Federal budget boosts rental housing loan fund

The Canadian government is already augmenting a rental housing loan fund launched last year to help underwrite projects in which at least 20 per cent of the units will be designated affordable for a minimum of 10 years. The newly released 2018 federal budget commits $1.25 billion over three years to the Rental Construction Financing Initiative, representing a 50 per cent boost to its initial $2.5 billion pot.

“This new funding is intended to support projects that address the needs of modest- and middle-income households struggling in expensive housing markets,” the budget document states. “This measure alone is expected to spur the construction of more than 14,000 new rental units across Canada.”

The low-cost, 10-year loans could potentially cover 90 to 100 per cent of the residential portion of a new development. The minimum loan threshold is $1 million for new buildings with at least five units. Mixed-use buildings are also eligible provided the residential component accounts for at least 70 per cent of the gross floor space.

Canada Mortgage and Housing Corporation (CMHC) administers the loan fund, which is open to municipalities, not-for-profit or private sector developers who can ensure they will not need operating subsidies to maintain the affordable units for the required term. Affordable rents are prorated to the market where the project is situated and can be no higher than 30 per cent of the median household income in that market.

To qualify, projects must achieve at least 15 per cent better energy performance than the standard set in the 2015 national energy code. All common areas must be barrier-free and at least 10 per cent of the units must meet local accessibility standards.

Applicants who can secure other cost abatements, such as a waiver of local government development fees and/or property tax concessions, will be viewed more favourably. Projects proposed for sites with access to public transit and other features that support walkability and alternatives to car ownership will also be given priority.

BMO opening high-tech campus in CF Toronto Eaton Centre

The Bank of Montreal is transforming a four-storey space at CF Toronto Eaton Centre into a high-tech urban campus that will also repurpose part of the old Sears Canada store.

Said to be one of the bank’s most significant workplace design projects since First Canadian Place broke ground 40 years ago, BMO hopes to attract top talent when the space opens in 2021.

Darryl White, CEO of BMO Financial Group, said the campus is “central to the business transformation underway at BMO,” while the First Canadian Place headquarters will be maintained with an extended lease for another 15 years.

Overlooking Yonge-Dundas Square, the new 350,000 square foot location will help meet demands of both customers and a growing mobile workforce, with advanced digital technology, collaborative work areas and easy underground PATH access to public transit and a variety of amenities.

“This step we are taking is all about our customers because ultimately, it is they who lead our bank,” said White. “We’re positioning the bank to be at the forefront of change and lead the industry. This new workplace will be a centerpiece for how we drive value.”

Cadillac Fairview is collaborating with BMO on the workspace.

“With CF Toronto Eaton Centre as its home, BMO’s urban campus will stand out as a vibrant environment to stimulate bold ideas, foster new ways of working, and ultimately attract the best talent,” said John Sullivan, president and CEO, Cadillac Fairview.

How to maintain purchased winter mats

How can condo corporations get the most out of purchased winter mats?

The American Institute of Architects strongly encourages building owners and managers to install entry matting at all key building entries.

According to the institute, mats offer the following benefits:

Five feet of matting should be able to capture one-third of the soil and moisture on shoe bottoms;
Ten feet, about 52 per cent; and
Fifteen feet of matting, approximately 80 per cent.

ISSA, the worldwide cleaning association, has reported similar findings.

The ISSA also points out that it costs about $700 (US) to remove one pound of soil that has essentially walked in the building. This means mats can help reduce cleaning and maintenance needs and costs; however, much depends on the types of mats selected.

Compared to many types of rental mats, purchased mats tend to be ideally suited to moist winter conditions. Look for thick mats with dual-fiber construction — features that make them effective at capturing and holding soils and moisture.

However, purchased mats do need to be properly cleaned and cared for.

Custodial workers should vacuum the mats daily and in different directions, forward and backward and then side to side. This helps remove embedded soils.

If the mat gets slightly wet, it can usually be air dried. However, during snowy and rainy weather a mat can become heavily saturated quickly. Because the mat may also become heavy, picking it up could risk injury. Plus, the moisture may drip on interior floors.

In these cases, the best course of action is to use a wet/dry vacuum cleaner to extract the moisture. Then pick up the mat to see if moisture has built up underneath. If so, the floor surface should be cleaned and allowed to air dry.

Roll out the mat, place it on a flat surface, and use air blowers to dry the mat. Air blowers can reduce drying time by nearly half. Once dry, leave the mat flat, out of the way of foot traffic.

Another reason mats should be stored flat is to avoid damaging their backing and curling their edges. However, if dry mats are to be rolled for storage, they should be rolled nap (fuzzy) side out. This way, when unrolled for use, the mat will lay flat on the surface.

During dry weather with moderate foot traffic, mats should be deep cleaned about every three months. During heavy traffic or adverse weather, more often.

A carpet extractor should be used to deep clean entry mats. It will remove embedded soils to ensure the mat works most effectively. Once the mat has been extracted, lay it out flat to dry. Do not roll it up.

