New report recommends national wind resilience standard

A report from the Institute for Catastrophic Loss Reduction (ICLR) and the Standards Council of Canada (SCC) recommends the development of a new national standard on wind resilience to mitigate damage resulting from natural disasters to residential and small building property.

The report proposes measures for four major categories: roofs; walls and upper and lower storey connections; anchoring of the building to the foundation; and additional construction details such as garage doors.

According to the press release, high winds contributed in part to most natural catastrophes recorded by the Insurance Bureau of Canada between 1983 and 2016.

“Protecting residential structures will be aided by measures that have the biggest impact on structural safety,” said Paul Kovacs, executive director of the Institute for Catastrophic Loss Reduction in the press release. “For example, roofs are particularly vulnerable to the impacts of high wind. Keeping roofs sound and well-connected to walls helps reduce structural failure and property damage, like that associated with intrusion of water.”

“Standardization is an important tool to protect Canadian communities from extreme weather,” added Chantal Guay, CEO of the Standards Council of Canada.

“New guidance in this area is a much-needed enhancement to the infrastructure and building safety toolbox.”

The organisations suggest these measures could form the basis of a new National Standard of Canada, which governments could incorporate into regulation, which could be integrated into the National Building Code or to which builders could adhere voluntarily.

Developer Beedie marks 65 year anniversary

Beedie, one of Western Canada’s largest industrial and residential developers, marks a massive milestone in 2019. It is now 65 years since Keith Beedie began his company based out of a small concrete building in Marpole. Keith originally started off building single-family homes and Beedie has grown over the years to include extensive industrial and residential developments.

Today, Beedie is a single name that represents much more than a construction company. Beedie now stands for the building of more than 25-million square feet of completed industrial space, the development of large scale master-planned communities; a private investment arm; and almost a hundred million dollars pledged to philanthropy. Beedie means a commitment to community, with the engagement of our employees who commit countless hours volunteering. Beedie means building for good.

“I think about what has happened in these 65 years,” says company president Ryan Beedie. “There was my dad, building homes in Burnaby and then North Vancouver in the fifties, building the Prize Home for the PNE in the early sixties, then adopting never before seen ‘tilt-up’ construction for industrial buildings – which is the industry standard now – to where we are today, with industrial, residential, and mixed-use development: we’ve come a long way in 65 years.”

And while “then and now” is one thing to consider, Beedie is also looking to the future, with the recently-launched Beedie Luminaries, a fund to assist to capable, but fiscally-challenged, students to continue in higher education. The charity is funded with a $50-million personal contribution from Ryan himself.

Beedie’s philanthropy over the years has benefited a variety of causes, such as the BC Children’s Hospital, the Lions Gate Hospital acute tower, Ronald McDonald House, the Beedie School of Business at Simon Fraser University and the Ryan Beedie Leadership Award, to name but a few.

“Without a doubt, the principal factor in the steady growth and success of Beedie in all its endeavours has been our people,” says Ryan. “Our employees are dedicated, and the company is dedicated to them. We also couldn’t do what we do without our ‘extended family’ – the consultants, tradespeople, municipal staff, affiliates, purchasers, tenants and others we work with. Thank you for being a part of our story.”

Slow approval processes continue to hamper new development

Current approval processes are hampering the development of safe and affordable housing in Ontario, according to a new research paper published by the Ontario Building Officials Association (OBOA).

Underscoring the need for better processes that simplify and streamline development approval, the new white paper estimates it takes about eight to ten years to complete the planning needed to issue building permits for new communities.

“We have the best building codes in the world, which is why Ontarians feel safe in the places they live, work and play,” says OBOA President, Matt Farrell. “We need to be cutting the red tape throughout the approvals processes to bring this housing to the market as quickly as possible.”

With recent commitments by both the federal and provincial governments to address the shortage of affordable housing, there is an increased need to streamline processes.

“Premier Ford announced $1-billion in funding for affordable housing last month, and the prime minister committed another $1.3-billion before that, but cumbersome processes are going to delay making that housing available to the people who so desperately need it,” he says. “We applaud this commitment to funding and are encouraged by current efforts to review the development process for efficiencies that can save government, businesses and residents, time and money,”

Building Officials are municipal employees who oversee all construction, including buildings, housing and structures, to ensure projects comply with Ontario’s complex and strict building code.

The OBOA supports Ontario Building Officials in ensuring a safer, more sustainable and accessible Ontario through training and certification, promoting uniform building code application, working with construction industry professionals, providing a voice to policymakers, and advancing the profession.

For more information about how Ontario’s Building Officials are working to increase safe and affordable housing across Ontario, download the OBOA white paper.

Five insights into workplace culture change

The conversation between ‘John’ and his manager went like this:

“I’m not doing anything wrong,” he spits out. “Management is just picking on me!” He sat back and crossed his arms, confident he set the record straight.

