About three-quarters of the homeowners at The Berkeley, a condominium building in central Edmonton, have formed a coalition to oppose investment firms seeking to buy units and convert the property into rental housing. The owners joined together after residents received letters from companies expressing interest in purchasing their homes.

John Boissonneault, a coalition member and president of the building’s condominium association board, said the support from neighbours was “really good to see.” He has lived in The Berkeley for three decades and told CTV News Edmonton last week, “It made me feel like I’m not the only one who feels at home here.”

Boissonneault said the letters prompted concern among residents and led to a shared view that owners wanted to keep the building owner-occupied. “There was a lot of concern, and there seemed to be a consensus at that time that everybody seemed to want to remain owners and not see the building go into an apartment-style building,” he said.

He said homeowners had chosen to own their units, while recognizing that individual circumstances differ. Boissonneault also warned that some residents could be vulnerable when approached by investors. “We’re all proud to be owners, and we all made those choices in life, but you can’t control everybody where they are in their lives. These are vulnerable times, and they may be preying on vulnerable people if they’re reaching out either by email or phone or letters and trying to get those vulnerable people, and maybe making decisions where they may not understand the full scope of that.”

Darlene Reid, board chair of the Realtors Association of Edmonton, said the firms’ solicitation of individual owners is legal. She described the approach as a loophole that can help companies gain control of a condominium building. Reid said many owners may not know their units could be worth “a lot more” if sold as part of an entire building.

“Instead of these companies approaching the board and making an offer for the whole building, they’re going backdoors and approaching individual owners until they get a majority, controlling interest,” Reid said. The companies’ longer-term aim, she said, is to acquire enough units to turn the whole property into rentals they operate.

Reid said an investor with 50 per cent ownership can take control of the board of directors and hold full voting ability. She warned that remaining owners could then face special assessments and other conditions that make it difficult to stay. “Once they get into the buildings ... and they have 50% ownership, they’ll take control of the board of directors, and then they have full voting ability,” she said.

“They’ll issue special assessments and make things very difficult for the remaining owners so that they’re almost forced to sell because they can’t afford to stay in the buildings. Once they get the entire building, they get access to that reserve fund, then they can take that million-dollar reserve fund and use it as a down payment on the next building they acquire,” Reid said.

Edmonton-based Harmani Investments is one company that has sent letters to Berkeley owners. The building is located half a block north of Jasper Avenue on 116 Street. Harmani told CTV News Edmonton that its inquiries are intended to gauge interest and owners do not have to respond.

The firm said several units in The Berkeley are already for sale, that the building’s reserve fund faces a shortfall and that it has capital to help bridge the gap. Harmani said it welcomes scrutiny and wants to meet with provincial representatives to discuss its plans for the building.

Reid said Edmonton’s condominium market is “a little bit soft,” with more listings and fewer sales than last year. “We’ve seen a huge increase in inventory from last year, and we’ve seen the number of sales drop,” she said. “There is a lot of supply on the market.”

She said the shift from owner-occupied homes to rentals affects younger people seeking to enter the housing market and seniors who have lived in their buildings for years and paid off their mortgages. “Now they’re being turned into rentals, and they have to find other alternative accommodations,” Reid said, calling the reduction in owner-occupied housing stock “not great.”

The Realtors Association of Edmonton has asked the Alberta government to change the rules it calls a building-control loophole. Its proposal would give a group that owns multiple units in one condominium building just one vote, so that it “can’t force the other people out.”

Service Alberta and Red Tape Reduction Minister Dale Nally said in a statement to CTV News Edmonton that his office is aware of the concerns and is learning more about the issue. “Condo owners deserve to have confidence that the rules and protections in place are working for them,” Nally said. “Our conversations will help us determine whether any changes may be needed.” The report included files from CTV News Edmonton’s Connor Hogg.

Based on reporting by CTV News Edmonton.