On top of the cleaning procedures just mentioned, it is essential to inspect mats. Be sure the mats are flat and stable on the surfaces. This helps prevent tripping hazards. Also, look for tears and wearing. Purchased mats are durable, but they must be replaced eventually. If wearing is evident, it may be time to replace them.

Irina Kem is the senior director of marketing for Swish, a leading distributor of professional cleaning products, solutions, and equipment throughout Canada.

U.S. HVAC manufacturers steel for job loss

The association representing American HVAC manufacturers calls threatened new tariffs on steel and aluminum imports “injurious” to the sector and to manufacturing jobs in general. The Air-Conditioning, Heating and Refrigeration Institute (AHRI) is expressing disappointment over U.S. President Donald Trump’s March 1 announcement of a pending 25 per cent tariff on steel and a 10 per cent tariff on aluminum.

“The HVACR and water heating industry would be negatively impacted by an increase in tariffs, as would the consumers that rely on the products we manufacture,” Stephen Yurek, AHRI’s president and chief executive officer, reiterated in a statement reacting to President Trump’s assertions.

AHRI was also among 25 U.S. industry associations that petitioned President Trump and U.S. Commerce Secretary Wilbur Ross earlier this week to disregard two Department of Commerce reports believed to be the basis for the move to dramatically heighten the tariffs. The reports, released in mid January, concluded that the current level of steel and aluminum imports weakens the U.S. internal economy and could impair national security. They urged “quotas or tariffs” that would allow domestic steel and aluminum producers to ramp up to 80 per cent of their capacity.

In turn, the 25 industry associations predict such actions will lead to thousands of job losses within the United States. “Historical and current data shows that the remedies prescribed in the reports will significantly raise input costs for industries that use these products,” they wrote in a joint letter — noting that these industries are “cumulatively far larger in terms of employment than steel and aluminum.”

Options for handling forgotten waste areas

The waste area in facilities is often the most ignored and forgotten place on the property. Facility funds are usually directed to front-end activities that impact customers and tenants, whereas the waste area is often hidden away in a garage, behind fencing or in a back alley, perpetuating the out-of-sight, out-of-mind mentality.

Waste areas are often described as an eyesore, and the amount of garbage that facilities generate will only become more taxing as urbanization and consumerism increase. Meanwhile, facility maintenance workers are faced with a number of issues, from controlling rodents, animals and other pests to mitigating odours.

Other problems include unauthorized access, increasing costs of servicing waste, inaccessible load heights on containers and finding capacity for waste without taking up valuable space. Waste trucks can also block areas of the property when emptying equipment, and, sometimes, this equipment can’t be moved cost effectively when a property’s layout is changed.

There are now several options that help facility maintenance workers proactively address some of these issues related to cost, customer service, health and safety, property management, flexibility, space management, aesthetics and good neighbour relations. Solving these potential problems often comes down to choosing the right equipment. Sometimes, the equipment is selected due to convenience or because the hauler carries a specific brand. Facility maintenance managers may also believe their choices are limited.

Small footprint, high-efficiency compactors are the physical size of a standard six-yard dumpster, but are fully enclosed and offer waste capacities from 24 yards to as high as 36 yards for general waste or cardboard, and over 48 yards for recycling. This equipment is ‘the newest kid on the block’ at seven years old and was designed to address common issues, while still utilizing the high efficient and generally available front-load truck fleet offered by most haulers.

For organics handling, digesters will handle organics by offering an on-site disposal option that moves organic waste to disposal as grey water via the sanitary sewer. Digester technology has been available for more than a decade and offers properties a real solution for organics management. Digesters complement other equipment choices, such as the small footprint, high-efficiency compactors mentioned earlier. This is because removal of heavy and messy organic waste positively impacts the costs of servicing waste, given that waste services are based on both weight and number of site visits.

Waste Equipment Evolves

The evolution of equipment plays a role in the questions facility managers or maintenance workers will want to ask as they undertake initiatives to improve waste handling at a property or business.

The word dumpster was first used commercially in 1936 and came from the Dempster-Dumpster system of mechanically loading the contents of standardized containers onto garbage trucks, first patented by the Dempster Brothers in 1935. The containers were called dumpsters, which was a play on the family name used in the business. Dumpsters, still in use today, are picked up by front-load trucks that follow a route (a lot like a bus on a public transit route) and were popular because, like the bus, they were low cost. Today’s roll-off containers and roll-off compactors are an evolution of the Dempster Dumpster.

The next big equipment advance came in 1978 with the introduction of the vertical compactor; the vertical compactor offered the clear benefits of compaction, combined with the efficiency of front-load truck service. For customers, however, it raised the height that waste bags were to be lifted, required fixed installation, was not completely sealed and often lost compaction as the equipment aged.

In-ground collection systems (also referred to as deep collection systems) appeared in the 1990 timeframe and are about 30 years old now. The early units require a proprietary lift and cannot be lifted by standard front-load trucks, the efficient choice of most haulers for the industrial, commercial and institutional (ICI) marketplace.