“Do you play hockey?” the manager asked. A confused look crossed John’s face.

“Yeah” he replied, clearly not interested.

The manager took a leap: “What else? Soccer? Golf? Tennis?”

“Soccer” John muttered, confused by the direction of the conversation

The manager pressed on.

“Is it ok to play soccer using hockey rules?” He didn’t wait for a reply: “The same principle applies here. We play by the workplace rules – everyone, even you. It starts with respect. Think about it next time you feel tempted to say things that are not respectful.”

This little exchange provides insights into the process of culture change. First, we all must be on the same page. Without the support of senior management, it’s a waste of time.

Secondly, the manager must be all in. Consistent application of values and expectations is required. No part-time management.

Here are five basic insights into resisting complacency that will help you move forward towards workplace culture improvement:

1. It is human nature to rationalize bad behaviour away. The most dangerous language from a manager or leader is “Oh that’s just Sally!” Unfortunately, I hear this far too often. If the behaviour is not acceptable – address it!

2. The first response, when confronted, is defence. We would prefer to believe the actions as “just not that bad”. Ask yourself, how bad does it have to be for you to act?

3. The lack of feedback can play a big part in the process of having lasting change. We all know the importance of providing feedback in a timely manner. Ongoing feedback is much more effective than the grand slam of critique. Give negative feedback as needed. Refuse to let it reach a tipping point.

4. Low-performance standards can sometimes be addressed through policy, or at performance review time, but don’t forget to apply your standards consistently across your department.

5. High-performance standards with poor follow-up are just as troubling as low-performance standards. If there is even one sliver of alternative or “bad” behaviour by the manager or leader, that behaviour will eventually become the norm.

Understand the importance of resisting complacency. Next time, address the issues promptly. As a manager or leader of a team, you are required to do the hard work needed to see improvements and positive change.

Arnie Wohlgemut is the senior coach and president of KP Mylene | Building to Lead, a facilities management and leadership development consulting company.

The next frontier in infection prevention

The Centers for Disease Control and Prevention (CDC) have announced a new initiative that seeks to help prevent the spread of infection at long-term healthcare settings.

Recognizing that patients often move back and forth between hospitals and post-acute care facilities, the CDC has put $8 million towards helping those long-term facilities make the necessary improvements to lower infections and cross-contamination stemming from patients moving between settings. While the CDC has determined that hospital-associated infection has decreased in recent years, hospitals only comprise one part of the larger health system.

“This is a serious issue that extends way beyond hospitals,” says Rosie D. Lyles, MD, director of clinical affairs at Medline.

“One study of long term care facilities found 1600 outbreaks in 12 states over a four year period. This clinical initiative by CDC reinforces the need to implement decolonization methods, such as daily chlorhexidine gluconate (CHG) bathing of the skin and nasal application with povidone-iodine (PVP), as part of infection control strategies to reduce the spread of multidrug-resistant organisms (MDROs).”

The CDC’s move also highlights the need for standardization when it comes to infection prevention. Different healthcare facilities, whether long-term acute care facilities (LTACHs), nursing homes (NHs), or skilled nursing facilities (SNFs), often do not have the same standards or strategies for infection control implemented in their facilities. Studies have shown that patient transfers from these long term care settings to hospitals present a major risk for the spread of infection.

Medline actively participated in the CDC’s initiative by providing antiseptic products to help keep patients from getting antibiotic-resistant bacteria and to stop those with bacteria from developing an infection.

Results have been promising so far. After 18 months, researchers found a 25 per cent drop in drug-resistant organisms among nursing home residents. Medline’s partnership with the CDC’s Prevention Epicenter investigators is a good example of how, by working with frontline staff, experts can bolster strategies and promote health in our increasingly interconnected health landscape.

Medline is a healthcare business that improves the operating performance of healthcare systems and providers by delivering customized solutions for clinical programs, medical supplies, and supply chain and financial solutions. Headquartered in Northfield, Ill., the company strategically supports nearly a third of the largest healthcare systems in the United States and also works with providers across the continuum of care to achieve both clinical and financial success. With the size of one of the country’s largest companies and the agility of a family-owned business, Medline’s more than 20,000 employees provide a customized approach to each healthcare provider enabled by this agility at scale. Learn more about Medline at www.medline.com.

The preceding article has been adapted and reprinted with permission from Medline.

Mississauga’s M City taking shape

Two years into its development, Mississauga’s M City has reached several construction milestones. This April, Rogers Real Estate Development and Urban Capital reported that multiple cranes have been added on site to begin work on the master-planned community’s main towers (M1 and M2), while podium suites have been released in the 81-storey M3 tower – the tallest of its kind ever proposed within the city.

