Province keeps Granville SRO open despite one remaining resident, costing taxpayers six figures
The provincial government spent about $101,000 in July to house the sole remaining tenant of a converted Granville Street hotel that was slated for closure, according to provincial officials. The building, now called the Luugat, was formerly a Howard Johnsons and was taken into provincial ownership when the government intervened in the property’s operations.
City and provincial officials had announced plans to close the single-room-occupancy (SRO) site in June. Yet the building remains open because one resident, identified in reporting as Ryan Donnelly, continues to live there. The province has not provided a timeline for when it will finally shutter the building.
Concerns from municipal leaders and housing advocates centre on the expense and what they say is an inefficient allocation of taxpayer resources to keep a building operating for one person. Vancouver Coun. Sarah Kirby-Yung described the monthly cost as “insane,” pointing out the discrepancy between the province’s expenditure and typical market rents in the city.
“I did some quick math and based on the average rent for, let’s say a one‑bedroom apartment in Vancouver, you could house somebody at market rent for more than four years for what it is costing taxpayers to keep one person in that building for one month.”
Reporting indicates the province provided the July cost figure. Previous reporting also noted that the remaining tenant has a seizure disorder that requires a large room — a factor municipal and health officials must weigh when planning a move or alternate supports.
Choices and costs: comparisons and questions
The Luugat situation has prompted questions about how governments decide whether to keep an SRO open while relocating or accommodating medically vulnerable tenants, and whether alternatives could be more cost-effective. One comparison offered in reporting suggested the monthly provincial outlay could instead cover a notably expensive private option: the Lieutenant Governor’s Suite at the Fairmont Hotel Vancouver, where the total monthly cost including executive lounge access and meals was estimated at about $70,000.
| Item | Approximate monthly cost |
|---|---|
| Keeping Luugat open for one resident (July) | $101,000 |
| Lieutenant Governor’s Suite, Fairmont Hotel Vancouver (estimate) | $70,000 |
Housing Minister Christine Boyle was not available for an interview when contacted. The provincial Ministry of Housing provided the July cost figure, but has not supplied a timeline for shuttering the property or publicly detailed the alternatives it is pursuing for the tenant.
Implications for Vancouver’s housing strategy
The episode underscores tensions in Vancouver’s housing landscape between the urgent need to remove unsafe or poorly managed SROs, and the obligation to provide appropriate alternatives for residents with complex medical or social needs. SRO closures are politically and logistically fraught: they require coordination among provincial housing staff, health and social services, and municipal actors to ensure people do not fall through gaps when buildings are taken offline.
For local taxpayers, the headline figure raises immediate questions about fiscal stewardship and procurement. For people working on the front lines of homelessness and harm reduction, it highlights the limited inventory of appropriate, accessible units that can accommodate someone with medical needs such as a seizure disorder.
- Key factual points: The Luugat remains open for one resident; July cost was about $101,000; no closure timeline provided by the province.
- Human impacts: The resident reportedly has a seizure disorder and requires a large room, complicating relocation options.
- Municipal response: Vancouver councillors have publicly criticised the cost and questioned whether provincial plans are efficient.
As officials at all levels weigh next steps, the case will likely be watched closely by taxpayer watchdogs, housing advocates and neighbours on the Granville Strip. The broader policy question — how to safely and affordably transition medically vulnerable SRO residents out of buildings slated for closure — remains unresolved. The province has not outlined a final plan or timeline for the Luugat’s closure beyond the July cost disclosure.
Local residents concerned about SRO closures or supports for vulnerable tenants can expect more scrutiny from city council and the media in the coming weeks as councillors press the province for answers and alternatives.
