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Global COVID-19 response group launches

The Royal Institution of Chartered Surveyors (RICS), the International Facility Management Association (IFMA) and Leesman are joining forces to build a global pan-industry response group that will address the threat COVID-19 poses for the commercial real estate and facility management industries.

New research from global data suggests that facility and real estate management leadership teams will be under unprecedented pressure to report on the organizational impact of the mass mobilization of home-working strategies. The joint initiative aims to arm the industry with the information and insights it will need when social distancing policies are relaxed.

“The immediate impact on employees and employers is unknown, while uncertainty about how long this will last is adding to employees’ anxieties,” says Leesman CEO Tim Oldman. “We urgently need to know how home-working is working, which tasks are suffering, and which might improve. We believe this international crisis needs a unified international analysis that lets us learn from one another’s experiences as they unfold and together be ready for the questions that will come thick and fast when normality returns.”

Part one of the initiative sees the global deployment of a research tool that employers in both private and public sectors can use now to fully understand the experience that their newly home-based employees are having. This front-line intelligence will enable organizations to better support employees promptly and provide critical feedback to inform business continuity plans as they develop.

Part two of the initiative will allow organizations participating in the research to learn from one another’s data. The CREFM Covid-19 Response Group will convene as data amasses to exchange lessons and will put Leesman’s academics and data analysts at the forefront of a combined data-driven response.

Part three of the drive will then kick in when social distancing policies are relaxed and employees are allowed back into the corporate settings. Leesman will play back the results of the empirical data collection to understand, at a depth and diversity never before possible, the impact that prolonged home-working has on traditionally office-based employees.

“This much-needed mass response to what has been described as the biggest global crisis since World War Two is the profession’s opportunity to demonstrate the resilience and agility it has long preached as vital for its survival,” says Paul Bagust, global property standards director, RICS. “Our Asian colleagues are weeks ahead of us in their response and we need to capture and distribute their experiences rapidly. Now that the stakes are the highest we could have ever imagined, it is time to unite and lay out the plan for action.”

Numerous organizations have already committed to participate and begun exploring how the global move to home-working will demand a rapid overhaul to both leadership best practice and vendor supply models. Early adopters will discuss their results in weekly virtual town hall meetings, with a view to arming the industry with the guidance and tools as the situation develop.

Leesman and RICS-IFMA are encouraging anyone who possesses expertise in corporate infrastructure or experience in delivering agile environments outside the physical walls of an office to join this global taskforce to help develop a resilient home-working model that safeguards the industry’s future.

Find out more about new tools and more knowledge for organizations during the Covid-19 crisis.

OFURA and BIN reach out to human cohabitants

The Ontario Federation of Urban Raccoon Associations (OFURA) is expressing support for human cohabitants during the COVID-19 outbreak. That follows last week’s announcement from the Canada West conference of the Bunny Infestation Network (BIN), offering encouragement and a qualified promise for a pullback on garden raiding, depending on third quarter conditions.

“We applaud humans across the country for their commitment to the health and safety of their communities and everything that grows in them,” affirmed Lee Poridae, executive director of the Calgary BIN local, who also serves as spokeshare for the wider network. “Please stay snugly at home and perhaps take this time to research online seed catalogues and get ready for planting season.”

Looking east, OFURA’s intrepid nocturnal trawlers report feeling a bit lonely, particularly as they prowl restaurant and entertainment districts, all-night transit hubs and parking lots at shift change.

“At first, we were wondering where everyone was, but then we read the notices that have been posted around our cities — which we can do, by the way — and discovered what was going on,” OFURA’s Gar Bagegobbler told the REMI Network earlier today.

The current OFURA president and long-time board member of Rosedale Ravine Raccoons (3Rs) in Toronto says the association’s province-wide membership is on standby to offer any latch-opening services humans may require during this time of social distancing.

“We acknowledge there has been some tension in the past, like when the Mayor of Toronto declared war on us, but now is the time to let go of grudges and work together,” Bagegobbler stresses. “We really hope our human cohabitants get back to their status quo very soon and stop being so vigilant about eating the contents of their fruit and vegetable bins before they spoil.”

COVID-19 ripples through to commercial leasing

COVID-19’s impact on the commercial leasing industry is now emerging, as some tenants request rent relief and landlords voice concerns over whether tenants will be paying rent in the coming months. How should landlords and tenants confront the challenges posed by this new reality? The following are some of the more salient issues currently facing landlords and tenants.

Moving forward on leases in the pipeline

Many leases and offers to lease are currently at various stages of negotiation. Landlords and tenants are now turning their mind to the status of and timelines in their leases, including:

  • Construction schedules: There are concerns that construction activities may be delayed or otherwise impacted by the recent shutdown or disruptions to supply chains.
  • Possession dates/fixturing periods/rent commencement dates: With possible delays in construction come concerns that landlords may be unable to deliver possession of premises to tenants by estimated possession dates. Similarly, tenants are concerned that they may be unable to commence construction of their leasehold improvements during their fixturing periods and prior to commencement of the term.
  • Co-tenancies: Landlords and tenants may have negotiated co-tenancy clauses that are tied to tenants that may have already closed or will close in light of the government mandated shutdown.
  • Force majeure: Force majeure clauses are likely being negotiated more than ever as tenants will likely be asking for specific language in their leases that contemplates a forced shutdown, pandemic and other similar circumstances as force majeure events.
  • Compliance with laws: The mandated shutdown of non-essential businesses in Ontario has forced many tenants to cease operations from their premises.

The Ontario government has currently exempted a large segment of the construction industry and those companies that provide support, supplies, systems or services to this sector from the mandated shutdown. As a result, it is unclear whether landlords or tenants will experience any significant slowdown in construction activities as a result of COVID-19 or the government-mandated shutdown.

