Tenants’ purchase of Hamilton apartment building halted

The tenants of a Hamilton apartment building say their plan to purchase the property and turn it into a non-profit co-op has stalled.

The residents of 272 Caroline St. South have a laundry list of repairs they say are needed, and they want the landlord to lower the price.

But the landlord says the price is fair.

Tenant and building handyman Jim Reynolds points out some of the things he would like fixed in the 90-year-old building.

“Past that lightbulb down there is where the asbestos is laying on the ground, alright,” Reynolds said.

READ MORE: Tenants intend to purchase building to avoid rent hikes, renoviction

Residents invited media to the building Wednesday to present a list of concerns, including water damage, foundation problems, old electrical panels and asbestos.

They say the problems were uncovered during a series of inspections.

Emily Power from the Caroline Street Tenant Association said these professionals identified more than $500,000 worth of repairs.

“We want the landlord to acknowledge these reports and do the repairs and we will meet his price,” Reynolds said.

The building was originally listed for $5.25 million.

The tenants and landlord have a purchase agreement for $4.8 million, contingent on a $100,000 deposit, which the tenants finished paying on Monday.

They now want certain repairs to be urgently completed, as well as a price reduction to $4.7 million. Or if the repairs aren’t completed, they want the price dropped to $4.5 million.

“This is the difference between the co-op succeeding or failing,” Power said.

READ MORE: Hamilton loans tenants $84K to help purchase apartment to avoid rent hikes

The building’s landlord, Andrew Robertson, declined to go on camera today but told CHCH News that he’s disappointed the tenants have publicized and “made a spectacle” out of what he says should be a private negotiation.

He says if the tenants don’t want to pay the price they agreed to, he’s prepared to keep the building, and he strongly rejects the tenants claims that urgent repairs are needed.

“This is over exaggerated, it’s not accurate, the building is not falling down…I’ve already factored into my price the fact that it’s an older building… a lot of the stuff they are talking about is discretionary,” Robertson said.

“An older building is always going to require some attention, nothing is urgent.”

This all began several months ago when the tenants discovered their building was up for sale and decided to buy it and create a non-profit co-op to protect themselves from re-development, renovation or increasing rent.

The idea has captured the attention of many people and organizations concerned with the high cost of housing.

“What you are doing right now is a model for what we need to move forward with not just in this city but across this country,” Hamilton and District Labour Council President, Anthony Marco said.

Sarah Burnett-Murray from Golden Horseshoe Co-op Housing Federation said they are hopeful the current owner of this property will be reasonable in negotiations with this group while Amina Dibe from the Co-op Housing Federation of Canada said they need to grow affordability in many ways including with brand new co-op housing.

The tenants have secured funding from the city and non-governmental organizations to help with the down payment if the deal goes forward.