Quebec City restricts the right to convert a building to condominiums

On March 30, in the midst of the COVID-19 crisis, the City of Québec published a new by-law that prohibits the conversion of rental units into divided co-ownerships when the vacancy rate is below 3% throughout the territory.

This new measure follows the launch of the VISION de l’habitation 2020-2030 (The 2020-2030 housing vision).

However, the regulation provides that a certificate authorizing conversion to divided co-ownership may be issued for the conversion of a rental residential complex when all the criteria are met:

- There are five units or less;

- The owner has lived there for more than two years;

- This conversion allows the conversion of a building where at least 75% of the current leases indicate a rent equal to or higher than the most recent median rent established by CMHC, multiplied by 1.5.

Moreover, the new by-law does not apply to landlords who have received an authorization from the Régie du logement to convert a rental residential building into condominiums before the adoption of the new by-law.

Since October 2011, conversion to divided co-ownership was already generally prohibited when the vacancy rate was less than 2.0%, and then less than 2.5% as of February 2013. Since 2014, the vacancy rate has been above 3% and then fell to 2.2% in October 2019.

CORPIQ, which was consulted for the development of the Housing Vision, has never heard of the City's willingness to move in this direction. The association deplores its lack of transparency.