Thus far, we have continued to see significant efforts by landlords and tenants to continue to move lease transactions forward in anticipation of a return to business as usual in the near future. Nevertheless, ongoing lease negotiations are requiring due attention to the novel challenges presented by COVID-19.

Uncertainty around existing lease obligations

COVID-19 has also presented significant challenges in connection with existing lease obligations. Many tenants will likely be unsure about how COVID-19 or the government-mandated shutdown impacts their lease obligations. The more common questions arising from tenants are:

  • Do I need to stay open for business given the circumstances?
  • Do I need to pay rent when due if I am open for business?
  • Do I need to pay rent if I close for business?
  • Can I rely on the force majeure clause in my lease to withhold rent?
  • If I close for business due to COVID-19, can I collect insurance proceeds to cover my losses?

Landlords are asking equally important questions, such as:

  • What can I do if a tenant closes for business and has no grounds for doing so?
  • A tenant has written a letter saying it plans on closing down and does not plan on paying rent for April. What can I do?
  • Are there proactive steps that landlords can or should take to prevent a default by a tenant it anticipates will not pay rent in the coming months?
  • If my tenant fails to pay rent, should I apply the tenant’s security deposit on account of the rent owing?

The starting point for answering most of these questions is to review the terms of the lease. For example, most leases will contain an operating covenant requiring tenants to remain open for business at all times. However, many leases will also contain a force majeure clause that would likely allow a tenant to cease operations in the event of a government-mandated shutdown or global pandemic. On the other hand, a force majeure clause may not allow a tenant to cease paying rent during a force majeure event.

In terms of insurance coverage, the coverage that would most likely be triggered in the present circumstances would be business interruption insurance. However, availability of business interruption insurance depends upon the stated exclusions in each policy and we are finding that a virus is a stated exclusion in many business interruption policies, and thus may not provide coverage for losses caused by COVID-19 (but may provide coverage for government-mandated shutdowns). One should carefully review the policy to see if any relief exists.

Keeping lines of communication open between landlords and tenants will be pivotal to moving forward with a successful recovery. Tenants should communicate challenges to landlords early in the process and not simply ignore their lease obligations. Similarly, landlords will have to remain open to discussing strategies to help tenants successfully overcome the challenges presented by these unprecedented times.

Kenneth Pimentel is an associate practicing with Aird & Berlis LLP’s real estate group.

CCA releases COVID-19 jobsite protocols

The Canadian Construction Association (CCA) continues to support members and the industry by monitoring guidance and direction of public health and government authorities, and providing resources and ongoing updates to ensure everyone’s safety.

“Our position is that compliant sites should be open and those that cannot consistently comply with measures and guidelines of public health authorities should shut down,” says Mary Van Buren, CCA president.

The association’s latest effort is to release its first version of the COVID-19 Standardized Protocols for All Canadian Construction Sites. CCA encourages all construction firms to implement them in their entirety.

Companies must also remain aware of rapidly changing best practices and integrate with the CCA Standardized Protocols instructions, best practices and requirements from Health Canada and local public health authorities.

This document provides best practices and a consistent national approach for employers and employees to follow in order to protect themselves and the public at large and help minimize the spread of the coronavirus so that work can be continued safely. These protocols include measures on prevention, detection, and rapid response based on information and recommendations from respected public health authorities.

The protocols, which include prevention, detection and rapid response measures, will minimize the impacts of the crisis and ensure business continuity in the construction industry.

Some of the measures include:

  • Detailed tracking of worker’s status on-site and off-site are kept at all time (e.g., fit to work, sick, off-work for family caring duties, etc.). A list of all quarantined workers is updated daily and their privacy maintained.
  • Freight elevators are operated/occupied by only one individual at a time or where feasible, by respecting the social distancing guidelines
  • All offices and jobsites implement additional cleaning measures of common areas as recommended by the CDC and PHAC. All door handles, railings and personal workstation areas are wiped down twice a day with a disinfectant, such as disinfectant wipes.
  • Additional sanitary measures on site: water stations, a hand washing protocol, hand sanitizer stations, provision of disinfectant wiping products. Limiting and removing internal touch point areas.
  • Construction site is to be segregated to the extent possible in zones or other methods to keep different crews/ trades physically separated at all time.
  • One-way staircases are established wherever practical to minimize worker’s contacts.
  • Project teams stagger break and lunch schedules to minimize the number of people in close proximity to one another.

As the situation continues to evolve and new best practices emerge, CCA will be keeping this document up to date, and publishing new versions as required. CCA also plans to keep an open dialogue with stakeholders to ensure the industry remains proactive to any emerging risks.

The construction sector is one of Canada’s largest employers and a major contributor to the country’s economic success. The industry, 70 per cent of which is are small and medium businesses, employs more than 1.5 million Canadians and contributes 7 per cent of Canada’s Gross Domestic Product.

The sector will play a critical role in recovery by protecting the health and safety of employees and the public today and limiting the negative impact of COVID-19 on the economy and communities.

As part of normal business practice and operations, the construction industry already has in place and implements highly-disciplined health and safety protocols on construction sites and at manufacturing facilities. In the current environment, members have significantly amplified these protocols and implemented new measures based on recommendations from governments and public health authorities.

The protocol document can be found here.

Employer obligations to staff during COVID-19 crisis

The obligations that condominium corporations have as employers are one of many concerns related to COVID-19. Here are some frequent questions regarding this matter and advice on how best to address the issues.

Q: What are the obligations of condominium corporations as employers during the COVID-19 pandemic?

Employers, including condominium corporations, have an obligation under the Occupational Health and Safety Act to take precautions for the protection of a worker. This means condominium corporations need to protect employees from the risk of transmission of COVID-19, communicate hazards and train employees.

With condominium corporations, the number of employees is often small. In some cases condominiums only employ one person [separate and apart from any contractors that the corporation may rely on]. This will of course impact the steps taken and the protocols put in place. However, the board of directors should be closely monitoring their municipal public health websites, Ontario Public Health, and should also be following the recommendations provided.