“M City has proven time and time again that the future of Mississauga is now,” says John Anderton, Vice-President, Treasurer of the Rogers Private Companies. “Our success to date validates our unwavering belief in Mississauga and continued commitment to delivering cutting-edge design.”

The billion-dollar development is taking shape over a 15-acre site owned by the Rogers family for over 60 years. The area was originally earmarked for a new radio transmission facility, but will now host one of Mississauga’s most prominent mixed-use developments.

The project is being led by Rogers Real Estate Development and Urban Capital. Its team includes Canadian architectural firms CORE Architects and IBI Group, interior designers Cecconi Simone, New York-based urban planning firm Cooper Robertson, and a number of reputed engineers and consultants.

“The signature aesthetic delivered by our architects and designers has helped establish M City as one of the preeminent developments in the GTA,” says Mark Reeve, Partner, Urban Capital Property Group. “I’m very proud of our tremendous team. Together, we continue to push the envelope and deliver a dynamic community that Mississauga will be proud of.”

Since coming onto the market in Spring 2017, sales across the first three phases have passed the 2200 unit mark.

CCOHS’ Anne Tennier receives Francophone medal

Anne Tennier, president and chief executive officer of the Canadian Centre for Occupational Health and Safety (CCOHS) receives Francophone honour – 2019 Ordre de la Pléiade.

The medal is an internationally-recognized award bestowed upon individuals who make significant contributions to their francophone communities and have upheld the ideals of the Ontario Branch of the Parliamentary Assembly of Francophonie (APF).

The health and safety leader is one of six Franco-Ontarians to receive the award. The recipients are selected by a committee of non-partisan parliamentarians.

Tennier, well known in Hamilton, Ont., for her community involvement, works with the Hamilton Conservation Foundation, is the chair of the board of directors for the Hamilton Philharmonic Orchestra, and is a director of the Centre Francophone Hamilton, a multidisciplinary centre that promotes Francophone arts and culture.

The ceremony was held on April 15, 2019, at the Legislative Assembly of Ontario in Toronto.

Photo courtesy Canadian Centre for Occupational Health and Safety.
(Left to right: Lieutenant Governor Elizabeth Dowdeswell and Anne Tennier, President and CEO, Canadian Centre for Occupational Health and Safety.)

ASHRAE publishes energy guideline for historic buildings

With nearly two-thirds of existing buildings estimated to still be in service by 2050, project teams retrofitting any historic building for energy efficiency can benefit from the content of the new ASHRAE Guideline 34-2019, Energy Guideline for Historic Buildings.

Guideline 34 provides a step-by-step procedure for sensitive energy upgrading, beginning with forming the project team and gathering building and energy use histories, to instituting energy efficiency measures (EEM).

In addition, building envelope improvements, environmental control strategies, energy system analysis, HVAC selection and lighting design considerations are all addressed in the guideline. All recommendations are made in consideration of preserving the integrity of the historically valuable building character, materials and associated artefacts.

“The committee members writing this guideline are exceptionally knowledgeable about the special issues related to historic buildings and the care needed to preserve them,” said 2018-2019 ASHRAE President Sheila J. Hayter, who also served as chair of the international guideline committee.

“The committee’s intent was to provide guidance for worldwide communities and specifically for entire project teams – not just engineers.”

According to the press release, the guideline is particularly aimed at providing guidance for ‘listed’ historic buildings; i.e., those formally designated or eligible to be designated as historically significant by a governing body.

The cost of ASHRAE Guideline 34-2019, Energy Guideline for Historic Buildings is $53 for ASHRAE members ($62, non-members).

IICRC seeks input on new remediation standard

The Institute of Inspection, Cleaning and Restoration Certification (IICRC) seeks volunteers for the creation of the BSR/IICRC S900 Standard for Professional Remediation of Illicit Drugs, Cannabis and Nicotine Residue.

According to the press release, the need for properly trained companies who can perform remediation techniques is increasing as opioid use rises each year.

The standard will encompass necessary processes for employers and workers when remediating materials and contents and will cover the required personal protective equipment, engineering controls, proper work practices and processes necessary for remediation, as well as specific methods based upon the type of contamination (e.g. powder, chemical and combustion residues.)

“The cleanup and restoration of environments contaminated by the production and handling of illicit drugs is a highly specialized process that puts many at risk when it is not performed properly,” said Brandon Burton, IICRC standards chairman in the press release. “These standards will provide consistent guidance based on solid expertise and the consensus of some of our industry’s foremost authorities on proper restoration practices.”

The IICRC seeks volunteers for this standard from companies performing remediation; property owners; property managers; government agencies (e.g. Housing and Urban Development); insurance carriers, agents and adjusters; independent insurance adjusting companies; public property adjusters; third-party administrators; environmental hygiene companies; property management agencies; and real estate companies.

