Doug Ward
Sun
WHISTLER – The new mayor of Whistler is upset that property owners in an employee housing development are trying to get rid of controls on the resale value of their homes.
Sixteen residents in the Barnfield Farm subdivision are asking the Supreme Court of B.C. to remove employee housing covenants capping the value of their non-market homes.
“My reaction is one of great disappointment,” said Mayor Ken Melamed. “We had an expectation that there would be price and occupancy controls and today the residents are challenging those covenants.”
With most chalets selling for over $1.2 million and condominiums for over $600,000, Whistler has struggled to provide affordable housing for resort employees. The town’s sky-high land prices have forced many employees to move to Squamish and Pemberton.
There are about 4,000 beds in below-market or restricted employee housing in Whistler, including the Barnfield homes. The idea behind the employee housing, said Melamed, is that the units are to remain affordable “in perpetuity.”
The Barnfield properties, under a formula set when they were purchased in 1997, have appreciated annually at 1.5 per cent.
This means that a $300,000 home built in Barnfield on a $100,000 lot eight years ago would now be worth roughly $440,000 — far below market value.
“We think they knew the formula going in and they say the formula was unclear,” said Melamed.
The controversy has sparked public anger, added Melamed, saying local newspapers have run letters critical of the Barnfield homeowners’ suit.
Bob Barnett, editor of the Pique, a weekly Whistler newsmagazine, wrote in a recent editorial: “There were no public displays of jealousy or disapproval when these people were presented with the opportunity to build their homes in Barnfield.
“On the contrary, there was general support and congratulations when their names were drawn in a housing lottery. But some of that support is evaporating with the lawsuit.”
David Sharpe, one of the homeowners, declined to comment on the suit when contacted Monday, but sent to The Vancouver Sun an e-mail statement from the Barnfield Homeowners Association.
The homeowners, in the statement, acknowledged that their suit has provoked controversy in Whistler. They went on to say that they are not trying to remove covenants restricting the Barnfield properties to Whistler resort employees.
The homeowners association also said it is seeking clarity from the courts about how the value of their homes should appreciate over time.
Mayor Melamed said he is worried that a successful suit by the Barnfield homeowners could prompt other residents in employee housing units to challenge covenants restricting the resale value of their homes.
Melamed said the suit shouldn’t threaten future employee housing projects, including the 2010 Olympic Games’ athletes village, which is set to be converted into price-restricted employee housing.
© The Vancouver Sun 2005