Disaster Preparation: Do Your Homework

Disasters happen. And when lives and assets are on the line, the last question you and your property team should be asking is, “What do we do next?” Herein, having an emergency game plan within reach and ready to go is critical to helping disaster responders provide a fast, effective, and thorough response.

“A lot of times in this industry, we’ll get the call after something has happened and arrive to find that no preparations have been taken by the client to help us understand what needs to be done,” says John Stephenson, specialist with FirstOnSite Restoration, emphasizing, “The fact is, disaster mitigation is very time sensitive. The longer an emergency goes on without a response, the higher the risk of injury or property damage is going to be.”

Truly, the real disaster response work begins before the alarms go off. Through its own PREP (Priority Response Emergency Plan) program, the FirstOnSite team begins that work by sitting down with clients to uncover and address everything that needs to be known in an emergency scenario. That includes a building’s layout, access points, unique considerations, and who among its staff will be responsible for quarterbacking the emergency plan when an event occurs.

“We go through everything from top to bottom with our clients and follow-up with an on-site tour by our project manager, because they’re the one who is going to get that panicked phone call at 3 a.m. and they’ll need to know what they’re walking in to,” says Stephenson.

Preliminary walk-throughs like this are invaluable to an emergency plan. As well as helping disaster response project managers get a lay of the land, they fill in key blanks such as the location of back-up generators and water shut-off valves, details about security, and the size of the building’s floors.

“We want to have a good idea of the square footage of the floors so we can send that information to our project manager and their team when they’re one their way to a call. That way, they’ll have an idea about how much equipment they’ll need in terms of air movers, vacuums, and other tools. There is definitely math and science involved in our approach, so knowing those measurements up front saves a lot of time,” notes Stephenson.

It’s equally important to tackle accessibility and clearance issues upfront. This ensures disaster responders aren’t losing valuable time trying to get onto the property and through the front door, or calling the wrong contacts for permission to access areas of the building.

Ultimately, adds Stephenson, emergency plans are built on good information and consistent communication – and that includes tenants: “Tenant input is very important in an emergency plan. A building could have upwards of 200 tenants, and they could all operate differently. For example, one of them might have million-dollar artwork hanging on their walls, while another might have a critical data centre in the middle of their floor. We need to know that going in, because those kinds of factors are going to change how we approach is the situation.”

Always Updating

An emergency plan is a living document. It can change with the arrival or departure of staff, the introduction of new building codes and procedures, and the success (or failure) of responses to previous disasters.

To that end, Stephenson advises property stakeholders to evaluate their plans at least once a year and as soon as possible following an event, insisting, “When you have an emergency, there’s always a follow-up. You need to review what you learned, what you can improve on, what procedures helped, and what got in the way, After that, it’s important to review your plan on an ongoing basis to make sure your contacts are up to date and that you aren’t using emergency procedures that didn’t work the last time around.”

Truth be told, it pays to be prepared. It’s not enough to act on instinct or long-forgotten procedures. It takes consultations with specialists who know what to expect and a plan that takes everyone and every detail into consideration.

“Emergency restoration companies like ourselves play an integral part in how property owners manage a disaster,” notes Stephenson, adding, “With programs like PREP, we’re becoming an integral part of their responses from the very start.”

FirstOnSite Restoration is a leading Canadian disaster restoration company, providing remediation, restoration, and reconstruction services nationwide, as well as for the US large loss and commercial market. For more information, visit www.firstonsite.ca.

A primer for real estate investment decisions

Climate volatility, energy costs and a growing backlog of required capital expenditure are projected to drive real estate investment decisions in the near and long term. Industry insiders recently charted how Canada’s building stock will need to adapt to changing times in two thematically linked seminars at The Buildings Show in Toronto — tallying a fairly ominous list of challenges, but also identifying upside potential to leverage existing strengths and ongoing technological advances.

“Canada has some of the most resilient cities in the world,” observed Doug Webber, vice president, sustainability and energy, with WSP Canada Inc.

This reflects a country with a wealth of resources, including a large share of the global fresh water supply, and where most major population centres are located well away from potentially vulnerable coastal areas. Nevertheless, increasingly frequent and severe weather related events have policy makers and frontline implementers planning and preparing for the inevitable next one.