Consensus body members can expect to begin work on the standard – expected to be completed in approximately two years– by Fall 2019.

Complete applications should be emailed to [email protected].

Central banks offer climate risk guidance

A coalition of central banks and supervisors is urging governments and financial institutions to identify and prepare to respond to the economic risks of climate change. The Bank of Canada is one of the newest members of the Network for Greening the Financial System (NGFS), which released global recommendations on climate related risk assessment, monitoring, and data sharing and standardization at a conference in France last week.

“We recognize that the challenges we face are unprecedented, urgent and analytically difficult,” states an accompanying letter from the governors of the Bank of England and Banque de France and executive director of the Netherlands Bank. “The stakes are undoubtedly high, but the commitment of all actors in the financial system to act on these recommendations will help avoid a climate-driven Minsky moment — the term we use to refer to a sudden collapse in asset prices.”

Ultimately, all players in the economy will need guidance and tools to identify climate-related risks, gauge their risk exposure and plot a course for moving to low-carbon alternatives. In line with their obligation to support financial stability through the oversight of financial institutions, NGFS members have pledged to develop and apply key risk indicators “to size the risks across the financial system, using a consistent and comparable set of data-driven scenarios encompassing a range of different plausible future states of the world.” They will also clarify how that is to be passed through to governance and transparency within financial firms.

For their part, governments are called on to support “a robust and internationally consistent climate and environmental disclosure framework” such as the one developed under the auspices of the Financial Stability Board and its Task Force on Climate-related Financial Disclosures. The NGFS suggests governments could play a leading role in defining green and brown assets, and economic activities that are aligned with a transition to a low-carbon economy or are more exposed to climate-related risks.

The NGFS has promised to follow up with a handbook to advise financial supervisors and institutions, and guidelines for voluntary scenario-based risk analysis. It will continue to press forward with its mandate to build awareness, develop technical support and share knowledge — an approach that has already seen the network’s membership grow from eight founders in 2017 to a current roster of 36 central banks and six observer bodies.

“The prime responsibility for climate policy will continue to sit with governments, and the private sector will determine the success of the adjustment. But as financial policymakers and prudential supervisors, we cannot ignore the obvious risks before our eyes,” asserts the joint letter from Mark Carney, François Villeroy de Galhau and Frank Elderson. “We need collective leadership and action across countries and we need to be ambitious. The NGFS is the core of the response of central banks and supervisors. But climate change is a global problem, which requires global solutions, in which the whole financial sector has a crucial role to play.”

Report: B-20 stress test caused $15B drop in new mortgages

Is it time to reconsider Canada’s B-20 mortgage stress test? CIBC’s chief economist Benjamin Tal’s latest real estate report indicates that while the measure has cooled the Canadian market, it’s time to loosen the reigns.

“The stress test imposed on the market was probably necessary, since there was a need to save some Canadian borrowers from themselves,” opens Tal’s April 2019 report. “But more than a year after the introduction of B-20, we are in a position to say more about the impact of that change on the trajectory of the market in general, and alternative lending in particular.”

The B-20 stress test was introduced in January 2018 by the Office of the Superintendent of Financial Institutions (OSFI). It requires potential homebuyers to qualify at two per cent above their contracted mortgage rate (or 200 basis points). The test was designed cool super-heated markets such as Toronto and Vancouver, as well as raise overall credit quality within the real estate sector.

Nevertheless, says Tal, it does not adequately address several market factors: “The average personal income has risen by a cumulative 12.5% over the past five years—the stress test does not take that into account. Nor does B-20 allow for the fact that during the course of the mortgage term, equity position rises due to principal payments. Another shortcoming is that the stress test doesn’t consider mortgage term and the decreasing borrower risk with longer terms selected.”

The report states that B-20 has been responsible for nearly 60% of the overall decline in mortgage originations in 2018, equaling $13-15 billion decline in new mortgage loan values. As such, Tal questions if the test is still appropriate for today’s market conditions, noting, “Is 200 basis points the right number? At the end of the day, there is no real science behind that number … the rule was introduced in an environment of an already slowing market, and that since then, the Bank of Canada has hiked rates by 75 basis points, and the five-year mortgage rate has risen by 35 basis points.”

Additionally, the report suggests that the B-20 stress test is sending more Canadians into the arms of alternative lenders. Stats from the Ontario Land Registry indicate that alternative lenders accounted for nearly 12% of total transactions in the province over the last year (15% in the GTA), which is an increase from their share prior to B-20’s arrival.

“What’s interesting is that the upward trajectory was established in 2017 when alternative lenders accounted for only 8% of new loans. Over the past two years, mortgage originations provided by alternative lenders rose by a cumulative 27% while originations in the market as a whole fell by 11%.”