There are a few key steps that corporations can take to help ensure the safety of their employee(s). If it has not already done so, the corporation should implement a COVID-19 plan. This plan should address:

  • Decisions being made based on public health recommendations.
  • Education on preventing infections.
  • Information the employer will be asking, such as, are you exhibiting any symptoms of the illness? Have you come into close personal contact with anyone who’s exhibiting any of the symptoms? Have you traveled to an affected area? Have you been in close personal contact with anyone who has traveled to an affected area?
  • If an employee is showing symptoms of COVID-19 or has been in contact with someone diagnosed with COVID-19, the employee should be asked to work remotely or to not attend at their place of work– following recommendations from public health.
  • Steps being taken to promote social distancing in the workplace, including notices to owners and residents.

Even if the corporation does not have a plan at this time, it is important to put one in place in order to rely on it going forward and amend it as necessary.

  • Permit and encourage all workers who can work remotely to do so. The employer can take steps to assist employees in getting a remote office space set up. While this is not an option for superintendents, it may be an option for office staff.
  • Ensure that workers who have returned from travel self-isolate as required for 14 days before returning to work.
  • Have additional cleaning supplies and personal protective equipment (i.e. masks, gloves, antibacterial wipes, etc.) on site to ensure protection of workers who must come to work.
  • Any cases of COVID-19 in the workplace must be reported to the Ministry of Labour.

Ensuring the safety of employees is paramount. If an employee believes that possible workplace exposure to COVID-19 will endanger them, they can refuse to work. The employer will then need to investigate any workplace refusal. If an employee refuses work, it can be very time consuming and complicated. If this happens, reach out to counsel to discuss specific obligations and responses of the condominium corporation.

Q: With the state of emergency being declared, do we have a right to insist that our employees come to work?

Yes, provided the service being provided by the employee is considered an essential service..

The state of emergency, called pursuant to the Emergency Management and Civil Protection Act, allows the Ontario government to implement temporary measures to ensure safety and security during national emergencies and to amend other Acts, if necessary.

The Ontario government has relied upon its new powers to prohibit all organized gatherings of five people or more. It has also mandated the closure of recreation centres, public libraries, private schools, day cares, bars, restaurants, theatres, concert venues, cinemas and all other non-essential workplaces. There are some exceptions for takeout/delivery restaurants. However, with respect to services that relate to condominiums, most, if not all, services related to the essential operation of the condominium were deemed essential. These include, but are not limited to, the following specific services:

  • Property management services (although a focus on providing services remotely should be prioritized);
  • Building superintendents;
  • Custodial/janitorial services (including cleaning staff, private garbage and recycling removal);
  • Landscaping services limited to essential services required to maintain the property (like grass cutting, necessary regrading, etc.), but not upgrades like new tree planting or new fencing if the existing fence is functional;
  • Security services (including private security guards); and
  • Concierge services (which play a role in building security, safety and maintenance).

An employee performing one of the above-noted services will most likely be required to continue working. This means that Ontario employers providing essential services are able to continue to operate and implement policies and procedures that work for the business.

Small employers, including condominium corporations, should continue to monitor public health recommendations. Currently, there is a recommendation that all workers who are able to work from home, should do so. As noted above, condominium corporations should be implementing a COVID-19 policy that sets out the steps that will be taken at this time.

Q: Do we have to pay our employees if they are in self-isolation?

It will depend on the employment contract and the Employment Standards Act (ESA). Employers should look to the employees’ specific contracts and ESA to determine their obligations.

The government has announced various measures to assist Canadians without sick leave who are impacted by COVID-19. This includes waiving the one-week waiting period for EI. Other measures include:

  • Waiving the requirement to provide a medical certificate to access EI sickness benefits.
  • An Emergency Care Benefit providing up to $900 bi-weekly, for up to 15 weeks. This flat-payment benefit would be administered through the Canada Revenue Agency (CRA) and provide income support to:
  1. Workers, including the self-employed, who are quarantined or sick with COVID-19, but do not qualify for EI sickness benefits
  2. Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent, but do not quality for EI sickness benefits.
  3. Parents with children who require care or supervision due to school closures, and are unable to earn employment income, irrespective of whether they qualify for EI or not.

Some condominium corporations may review the circumstances of employees and make a decision to extend paid sick leave benefits for time spent in self-isolation or quarantine. This is a decision for individual condominium corporations to make.

Q: Can we ask for a doctor’s note?

No. The Ontario government introduced legislation for the protection of Ontario workers on March 19, 2020. This legislation protects the jobs of employees who self-isolate or quarantine and those that need to care for others as a result of illness or school/care facility closures.

As part of this legislation, an employee is not required to provide a medical note if they need to take leave. However, an employer can ask for other information/evidence reasonable in the circumstances at a tie reasonable in the circumstances. This information could include for example flight information confirming that the employee was out of the country and therefore required to self-isolate.

Q: Are there other comments and suggestions for condominium boards surrounding these issues?

Communicate regularly with any employees about the situation and provide updates as circumstances change. Ensure that you communicate social distancing protocols for your employees. Keep an eye out for any changes as new legislation is being drafted to address the impact of COVID-19 on businesses and employees. Keep in mind that a request for accommodation from an employee during this time should be given consideration and the condominium corporation should be mindful of its obligations under the Human Rights Code.

Cheryll Wood is an associate at Davidson Houle Allen LLP, and has been practicing condominium law for seven years. She represents condominium corporations, their directors, owners and insurers throughout eastern Ontario.

The above has been updated and edited from the originally published article on March 18, 2020, on the Davidson Houle Allen LLP website.

 

IWBI creates respiratory health task force

The International WELL Building Institute (IWBI) has formed a task force on reducing the enormous health burden from COVID-19 and other respiratory infections. Its goal is to define the critical role buildings, organizations and communities play in prevention and preparedness, resilience and recovery. The task force’s work will take a broad approach, considering both new and recurring infectious agents that can affect large populations.