Starting with this ‘what if’ scenario, Webber and his WSP co-presenters explored some current and pending considerations for developing, repositioning and maintaining building and infrastructure assets into the future. In a separate but largely complementary session, Peter Willmott, a seasoned commercial real estate professional now teaching at Seneca College, and Bill Roth, managing partner of the consulting firm, Roth Integrated Asset Management Strategies, tracked the industry’s evolution since the previous boom and subsequent down cycle in 2008-2009, and pointed to some trends and patterns that bear watching.

Climate change adaptation

Stating the obvious to set the context, WSP senior consultant Adrian Lightstone backed it up with data analytics to illustrate the increasing likelihood of extreme weather. Rising temperatures are visually changing the shape of the graphs that plot historical trends and distorting traditional calculations of so-called 10-year or 100-year storms.

“Climate change means: the climate changes,” he said. “The mean temperature curve is shifting and, along with it, the probability curve. The tails of the probability curve are getting wider.”

Or, in other words, significant storms once viewed as a 10 per cent (10-year) or 1 per cent (100-year) possibility over the course of the year can now be expected more often. Toronto recorded an average monthly rainfall of 66 millimetres in the period of 2000-2009 and is projected to reach a monthly average of about 170 millimetres by 2040. However, that’s not expected to fall in consistent, steady increments.

“We have downpours now that we never used to see,” Webber noted. “There are going to be longer droughts and then these deluges.”

In turn, the built environment will need flexibility for both extremes and more day-to-day weather variability. ‘Location, location, location’ is taking on new connotations, while Canadian climatic quirks, like freeze-thaw cycles, that already stress buildings and infrastructure could become even more common.

“One consideration will be: are you in a floodplain?” Webber added. “I think Calgary now knows.”

By nature, long-term fixed assets are at something of a disadvantage when the status quo shifts. “Cities are particularly vulnerable to climate change because they are not mobile,” said Jeff Seider, vice president with WSP’s strategic consulting group — an observation that circles back to the presenters’ premise that it is important raise questions and start testing solutions as early as possible.

“It’s a matter of being able to adapt,” Seider submitted. “How do we plan and put in place a structure that is supportive of that?”

Market realities

In keeping with those needs, Peter Willmott outlined how real estate operators could have something of an experiential edge. A product that fundamentally exists to give shelter is inherently in tune with the environment — even if over-reliant on mechanical systems to moderate its effects. Meanwhile, volatility is practically embedded in the industry’s business model.

“There have always been market adjustments. This will always be the way our market will go,” Willmott asserted. “We all survive it, but we have to recognize that it does happen on a regular and reoccurring basis.”

Survival tactics from the last downward adjustment now reverberate in a stock that suffers from deferred maintenance and loss of skilled trades during the ensuing inactivity, but has also been reenergized with a new influx of owners/investors. The 2008 financial crisis sidelined traditional lenders just as many buildings from the earlier 1980s’ building boom were reaching an age when upgrades and system replacements were required.

Pension funds and REITs stepped in to claim some lucrative Class A office towers and retail malls, but, Willmott recounts, other building types, particularly industrial, teetered more toward obsolescence. “A lot of these buildings built in the late ’80s were not 100-year buildings,” he said.

“There are some great examples of renewed investment in existing buildings, but nowhere near what’s needed,” Roth concurred. “Until you get a ribbon cutting for a roof replacement or a boiler, it’s always going to be sexier to build a new building.”

Change agents

A convergence of more 100-year storms and fewer 100-year buildings is not completely dire, but it will demand some reinvestment, some culling of stock and more aggressive commitment to curbing carbon emissions. Webber cautioned against self-congratulation for achievements thus far — i.e. a 6 per cent reduction in carbon equivalent over the past 20 years — given the remaining distance to Canada’s national target.

“In the next 34 years, we need to drop 74 per cent,” he said. “We’re not making the level of change that we need to hit this target.”

Steadily rising energy costs could be one of the key agents of change. As an added incentive, an overtaxed electricity grid requires upgrades and expansion.