“Beyond B-20,” it continues, “that might reflect the impact of the stress test that was imposed on high-ratio mortgages in late 2016 as well as regulatory-related credit restrictions on new immigrants and those self-employed.”

The CIBC analysis concludes that now may be time to rethink the test, adding, “We need a more flexible benchmark, potentially a narrower spread over the contract rate when interest rates approach cyclical peak, and perhaps to establish a reasonable floor under which the qualifying rate will never drop below.”

Read the full report.

RESCON welcomes noise bylaw compromise

Toronto City Council has voted 21-4 in favour of Councillor Ana Bailao’s motion to the noise bylaw exemption to amend the proposed permit process for continuous concrete pouring.

The bylaw change authorizes the executive director of Municipal Licensing and Standards (MLS), rather than city councillors, upon receipt of an application for continuous concrete pouring, to issue an exemption permit contingent on having a noise mitigation plan.

The residential construction industry expressed concern that the originally proposed MLS exemption process would have threatened 7,000 jobs and crippled the industry’s ability to deliver desperately needed housing supply.

A coalition made up of RESCON, LiUNA Local 183, the Building and Land Development Association (BILD) and the Ontario Formwork Association have been advocating against changes that they believe would impact the local economy.

“Although the industry preferred the status quo exemption, this amendment represents a workable compromise for industry,” said Richard Lyall, president RESCON in the press release. “We want to work closely with Toronto residents, City Council and MLS staff to ensure projects are completed as quickly and efficiently as possible. As suggested by Mayor John Tory, we want to wrap up new development in a timely manner so we can ‘get out of current residents’ hair,’ as well as house Toronto’s future residents.”

David Wilkes, BILD president and CEO, added: “Builders want to be good neighbours too. The City Council decision allows our industry to continue to produce jobs, housing supply and attract investment to the city.”

The change to the noise bylaw will be effective October 1.

Penticton patient tower is set to open late April

The state-of-the-art David E. Kampe Tower at Penticton Regional Hospital (PRH) is set to open to patients April 29, 2019. A ribbon cutting ceremony was held April 12.

The tower is named in honour of David E. Kampe, owner of Peters Bros. Construction, a major donor to the Penticton Regional Hospital. Kampe is a Penticton philanthropist and has made numerous donations toward improving health-care services in the region.

“The development of Penticton Regional Hospital is near and dear to my heart, having lived and worked in the South Okanagan for my entire life. Being able to support the hospital project is a great honour,” said Kampe.

“When I look at what we have built, I think of the families that will benefit from the facility and the medical professionals and support staff that will provide the first-class services. While I appreciate the acknowledgment, the thanks should go to the people who made this vision a reality and the people who provide the services. I’m thrilled to see this new tower opening.”

The 84-bed modern tower has single patient rooms, each with its own washroom. A new ambulatory care centre has outpatient services, including cardiology, neurology, orthopedics, respiratory, pre-surgical screening and maternal clinics. Surgical services at the tower include five operating rooms, three minor procedure rooms, two endoscopy rooms and a cystoscopy room.

The six-storey facility will have a nuclear medicine program, rooftop helipad and space for the UBC faculty of medicine program to expand. A new, permanent MRI machine that scans up to 46% faster – almost double the number of scans each year – in the tower will replace a mobile unit and is the first of its kind in Canada. The MRI room has several features to make patients feel more comfortable, including a TV, head-set and other amenities.

“This is a great day for public health care for people in Penticton and throughout the South Okanagan, as the David E. Kampe Tower will deliver better care for families,” said Adrian Dix, Minister of Health at the ceremonial opening. “The facility will have more beds, more operating rooms, state-of-the-art diagnostics and easy access to a number of outpatient services.”

Read all about the project in the Feb/March issue of Construction Business.

Average rents decline slightly in March

Overall, average rents in Canada declined slightly in March after three straight months of increasing rental rates, according to the April national rent report produced by Rentals.ca and Bullpen Research & Consulting.

While Vancouver remains Canada’s most expensive city to rent in—average rent for a two-bedroom apartment in March was $2,966 compared to $2,724 in Toronto—Toronto is the most active market for private landlords as investors purchase pre-construction condominium apartments and rent them out at completion.

Despite the record number of condominium units under construction last year, the number of condos completed in Toronto was not enough to keep up with demand.

Looking at the major cities, average rents in Toronto increased by 1.8 per cent in Q1-2019 over Q4-2018. Vancouver rents were down 2.7 per cent and Ottawa declined 0.5 per cent—however, the median rent in Ottawa increased by 2.6 per cent.