Today’s in-ground systems offer fork pockets allowing them to be lifted by front-load trucks. One major issue with all in-ground collection systems is they offer no real compaction, making them very expensive from an on-going operational cost for most ICI facilities where volume needs to be considered. A second issue is they are expensive to install and, once installed, there is no flexibility to relocate them because of the deep excavation required for each unit. The aesthetic value of in-grounds is lost, however, when the sheer number of units required to support the needs of a higher-volume ICI facility start to resemble ‘a tank farm’.

The Future isn’t Wasted

The introduction of new compaction options makes compaction generally available to most properties today. Waste compaction means that a property can get more waste capacity with a lower space requirement, rather than giving up valuable space that could be used for parking spots or other storage requirements.

Compaction also reduces the number of times you have large truck traffic on your property. As more businesses realize the need to reduce their carbon footprint, minimizing truck traffic trips and the idling time required to empty waste containers is a positive step in that direction.

Facility teams should assess what a property’s needs are in waste management, including what issues need fixing. Consider what those needs will look like in five years to better incorporate plans and meet directly with equipment manufacturers who can help evaluate how equipment will meet those needs.

Susan Brown is National Sales Manager at BINPAK Compactors, a division of Modern Waste Products. Susan has worked for seven years as part of a team selling BINPAK compactors that improve waste handling at restaurants, hotels and other property types. With over 25 years in business development, Susan enjoys strong relationships with customers. Her credentials include a degree from the University of Guelph in Management Studies and Economics. She is an active Rotarian, a proud Rotary Paul Harris Award Recipient and Chair of a Federal Development Agency partner in Brantford-Brant.

New mandatory condo forms attract criticism

New mandatory forms for carrying out certain activities in condo corporations in Ontario have attracted criticism from board directors and lawyers for being hard to find, understand and use. These frustrations were on full display at a CAI Canada seminar held yesterday in Toronto on understanding the recent changes to Ontario’s condo laws that introduced the forms.

David Crawford, a condo owner and director, said he liked the idea behind the forms — of communicating with owners about the corporation, including alerting them to board vacancies and inviting them to submit agenda items for upcoming annual general meetings. However, he said the way the forms present this information is confusing.

“My problem as an owner is I’m going to receive forms which I don’t understand,” said Crawford. “My problem as a board director is I’m going to have to try and explain forms which, frankly, I don’t understand, so please, please, please: fix the forms, and fix them soon.”

Condo lawyer Rod Escayola, partner at Gowling WLG, drew particular attention to the proxy form. Escayola said the two check-box choices given to owners appointing people to attend meetings on their behalf, one for quorum and one for voting, have raised questions about whether proxies authorized to vote can do so if the owner fails to provide voting instructions.

“When you look at the instructions, it says here, ‘Your proxy may only vote for the individuals whose names are set out above,’ so if you left it blank, what to do you do?” he said. “Some people say, if there’s no name, that counts only as quorum, but we have a box already for quorum.”

Despite the early challenges, which have included finding and viewing the forms online, Escayola said that he’s confident that these details will get resolved, adding that the forms are meant to standardize processes such as responding to records requests, which should bring predictability and peace.

Andrew Fortin, senior vice president of external affairs at Associa, a condo management company that has gone through similar legislative changes in other jurisdictions, said providing feedback to regulators is an important part of the process.

“If they don’t hear the feedback about what’s working and not working, then we’re going to be stuck with what we have,” said Fortin.

Marko Djurdjevac, counsel in the civil law division at the Ministry of the Attorney General, told seminar attendees that his colleagues at the Ministry of Government and Consumer Services, including one who was in the audience taking notes, are listening to feedback about the forms.

“Everything that I hear today will be relayed back to my client groups in the government, the policy folks working on the condominium reforms,” said Djurdjevac.

Ontario’s top 25 cities for rats

Toronto, Ottawa and Mississauga topped Orkin Canada’s 25 most “rattiest” cities in Ontario list, released in mid-February. Cities were ranked by the number of rodent (rat & mice) treatments the company performed from January 1, 2017 through December 31, 2017.

This ranking includes both residential and commercial treatments:

Toronto
Ottawa
Mississauga
Scarborough
Hamilton
Windsor
Oakville
North York
Burlington
Sudbury
Brampton
Oshawa
Etobicoke
London
Kitchener
Sault Ste. Marie
Timmins
Cambridge
Markham
Barrie
Niagara Falls
St. Catharines
Richmond Hill and Concord
Thornhill
North Bay

A Few Rodent Prevention Tips Via Orkin:

Close the Gap: Seal any cracks or holes in your foundation with weather-resistant sealant. Install weather stripping around windows and doors, as well as door sweeps.

Trim the Trees: Landscaping can be a big-rodent attractant. Keep shrubbery cut back at least one meter from the exterior walls of your home to eliminate any hiding spots for rodents.

Cut Off the Water: Eliminate any moisture sources, necessary for pests’ survival, such as clogged gutters or water gathering in trash or recycling bins.

National home sales decline sharply in January

According to statistics released by the Canadian Real Estate Association (CREA), national home sales fell 14.5 per cent from December 2017, which recorded the highest monthly level on record, to January 2018. Although activity declined to the lowest monthly level in three years, January’s home sales were on par with the 10-year monthly average.

