Ontario Region media release
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Ontario Court of Appeal Allows York Region Takeover of Thornhill Green Co-op
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June 2, 2010
The Ontario Court of Appeal ruled today that the sale of Thornhill Green Co-operative Homes to York Region’s own housing company, Housing York Inc. (HYI), could proceed.
In February 2008, the Regional Municipality of York decided in secret to force the sale of Thornhill Green Co-op to HYI for little more than half of the co-op’s market value. The co-op, neighbours in the local community, and co-operative housing supporters throughout the country have fought strongly against York’s high-handed scheme. Thornhill Green Co-op and the Co-operative Housing Federation of Canada have opposed this unprecedented action through a number of legal proceedings since May 2008.
Co-op President Jim Common expressed deep disappointment at the Court’s decision. “The Region’s process and decision took place behind closed doors and they went to extraordinary lengths to conceal what they were doing from the members of the co-operative. Frankly, the co-operative never received a fair hearing before York made up its mind to take over the properties. This put us in a very deep hole right from the beginning in our struggle to challenge the actions of the Municipality.”
Murray Klippenstein, lead counsel for Thornhill Green, stated that: “I have conflicting feelings because this decision is very sad for the affordable homes of the co-op members at Thornhill Green, but it’s also true that the province’s highest Court has now affirmed the importance of non-profit co-op housing rights as a matter of principle, and that’s good. Also, while the Court of Appeal did allow this one sale to potentially proceed, other critical legal precedents regarding receiverships and potential sale of housing projects have been established in the legal proceedings over the last two years. A Divisional Court ruling in early 2009 made it clear that municipal governments have an obligation of procedural fairness to those affected by their decisions, and a right to be heard before any decision is made.” Klippenstein added, “While it may be small comfort to the members of Thornhill Green now that the sale might be allowed to proceed, those co-op residents know that their struggle has established firm rights for any co-ops in the future to ensure that they have a chance to tell their side of the story.
Harvey Cooper, Manager of Government Relations for CHF Canada’s Ontario Region, remarked that “this whole sorry episode seems to arise out of an inappropriate use of a receivership that paved the way for the takeover of a community-based housing development by government to take place.” Cooper noted that “.... in light of the Court of Appeal decision, the Ontario Minister of Municipal Affairs and Housing needs to step in to stop these receiverships going off the rails. Legislation needs to be adjusted to rein in receiverships to protect community-based housing co-operatives from future one-sided government takeovers.”
For more information contact:
Murray Klippenstein, Legal Counsel, Klippensteins Barristers & Solicitors, 416-598-0288
Harvey Cooper, Manager of Government Relations, CHF Canada, 416-809-5048 (cell)
Jim Common, President, Thornhill Green Co-operative, 416-885-6211 (cell)
