The North End United Housing Co-op could be in receivership by the end of the day – unless creditors approve a plan that includes a rent hike averaging 15 per cent.

The heavily indebted co-op owes almost a dozen contractors close to a million dollars.

Jonathan Hannam, president of the co-op’s board of directors, tells News 95.7 the increases are unfortunate, but were approved by 82 per cent of the members as part of a plan to avoid bankruptcy.

“Point blank, it’s necessary for the co-op to break even, and in order to do that, the average increase of 15 per cent is necessary,” said Hannam.

Some tenants have said the rent hike will force them to move out, but Hannam says nobody has actually given notice so far. He points out the increases have been in the works for some time.

“The co-op merged in 2009 because of many issues, mostly financial,” he said. “To say that this latest is the reason for the 15 per cent increase would be false.”

Hannam says more rent increases are likely over the long term in order to keep the co-op in the black.

“Increases are necessary to meet the bottom line of any operation, and increases in the next five years could be upwards of five to seven per cent,” he said.   

As part of the agreement, the co-op will transfer two of its four properties to the province.