Home sales activity in January dropped in three-quarters of all local markets in Canada, including virtually all major urban centres. Many of the larger sales declines were posted in Greater Golden Horseshoe (GGH) markets, where sales had sped up late last year following the announcement of tighter mortgage rules coming into effect in January.

Actual (not seasonally adjusted) home sales activity dipped 2.4 per cent compared to January 2017 and was close to the 10-year average for the month of January. Sales were below year-ago levels in about half of all local markets, led by the GGH region. In contrast, sales were up on a year-over-year basis in the Lower Mainland of British Columbia and Vancouver Island, the Okanagan Region, Edmonton, Montreal, Greater Moncton and Halifax-Dartmouth.

“The piling on of yet more mortgage rule changes that took effect starting New Year’s Day has created homebuyer uncertainty and confusion,” said Andrew Peck, CREA president, in a press release. “At the same time, the changes do nothing to address government concerns about home prices that stem from an ongoing supply shortage in major markets like Vancouver and Toronto. Unless these supply shortages are addressed, concerns will persist.”

“The decline in January sales provides clear evidence that the strength in activity late last year reflected a pull-forward of transactions, as rational homebuyers hurried to purchase before mortgage rules changed in 2018,” added Gregory Klump, CREA’s chief economist. “At the same time, a large decline in new listings prevented market balance from shifting in favour of homebuyers.”

The number of newly listed homes declined 21.6 per cent from December 2017 to January 2018, to reach the lowest level since the spring of 2009. New supply was down in about 85 per cent of all local markets, led by the GTA. Large percentage declines were also reported in the Lower Mainland of British Columbia and Vancouver Island, the Okanagan Region, Hamilton-Burlington, Oakville-Milton, Kitchener-Waterloo, London and St. Thomas, Kingston and Ottawa.

With the number of new listings falling more than sales, the national sales-to-new listings ratio tightened to 63.6 per cent in January, compared to the mid-to-high 50 per cent range which has been holding since May 2017. However, this ratio may not necessarily indicate the market has become imbalanced, as market balance measures that are within one standard deviation of the long-term average are generally consistent with balanced market conditions.

Based on a comparison of the sales-to-new listings ratio with its long-term average, just over half of all local markets were balanced in January 2018. The ratio in many markets moved one standard deviation or more above its long-term average in January due to large declines in new housing supply.

The number of months of inventory represents how long it would take to liquidate current inventories at the current rate of sales activity. There were five months of inventory at the end of January 2018, which is close to the long-term average of 5.2 months.

The Aggregate Composite MLS Home Price Index climbed 7.7 per cent year-over-year in January 2018, representing the ninth consecutive deceleration in year-over-year gains. It was also the smallest year-over-year increase since December 2015.

This deceleration in annual price gains largely reflects trends among GGH housing markets. While prices in the region have stabilized for the most part in recent months, ongoing deceleration in year-over-year comparisons reflects the rapid increase in prices one year ago.

Apartment units again logged the largest year-over-year price gains in January, climbing 20.1 per cent, followed by townhouse/row units, which saw prices climb 12.3 per cent. One-storey single-family homes and two-storey single-family homes saw smaller gains (4.3 per cent and 2.3 per cent, respectively).

Benchmark home prices in January were up compared to year-ago levels in nine of the 13 markets tracked by the MLS Home Price Index. Greater Vancouver saw prices climb 16.6 per cent year-over-year, while Fraser Valley’s prices jumped 22.4 per cent over the same period. Apartment units have been driving this regional trend recently, as single-family home prices have stabilized.

In Victoria, benchmark home prices rose by about 14 per cent on an annual basis, and by about 20 per cent elsewhere on Vancouver Island. These gains are similar to those recorded during Q4-2017.

Meanwhile, price gains have slowed considerably on an annual basis in the GTA (+5.2 per cent), Guelph (+10.9 per cent) and Oakville-Milton (-1.2 per cent), although home prices in the former two markets remain above year-ago levels. Monthly prices in these markets have shown signs of stabilizing in recent months after rapidly increasing in early 2017 and subsequently slowing.

In Calgary, Regina and Saskatoon, benchmark home prices fell slightly (-0.5 per cent, -4.9 per cent and -4.1 per cent, respectively). However, Ottawa and Greater Montreal saw increases led by prices of two-storey single-family homes (+7.2 per cent and +5.2 per cent, respectively), while home prices in Greater Moncton increased by 7.5 per cent, led by an increase in one-storey single-family home prices.

The actual (not seasonally adjusted) national average price for homes sold in January 2018 was just above $481,500, up 2.3 per cent year-over-year. When removing data from Greater Vancouver and Greater Toronto, two of the country’s most active and expensive housing markets, the national average price drops to $374,000.

New funding for women in skilled trades

The Canadian government has pledged $76 million to draw more women into the construction trades. Three new programs, announced earlier this week in the 2018 federal budget, will inform women about apprenticeship programs, dispense financial grants for training and provide resources as they move into the workforce.