“The pace of rental growth subsided on a national basis last month, but monthly readings can result in some volatility,” said Matt Danison, CEO of Rentals.ca. “Data shows rents were up in most of the major provinces in Q1-2019, with Ontario up by 1.7 per cent quarterly, Alberta by 3.4 per cent, and BC by 8.7 per cent. Average rents declined by 3.5 per cent quarterly in Quebec.”

The average property on Rentals.ca was offered for $1,864 per month in March vs. $1,888 per month in February, a decrease of 1.3% month over month. The median asking rent in March of $1,750 per month is 2.7% lower than February ($1,800).

On a quarterly basis—first quarter 2019 over last quarter 2018—the average property listed on Rentals.ca increased by 4.3 per cent to $1,869, while median national rents were up 6.9 per cent quarter over quarter at $1,764.

Because of mixed economic signals, there won’t likely be any interest rate hikes in 2019 as previously forecast. In fact, there is a good chance of a rate reduction as the potential for a recession is now looming.

First-Time Home Buyers Incentive

A factor that could reduce rental demand is the new First-Time Home Buyers Incentive that was recently announced as part of the national budget. This interest-free down payment assistance program could help many tenants get into the home-ownership market.

According to the Canada Mortgage and Housing Corporation, “by helping first-time home buyers purchase homes, we will free up rental supply, easing pressure on rents. This, along with the expanded Rental Construction Financing program, will add to the supply of affordable rental housing.”

These two measures, plus the potential rate cut in 2019 should help keep rents stable if not lower, especially in Toronto where rents continue to increase on a monthly basis.

Other takeaways from the April rent report include:

On a provincial level, Ontario had the highest rental rates in March, with landlords seeking $2,162 per month on average (all property types), a decrease of 1.6% from February ($2,197). In British Columbia, the average asking rent was $1,611 per month, an increase of 1.8% month over month.
Asking rents in Alberta have increased in each of the last five months, with March’s $1,303 average rent increasing by nearly 1% over February. Also in Alberta, Calgary rents were down 1.7% quarterly, but Fort McMurrary was up 1.7%, and Edmonton was up 5.1%.
Four of the 30 cities — London, Lethbridge, Quebec City and Windsor — have average monthly rents below $1,000 for a one-bedroom home.

“I don’t expect rents to grow as quickly in the second quarter as they did in the first, but further housing market interventions are not off the table, especially as they relate to alternative or subprime lenders,” said Ben Myers, president of Bullpen Research & Consulting. “A move to further tighten credit could send another flood of tenants into the already tight rental market.”

The National Rent Report charts and analyzes national, provincial and municipal monthly rental rates and market trends across all listings on Rentals.ca for Canada.

The implications of false fire alarms in condos

Once a fire alarm in a condominium is determined to be a false alarm, residents are likely to feel relief. After all, there is no real danger. However, for condo managers, a false fire alarm results in a slew of new issues. What happens when a fire alarm goes off at a condominium when no smoke or fire is present?

It could be a maintenance issue: the fire alarm could be experiencing electrical or mechanical failure, or an equipment malfunction. It could also be a result of improper maintenance, such as a dirty smoke detector or an aging system. Nuisance alarms, as they’re called, may also be caused by a leak in the sprinkler system, which trips a flow switch, resulting in the fire alarm going off. These are often the top causes, according to Michele Farley, president of FCS Fire Consulting Services Ltd.

“The implication for the building is that the building experienced a significant event that must be evaluated,” she says. “The nuisance fire alarm may be an anomaly and an isolated event, but it could be a sign that something is going wrong and management will have to evaluate the cause.”

Or, nuisance alarms could be a result of something more sinister. “Another concern, which is not uncommon, is vandalism, or a deliberate initiation of the alarm,” says Farley.

False fire alarms in condominiums can have some serious safety and financial impacts. Here’s a look at the implications of false fire alarms in condos, and what condo managers can do to prevent them from occurring in the future.

Safety

Douglas Baker, a condominium manager with Crossbridge Condominium Services, experienced two nuisance fire alarms last year due to attempted bike thefts in the parking garage. In both cases, the perpetrators activated the alarm in order to exit the locked parking garage.

“[Nuisance alarms] take away firefighters who might be missing an actual call,” notes Baker.

Even if the building is safe, false fire alarms may impact residents’ perception of the condominium if they are set off with some regularity.

“It may give a sense of an unsafe building, or the perception that proper maintenance is not being carried out, if there are a number of fire alarms. It’s a disruption,” Baker adds. “It just gives a sense of instability, and maybe people who move in think this may not be a good neighbourhood if people are pulling fire alarms. It’s obviously something from that perspective that you don’t want.”

Costs

The rule of thumb is, if smoke and/or fire is present, the condominium is not charged a vehicle fee for the fire department to investigate. However, nuisance alarms follow different rules.

