The former administrators of Faubourg Mena’sen try to explain themselves

The former administrators of Faubourg Mena’sen in Sherbrooke believe that the formal notice sent to them last week is unfounded.

They sent an email to VAT News Monday afternoon to give a little more explanation on the context of the sale of the 172-unit building and the dissolution of the NPO that managed it.

Last February, Faubourg Mena’sen was sold for $18 million. The non-profit organization that ran it was then dissolved and the profits were divided among the members.

On May 10, lawyer Louis Fortier, on behalf of a private plaintiff, sent a formal notice to the former directors demanding the cancellation of the sale which, according to him, is “illegal, null and void”. .

A response was sent to him on Monday stating that “the remarks contained in this formal notice are unfounded”.

Me Serge Dubois sat as a director of the NPO at the time of the sale and dissolution. By email, he made a point of explaining the following facts:

  • All the steps relating to the dissolution of the Faubourg Mena’Sen non-profit organization were approved by unanimous resolution of its members and initiated following receipt of the legal opinion of Me Paul Martel, recognized expert in law. companies and NPOs.
  • The procedures leading to the dissolution were then submitted and approved by the Registraire des entreprises.
  • The financing obtained through the Canada Mortgage and Housing Corporation (CMHC) and reimbursed over a term of 35 years (capital and interest) enabled the NPO to offer, from 1980 to 2021, subsidies to the housing to a limited number of tenants, that is to about thirty tenants on average per year out of 172, according to what the CMHC authorized. These subsidies were entirely used to pay part of the cost of the rents of the tenants. It was in May 2021 that the grant reserve fund ran out.
  • The sale of Faubourg Mena’Sen was carried out following a call for tenders sent to owners of real estate portfolios. Among the offers submitted, the administrators selected the best one. This choice was motivated in particular by a promise to retain all the employees of the complex and to deploy actions to ensure that the concerns and questions of the tenants of the Faubourg are answered, which, according to the information obtained, has been achieved.
  • In March 2022, and although they have no obligation to do so, the administrators voluntarily agreed to donate a percentage of the net proceeds of the sale annually to organizations dedicated to helping the most deprived in housing.

A response far from satisfactory

Reached by phone by VAT News Monday afternoon, Me Louis Fortier affirms that he is “far from being satisfied with the letter received and that it raises more questions than answers”.

In the formal notice, Me Fortier mentioned the possibility of suing the sellers in civil proceedings and filing a complaint with the bar against the lawyer Serge Dubois.

In the office of Mayor Évelyne Beaudin, we indicate: “We always have the same questions in mind. No one has yet answered the question: where did the $18M go?

She believes that the investigation ordered by Prime Minister François Legault to shed light on the sale of Faubourg Mena’sen is still necessary.

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