“There’s a massive amount of risk out there,” Roth said, in making a case for net zero buildings, while Webber likewise endorsed renewable energy and emerging electricity storage technologies. He foresees the not-so-distant day when new development will include on-site generation.

“We’re at a tipping point right now where you would do this as a business decision,” he said. “Thirty years out from now, self-generation at your facility is probably cheaper (than grid-connected supply).”

Technology now provides the means to model what’s achievable, track actual performance and pinpoint where gains can be made. Roth traced the industry’s growing comfort with and reliance on software, leading to a more sophisticated understanding of its applications.

“Ten years ago, a lot of people picked the software first. It was: let’s go out and buy a piece of software and figure out what to do with it,” he recalled. Today, software is more likely chosen to meet needs mapped out in strategic capital plans. However, its role in facilitating transparency still makes it a powerful pace setter.

“People will have more information,” Roth said. “There is not going to be any hiding.”

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

SmartREIT to begin first residential project

Smart Real Estate Investment Trust (SmartREIT) and Mitchell Goldhar have announced they will soon begin the marketing and development of their first high-rise residential project of approximately 700 units at SmartCentres Place at Highway 400 and Highway 7 in Vaughan, Ont.

The project will be located near the upcoming Vaughan Metropolitan Centre (VMC) subway station, which is expected to be open and operational in December 2017. The subway will connect this region to downtown Toronto.

The high-rise condominium project will be developed in a joint venture with CentreCourt Developments Inc. (CentreCourt), which will have a 50 per cent interest in the project. All parties are currently working together to finalize the submission of plans for a development consisting of two 35-storey towers. The sales launch is planned for the spring/summer of 2017.

“CentreCourt has embraced our vision for the site, which has been developed through extensive collaboration with the local community and the City of Vaughan,” said Goldhar, Chairman of the Board of SmartREIT. “The addition of CentreCourt’s experience and expertise developing high-rise residential in a downtown environment is welcome and will ensure that the office, retail and other residential uses complement one another and integrate with the downtown we are building.”

The SmartCentres Place community will feature significant public spaces and community and civic uses, including an eight-acre urban park, European-style plazas, one or more schools and community facilities such as a public library and a full-service YMCA community centre of 100,000 square feet that will begin construction next year.

“This first residential project at SmartCentres Place in the VMC is also timely as a response to the GTA’s housing challenges,” added Goldhar. “It represents a more affordable option for home ownership on a subway line and other high order transit.”

“The formation of this joint venture is another step in creating a vital and vibrant urban community where people will live, work, shop and play,” said Huw Thomas, CEO of SmartREIT. “This project is the first of many residential projects at SmartCentres Place, and represents SmartREIT’s first foray into the residential sector. In addition to the VMC, there are many other mixed-use development opportunities within SmartREIT’s existing portfolio including residential development – both condominiums and rental apartments.”

Ontario invests in new University of Ottawa building

Ontario is investing in a new Science, Technology, Engineering and Mathematics (STEM) complex at the University of Ottawa that will help students build the skills they will need for careers in these fields.

The investment from the province and Canada’s Strategic Investment Fund will help the university construct a new state-of-the-art complex to replace obsolete, energy-inefficient buildings. The STEM complex will provide students and researchers with access to business development expertise, supporting science and technology entrepreneurship.

“Thanks to its interdisciplinary focus, the STEM complex will be a unique place for students from all faculties to meet and collaborate. It will provide fertile ground for the cross-pollination of ideas and for the nourishment of research breakthroughs,” said Jacques Fremont, president of the University of Ottawa, in a press release.

The overall cost to complete this project is close to $115 million, which includes $51.5 million from Canada’s Strategic Investment Fund, $6.4 million from Ontario and $57.1 million from the University of Ottawa.

“These infrastructure investments will create good, well-paying jobs that can help the middle class grow and prosper today, while also delivering sustained economic growth for years to come,” added David McGuinty, MP for Ottawa South, who was on hand for the announcement. “Through the Strategic Investment Fund, we are strengthening the foundation for building Canada into a global centre for innovation.”