“Each building receives one free false alarm per year,” Farley says. “So, if you just have one and the fire department can’t find anything wrong, they won’t know what caused it but there is no fire. The incident goes into the municipal system as the building’s one free alarm. The next time it goes off, [the building is] charged.”

Currently, Farley says the average nuisance false alarm fee in a high-rise condominium is $1,396.25 per dispatch, as alarms at high-rise buildings are often attended by three vehicles. For smaller condominiums, low-rise or townhomes, the fire department charges $465.42 for each attending vehicle.

Farley also notes that the condominium corporation can be charged with failing to maintain the fire alarm system in operating condition, pursuant to Article 6.3.1.4 of the Fire Code. The condominium corporation and property management company can be held responsible for nuisance alarms or persistent troubles with the fire alarm system, even if they are not sure what is causing them.

Fire department charges can also proceed to court and result in a summons when there have been multiple occurrences. Any individual who has care and control of the building is considered an owner as per the definition in the Ontario Fire Code, so property managers and the property management company, supervisory staff and even the board of directors and the building’s superintendent can be charged up to $100,000 per count and two years in jail, as permitted under the Provincial Act. However, Farley notes fines are generally not that high and jail time is exceedingly rare, unless in the cases of a serious fire that results in loss of life or significant repeat offences.

If the alarm was not caused by a vandal, a service company should be called in to evaluate what caused the nuisance alarm. If the service company can’t determine the problem, condominium managers may want to turn to a consulting firm to do a fire alarm technical assessment of the building to see if they can determine what the cause and risk is.

If nuisance alarms are being caused by someone pulling a pull station, however, it is possible to have some of those costs reimbursed – provided condo managers follow the recommendations set out by the fire department in order to reduce the occurrence of false fire alarms.

For Baker, whose building experienced two theft-related nuisance alarms and two that were triggered by contractors in 2018, the City of Toronto Fire Services department sent him a letter noting a few different options to pursue to cut down on the number of nuisance alarms triggered in his building.

Some of the City of Toronto Fire Services department’s recommendations include the installation of security cameras, employing security personnel to patrol the building, organizing tenant groups to act as fire wardens in troublesome buildings, posting letters signed by the Fire Chief warning people of the dangers associated with false alarms, and installing covers over pull stations, which is the method Baker employed.

Complacency

According to the Ontario Office of the Fire Marshal and Emergency Management, the province has a stay-or-go policy in place for residents of high-rise buildings. Although the Office recommends residents leave the building as soon as possible after the fire alarm is triggered, residents are within their rights to stay in their unit.

“People can stay, but they are supposed to take specific measures that are outlined in the fire safety plan,” reports Farley. “So people may decide to stay, and that may or may not be the right decision, depending on whether it’s really a fire or not.”

Although nuisance alarms often pose little risk to public safety, if they are set off frequently, it may cause residents to begin to ignore them, even those that are legitimate. While leaving is always the safest option, with an aging population, it is not always possible.

“If you can’t see fire or smell smoke, it may mean that there’s no fire and you’re not in harm’s way, or it just may mean that it’s not on your floor,” she continues. “We’re running into a really serious problem with the aging population because we have buildings where the majority of the people cannot leave. At this point it’s a personal choice. Because of nuisance alarms, a lot of people prefer to just stay in their suite and wait and see what happens next. That’s a common reaction.”

What can be done?

Farley recommends using a qualified service provider to conduct both monthly and annual fire safety plan maintenance requirements. She also advises that for any testing and repairs, to mandate prompt records from the service provider and keep any related documentation, in case the maintenance of the alarm system is called into question.

“If the service company cannot seem to find the source [of the nuisance alarms], look to a technical assessment by a consultant or third party to see if they can determine where the problem is,” instructs Farley. “At the end of the day, it is life safety and the fire alarm is in place to save people’s lives.”

In addition, proper training for staff is important as they are the ones that are responsible for a significant percentage of the fire safety plan’s Fire Code requirements and will need to take charge in the event of an actual emergency. They should be trained regularly, knowledgeable on the test requirements and service reports required in the building and well-informed on the most up-to-date fire safety measures.

Farley finds that the majority of buildings get their training from the fire alarm company, which is equipment-centric. However, proper fire safety training includes fire drills, sprinkler maintenance and other areas in the building that demand attention. It also includes the distribution of a fire safety plan to all residents upon moving into the condominium, which should also be posted online and distributed annually in a newsletter.

Another option, which Baker is considering for the building he manages, is arranging meetings with building occupants. “It’s a good idea anyway with regards to emergency procedures in the case of an actual fire alarm and it can be mentioned during that meeting that false fire alarms do cost us,” he says.

To prevent mechanical failure, Farley recommends following the fire safety plan’s stated testing intervals for both the fire alarm and the sprinkler system. Ultimately, if nuisance alarms continue to occur and all steps have been taken, a third-party consulting firm may be able to help.