The task force will include experts from public health, government, academia and philanthropy, as well as the architecture, design and real estate communities. The task force will focus on actionable measures that can be taken to more fully deliver resources needed to advance a global culture of health.

“IWBI’s work centers on providing evidence-backed solutions that advance better health and well-being in the places and spaces where we spend our lives,” said IWBI chairman and CEO Rick Fedrizzi. “The creation of this task force provides a mechanism to focus on this immediate challenge and collect and apply the expertise and insight of our global community.”

The built environment is an essential element in physical and mental health as well as preventing disease.

The aim of the task force is twofold, according to IWBI president Rachel Gutter. First, it must identify and develop a set of signature deliverables and resources, including guidelines for individuals, organizations and communities to help them better integrate actionable insights and proven strategies into how they manage both their buildings and their organizations.

“Second, the task force will assess ways in which the WELL Building Standard (WELL) itself can be further strengthened so the system, which touches more than a half-billion square feet of space across 58 countries, can best continue to support prevention and preparedness, resiliency and recovery in this critical moment and into the future,” she said.

Experts in air quality, hygiene and other relevant topics who want to get involved on the coronavirus task force should contact the IWBI at: [email protected]

 

Morguard details COVID-19 response activities

Morguard Corporation issued a statement acknowledging the effects of COVID-19 on the global market, while also assuring staff, residents and stakeholders that health and wellbeing remains the top priority.

“At Morguard, we are putting every possible effort into how best to respond. Our first priority is the health and safety of our people, tenants, residents and guests,” the statement said. “As the efforts to contain COVID-19 continue, the impact on the global economy has been swift. Morguard is taking definitive action. Our teams are connected and operating. Morguard’s pre-established Crisis Management Team, consisting of senior management executives from each asset class and discipline, has been activated.”

The statement went on to acknowledge the importance of those property managers at the forefront of the crisis. “With direct responsibility for tenant and resident relations and with accountability to the bulk of our employees, property management is driving our COVID-19 response activities, including adjusting to an altered service model and reviewing all non-critical services and projects.”

Measures in place to deal with the COVID-19 pandemic to date have included:

  • Communications with critical service providers to ensure continuation of services as well as to ensure compliance with Morguard’s health and safety protocols;
  • Enhanced communications with tenants and stakeholders, internally and externally, through increased use of technology, as well as with other industry experts and government representatives. These efforts have allowed Morguard to establish an interdisciplinary network of real estate professionals to gain deeper insights into the economic consequences happening now, and the potential implications for the future;
  • The bulk of employees working from home due to social distancing initiatives, and/or working rotating shifts where they are essential to operations.

Despite the recent volatility, Morguard assures stakeholders that its core philosophy remains strong in that “real estate is a defensive position during economic uncertainty.”

Ontario to delay next property tax cycle

Ontario property owners will have one less shifting tableau to contemplate with the postponement of this year’s planned reassessment, which also delays a new four-year property tax cycle that had been slated to begin in 2021. The move was announced in last week’s provincial economic and fiscal update among several measures in response to the COVID-19 outbreak, but additionally opens a window to adjust the mechanics of the assessment process itself.

“This postponement will also provide an opportunity to better reflect the advice received through the Property Assessment and Taxation Review that is currently underway,” the economic update states. “Through this review, the government is seeking stakeholder input to explore opportunities to support a competitive business environment and enhance the accuracy and stability of property assessments. The feedback received during this review will help to inform the development of policies for the next reassessment.”

In the interim, the valuations used to calculate ratepayers’ portion of the property tax burden during the 2017-2020 tax cycle will remain in place for next year. Those are based on property values as of January 1, 2016. The next cycle, originally scheduled for 2021-2024, was to have introduced new valuations based on property values as of January 1, 2019.

“That’s written in the legislation as it is now worded,” notes David Gibson, a property tax consultant and director with Yeoman & Company Paralegal and Professional Corporation. “However, the Province may decide to use an alternative baseline — maybe even something like July 1, 2020 rather than January 1, 2019 or January 1, 2020.”

That would mean setting aside an exercise that is already largely completed. “MPAC (Municipal Property Assessment Corporation) would have issued new assessments for more than five million properties beginning this spring,” Ontario’s economic statement reported. However, real estate industry advocates welcome the move.

“We think, generally, that the postponement of the new assessment cycle is a good plan,” says Brooks Barnett, director of government relations and policy with REALPAC. “Application of new values conventionally brings a number of changes for different asset types and, given the challenges that have now arisen, it would just be an added stress at a time we don’t need it.”

“We applaud the move in that it brings stability,” concurs Tony Irwin, president and chief executive officer of the Federation of Rental-housing Providers of Ontario (FRPO). “I think we all agree, in times of crisis, stability is quite important.”

Further questions for in-progress assessment and tax review

REALPAC, which represents many of Canada’s most prominent commercial real estate portfolios, has been one of the stakeholders participating in Ontario’s in-progress assessment and property tax review and is well versed in the fallout from valuations calculated on the “highest and best use” of the property. Where previously a couple of dozen properties would typically experience a dramatic spike in assessed value related to what could theoretically be built on them, Toronto’s condo-building boom has more recently pushed that tally into the range of 1,500.

“We started a couple of years back seeing really big swings in assessment in the commercial market in Toronto and the numbers have ballooned,” Barnett observes. “We are very supportive of the government’s voluntary review of the assessment regime.”

For now, most commercial and multifamily landlords have more pressing priorities than pondering a new baseline date for reassessment. “We are waiting to see what happens April 1, and watching to see all the different government programs roll out and how effective they are,” Irwin says.

