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ARTICLE · 29 SEPTEMBER 2016

Complications Intensify As Housing Co-Op Struggles With Insolvency

Gehlen Dabbs
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Consisting of 97 apartments and 60 abandoned townhouses, the corporation owes the Canadian Mortgage and Housing Corporation (CMHC) over $4.2 million, including mortgage arrears of $300,000.

CanadaInsolvency/Bankruptcy/Re-Structuring
Gehlen Dabbs
Gehlen Dabbs

Coquitlam's Hoy Creek Housing Co-operative has been in financial difficulty for years. Consisting of 97 apartments and 60 abandoned townhouses, the corporation owes the Canadian Mortgage and Housing Corporation (CMHC) over $4.2 million, including mortgage arrears of $300,000.

By August 2016, Hoy Creek had failed to pay in response to a CMHC demand for repayment of the arrears. After fire broke out on August 3, 2016 in one of the property's townhouses, CMHC jumped into action and successfully petitioning Hoy Creek into interim receivership.

Urgency over the "most horrendous housing" in Coquitlam

Over the last two years, Hoy Creek had been planning to subdivide its 157-unit property and sell the townhouse portion to a developer. The aim was to free up some of the land's estimated $20 million in value in order to pay off its total debt to CMHC and make repairs to the still-inhabited apartment buildings.

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