Lions Village seniors home enters partial receivership over $1.2 million in unpaid refunds

Lions Village of Greater Edmonton Society, a charitable seniors housing operator, was ordered into partial receivership Tuesday after current and former residents alleged the organization owed more than $1 million in life-lease refunds it could not pay.

A Court of King's Bench judge approved the sale of the Castle Downs location to receiver BDO Canada Limited, which will also manage and protect the residents' trust. The decision followed negotiation between lawyers and was brought to the judge Tuesday. The sale is intended to allow the society to pay creditors and outstanding refunds.

According to an affidavit filed July 6, residents learned at board meetings in March that more than 12 former leaseholders were owed approximately $1.2 million, and the society had no ability to pay. Life-lease deposits, residents claim, were never held in trust but were instead used to fund the second phase of the Castle Downs building — contrary to what residents say they were promised.

A life lease is a seniors housing model where residents pay a lump sum for the right to occupy a unit, plus monthly operating costs. When they move out or pass away, the initial investment is returned, minus a percentage the operator retains for refurbishment. Lions Village's website had claimed to return 94 per cent of the original payment to departing residents, but those claims — along with all life-lease information — were removed from the website last week.

The society's lawyer, Dana Nowak, said the organization disputes some claims in the lawsuit but wanted to focus on good-faith negotiation. "The village will continue to serve its residents, protect their well-being, support their independence and ensure they are treated with fairness and compassion."

Residents at the Castle Downs location may not have to move; they could instead rent the unit once acquired by another company. Lions Village operates three residential buildings total: one in south Edmonton, one just west of downtown, and the Castle Downs location in the northwest.