BOWEN ISLAND MUNICIPALITY BYLAW NO. 427, 2016 A Bylaw to authorize Bowen Island Municipality to enter into a Housing Agreement (Daniel Heald)

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1 BOWEN ISLAND MUNICIPALITY BYLAW NO. 427, 2016 A Bylaw to authorize Bowen Island Municipality to enter into a Housing Agreement (Daniel Heald) WHEREAS Bowen Island Municipality has received a request to enter into a housing agreement; AND WHEREAS Section 483 of the Local Government Act empowers the Council of Bowen Island Municipality to enter into a housing agreement; NOW THEREFORE, the Council of Bowen Island Municipality, in open meeting assembled, ENACTS AS FOLLOWS: 1. This Bylaw may be cited for all purposes as Daniel Heald Housing Agreement, Authorization Bylaw, No. 427, Bowen Island Municipality is hereby authorized and empowered to enter into a housing agreement in the form attached hereto as Schedule I and forming part of this By law (the Housing Agreement ) with the parties named herein; and with respect to those certain parcels or tracts of land and premises situate, lying and being within Bowen Island Municipality, in the Province of British Columbia and being more particularly know and described as: 511 Sunset Road Lot 1, Block C, District Lot 492, Group 1, BCP18926 (PID ); 3. The Mayor and Corporate Officer are hereby empowered to execute the Housing agreement on behalf of Bowen Island Municipality. 4. Bowen Island Municipality shall file in the Land Title Office, a notice against the Lands in accordance with Section 483 of the Local Government Act that the Lands are subject to the Housing Agreement. READ A FIRST TIME this 29th day of August 2016; READ A SECOND TIME this 29 th day of August, 2016; READ A THIRD TIME this 29 th day of August, 2016; FINALLY ADOPTED this 11 th day of October, (ORIGINAL SIGNED) Murray Skeels Mayor (ORIGINAL SIGNED) Hope Dallas Deputy Corporate Officer

2 Schedule I AFFORDABLE HOUSING RENTAL AGREEMENT This Agreement dated for reference the day of, BETWEEN: AND: DANIEL HEALD, 511 Sunset Road, Bowen Island, British Columbia, V0N 1G2 (hereinafter "Heald) BOWEN ISLAND MUNICIPALITY, a municipality incorporated under the Municipal Act and having its address at PO Box 279, 981 Artisan Lane, Bowen Island, British Columbia, V0N 1G2 (hereinafter "BIM") WHEREAS: A. Section 483 of the Local Government Act, permits BIM, by bylaw, to enter into of a Housing Agreement; B. Section 219 of the Land Title Act permits the registration of a covenant of a negative or positive nature in favour of BIM in respect of the use of land or construction on land; C. Heald is the registered owner of the Land and is in the process of developing the same; D. Heald and BIM wish to enter into this Agreement to provide for restricted affordable rental housing in accordance with BIM Policy on the terms and conditions set out in this Agreement, and this Agreement is both a covenant under section 219 of the Land Title Act and a housing agreement under section 483 of the Local Government Act. NOW THEREFORE in consideration of the mutual promises contained herein, and of the payment of One ($1) Dollar by BIM to Heald, the receipt and sufficiency of which is hereby acknowledged, the parties covenant and agree with each other as follows: 1.1 DEFINITIONS 1.2 Definitions. In this Agreement:

3 Agreement means these terms set out herein, together with the Form C General Instrument of this Agreement. CCPI means the Core Consumer Price Index for Canada published from time to time by the Bank of Canada, or its successor in function; Change in CCPI means the percentage change between the monthly CCPI published immediately prior to the date of previous rental and the monthly CCPI published immediately prior to the date of a subsequent rental. Where the CCPI has increased since the date of previous rental, the Change in CCPI is positive. Where the CCPI has decreased since the date of previous rental, the Change in CCPI is negative. "Designated Unit" means the residential unit within the commercial kitchen facility building on the Land as described in Schedule A attached hereto which is to be designated and maintained as a non-market rental housing unit under the terms of this Agreement; Development means the construction of the Project; Land means the land described in Item 2 of the Form C General Instrument of this Agreement; LTO means the Lower Mainland Land Title Office; "Qualified Tenant" means a prospective tenant of the Designated Unit who meets the criteria set out in Schedule B attached to this Agreement; "Rental Amount for a Designated Unit means 10% below market rent as determined by BIM and Heald, jointly from time to time. Subject always to the provisions of the Residential Tenancy Act (British Columbia), Heald may increase the rent payable for the Designated Unit annually, beginning with the first anniversary of the day on which the first Qualified Tenant occupied the Designated Unit and thereafter on each successive anniversary date, by an amount determined by multiplying the rent payable for the Designated Unit at the time of the proposed rent increase by the Change in the CCPI since the last anniversary date, providing the Rental Amount for a Designated Unit remains 10% below market rent; Tenancy Agreement means the tenancy agreement attached hereto as Schedule C. 2.1 TERM 2.2 Term. This Agreement shall commence upon the registration of this Agreement in the LTO and remain in effect until terminated in accordance with the provisions of this Agreement.