The Drake Hotel to expand along Queen Street West

A new expansion for The Drake Hotel on Queen Street West in Toronto will add 32 guest rooms and a larger lobby to the original building that was constructed in the 1890s.

“Our expansion reflects our deep commitment to growing alongside our neighbourhood, respecting our roots, and creating timeless spaces that act as a cultural bellwether for locals and visitors alike,” said Jeff Stober, founder and chief executive officer of Drake Hotel Properties.

Diamond Schmitt Architects will design the addition, while the interior design will be developed by +tongtong and the Design Agency. Construction is scheduled to start in 2017, with a projected completion of 18 to 24 months.

“Our design for the expanded Drake engages history, modernity and urban collage to reflect the vibrant cultural scene of Queen West,” said Donald Schmitt, principal at Diamond Schmitt Architects. “The design approach is one of apertures, creating moments between spaces that heighten the kind of interaction one expects at The Drake – serendipitous, ephemeral and repeating.”

Horizontal growth along Queen Street will respect the existing structure. A four-storey masonry base will be topped with a setback, cantilevered suite crafted in reflective steel. The choice of materiality reflects the new culture and layered textures of the historic neighbourhood, once home to the railroad industry.

“This design pushes the practice of conservation and challenges our idea of building tradition, evolving city form and furthering cultural value,” added Philip Evans heritage specialist at ERA Architects.

A new pedestrian bridge spans the existing Sky Yard, which will be framed by a large open steel form. Contemporary glazing on the new façade with both vertical and horizontal emphasis will pop out from the masonry frame against the embedded forms of previous facades and windows on the site.

Ruling could help condos fight short-term rentals

A court ruling released last week strengthened the position of condominium corporations in Ontario who are struggling to enforce restrictions on short-term rentals. The judge in Ottawa-Carleton Standard Condominium Corporation No. 961 v. Menzies found that offering Airbnb-style accommodations could not be considered a ‘single-family use,’ but a commercial use.

“What’s new, and what is a game changer, is that we argued that the language in the declaration already prohibited these kinds of short rentals from day one,” said condominium lawyer Rodrigue Escayola, who represented the condominium corporation in the case. “When the length of leases are regulated by rules, owners try to attack the rule by saying the rule is unreasonable, or they can say, ‘When I bought, this rule didn’t exist, so I should be grandfathered.’”

In the case of Ottawa-Carleton Standard Condominium Corporation No. 961 v. Menzies, the board had passed a rule setting a four-month minimum for leases after observing an uptick in short-term rentals. A lawyer who co-owned a unit with his wife wrote the corporation a letter asserting that the rule was ‘illegal,’ among other things, and advised that he intended to pursue an injunction and sue for damages.

The corporation told the unit owner that he could properly challenge the rule by collecting the signatures of at least 15 per cent of the owners to force an owners’ meeting on the matter. Instead, the unit owner filed a court application, the 30-day deadline to challenge the rule expired and the corporation proceeded to take enforcement measures. The corporation later filed a counter-application asking for an order to comply.

Justice Robert Beaudoin found that the rule validly prohibited short-term rentals, as did the declaration, which restricts units to ‘single family dwelling’ use. As a result, the judge concluded that the owners’ use of the unit violated both the declaration and rule, and ordered them to comply.

“‘Single family use’ cannot be interpreted to include one’s operation of a hotel-like business, with units being offered to complete strangers on the Internet, on a repeated basis, for durations as short as a single night,” he wrote in his ruling.

“Moreover, ‘single family use’ could not have contemplated including the use of a unit to house out-of-town witnesses and experts for trial preparation or the unit being offered on silent auctions or to hold a law firm’s office functions and Christmas parties.”

Escayola, a partner at Gowling WLG, observed that the decision could have implications for condominium corporations across Ontario and beyond. Most residential condominium corporations have declarations that contain provisions limiting units to ‘non-commercial,’ ‘residential’ or ‘single-family’ uses, he said. There are some newer corporations whose governing documents expressly allow short-term rentals, he added.

