Summary#
On July 28, 2026, Vancouver City Council unanimously authorized a five-year extension and amendment of the City’s ground lease with Lu’ma Native Housing Society for 1475 Kitchener Street. The stated goal is to keep the 22-unit housing project operating with an affordability mix that can better support its costs if a provincial operating subsidy ends.
- The extension would run from October 31, 2026, to October 30, 2031. The City’s Director of Real Estate Services may negotiate and sign it on the approved terms, with some other terms subject to approval by City officials.
- At least 15% of units must be rented at Shelter rates; the rest must be rented at Low End of Market rates, capped at 85% of market rent for the area.
- This replaces the current requirement for 50% of units at Shelter rates and 50% at Rent Geared to Income for eligible households.
- Council also approved deeming Lu’ma an organization contributing to the welfare of Vancouver, as required for the below-market lease to be treated as a grant under the Vancouver Charter.
- The decision does not itself finalize the lease: no legal rights or obligations arise until both parties execute and deliver the legal documents.
What it means for you#
- Residents: The lease terms would allow most units to be rented at Low End of Market rates, rather than requiring half of them to be Rent Geared to Income. The staff report lists 2026 deep-subsidy rents of $500 for studios and one-bedroom units, $675 for two-bedroom units, and $790 for three-bedroom units. It lists maximum Low End of Market rents of $1,523, $1,526, $2,095 and $2,352, respectively.
- Lu’ma: The society would have a five-year lease extension if the agreement is signed, and must meet the new affordability mix. City staff say the new mix is intended to bring in more revenue.
- The City: It would continue leasing City-owned land to Lu’ma for $10 for the five-year term. The land is not being sold or transferred.
- Council’s motion was moved by Councillor Dominato and seconded by Councillor Klassen.
Money#
The lease rent is $10 for five years; City staff estimate the lease extension’s market value at about $750,000.
- The staff report says Lu’ma receives about $150,000 a year in subsidy through an operating agreement, which is due to end March 31, 2028 and may not be renewed.
- Staff say the project is expected to run a deficit after that subsidy ends; the report says Lu’ma would be responsible for the deficit.
- The decision does not authorize a City operating subsidy or financial guarantee.
What is unclear#
- The lease is not final until signed; the date it will be executed is not stated.
- The motion allows other terms to be approved by City officials. Those terms are not set out in the decision.
- The materials do not explain how existing tenants’ rents would change, or when any changes would take effect.
- The report does not specify how the minimum 15% Shelter-rate share would be allocated across the different unit sizes.
- The operating agreement with BC Housing allows flexibility for market rents upon unit turnover, but how that interacts with the new lease affordability limits is not explained.
Case for#
- City staff say the current 50/50 affordability mix depends on subsidy that may end in 2028. Allowing more units at capped Low End of Market rates could bring in additional revenue.
- The extension keeps the 22-unit project on City land for another five years, while preserving a minimum share of units at Shelter rates.
- Staff recommend $10 rent under the City’s non-profit lease framework, while Lu’ma remains responsible for any operating deficit.
Case against#
- The new mix reduces the required Shelter-rate share from 50% to at least 15% and removes the stated requirement for half the units to be Rent Geared to Income. Residents may therefore face less deeply subsidized rents, though the decision does not say how current tenants’ rents will change.
- Even with the revised affordability mix, City staff expect a deficit after the subsidy ends. The decision does not explain how Lu’ma would cover it if the added rental income is not enough.
- The City is granting a lease with an estimated market value of about $750,000 for $10. The materials identify this as a grant but do not explain the value of that public benefit beyond the housing terms.