Both he and Barnett agree it’s too early to have a sense of what a preferred baseline date might be. In future, though, Barnett suggests the scope of Ontario’s assessment and property tax review may need to widen further and possibly include the federal government.

“What we need to focus on is a stimulus for the economy and the industry,” he reasons. “Property tax is one of the biggest government fees the commercial sector pays. If we are trying to keep the sector humming, and there are ways to leverage the property tax, this is a conversation worth having.”

Housekeeping details for appeals and requests for reconsideration

For property owners who were in the midst of filing a request for reconsideration (RfR) with the MPAC or an appeal to the Assessment Review Board (ARB) before COVID-19 interrupted business as usual, there are some new administrative details. The March 31 deadline for submitting a RfR has now been extended until 15 days after Ontario’s state of emergency has been lifted, although Gibson advises applicants they can proceed as if the original deadline is still in effect.

“Everything is online and MPAC is working from home,” he says. A recent ARB memorandum similarly instructs prospective filers to meet the original deadline, while also acknowledging potential for an extension.

“All appeals are required to be filed by the March 31, 2020 deadline. As the majority of appeals are filed electronically, the Board expects that this will have a minimal impact for the overall system, however, in the event that you are unable to meet that deadline, you will be permitted to file your appeal within 15 calendars after the (provincial) Order has been lifted,” it states.

Teleconference and written submission ARB hearings will proceed on schedule during the current work-from-home period. New hearings will be scheduled for a date after May 19, 2020. Outstanding tax appeals from 2019 that have not been decided by March 31 will be automatically pushed to 2020 with no requirement for appellants to formally resubmit the appeal or pay additional fees.

Barbara Carss is editor-in-chief of Canadian Property Management.

Ontario bolsters efforts to protect supply chains

Ontario is ramping up its supply of essential goods like ventilators, masks and swabs.

“COVID-19 is impacting supply chains across Canada, and around the world,” said Lisa Thompson, minister of government and consumer services. “That’s why we are proclaiming the Supply Chain Management Act to make sure we can deploy critical supplies, equipment and services to where they are needed most.”

These regulations will enable the ministry of government and consumer services and the ministry of health to centrally manage public sector supply chains. It will allow the collection of key data on inventories, orders and supply constraints and the development of a virtual inventory tool so that demand for crucial supplies are visible and trackable.

Support will also be available to other public entities, such as publicly funded social service agencies and municipalities if they choose to participate.

“Ontario is implementing critical and necessary measures to ensure that we are able to protect the health and well-being of Ontarians,” said Christine Elliott, deputy premier and minister of health. “This includes working with innovators and businesses across the province who can supply emergency products and cutting-edge solutions to support ongoing efforts to contain COVID-19.”

Ontario has also launched Ontario Together, a new website that is helping businesses work with the province to meet the challenges of COVID-19. This removes barriers allowing Ontario’s manufacturing sector to redeploy capacity towards the production of essential equipment.

Building staff cope with flood of deliveries

Businesses that provide support and maintenance to buildings figure into the Ontario government’s list of essential services as the COVID-19 pandemic unfolds.

Condo managers and concierges are among those on the list. They stand on the front lines for a number of services, including the management of essential online parcel delivery—an already challenging issue, which has become more exasperating during the past month.

Not only does the increase in packages, and restaurant take-out for that matter, place more demand on condo corporations without adequate space, it also raises the issue of health and safety of staff coming into regular contact with residents as well as the packages often handled by multiple third parties.

Package deliveries have increased. Besides the recent news that Amazon will be hiring 1000 warehouse and delivery workers to handle the demand in Canada (and more than 100,000 workers in the U.S.), Patrick Armstrong, CEO of automated delivery company Snaile, says its Canadian carrier partners report parcel volumes were up as high as 30 per cent the week before last. He expects that people practicing social distancing in their homes will be forced to purchase more online, including people who have never adopted e-commerce shopping. These online habits, he figures, will continue on “during post-corona existence.”

As for the packaging itself, the facts are still being processed regarding how long coronavirus can live on packaging materials like cardboard. Dr. Syed Sattar, professor emeritus of microbiology in the faculty of medicine at the University of Ottawa, is one of Canada’s primary experts in environmental and medical microbiology as it pertains to public health. Based on many years of research he says, generally speaking, disease-causing bacteria and viruses do not stay alive on porous materials like cardboard and craft paper as long as they do on non-porous surfaces, such as plastics, metal and glass.

He says even if the viruses survive on porous materials, they transfer less efficiently to hands. As it would be virtually impossible to avoid packaging and handling for parcels, the best protection is washing hands soon after opening them.

“As far as we know, the main means of the coronavirus spread is through droplets,” he notes. Social distancing is key.

Some building staff are still delivering packages to units, but many condos have limited delivery resources. Other condos have already implemented methods to not only protect the health and safety of their workers, but to also reduce the volume of packaging in the lobby.

Bogdan Alexe, president and CEO of B1 Management Group Inc, says managers in the buildings he oversees are now sending notices to residents requesting them to pick up their packages the minute they are notified.

Not only is there a higher volume of packages right now, he says, condos built in the last ten years were not designed with parcel storage and delivery in mind.

“This is a problem that was here before the COVID-19 pandemic, starting about a couple of years ago, he adds. “The volume had increased. So, right now, we have two concerns, the spread of the virus for people on the front lines handling these packages and the storage space.”

How to best handle deliveries was a topic addressed during a recent Condo Adviser webinar. Sandy Foulds, executive director of condominium management at Wilson Blanchard Management, said buildings should start to create policies related to deliveries. Many delivery companies are no longer dropping parcels off beyond the condo entrance, while those who work in security and concierge services should remain in the lobby unless a condo has multiple staff members to help.