To begin, the budget commits $46 million over five years for a pre-apprenticeship outreach program that will promote the skilled trades to groups that are currently under-represented in the construction workforce. Post-secondary educators, employers, unions and provincial/territorial governments are expected to collaborate in the effort to make women, disabled people, Indigenous Canadians and newcomers to Canada more aware of career opportunities in the skilled trades.

Female apprentices in skilled trades, categorized as Red Seal trades, could receive up to $6,000 over a two-year period if they are training for employment in a male-dominated field. The budget commits $19.9 million over five years to the incentive program, which potentially tops up the grants of $2,000 already available to all Red Seal apprentices. Currently, less than a handful of the 57 designated trades would be female-dominated or have an even gender split.

An additional $10 million over three years will be directed to programs for mentoring women in skilled trades during their training, while job-seeking and on the jobsite. This complements the Union Training and Innovation Program, launched last year.

Feds pledge $24.4-mil for military grave repairs

The federal government is stepping up efforts to repair military graves belonging to Canadian veterans who were buried or had grave markers erected by the government.

The 2018 federal budget, released Tuesday, earmarks $24.4 million over five years to address a backlog of 45,000 graves requiring maintenance.

In 2017, Veterans Affairs Canada (VAC) found with lack of funds it would take more than 17 years to follow through on these repairs.

Starting this year, the money will be used for cleaning, restoring or replacing headstones, and fixing foundation issues, but won’t apply to graves of more than 110,000 Canadians buried overseas during the First and Second World Wars.

Currently, there are 200,000 graves in Canada for veterans who were low income or whose death was related to their military service.

Winners announced at 2018 Wood Design Awards in B.C.

At the 14^th annual Wood Design Awards, which took place on Feb. 26 at the Vancouver Convention Centre (West), the innovative architectural and structural design of taller and larger mass timber buildings took centre stage.

The event was organized and hosted by Wood WORKS! BC, a national industry-led program of the Canadian Wood Council, with a goal to support innovation and provide leadership on the use of wood products and building systems. The awards honour excellence in wood building and design, and recognize leadership and innovation in wood use. The event was also presented by the Canadian Wood Council and its B.C. member associations, with support from National Resources Canada, Forestry Innovation Investment and industry sponsors.

“This evening presented a stunning showcase of innovation and ingenuity in wood building and design, with the use of mass timber and engineered wood products featured in rising heights and larger project sizes in BC as a commonality amongst the winners,” said Lynn Embury-Williams, Executive Director of Wood WORKS! BC, in a press release. “Tremendous advances in wood product research and manufacturing are revolutionizing how we design and construct buildings, and wood is emerging as a primary material in building types that we wouldn’t have seen 20 years ago, including taller multi-unit residential, and larger industrial, institutional and commercial buildings.”

The 2018 Wood Design Award winners include The Brock Commons – Tallwood House, which was celebrated in three categories, receiving the Engineer Award, the Architect Award and Wood Innovation Award. The 18-storey project, which is located at the University of British Columbia in Vancouver, was the tallest hybrid mass timber building in the world at the time of construction, and showcases qualities that demonstrate wood as a premier building material for the future. Acton Ostry Architects Inc. received the Architect Award and Wood Innovation Award for this project, while structural engineering firm Fast + Epp and fire engineering/building code consultants GHL Consultants Ltd. shared the Engineer Award for the project.

Kevin Mahon of Adera Development Corporation received the Wood Champion Award for his firm’s leadership in innovation and best practices in the growing market of five- and six-storey mid-rise wood frame residential construction.

The Prefabricated Structural Wood Award, a new category for 2018, was presented to StructureCraft Builders Inc. of Abbotsford for its Abbotsford Industrial Shop and Office, which showcased a faster way to construct industrial buildings using wood as a primary material, including the firm’s new product, dowel laminated timber.

Vancouver’s Cornerstone Architecture was presented with two awards, including the Environmental Performance Award for The Heights in Vancouver, a mixed-use project that is the nation’s largest designed to the Passive House standard when constructed. Cornerstone also received the Interior Beauty Design Award for the use of wood in the Crofton House School Dining Hall in Vancouver.

Other winners include:

Residential Wood Design: D’Arcy Jones, D’Arcy Jones Architecture, Vancouver – Okada Marshall House, East Sooke
Multi-Unit Residential Wood Design: Adera Development Corporation, Vancouver – Prodigy, Vancouver
Commercial Wood Design: HDR | CEI Architecture Associates, Inc., Vancouver – Penticton Lakeside Resort – West Wing, Penticton
Institutional Wood Design – Small: Kimberly Johnston, Johnston Davidson Architecture + Planning Inc., Vancouver – Logan Lake Fire Hall, District of Logan Lake
Institutional Wood Design – Large: Okanagan College, represented by: Roy Daykin, Kelowna – Trades Renewal and Expansion Project, Okanagan College, Kelowna
Western Red Cedar: Larry Adams, NSDA Architects, Vancouver – GoodLife Fitness Family Autism Hub (The Hub), Richmond
International Wood Design: Jinjiang Zhou, Suzhou Crownhomes Co., Ltd., Suzhou, China – Timber Structure Enterprise Pavilion in Jiangsu Horticultural Expo, Suzhou City, China
Jury’s Choice Award: Bill Downing, president of Structurlam Mass Timber Corporation of Penticton, Penticton
Technologist Award: Karla Fraser, senior project manager at Urban One Builders Construction Management Inc., Vancouver
Sustainable Forestry Initiative (SFI) Certified Wood Award: Innovation Building Group Ltd. – Solana in Whistler

“B.C.’s architects, engineers, designers and project teams continue to explore wood’s potential with vision, passion and courage,” continued Embury-Williams. “You are making our communities more sustainable; our province more prosperous; our living and working environments more beautiful, all the while celebrating our forestry heritage by using wood.”