4 3.1 RENTAL OF DESIGNATED UNITS 3.2 Rental Limitations. Heald agrees to rent the Designated Unit only to a person who is a Qualified Tenant as defined in this Agreement. Heald agrees not to rent the Designated Unit for any amount greater than the Rental Amount for a Designated Unit. For greater certainty, the parties acknowledge and agree that: a) the Rental Amount for a Designated Unit only applies to the Designated Unit; and b) should the Designated Unit at any time be removed totally or demolished, the terms of this Agreement will be of no further effect and Heald shall not be obligated to reconstruct the Designated Unit provided. 3.3 Agreement. Heald agrees to require, as a condition of rental to any Qualified Tenant, that the Qualified Tenant enter into a Tenancy Agreement with Heald and that the Qualified Tenant must use the Designated Unit as his or her permanent residence. 3.4 Heald will not require the Qualified Tenant to pay any extra charges or fees for the use of any common property, limited common property or other common areas located in the Development, or for sanitary sewer, storm sewer, water utilities, or property taxes. For clarity, this Section does not apply to cablevision, telephone, other telecommunications, gas, utility or electricity utility fees or charges, parking fees or housekeeping charges. 3.5 Heald will attach a copy of this Agreement to the Tenancy Agreement. 3.6 Heald will include in the Tenancy Agreement a clause entitling it to terminate the Tenancy Agreement in accordance with the Residential Tenancy Act, if a Qualified Tenant uses or occupies or allows use or occupation of the Designated Unit in breach of the use and occupancy restrictions contained in this Agreement. 3.7 Subject to Section 3 of the Addendum to the Tenancy Agreement attached hereto, a Qualified Tenant residing in the Designated Unit may not sublease or assign the Tenancy Agreement without the consent of Bowen, such consent not to be unreasonably withheld. 4.1 PERFORMANCE 4.2 Performance. Heald agrees to perform its functions under this Agreement diligently and in good faith and to take all reasonable steps necessary to ensure that rental of the Designated Unit is restricted to Qualified Tenants. Heald agrees to take all reasonable steps to ensure that Qualified Tenants comply with the terms of the Tenancy Agreement.

5 4.3 The Land shall only be used and built upon in accordance with the terms of this Agreement. 4.4 Notice to BIM. Heald shall provide to BIM a copy of any executed Tenancy Agreement within seven (7) days following any rental of the Designated Unit, and shall, on request by BIM, supply to BIM copies of any documentation in the possession of Heald which establishes that the tenant of the Designated Unit is a Qualified Tenant. 5.1 ASSIGNMENT 5.2 No Assignment. Except as otherwise provided in this Agreement, neither this Agreement, nor any rights, obligations or responsibilities under this Agreement, may be assigned by Heald without the prior written consent of BIM. Heald agrees that any such assignment not authorized by BIM, in writing and in advance, shall be invalid. 5.3 Authorized Assignment. Heald agrees that no authorized assignment by Heald to an assignee approved by BIM, shall take effect unless and until the proposed assignee enters into an agreement with BIM whereby the assignee covenants to perform all of the obligations of Heald under this Agreement. 5.4 Relief from Obligations. Upon acceptance by BIM of a proposed assignee and the execution of the assignment agreement set out in Section 5.2 by the assignee, Heald shall be relieved of any obligations under this Agreement in respect of the Designated Unit arising subsequent to the effective date of the assignment agreement. 6.1 TERMINATION 6.2 BIM's Discretion. BIM may, at BIM s sole discretion and upon sixty (60) days' notice to Heald, terminate this Agreement and provide for discharge of this Agreement from title in respect of any Designated Unit. 6.3 Other Termination. At any time during the currency of this Agreement Heald may apply to BIM to terminate this Agreement and BIM agrees to act reasonably in considering such an application. 7.1 CHANGE IN STATUS 7.2 Status of Heald. If Heald a) becomes bankrupt or commits an act of bankruptcy or if a receiver or receiver-manager of its assets is appointed or makes an assignment for the benefit of creditors or otherwise; or

