Deal to save housing co-op falls apart
A proposed deal to save a financially troubled Halifax housing co-op has fallen apart.
Members of the North End United Housing Co-op have voted against the plan to borrow hundreds of thousands of dollars to pay off contractors who had agreed to accept half of the $1.1 million they're still owed for renovations they carried out on co-op buildings.
The housing co-op only had $200,000 to pay them.
A judge extended creditor protection in court two weeks ago after the contractors agreed to settle for half the money owed.
A judge had tentatively approved the deal pending votes by co-op members and contractors.
Jonathan Hannam, the president of the board of directors at the co-op, says the rejection will likely mean the end of the co-op.
"It means that the co-op will not be borrowing money and therefore we will have to go into receivership, bankruptcy," Hannam said.
"I feel quite disappointed but at the same time there was no way that the members would be able to afford such substantial increases in order to pay for this."
Hannam says he's not sure what will happen to the people who live at the co-op.
They were already facing steep rent hikes over the next three years.