Manitoba approves almost $30-mil to maintain health facilities

Manitoba plans to spend nearly $30 million on 120 healthcare facility maintenance projects across the province.

“It’s important that we regularly invest in the maintenance of our health-care system to make sure repairs are done and the most up-to-date equipment is used to support quality care,” said Health, Seniors and Active Living Minister Kelvin Goertzen. “These investments will ensure that sites continue to meet provincial, national and international standards and keep facilities in good repair.”

Projects include but are not limited to:

roof replacements at both the Seven Oaks General Hospital and Pan Am Clinic in Winnipeg;
mould remediation in the medical records archive room at the Thompson General Hospital, plus roof replacement, vacuum pump upgrades/replacement and phase two of a water booster upgrade;
sprinkler installation at the Whitemouth District Health Centre/Personal Care Home; and
dining room heating, ventilation and air conditioning (HVAC) upgrades and associated building controls system modernization and flooring replacement in the dining hall and main public areas at the Rest Haven Nursing Home in Steinbach.

“We continually work to make sure our nursing home is maintained properly,” said David Driedger, CEO of HavenGroup, which operates the Rest Haven Nursing Home in Steinbach. “We’re pleased that these important projects will go forward this year to ensure we continue to provide the best care to our personal care home residents, and ensure our facility is safe for visiting friends and family.”

Project requests are submitted each year by the regional health authorities, CancerCare Manitoba, Diagnostic Services Manitoba, and the Addictions Foundation.

This year, there are 44 projects estimated to cost more than $150,000 each for a total of $21.8 million. An additional $6.8 million will address 80 projects estimated to cost less than $150,000. The remaining $1.4 million will be held in reserve in case of any emergent project needs.

Other projects that will begin later this year include the installation of sprinkler systems, upgrades to fire safety equipment and roof replacements at sites across Manitoba.

B.C. residential development land takes tax hit

The British Columbia government expects to collect about $520 million in new annual revenue through additional residential property taxes and property transfer taxes. The measures, outlined in the 2018-19 provincial budget last week, are part of an effort to deter some of the forces driving housing prices upward and find funds to maintain and bolster affordable stock.

Investors and homeowners who do not pay income tax in British Columbia and/or who own residential properties worth more than $3 million will be subject to the new levies. However, a much broader range of homeowners and tenants are in line to absorb the flow-through costs of the surcharges on sites purchased for residential development or land idling in the preconstruction stage while required approvals and financing are secured.

“It could easily add a few thousand dollars to a unit,” projects Neil Moody, chief executive officer of the Canadian Home Builders’ Association of British Columbia (CHBA BC).

The new taxes will help underwrite the B.C. government’s promise for more than $1.6 billion in housing related spending over the next three years. Both the 2018 budget and an associated 30-point plan, outlining long-range intentions for a 10-year $6.6 billion investment, place the greatest emphasis on not-for-profit supply, but the private sector is identified as a supporting player. To begin, more funding has been allocated to programs that enable low-income renters to find accommodations in privately owned buildings and developers of purpose-built rental housing have been offered a potential property tax break.

The government will also attempt to facilitate more partnerships between not-for-profit and private sector players through a new office to be known as HousingHub. That’s seen as particularly instrumental for meeting a target for 14,000 low-end-of-market units in buildings that would house a mix of tenants with low and middle incomes.

“These monies do represent an opportunity for the private sector rental housing providers to house more British Columbians,” states budget analysis from the rental housing industry association, LandlordBC.

Demand management tactics

Five new tax measures to be rolled out in 2018 and 2019 are aimed at cooling market demand and, thus, stabilizing the province’s soaring housing prices. Changes to the property transfer tax will capture more high-end deals and foreign buyers at the point of purchase, while a value-triggered school property tax premium and a supplemental tax on owners/investors from outside B.C. pose a continuing tax liability.

“B.C.’s real estate market should not be used as a stock market. It should be used to provide safe and secure homes for families, renters, students and seniors,” Finance Minister Carole James told the legislature as she introduced the budget. “Soaring prices have benefited many people. We think it is fair to ask those who have benefited from those high prices to give a bit more back.”