Over 50 per cent of mandates in the Fire Code are the responsibility of a building’s supervisory staff, so proper training of life safety systems and Fire Code responsibilities and remaining on top of the condo’s fire safety plan is of utmost importance. After all, next time it may not be a false alarm.

Kavita Sabharwal-Chomiuk is the editor of CondoBusiness.

Brookfield Residential honoured in 2019 Homeowners’ Choice Awards

Brookfield Residential has been named among the winners of Tarion’s 2019 Homeowners’ Choice Awards. The North American real estate firm took home top honours in the High-Rise Category, which reflects industry players with more than 100 high-rise possessions annually.

“With today’s increasingly competitive housing markets, a new home commands an even larger proportion of a person’s household income than ever before,” said Howard Bogach, President and CEO of Tarion, which administers the Ontario New Home Warranties Plan Act, and backstops the warranty coverage. “As prices rise, so too do homeowner expectations. What these awards recognize are the builders who have not only met, but exceeded, those expectations through service excellence.”

Tarion’s annual Homeowners’ Choice Awards are determined by satisfaction surveys sent to thousands of homeowners throughout Ontario who took possession within the year. To qualify, builders must have at least five new home possessions during the survey timeframe and a specified number of completed questionnaires must have been received.

Finalists in the High-Rise Category included:

Branthaven Homes, Burlington
Brookfield Residential, Markham
Del Ridge Homes Inc., Markham
Great Gulf Homes, Toronto
Onni Group, Toronto
Tridel, Toronto

“A well built home backed by excellent customer service equals a satisfied homeowner,” said Bogach. “Through Tarion’s awards program, these happy homeowners are able to recognize their builders for going the extra mile and this helps build confidence in the new home building industry as a whole. We congratulate this year’s recipients for their success in creating a positive home-buying experience that their homeowners are happy to share.”

Read the full list of 2019 Homeowners’ Choice Awards winners.

B.C. RE sector boosts anti-money laundering efforts

Key players in the real estate sector in British Columbia have submitted anti-money laundering recommendations to the provincial and federal government in an effort to help protect B.C.’s housing market from organized crime.

The five participating agencies are the British Columbia Real Estate Association, the Appraisal Institute of Canada – BC Association, BC Notaries Association, Canadian Mortgage Brokers Association – British Columbia, and the Real Estate Board of Greater Vancouver.

Late last year, the ministry of finance set up an expert panel to review money laundering in the real estate financial services sectors after two independent reports revealed that B.C.’s real estate market is vulnerable to criminal activity and market manipulation.

Around the same time, Attorney General David Eby commissioned former RCMP Deputy Commissioner Peter German to study whether there is evidence that real estate, luxury car sales and horse racing industries in B.C., are being used for money laundering.

“Every single dollar in the federal budget for anti-money laundering needs to come to B.C. yesterday,” Eby suggested in a statement in response to German’s review.

As of April 8, new amendments are in force in the federal Budget Implementation Act that could help combat money laundering if passed.

“Given that real estate transactions involve multiple professionals, it will take a coordinated effort and collaboration with the government to strengthen anti-money laundering measures in B.C.’s real estate market,” the participating organizations added in a statement.

The following are the anti-money laundering recommendations submitted to the government:

1. Accept only verified funds
For sectors of real estate that are not already required to do so, we recommend that they accept funds only in forms that are verifiable through Canadian financial institutions.

2. Mandatory anti-money laundering education
We recommend the introduction of mandatory anti-money laundering education for all real estate professionals subject to the reporting requirements administered by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to ensure that those professionals are trained in recognizing and reporting suspicious transactions. FINTRAC should work with sector organizations, regulators and the provincial government to improve existing resources so that they better reflect real-world situations and improve compliance.

3. Smart regulation
We recommend that the federal government amend the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to allow FINTRAC intelligence to be made available to additional regulatory authorities, including the BC Securities Commission and the Financial Institutions Commission (FICOM). Optimally, the federal and provincial governments, as well as their respective agencies, should coordinate their actions, share information, such as the provincial assignment registry, and create a comprehensive, efficient enforcement regime.

4. Ongoing engagement
We recommend governments and regulatory agencies, including FINTRAC, better utilize the on-the-ground experience of real estate professionals to develop compliance resources and test policy ideas. This will result in well-crafted, practical regulation and foster a culture of compliance to protect consumers and the economy.

5. Timely and transparent reporting
We recommend that FINTRAC implement a framework to identify and report trends on a regular basis and in language that is consistent and understandable to professionals, the public and media. This reporting system should also include consistency in examinations with immediate feedback designed to help industry professionals improve their compliance systems.

The group also committed to sharing best practices to help keep the proceeds of organized crime out of the economy.

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