B.C.’s version of the declaration, called the strata plan, often sets similar restrictions on the use of units, noted Lisa Frey, an associate with the Vancouver office of Gowling WLG. But unlike in Ontario, restrictions on the use of units can be further defined in the bylaws, not the rules. That has posed a roadblock in the western province, as its laws require a higher threshold of support from owners for bylaws to succeed.

“Here, more recently, stratas have tried to pass bylaws that would prohibit the use of units for short-term rentals like Airbnb,” said Frey, “but getting 75 per cent of people to agree to something is very difficult, and so those have been met with a lot of resistance.”

The recent court ruling could help if the B.C. courts interpret limits on the use of units in the same way. That’s because most strata corporations are regulated by a number of statutory standard bylaws, explained Frey, including one prohibiting strata lots from being used contrary to the use spelled out in the strata plan.

Back in Ontario, the applicability of the court ruling will hinge on the specific language in a condominium corporation’s declaration, Escayola said. He recommended that corporations consult their declaration with their legal counsel.

Escayola will be advising his clients to send a letter informing residents of the court ruling, and what it means for their particular community. After that, he said he would recommend moving to enforce the declaration or rule against any owners who persisted in ignoring restrictions on short-term rentals.

The court ruling may have established that ‘single-family use’ precludes this type of accommodation, but condominium corporations will have to continue to enforce restrictions on a case-by-case basis, diligently collecting evidence to support their claims. That said, Escayola pointed out that the act of advertising short-term rentals leaves a digital paper trail, complete with photos and reviews from guests. In fact, in the recent case, the listing for the unit cautioned guests to ‘be discreet’ about the nature of their stay.

“I don’t want to overstate it, but we may have put a nail in the Airbnb condo coffin,” he said.

Michelle Ervin is the editor of CondoBusiness.

Framery Q wins Innovation Award from IIDEXCanada

Framery Q, a soundproof meeting pod that can accommodate up to four users, has won the Gold Innovation Award at IIDEXCanada. This award celebrates the industry’s leading design and interior architecture manufacturers, and recognizes exceptional achievements in new products designed for the built environment.

“Framery Q was appreciated for its outstanding new product design,” said Ian Chodikoff, director of marketing and programming at IIDEXCanada, in a press release. “It was a showstopper where attendees were quick to explore the product, testing out its effectiveness and sharing their moments inside the meeting pod on social media.”

Framery Q was launched in May 2016 to offer silence and privacy to workers in open-plan offices. These sound-insulated meeting pods come in four layout options and are ideal for calls, meetings, interviews and work that requires full concentration. Framery Q workspaces are used by several high-profile clients including Uber, Microsoft and Deloitte.

Framery O, the sister product of Framery Q, has won several design awards, including the IIDEX Gold Award 2015. Framery O is a one-person phone booth and served as the breakthrough product for Framery, the Finland-based start-up specializing in soundproof workspaces for open offices.

The Innovation Awards are organized by Interior Designers of Canada (IDC) and are presented at IIDEXCanada, the country’s largest expo and conference for the design, construction and management of the built environment.

Changing market challenges property managers

Changing market conditions, from cybersecurity threats and urbanization to more mixed-use space and technology disruption, are all impacting the way buildings are managed. Leading property managers were recently on hand at a PM Expo seminar in Toronto to elaborate on these trends and discuss the skills newer managers will need to bring to an increasingly technical field.

Cybersecurity

A talk on smart and connected buildings took a sharp turn into discussing cybersecurity risks. Managers are now, more and more, having to consider cybersecurity threats as industry produces more connected buildings. However, there hasn’t been as much thought into understanding potential risks. As David Hoffman, general manager of The Cadillac Fairview Corporation, said there are many things managers can do to harden up their infrastructure, but cybersecurity threats are not yet understood or even appreciated.

Building systems are constantly under attack. CCTV camera systems, IP addresses, automation and mechanical systems, and even parking meters, all have hacking potential. Unfortunately, most consultants don’t always emphasis cybersecurity protection during a first meeting.

“We as an industry are not there yet in terms of securing a building,” said Maud Chaudhary, senior vice-president of portfolio management, national services, Dream Office REIT. “This is an area, as an industry, that we are slow to respond to. To be candid, most of us do not really understand the risk on a day-to-day basis.”