She notes that only essential deliveries like food and healthcare products should be permitted in buildings right now and regular parcel delivery should be discouraged. The City of Toronto also recently posted a guideline that buildings should be organized to only accept deliveries of essential goods. Healthy residents who aren’t self-isolating or confirmed to have COVID-19 can come down to the lobby and pick up these packages. Another idea is to launch a “neighbour program” where a group of healthy residents deliver mail and other items directly outside a unit owner’s door.

“Boards need to clearly and repeatedly communicate these policies to the residents in an email or notices—owners need to be reminded,” she says.

Graeme MacPherson, associate lawyer at Gowling WLG and another webinar participant, believes the best policy is to probably have meals and deliveries brought to units to prevent vulnerable owners from gathering in the lobby and using these common elements too much. Many buildings have limited staff to oversee this process. He says it’s best if corporations allow owners to organize any volunteer groups.

“If a corporation wants to get involved and play a role in this, it may be worth looking into having waivers in place,” he says. “If the corporation is going to take on a leadership role, it wants to make sure it is adequately protected.”

 

WorkSafeBC works with industry to ensure safety

WorkSafeBC is working with workers, employers, and industry associations to ensure construction sites are healthy and safe during the COVID-19 outbreak.

According to the organization, it is “aware of the important concerns raised by the construction industry.”

Prevention officers are providing information to workers and employers through worksite inspections focusing on the controls that the employer can use to limit exposure, including maintaining distance between workers and ensuring adequate hygiene facilities.

WorkSafeBC is continuing to engage in inspection, consultation, and education activities within the construction sector to ensure everyone in the workplace are fulfilling their obligations.

The role of prime contractors, employers, and sub-contractors

Prime contractors have specific responsibilities for health and safety and must ensure that the activities of employers, workers, sub-contractors and other parties at the workplace are coordinated. The prime contractor is also required to do everything that is reasonably practicable to establish and maintain a system or process that will ensure the compliance with the Occupational Health and Safety Regulation and the Workers Compensation Act.

Construction employers and sub-contractors are responsible for ensuring the health and safety of workers by putting policies and procedures in place to keep workers healthy and safe, and providing workers with up-to-date instructions, training, and supervision on those policies and procedures.

Prime contractors, employers, and sub-contractors must have a mechanism in place for workers to raise issues and concerns about COVID-19 exposure so that additional precautions and controls can be put in place where required.

Controlling the risk of COVID-19 exposure

Construction employers must take all necessary precautions to minimize the risk of COVID-19 transmission and illness to themselves, workers, and others at the workplace. This includes:

  • Implementing a policy requiring anyone with symptoms of COVID-19 such as sore throat, fever, sneezing, or coughing to self-isolate at home for 10 days, as well as anyone advised by public health to self-isolate
  • Maintaining a distance of two metres between workers wherever possible by revising work schedules, organizing work tasks, posting occupancy limits on elevators, and limiting the number of workers at one time in break locations
  • Ensuring that no more than 50 people are in the same space by reducing in-person meetings and other gatherings, maintaining an up-to-date list of employees at the workplace, and holding on-site meetings in open spaces or outside
  • Providing adequate hand-washing facilities on site for all workers and ensuring their location is visible and easily accessed
  • Provide and maintain adequate washroom facilities as required by Regulation 4.85. WorkSafeBC has guidance around the minimum number of required washrooms, washroom facilities where no plumbing is available, and maintenance of washroom facilities
  • Regularly cleaning all common areas and surfaces, including washrooms, shared offices, common tables, desks, light switches and door handles.

Employers must communicate the policies and protocols that are in place to minimize the risk of COVID-19 exposure and transmission through training, signage, and site orientation as appropriate.

WorkSafeBC also advised the industry that all workers have the right to refuse work if they believe it presents an undue hazard. An undue hazard is an “unwarranted, inappropriate, excessive, or disproportionate” risk, above and beyond the potential exposure a general member of the public would face through regular, day-to-day activity.

In these circumstances, the worker must follow steps within their workplace to resolve the issue. The worker can begin by reporting the undue hazard to their employer for investigation and the employer then needs to consider the refusal on a case-by-case basis, depending on the situation.

Further information and resources are available through the BC Construction Safety Alliance (BCCSA), the health and safety association established for B.C.’s construction industry:

The BC Construction Association has also developed information and guidance for the construction industry.

How the coronavirus will impact future cities

The current COVID-19 pandemic is rapidly changing the way we live and the way we work. Do these changes signal long-lasting impacts on the design and architecture of our cities?

UBC professor Patrick Condon, the James Taylor chair in Landscape and Livable Environments at UBC’s School of Architecture and Landscape Architecture, shares his thoughts on the coronavirus impact.

How is the COVID-19 pandemic changing city life?

Social distancing is kicking in, you can see it in the fear in the eyes of those walking around our city streets. Suddenly narrow sidewalks are uncomfortable. Adjusting to the new normal will take time. We are currently going through a time of ignorance (gatherings at Kits beach without social distancing) and fear (people crossing streets to avoid confrontations on sidewalks). Neither one of these things are pretty. In some cities such as Portland, they are having social distancing street parties where neighbours gather with their favourite beverage at 6 p.m. on sidewalks and boulevards at a safe but still conversational distance. I hope that happens here but for the moment, people are confused and frightened.

What are the potential impacts of the current crisis on usage and development of transit systems?

I think this will be another blow to urban transit, which is ironic because transit will be needed to solve the climate crisis and some argue that the global pandemic is caused by disruptions to nature systems caused by an altered climate. It will likely be a boost to the ride-hailing industry. It’s truly unfortunate that the province did not make electric vehicles a requirement for ride-hailing when they had the chance. That might have been a silver lining for urban air quality over time.

How do you think it will affect the way we design and build our cities? Will there be fewer high-density condo buildings?

The rich will withdraw even more behind the protection of doormen and gated communities. Sanitized cars with drivers on call. Everyone else will be more fearful of any public contact, at least for a number of years, if not a decade or more. Remote work will dramatically accelerate.