Expanded property transfer taxes took effect on February 21 and are projected to raise about $120 million over a 12-month period. This imposes a new province-wide premium rate of 5 per cent on sale value in excess of $3 million. (Previously, property transfer taxes topped out at 3 per cent on the portion of the sale value above $2 million.) Foreign buyers, who have been subject to an additional 15 per cent tax on the purchase of properties in Greater Vancouver since the summer of 2016, now face a 20 per cent tariff in Vancouver and four other urban regions of the province, including Victoria, the Fraser Valley, Nanaimo and Kelowna/West Kelowna.

Owners/investors of residential properties in these five designated regions who do not pay income tax in British Columbia will also see a new add-on to their property tax bills, which the B.C. government has dubbed a speculation tax. For 2018, that will be equivalent to 0.5 per cent of the assessed value, but it’s slated to jump to 2 per cent for 2019, garnering an estimated $200 million.

Finally, a province-wide surcharge will be added to the provincial share of property tax — commonly known as school property tax because it is theoretically meant to support schools — beginning in 2019. This applies a further 2 per cent levy on the portion of assessed value between $3 million and $4 million, and a 4 per cent premium on assessed value greater than $4 million. This, too, is expected to raise $200 million annually.

One-time and ongoing surcharges

Residential development land is likely to be a significant contributor to the envisioned new revenue. Notably, Altus Group reports $2.5 billion worth of residential land deals in Greater Vancouver in just the first half of 2017, with the largest transaction surpassing $150 million. However, school property tax surcharges are expected to be more onerous than the one-time hit of the higher property transfer tax.

“This policy is intended for multi-million-dollar homeowners, but, at current land prices, will affect almost all developers and builders who purchase land parcels for development,” Moody says. “If a property takes four or five years before it can be developed, that’s four or five years of this added school tax.”

He also calls for clarification on how the speculation tax will be applied in the five designated jurisdictions. The budget promises upfront exemptions for most principal residences and “qualifying long-term rental properties” or a corresponding income tax credit that can be carried forward, but is silent on developers’ land holdings.

“There must be some sort of business exemption created that supports builders who have purchased land for development in advance. It’s not speculating if they have the intention to build on it and are delayed or are waiting for permits,” Moody asserts.

Indeed, Minister James acknowledged that persistent uncertainty for developers in her budget speech. “We will need to join with mayors, businesses and community leaders to speed up approvals and find ways to build more housing, faster,” she said.

Incentives for purpose-built rental

Both LandlordBC and CHBA BC commend the government for opening up a potential property tax break for new purpose-built rental housing. Nevertheless, any mitigation of the school property tax would be contingent on municipalities having revitalization plans (enabled under provincial planning legislation) in place and designating new purpose-built rental housing among properties qualifying for property tax relief. In such cases, school property tax reductions would then be matched to the percentage amount and duration of relief that the municipality has approved for its own share of property tax.

“The budget does not indicate whether or not the province will be exerting any pressure on the municipalities to take advantage of this opportunity. Revitalization agreements are somewhat obscure so we’re not sure to what extent they will be used,” observes David Hutniak, chief executive officer of LandlordBC. “A simpler approach might be a housing agreement with the municipality with a covenant on title whereby the municipality restricts use of the building to purpose-built rental for the life of the building, or 60 years, in exchange for the exemption.”

For now, it appears that rental housing developers will continue to pay property transfer tax at the same rate as those building ownership housing. “LandlordBC specifically recommended that the government waive property transfer tax for purpose-built rental in a pre-budget submission to Finance Minister James and Housing Minister Robinson. We continue to liaise with the government on this matter in the hope that they will recognize that their failure to implement such waiver will impede the development of new purpose-built rental,” the association’s budget analysis affirms.

“CHBA BC continues to encourage strong incentives to help weather the unique risks to rental versus strata title,” Moody concurs.

Fuelling an interminable debate

In introducing its demand management mechanisms, the B.C. government has been blatant about its intention to collect school property taxes for purposes other than schools. “This is what a progressive tax system looks like. The revenues from these taxes will help address housing affordability in our communities,” the 30-point plan reiterates.

This perhaps stokes the somewhat interminable debate about what property tax should pay for, and appears to conflict with the many voices demanding a share of income tax for local governments. Municipal advocates have long advanced the argument that the property tax base is inadequate for supporting municipalities’ social service responsibilities and an inappropriate instrument for income redistribution. Still, constitutionally, municipalities have little option to resist.

“Definitely, there is a concern about provincial use of the property tax ,” says Almos Tassonyi, executive fellow with University of Calgary’s School of Public Policy and a research associate with the International Property Tax Institute. “There are a number of aspects to this debate, but the Province, in theory, can do whatever it wants.”

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

Condos dominated GTA new home sales in January

Condo units dominated GTA new home sales in January, outpacing single-family homes by more than two-fold. Buyers scooped up 886 condo units, including loft units and stacked townhomes, and 365 single-family homes, including link, semi-detached and townhomes, for a total of 1,251 new homes sales last month, according to Altus Group, the Building Industry and Land Development Association’s (BILD) official source for new-home market intelligence.

The number of new single-family homes sold in January marked a plunge to volumes not seen in this segment of the market for this month in more than 18 years, reported BILD. By comparison, the number of new condo units sold in January were considered to fall within seasonal norms.