Regarding liability, Michelle Brown, vice-president of property management at Bentall Kennedy (Canada), suggested managers think more about how contracts are written to protect management, as well as customers.

Oxford Properties has recently launched a cybersecurity standard based on a framework called NIST, which was created through collaboration between industry and government and consists of standards, guidelines, and practices to promote the protection of critical infrastructure.

“We’re beginning a transition with all of our systems and buildings onto those kinds of frameworks so that, at the very least, we’re locking the front door,” said moderator Lachlan MacQuarrie, vice-president of national programs at Oxford Property Group. “The reality is there are many, many doors that are completely unlocked today. It’s not something we can solve quickly, but we start having more conversation about it.”

Emergency response

Training and ongoing dialogue are two traits of effective risk management programs. Among its many security features, Cadillac Fairview has a risk check program that demands 100 per cent compliance with all its properties, and reports results to the board. They have also hired more national staff with experience in occupational health and safety and risk management, and have placed greater emphasis on compliance training.

“When it comes to issues like risk, a lot of the buildings have outsourced security, but we have purposely kept it in house, and read and sign-off on all emergency response plans,” said Hoffman. “Training is key; that is a way we distinguish ourselves from the other buildings. Our team responds extremely well during emergencies.”

Bentall Kennedy has implemented a program, which Brown said follows a strict path for dealing with emergency responses, such as security, floods and weather events. Along the way, management engaged with tenants and role-played scenarios to work out any kinks. Management started a conversation with tenants ahead of time in order to redefine their expectations.

“The minute you start having that dialog with tenants, they realize that they have a hole in their system,” said Brown. “All of a sudden they want to lean on you as a property manager, to fill that gap. There is a piece to play in that, and we can certainly collaborative on an emergency response plan, but tenants tend to think the property manager will deal with an emergency. We will be a part of it, but we’re not the plan.”

Technical responses to improving sustainability

Earlier on, MacQuarrie had set the platform to discuss various technical strategies used to improve energy and sustainability in buildings.

Understanding why a smart building strategy is important to a portfolio is something all managers must first consider, according to Chaudhary.

“There’s a lot of talk and noise about smart and connected buildings,” he said. “The fundamental question everyone needs to address is, what are smart and connected strategies for a portfolio and individual assets? There is no single answer or approach; it really depends on what your organization is trying to do over the long term.”

He said smart and connected is somewhat challenging from the point of view of a portfolio of quality B and C existing assets. Replacing building systems without a payback is not easy. But for the last two years, Dream has incorporated about $70-million of capital into Scotia Plaza in downtown Toronto, a Class-A asset.

“It was a tough decision; it’s a lot of money, an existing asset,” said Chaudhary. “The focus we’ve made is improving building efficiency and changing building systems that will have a better return and a payback in the end.”

Eco tracker, a program exclusive to Bentall Kennedy, allows the company to quickly see how much electricity, water, waste, and gas are being used down to the hour. It considers occupant numbers and floor loads into those metrics and can be configured to automatically upload daily energy data.

Brown said if the company has initiated a project, such as a lighting retrofit, daytime cleaning or a change in the recycling program, the technology allows them to measure, on a floor-by-floor basis, how successful that program is.

“The next step is making sure the integration of all this data we receive comes together nicely and we get some really interesting metrics out of it,” she noted. “It’s great for us to monitor and read and understand the metrics in real time from an energy perspective, but how does that tie into our preventative maintenance program?”

Efficiencies gained from a preventative maintenance program can possibly tie into energy efficiency and into building population and elevator data.

“For us, the next step, is looking at how we tie in all these data points to come up with some really predictive measurements and ways we can look to enhance service.”

For Hoffman, “tackling smart buildings in energy savings and efficiencies, and also in operational efficiencies.” This includes upgrading CMMS from a Legacy System to a new platform from IBM Maximo. Also, maintenance repairs and capital planning extend asset life and reduce infrastructure costs and downtimes. Automation software from ICONICS, not only examines energy data in real time, but looks at issues regarding equipment downtime and performance, such as fault detection. The team has also implemented a distributed antenna solution (DAS) that provides (Long Term Evolution) LTE, cellular, wireless and data enhancements for all its building occupants. Cadillac Fairview is also making major changes in its call centre technology, looking at how calls are managed and tenants serviced.