Our current trend of housing inequality in the region needs to be addressed when this is over. It makes no sense to continue a trend where increasingly the rich live in Vancouver and wage earners who provide services to the city (teachers, health care workers, food industry workers) are all being forced further and further east. In times of pandemic this inequity is increasingly glaring because it endangers commuting workers and interferes with the smooth functioning of the city. This is one of the reasons that I have long called for the construction of thousands of non-market housing units in Vancouver—to provide housing for our wage earners. The lion’s share of the speculation tax and the school taxes have been levied on Vancouver property, but we are not seeing that money come back to the city to fix our housing crisis.

How will it affect community services like public libraries and recreation centres?

Similarly, those public gathering places that are already being weakened by the internet will be further weakened. And with public resources shifting into plague control, they will suffer a drop in funding. Unfortunately, I foresee a continued slide in our civic infrastructure and reduced taxpayer support for these functions. In the end, I suspect that our concerns post-crisis will be more basic: i.e. where can I live affordably and how can I access job and services safely.

Schedules for property tax payments in flux

Several Greater Toronto Area (GTA) municipalities and other Ontario cities have moved deadlines and/or waived interest and penalties for late property tax payments. In Ontario’s largest cities, all ratepayers in Toronto and Mississauga qualify for the measures, while Ottawa’s program is restricted to small businesses with a current value assessment (CVA) no greater than $2.5 million.

As of March 16, late penalties for Toronto property tax, water and solid waste utility bills have been suspended until mid-May. For property owners who make tax payments on the city’s regular three-installment schedule, the April 1 due date has been pushed to June 1. Taxpayers registered for the 11-installment pre-authorized payment plan will see the interim 2020 due dates pushed back 60 days.

Mississauga has added 90 days to the deadline for its two pending payment dates, pushing the April 2 installment date to July 2 and the May 7 due date to August 6. In other GTA cities, Oshawa is offering commercial, industrial and multi-residential ratepayers a grace period until June 30, waiving late fees and interest on payments coming due on April 27; Richmond Hill has waived penalties and interest on late property tax payments until further notice; and for now, Newmarket has suspended interest and late fees on all payments and has promised further details on potential tax deferral programs.

Ratepayers qualifying for Ottawa’s program will have until June 18 for interim tax payments and October 30 for final tax payments — an extension from the original March 19 and June 18 deadlines. In addition to meeting the CVA criteria, ratepayers must currently have paid up-to-date tax accounts to take advantage of the program.

Hamilton has thus far waived late penalties on property tax payments due April 30 for a 30 further days, but city staff is now reviewing other potential measures and will report to city council in early April. Other Ontario cities offering some form of property tax payment concessions include London, Kitchener, St. Catharines and Niagara Falls.

Toronto urges new health, safety policies for residential buildings

Large residential buildings with a high number of units require new practices and a rigorous cleaning routine to prevent viral spread. The City of Toronto is asking landlords and condo boards to follow specific guidelines to protect residents in vertical communities.

Mayor John Tory stressed how imperative it is that people practice physical distancing in high rises—an often challenging feat. Councillor Josh Matlow echoed the sentiment for the rental sector.

“It is impossible for renters to adopt life-saving hygiene and social distancing practices if hand sanitizer isn’t accessible and elevators and common areas are crowded,” he said. “That’s why the City of Toronto is asking landlords to protect their tenants’ health by immediately implementing a COVID-19 action plan in their building.”

Here are some guidelines the city released on Friday:

  • Alcohol-based hand sanitizer or a hand washing station with soap and water should be placed at all building entrances.
  • Alcohol-based hand sanitizer should be available in all common areas that remain open, such as laundry rooms.
  • Close non-essential common areas such as bathrooms, gyms, playrooms, playgrounds and other high traffic areas.
  • Routine cleaning of frequently touched surfaces in common areas, including doorknobs, elevator buttons, light switches, toilet handles, counters, hand rails, touch screen surfaces and keypads, with common household cleaners and disinfectants.
  • Organize the building to accept deliveries of essential goods, like medications, for residents to avoid non-essential trips outside.
  • Post signage limiting the number of residents allowed in common areas, including laundry rooms and elevators, to ensure that individuals are able to maintain a two-metre distance. Consider allowing a maximum of three residents at a time in elevators.
  • When showing units or suites for sale or lease, practice physical distancing – keep a safe distance of two metres from the resident and wash hands with soap and water, and or use an alcohol-based hand sanitizer, before and after the visit.

Additional information regarding General Infection Prevention and Control (IPAC) Guidance for Commercial or Residential Buildings can be found here.

The city’s website is updated daily with the latest health advice and information about City services, social supports, and economic recovery measures. Check toronto.ca/covid-19 for answers to common questions before contacting the Toronto Public Health COVID-19 Hotline or 311.

FRPO issues advice to renters on behalf of Ontario landlords

With April 1st fast-approaching and financial constraints tightening for many Canadians due to the COVID-19 crisis, the Federation of Rental Housing Providers (FRPO) issued a statement on behalf of members offering advice to renters facing hardship.

“Our members sincerely care about our residents,” the letter stated. “We value you and your families. At this time of emergency, especially, we want you to be safe and secure in your homes. We know that many residents have had their incomes disrupted by the COVID-19 emergency. For some, it may be challenging to pay rent on April 1, 2020.”

To take some of the stress out of the situation, FRPO offered the following tips to those affected by the COVID-19 emergency:

  1. Reach out to your property manager by phone or online (to respect physical distancing).
  2. Explain the situation.
  3. Offer to pay what you can, if possible.
  4. Ask about government programs you might qualify for, and for the remainder, discuss a plan for how you could repay over time.

“Remember, it is important to please pay your rent if you can,” the statement stressed. “To keep buildings operating, clean, and safe, we need to pay our mortgages, operating costs and employees too.”