“New condominium apartment sales in January were in line with typical levels for this time of year,” said Patricia Arsenault, executive vice-president of research consulting services at Altus Group. “New condos remain an attractive option for end-user buyers looking for more affordable homes, as well as for investors who are ensuring needed new rental supply continues to flow into a tight rental market.”

David Wilkes, president and CEO of BILD, said the latest new home sales data reflect recent trends.

“Our industry wants to meet consumer demand in terms of the mix and type of homes available, but we are constrained by government policy,” said Wilkes. “Affordability and the lack of supply of single-family housing remain a challenge.”

As the benchmark price for new single-family homes surged almost 20 per cent year over year to $1,229,454 in January, the benchmark price for new condos swelled more than 40 per cent year over year to $714,430.

BILD reported that inventory in the new homes market remained below healthy levels in January, despite edging up from 11,397 units to 11,750 units. The pace of sales over the last year suggests that this represents around three to four months’ worth of inventory, compared to the nine to 12 months’ worth of inventory considered to be healthy.

“All levels of government and the building industry have a role to play in increasing housing supply and we need to work together to simplify approval processes, update zoning by-laws and service developable land so we can bring more homes to market,” said Wilkes.

GBCI Canada opens in second largest market for LEED

Green Business Certification Inc. (GBCI) and the Canada Green Building Council (CaGBC) have formed GBCI Canada to accelerate green building market transformation and impact in Canada, which is the second largest market for LEED in the world.

GBCI Canada enables the Canadian industry to leverage new opportunities to validate enhanced building performance and increase emissions reductions, operational savings and human health benefits.

GBCI Canada exclusively administers project certifications within the framework of the LEED green building rating systems, as well as the WELL Building Standard, the Sustainable SITES Initiative (SITES) for land use, Parksmart for parking structures, TRUE Zero Waste, Investor Confidence Project (ICP) for energy efficiency retrofits, and the GRESB benchmark, which is used by institutional investors to improve the sustainability performance of the global property sector.

CaGBC President and CEO Thomas Mueller will lead the venture and manage both organizations.

“With over a decade of LEED experience, the Canadian industry is well positioned to work toward more energy efficient and low-carbon buildings, as well as health and wellness, and zero waste goals,” says Mueller. “GBCI Canada has been established to support industry efforts to scale-up by providing expert service and online delivery platforms for a broader suite of complementary green building standards.”

Mahesh Ramanujam, president and CEO of GBCI, says the new venture will result in additional GBCI programs that will help the Canadian market realize the economic and environmental benefits associated with green building.

“GBCI Canada will go deeper into the Canadian market to deliver and execute on GBCI and CaGBC’s collective mission,” he says. “It is about local and regional support, while helping implement the global vision of strategic execution. By going into markets more broadly, we can work closely with our customers and help them implement their sustainability goals and aspirations.”

Nellie Cheng will also join GBCI Canada as its managing director.

New office building to anchor urban centre in Vaughan

A mixed-use headquarters for the Labourers’ International Union of North America (LiUNA) Local 183 will break ground in The City of Vaughan this fall.

Diamond Schmitt Architects has been selected to design the 295,000-square-foot building, which will house offices and amenity space for the largest construction local union on the continent.

The design features a six-storey tower and three-storey wing that sits dramatically on an Assembly Hall, which is buried in the landscape. This assemblage provides views and visual connection to a large landscaped forecourt designed for social gathering.

“The project creates an urban sense of place in a currently undifferentiated agricultural environment and, as the first building in a larger master plan, establishes a high standard for future developments,” said David Dow, principal, Diamond Schmitt Architects.

There will be an office wing and an array of member’s services that may include medical clinic facilities, a pharmacy, financial services, training classrooms and recreational facilities for retired members. The Assembly Hall will have capacity to accommodate 3,000 diners.

The building is designed as an innovative and distinctive headquarters for Local 183. Large contiguous floor plates facilitate the varied requirements of a dynamic and contemporary working environment and provide a fresh identity for an established institution.

The soft landscaping will extend up and over top of the Assembly Hall with access to portions of the building’s rooftops. This amenity activates the outdoor space to socialize in a protected microclimate and supports the project’s LEED Silver sustainability goals for storm water retention and heat island reduction.

With a target opening for 2020, the facility will have a strong street presence along an expanded Huntington Road with points of entry to underground and at grade parking from three sides. New public roads to the west and south boundaries of the site and an extension of Highway 427 prime the area for future development.

The HUB office tower to rise on Bay Street

Oxford Properties is developing a new 1.4-million-square-foot office tower at 30 Bay Street in Toronto’s South Core neighbourhood.

Although the official number of floors has yet to be confirmed, its projected to dominate the downtown skyline

The HUB, as it is called, was named for its proximity to the Harbour, Union Station and Bay Street.

UK-based architects Rogers Strik Harbour + Partners will design the structure, which will incorporate the historic Harbour Commission Building, along with supporting retail uses.

Completion is targeted for 2023.

More details to come.

Aerial View

Main photo: Lobby view from corner of Bay Street and Harbour Street. Photo by Oxford Properties.