Short-Term Lease – Northern Way Housing Co-op

Summary

• The City proposes a new short-term below-market lease with Northern Way Housing Co-operative for the City-owned property at 675 East 5th Avenue in Mount Pleasant, replacing a 40-year ground lease that expired May 31, 2024 and has been in overhold since then.
• The proposed lease would run for 5 years with two one-year options to extend, with rent set below market rates using the City's Co-op Lease Methodology — the difference between market and charged rent constitutes a grant requiring a two-thirds Council vote.
• Northern Way Co-op operates a 4-storey, 60-unit co-op housing building; 22 units (37%) are occupied by Rent Geared to Income (RGI) households, with the remaining 38 units (63%) classified as non-RGI.
• The site has significant redevelopment potential under the Broadway Plan, and staff will continue exploring increased affordable housing density with the Co-op during the lease term, with a report back to Council expected.
• The short-term lease is intended to provide housing stability for current co-op members while the City and Co-op plan for a future redevelopment that could substantially increase affordable rental housing supply.

Vote

Documents

• Report – Short-Term Below Market Lease and Grant to Northern Way Housing Co-operative at 675 East 5th Avenue