Dozens of seniors at Résidence Jardin Botanique are due to be officially informed this week that their private senior residence (RPA) will be closing at the end of next summer.
Built in the 1970s, the eight-story building is located near Montreal's Olympic Stadium. The word “residence” has already been removed from the facade.
Contacted by Radio-Canada earlier this week, owner Kevin Hazout said he had to make do because of staff shortages and the renewal of his mortgage.
“We have a loan that is due very soon and the financial institution does not want to extend the loan if it is an RPA,” argued Mr. Hazout, who bought the residence in 2021.
We have spoken to several other financial institutions […] We even tried to sell it [la RPA] several times, he said.
The decision to close the RPA was also based on the major difficulties encountered in recruiting staff and accepting new residents over the past two years, Mr Hazout added.
Conversion prohibited
During the interview with the owner of the RPA earlier this week, he mentioned that he intends to convert the building into rental apartments.
With this bad news comes the good news that we can bring these units back to the market and meet some of the need in East Montreal.
The goal is to create affordable housing, not to do major renovations, he said. Most of the time it's two and a half and three and a half […] about $1000, $1100, and we plan to keep them at that level.
The problem is that the Rosemont-La Petite-Patrie district is one of those that adopted changes to its zoning ordinance in the fall of 2022 that prohibit the conversion of RPA into another type of housing.
“We were all shocked to see that seniors were threatened with deprivation of health services where they lived,” said Montreal Mayor Valérie Plante.
The decision came in the wake of the attempted redevelopment of the RPA Mont-Carmel near downtown Montreal, which caused a lot of noise and provoked opposition from local residents.
The day after Mr. Hazout's interview, a Hazout spokesperson explained that the team had only just learned of the scheme and that the company would be closing and then taking further action in the coming months.
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In the last five years, more than 500 RPAs have closed their doors.
Photo: Ivanoh Demers
In the Rosemont-La Petite-Patrie district, a spokesman said discussions had taken place this week.
A written communication from the district was sent to the owner's spokesman reminding him that the district would not accept a project that would reduce the supply of shared housing, specified communications officer Judith Gratton Gervais.
If an owner begins a renovation or construction project without permission, he will face legal action, adds Ms. Gratton Gervais. Fines can therefore be imposed for each day that the offense continues.
62 residents are moving
The RPA currently has 62 residents as well as non-RPA tenants with a capacity of 150 spaces. All residents will need to be relocated elsewhere in the coming months due to their needs, particularly those who were placed with interim services.
“We are working closely with the CIUSSS and the rental agencies to quickly find alternative accommodation,” mentions Mr. Hazout. We have also spoken to other residents about moving.
In his opinion, it would be impossible to continue hosting them in non-RPA mode. They are all tenants who need services, explains Mr. Hazout.
In the provincial RPA register, Résidence Jardin Botanique is registered as a category 3 RPA for semi-autonomous residents. Basically there are personal assistance, care, household help, catering and leisure services.
A building purchased in 2021 for $17.5 million
According to public information obtained by Radio-Canada, in 2021, in the midst of the pandemic, the building was purchased for $17.5 million by a company notably owned by Black Ridge (formerly Hazout Groupe).
Kevin Moïse Hazout is president of the real estate group, which specializes in the acquisition of undervalued apartment buildings. Our goal is to maximize the value of our real estate holdings and generate solid returns for our investors.
On the social network LinkedIn, Mr. Hazout states that he manages and owns more than 5,000 residential units in Canada. In an interview, he said he primarily provides real estate asset management services and owns a few doors.
Kevin Hazout has made headlines several times in recent years, especially because of rent increases.
This announcement comes at a time when RPA openings in Quebec can no longer offset closures, with 2,500 seniors forced to relocate in 2023 due to RPA closures. A hot topic in the National Assembly.