In closing, FRPO urged renters to look into the following aid programs that are now being offered by all levels of government:

  • The Government of Canada has introduced the Canada Emergency Response Benefit (CERB), which provides $2,000 a month for up to 4 months to individuals who have lost their income as a result of COVID-19. The federal government is also providing a 75% wage subsidy for small and medium-sized businesses so they can keep people employed.
  • The Government of Ontario has set aside $148 million for assistance through Municipal Service Managers, which will use the Canada-Ontario Housing Agreement to direct more resources to tenants. The Province has also committed additional financial relief for low-income seniors, families with children and individuals with student loans.
  •  Some municipalities have offered grace periods for municipal payments such as property taxes, water and other utilities, and our members commit to take that into account in making arrangements and calculating arrears

Multifamily and retail stability on priority list

Some of Canada’s most prominent commercial real estate players are tackling the challenge of COVID-19, asset class by asset class, with their industry organization, REALPAC, quarterbacking the effort. As REALPAC’s advocacy team actively reaches out to the federal, provincial and municipal governments, working groups have been struck for each property sector to respond to and strategize about the cascade of issues that investors, owners, managers and tenants are now facing.

“A mere 100 days ago, no one had heard of coronavirus. Today, as a result of COVID-19, more than half our planet is under some version of a lockdown. All our personal and industry priorities have changed,” observes REALPAC chief executive officer Michael Brooks.

In a newly released message to members, Brooks stresses the need for constructive solutions to help fulfill people’s critical, immediate needs and to ensure that commercial real estate sector remains a strong employer and contributor the Canadian economy through its vast interconnected network of financial, development, managerial and operational disciplines. That’s particularly focused on easing stressors in the multifamily, retail, hotel and seniors’ housing sectors, along with arising issues for lenders and open-end real estate funds.

“We are seeking collaboration from federal and provincial decision-makers to ensure the stability of the rental market through considering the interests of tenants as April 1st approaches. It is vital that tenants have access to the assistance they need to pay rent on time in order to avoid volatility in the apartment and multifamily sector in Canada,” Brooks reports. “The closure of shopping centres and most other forms of retail will have significant and far-reaching economic impacts. We have begun policy conversations with municipal partners that centre on supporting the retail sector and minimizing impacts to tenants and businesses.”

REALPAC staff are also working to keep the industry informed and lines of communications open through ongoing collaboration with other industry associations and stakeholder groups, and vigilant monitoring of new developments. “We encourage all members to share their perspectives and policy recommendations with us going forward,” Brooks affirms.

Tarion issues new advisory to condo corporations

The Ontario government has passed emergency orders suspending any provisions of statutes, regulations, rules or by-laws that impose limitations periods. Since the Ontario New Home Warranties Plan Act includes a number of mandated deadlines, Tarion has issued this advisory below that replaces previous advisories.

Performance Audits

In response to the government’s emergency orders, deadlines to submit
performance audits are suspended for the duration of the emergency. Once the emergency orders are lifted, condo corporations will receive a reasonable extension to submit any performance audits that were due during the emergency period. If you are a designate for a condominium corporation, or are a performance auditor with questions about this potential delay. Contact Bonnie Douglas, manager, common elements, at [email protected].

Update for Builder Bulletin 19R –Field Review Consultants

It is anticipated that due to COVID 19, condominium construction sites may at some point be temporarily closed and Field Review Consultants (FRC may need to suspend their site activity. In addition, in response to the government’s emergency orders, deadlines for B19 reporting are suspended for the duration of the emergency. Once the emergency orders are lifted, there will be a reasonable extension applied for any B19 reports due during the emergency period. If you are an FRC that is not able to attend a site in order to carry out required reporting under B19, reach out to [email protected]. Automatically generated late notices of reporting may still be issued, however, where delays are due to the pandemic or the emergency orders,this will not impact the project or reflect on FRC performance. Once the provincial order is lifted, full reporting for the time period missed will need to be issued.

Access to units and common elements

Unit owners’ reluctance to open their homes for trades and builders or condo corporations’ concerns about allowing access to common elements will not be viewed by Tarion as denied access during the period of the emergency. When it comes to after-sales service in a unit, we do not expect any homeowner to open their homes to trades or suppliers if they do not wish to do so. Nor do we expect a condo corporation to provide access to common elements against the wishes of their condo community. Similarly, builders and their trades and suppliers who do not wish to enter an individual unit or a building are not expected to do so.

Warranty claim submissions + requests for conciliation

  • Until the emergency orders have been lifted, all warranty claim submission deadlines (First-Year, Second-Year and MSD Common Elements Claims) are suspended. Condo corporations should still submit forms to their builder and to Tarion but are not required to adhere to deadlines for submitting forms and will not have forms rejected for being late. Once the emergency orders have been lifted, condo corporations will receive a reasonable extension to submit their forms.
  • The 60-day period in which condo corporations must request a conciliation is suspended until the emergency orders have been lifted. Once the emergency period is over, condo corporations will receive a reasonable extension to submit a request for conciliation.
  • Conciliations and inspections are postponed and will be rescheduled at the earliest possible date after the emergency orders have been lifted.

Builder Repair Periods

  • All repair timelines are suspended until after the emergency orders are lifted.
  • We are monitoring the current situation and will review this timeline and advise of any extensions to the suspension.
  • This does not apply to emergencies or health and safety issues.

Conciliations, inspections & common element meetings

Conciliations, inspections, common element meetings and other possible in-person interactions booked over the next month are postponed and will be rescheduled to the earliest available date after the emergency orders are lifted.This will be continually re-evaluated, and further advisories will be forthcoming.

Emergencies and Health and Safety Issues

Unit owners or condo corporations can still contact their builder and Tarion regarding any concerns with health and safety issues or other emergency concerns. Builders are advised to continue to follow the emergency processes outlined in Builder Bulletin 42 and Builder Bulletin 49.