Seniors at a Markham apartment building for retirees are dismayed they’ll soon be paying hundreds of dollars a month to finance a roof repair they say was never supposed to be their responsibility.
Residents at Wyndham Gardens Apartments, in Unionville, have “life leases” — an agreement where they have bought the right to live in the building at below market rate until they die. They insist repairs weren’t part of the deal, raising questions about these kinds of arrangements in a housing market with few affordable options for aging baby boomers and gen-Xers.
“It was a big shock,” said Chloe Efthyvoulos, an 86-year-old resident who has been told she has to pay an extra $400 a month for five years, effective June 1, on top of her usual maintenance fees. She bought the life lease for her two bedroom unit in 2017 for around $400,000.
“It makes me skeptical about what’s next.”
The building is owned and operated by an affiliate non-for-profit corporation of the Unionville Home Society, which provides 122 life-lease units in the building for seniors.
Abby Katz Starr, the president and CEO of the Unionville Home Society, said in an email she cannot comment on the matter as it “pertains to an ongoing legal dispute.”
Both parties have consulted lawyers.
In an earlier letter to residents that was shared with the Star, Katz Starr stated that she has consulted with a legal team and maintains that the resident occupancy agreement “allows for the allocation of capital costs when those investments are essential to the long-term safety, functionality and value of the property.”
The letter adds that some residents are considering withholding payment, something that “may lead to serious consequences.”
Residents say they were told the total is $2.1 million for the repair. Fees were calculated based on their unit size and seem to range from about $300 to $500 a month. They can also make a lump-sum payment.
There’s no legislation governing life leases in Ontario, unlike condos which are covered under the Condominium Act.
Wyndham Gardens resident Veronica Lam said this leaves seniors vulnerable.
“We are not the owners. We are only occupants,” said the 66-year-old Lam.
The residents have always paid a small monthly amount into a reserve fund, but there is nothing in their occupancy agreement, a copy of which was provided to the Star, about capital repairs, she said.
Lam, a certified property manager, moved into the building about 10 years ago because she wanted a quiet place with other seniors, and the relative stability it would provide.
But “now it seems like this is not the case.”
Fellow resident Nick Pandit, who has lived in the apartments since 2019, has enjoyed the community spirit, with activities like movie nights, Mahjong, and even a prom night.
But the 70-year-old said there’s been very poor communication with management around the roof issue.
He said the repair was originally flagged in a 2023 report. However, the residents weren’t told until February of this year.
“People in this building are living under fatigue and fear,” Pandit added.
Perth-Wellington MPP Matthew Rae introduced a bill to protect these kinds of tenants called the “Life Lease Act,” in 2023.
But, he said in an email, when the legislature was dissolved for February’s provincial election, it died.
The draft bill included provisions that landlords must keep a reserve fund to pay for repairs, and have insurance.
Rae’s act defined a life lease as a written tenancy agreement that involves payment of an “entrance fee” for a unit. The person who occupies it is granted that right for life, or at least 50 years.
A life lease was the perfect choice for Efthyvoulos, who otherwise would be paying thousands of dollars a month for a retirement community. A traditional condo, she said, would be too expensive to buy.
Luckily she can stomach the added cost. But as many residents are on fixed incomes, not all of them can.
“We don’t want to move,” she said.
“We don’t know what’s going to happen in the future, we’re old.”
