Less than 48 hours after they'd submitted proposals to manage rental housing in the Olympic Village, non-profits learned the provincial government had rejected their bids.

"Everybody is kind of reeling in shock," said Thom Armstrong, executive director of the Co-operative Housing Federation of B.C., which had hoped to establish a co-op in one of the three buildings.

Only three organizations of 22 that attended a mandatory site meeting in August submitted bids Sept. 27.

PHS Community Services Society, which provides homes to people who have serious problems maintaining them, wanted to manage all 252 units, half of which are meant for workers deemed essential to the city, including police officers, teachers and nurses, and half of which are to be subsidized.

The Co-operative Housing Federation had wanted to turn one building of 84 units, most of which would be rented at market rates with a small amount of subsidized suites, into a non-profit co-op.

B.C. Housing wouldn't name the third organization that submitted a bid. But Housing and Social Development Minister Rich Coleman told the Globe and Mail Sept. 29 that two of the proponents weren't experienced in managing housing for a complex mix of renters and establishing a co-op isn't part of the ministry's mandate.

City staff wouldn't comment Wednesday on the development that likely quashes their hopes of seeing tenants move in next month, seven months after the buildings were returned to the city.

"We're very disappointed and frustrated in the province's actions," said Vision Vancouver Coun. Geoff Meggs Wednesday. "The discussions occurred before we had a chance to formally evaluate the bids that came in and it was a true partnership on our side, with neither side having a complete veto on how things went, so the decision of B.C. Housing to simply declare that none of the bids are compliant is not consistent with how we would like to do business."

Coleman did not return interview requests from the Courier. His public affairs office reported that he had met with Mayor Gregor Robertson Sept. 29, and the minister anticipated hearing back from Robertson shortly.*

"We entered into a request for proposal as a favour to the City of Vancouver, and we have been unable to attract a suitable operator for the social housing units planned for the Olympic Village," Coleman said in a prepared statement.

The Vision-dominated city council decided in April to keep half of the 252 units for social housing. Armstrong said the city approved an additional $32 million for rental subsidies to lease land to building operators for 60 years in exchange for $48 million in lease money up front, which would be financed through B.C. Housing.

Mark Townsend, executive director of PHS, believes few groups submitted bids partly because they weren't sure they could make the numbers work.

"It would be hard work but it was worth doing because it's worth getting a few units--obviously we'd like many hundred--that are a bit more affordable in this city that has a shortage of affordable housing," he said.

Armstrong said the request for proposals welcomed bids from co-ops and that overseeing mixed-income housing on land leased from the city is a natural fit for the federation.

crossi@vancourier.com