Next generation property managers

For Hoffman, hard skills include understanding smart buildings and knowing trends like destination dispatch, LTE and building automation systems. Social media and public relations, cybersecurity knowledge and business case planning are also important, along with people skills.

“We want to hire leaders, and things like ethics, communications, problem solving, decision-making critical thinking and interpersonal skills—those are equally as important as the hard skills,” he said,

For Chaudhary, it comes down to having the right attitude, and someone who wants to be on the frontline with customers and communicating everyday maintenance issues, such as broken elevators or finding ways to simplify complex and technical industry-based knowledge and communicating that to tenants.

“You could argue that you’re the mayor of a small town,” noted Chaudhary, adding, “Sometimes you’ve got teams of 25 to 30 people. It’s the soft skills, in my opinion, which outweigh many of the hard skills. The hard skills are learned; you can train people. If you don’t have the soft skills, unfortunately, property management may not be the right field for you.”

Brown fell into the field as a “generalist,” interested and aware of the many different factors within a portfolio, and aware of who to contact to find more specification on an area.

“We’re the nucleus of the industry; we connect to asset management, we connect to the tenants, we connect to, [for us], our sustainability group. We are the piece that holds it all together.”

She said the “right person” for this career path is someone who can converse with the cleaning staff and the president of a multinational organization; someone who can talk to a mom and pop shop struggling to make ends meet in order to understand their perspective and help them “get over the finish line,” and someone who can deal with everyday tasks from staffing issues to the financial analysis of a property.

And yet another task of growing importance is finding ways to assist partners, such as building operators and contractors. These roles that are becoming harder to fill due to skills shortages and evolving needs.

“The cleaning industry is the same,” added Chaudhary. “That kind of workforce that was prevalent in the 80s and 90s does not exist, or is becoming smaller and smaller every day. People want stability, a nine-to-five job.”

Tragedy accentuates fire safety in buildings

Owner compliance, regulator vigilance and occupant awareness are complementary elements of fire safety in buildings that have literal life-and-death consequences. Following the recent tragic fire in Oakland, California, in which 36 people died in a warehouse that had been improperly turned into residential and event space, fire safety and legal experts are reflecting on the confluence of deliberate and inadvertent omissions that underlie most calamities.

“No one should have been living there and no one should have been attending a party there,” reiterates Michele Farley, president of FCS Fire Consulting Services Ltd. “What stands out with this situation is the number of people who knew it was a problematic building.”

Only a small fraction of landlords outright flout requirements for building permits and/or welcome illegal occupancies, but the repercussions of their negligence — as seen in Oakland — can be disproportionately harmful. As a counterbalance, fire safety and bylaw enforcement agencies are often spread thin across vast numbers of buildings. Inspectors typically rely on outside complaints to alert them to situations that need investigation, and on owners’ cooperation to rectify hazards.

Notably, a statement from the city of Oakland confirms it had investigated the offending property just three weeks before the deadly fire. “A city building inspector visited the property and verified the blight complaint, but could not gain access to the building to confirm the other complaint regarding unpermitted construction,” the Dec. 3 release reports.

Landlords bear responsibility

The city has now pledged to delve deeper into the circumstances of the case. Given what’s characterized as the litigious culture in the United States, knowledgeable observers predict the municipality will be sued, but, as in Canadian jurisdictions, building owners are almost always the prime bearers of responsibility.

“Legislation generally protects regulatory workers from prosecution unless you can show recklessness or bad faith,” says Joe Hoffer, a partner and specialist in municipal and residential tenancy law with Cohen Highley LLP. “If no order has been issued — even if one is threatened — and then there is a fire, there is no reason to conclude that the issuance of an order would have prevented the fire. In every case, the question is whether compliance or non-compliance would have prevented the fire, and that obligation rests with the landlord.”

Fire inspectors have the authority to immediately evict occupants and padlock a building when they deem it necessary. In less onerous situations, they issue an order with a deadline for compliance. Based on the degree of risk and the offender’s risk profile, compliance may be confirmed through a follow-up inspection or documentation from the landlord to prove required work has been completed.