6 b) materially defaults in the performance of its obligations under this Agreement and seven (7) days notice of such default is given by BIM to Heald and such default is not corrected by Heald within such seven (7) days; all of the functions and obligations of Heald under this Agreement and any Tenancy Agreement shall thereupon be assumed by BIM and all of the rights and obligations of Heald under any such agreement(s) shall thereupon be deemed to be assigned to BIM, without the need for any further act or deed. The assignment provided for herein will not affect the Qualified Tenants residing in the Designated Unit and BIM, after deducting a reasonable administration fee for managing the Designated Unit, shall remit the balance of the rental received from the Qualified Tenants under the Tenancy Agreements to Heald. 7.3 BIM May Assign. Following any assumption by BIM of the rights and obligations of Heald under this Agreement and any Tenancy Agreement, BIM may, in BIM s sole discretion and without limitation, assign these rights to any other person, corporation or non-profit organization, provided such assignee provides the covenant set out in Section 5.2 of the Tenancy Agreement. 8.1 GENERAL PROVISIONS 8.2 Schedules. All schedules attached to this Agreement hereby form part of this Agreement as though contained in the body of this Agreement. 8.3 Further Assurances. The parties agree to execute any further documents, deliver any such further assurances, or do or cause to be done all further acts and things which may be reasonably necessary to give effect to the intent and purposes of this Agreement. 8.4 Governing Law. This Agreement shall be construed in accordance with the applicable laws of the Province of British Columbia. 8.5 Time of the Essence. Time shall be of the essence in this Agreement. 8.6 Enurement. This Agreement shall enure to the benefit of and be binding upon the parties and their respective successors and permitted assigns. 8.7 Notice. Any notice given by one party to another under this Agreement shall be deemed to have been given at such time as delivered by hand or courier to the address of any party referred to in this Agreement, or such other address as may be provided in writing from one party from time to time to the other party under this Agreement.

7 8.8 Covenant Runs With the Land. This Agreement burdens and runs with the Land, including the Project and any part into which any of it may be subdivided or consolidated, by strata plan or otherwise. All of the covenants and agreements contained in this Agreement are made by Heald for itself, its successors and assigns and all persons who acquire an interest in the Land or in any unit after the date of this Agreement. 8.9 Priority of this Agreement. Heald will, at its expense, do or cause to be done all acts reasonably necessary to ensure this Agreement is registered against the title to the Land, including any amendments to this Agreement as may be required by the LTO or BIM to effect such registration. IN WITNESS WHEREOF the parties hereto hereby acknowledge that this Agreement has been duly executed and delivered by the parties executing the Form (attached hereto).

8 Schedule A Designated Unit DESIGNATED UNIT

9 Schedule B Qualified Tenant Criteria A Qualified Tenant shall only be a Person who is a Resident, Permanent Employee or Retiree and must have an income that is equal to or less than the Core Need Income Threshold ( CNIT ) as established by Canada Mortgage and Housing Corporation ( CMHC ) (or BC Housing) from time to time for Vancouver. Should CNIT no longer be produced by CMHC or BC Housing, then the income level applicable shall be determined by reference to the most recent available CNIT figures for Vancouver, plus an annual adjustment no less than the increase in the Cost of Living Allowance ( COLA ) for that period prepared by Statistics Canada. Permanent Employee means an individual who can demonstrate to the satisfaction of the Heald that he or she has secured full time permanent employment for more than one year with a business that operates within the boundaries of Bowen Island Municipality; "Resident" means an individual who can demonstrate to the satisfaction of Heald that their current permanent residence has been within the boundaries of Bowen Island Municipality for a minimum of one year; Retiree means an individual who has ceased employment and who was a Resident for 5 of the 6 years within the boundaries of Bowen Island Municipality immediately preceding the date on which the individual ceased employment; Heald has the right to disqualify an applicant if the applicant s qualification information cannot be verified, is incomplete, or inaccurate at any time..

10 Schedule C Residential Tenancy Agreement

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