. Benoit Dorais, the mayor of Sud-Ouest borough, emphasized the city’s commitment to protecting rooming houses by employing this new tool.
The recently acquired building, located on Centre Street in Pointe-Saint-Charles, is a seven-unit rooming house where vulnerable tenants pay affordable rents. The landlord had received an offer of $1,385,000 for the building, but the city exercised its right of first refusal to match the offer and compel the owner to sell it to them instead.
Viken Gulumian, the owner of the building, revealed that a bailiff informed him of the city’s intention to purchase the property. This strategy is employed by the city to prevent affordable housing units from falling into the hands of private interests, which could lead to rent increases or the displacement of tenants through renovations.
Mayor Dorais emphasized the importance of purchasing these types of buildings, as they serve the most vulnerable individuals. Sam Watts, CEO of Welcome Hall Mission, praised the city’s acquisition, recognizing it as a positive step in the fight against homelessness. Watts emphasized that rooming houses provide a means of identifying and assisting individuals in need, either by helping them remain in their current housing or transitioning them into more secure accommodations.
Since 2022, Montreal has utilized the right of first refusal and successfully acquired five buildings. The owner of the latest acquisition did not face any financial loss through the sale to the city, but he believes that alternative measures, such as raising the minimum wage for everyone and reducing taxes, could help landlords keep rents low and still make a profit. However, the city remains committed to its winning strategy and aims to transfer the building to a non-profit organization by next year, establishing it as social housing that will continue to offer affordable rents.
Overall, the City of Montreal’s proactive approach to acquiring rooming houses demonstrates its dedication to addressing the housing crisis and protecting vulnerable individuals. By utilizing the right of first refusal, the city ensures that these properties remain affordable and available to those in need.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