In other cases, violations can mount over time. Farley gives the example of turnover in industrial buildings where the unit fails to meet the required standards of the new tenant’s building use. Perhaps more often, accumulating clutter creates the dual dangers of blocked exit paths and increased fire loads.

“What changes an occupancy from being low to medium to high is based on the fire load,” advises David Gardner, senior occupational hygiene and safety consultant with Pinchin Ltd. “So, in a used book store, for example, if there are enough books crammed in there, they could change the occupancy (classification) of the building use.”

Clutter also poses particular challenges for residential landlords who must balance safety concerns of the whole tenancy and individual tenants’ rights.

“In the context of a hoarder, particularly of paper and other combustible material, the Fire Inspector will order the landlord to cure the problem, but the landlord cannot simply go in and throw out the tenant’s junk,” Hoffer notes. “The landlord has to go through the process of accommodating the hoarder while, at the same time, starting a legal process for eviction.”

Hazard identification

Of course, illegal conversions and occupancies present myriad potential hazards that can dramatically reduce the amount of time available to safely escape from a building. The fire code mandates detection and suppression systems, fire separations and fire rating of structural components, and prospective building users should never assume these measures are in place unless there is proof of code compliance.

Farley also warns of the potential for overtaxing electrical wiring, particularly if large appliances like fridges and stoves are plugged into improper outlets. Under Ontario’s fire code, abandoned buildings are supposed to be secured with fencing, and other measures if needed, to safeguard against illegal occupancies and/or random vandalism that could put people and property at risk.

“The message should always be: Public beware,” she asserts. “And it’s not just kids going to some clandestine dance club. I’ve seen health care professionals propping open linen closet doors for convenience, which is a fire code violation. It’s all about education and awareness of risk.”

Farley recommends the Ontario Fire Marshal’s safety guidance for student housing and calls for equal vigilance when choosing retirement housing and long-term care homes for seniors. “When I was looking with my own mother, I asked about the fire alarm system, sprinklers and evacuation procedures,” she says.

Meanwhile, as an example of compliance efforts, she recounts how one community service agency converted donated space into an emergency shelter for the homeless. Consultants measured and ensured appropriate distances from the sleeping area to the exits, designated an area with the most direct access to the exits for patrons with mobility limitations, and implemented a sign-in and numbered-bed system so that every patron’s location could be easily determined.

“It wasn’t that expensive to do that,” Farley observes. “With awareness, there are steps that can be put in place to make people safer.”

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

Two new rental towers planned for Montreal

SmartREIT announced that it has entered into a letter of intent for a 50/50 joint-venture with Jadco Corporation, a Montreal-based residential developer, to build two new rental towers on a portion of SmartREIT’s shopping centre lands at the corner of boulevard St-Martin and boulevard Daniel-Johnson in Laval.

The two new rental towers will contain a total of 330 units connected to a common podium structure that will contain streetfront retail units as well as service and leisure amenities for the residents. Total investment will exceed $75 million and, subject to normal approvals, construction will begin in spring 2017 with occupancy of the first tower in summer 2018.

Under Jadco’s “Équinoxe Collection” banner, these upscale rental towers will offer superior tenant amenities, with underground parking, spacious floor layouts, designer interiors and quality materials in a vibrant, urban setting where entertainment, commercial and residential addresses come together.

This follows SmartREIT’s announcement last week concerning its first high-rise residential development in the Vaughan Metropolitan Centre and is part of SmartREIT’s overall strategic plan to maximize the value of its major-market urban centres by introducing mixed-use development that builds on superior access to public transit and the regional highway network.

“Jadco is proud to partner with SmartREIT in the development of this Équinoxe project which is ideally located in a vibrant, well established community with excellent access to public transit, retail and civic amenities,” said André Doudak, President of Jadco Corporation.

“We are very pleased to continue our urban development program with this high quality project in a strong rental market,” noted Huw Thomas, Chief Executive Officer of SmartREIT. “With mixed-use developments such as SmartCentres Place at the Vaughan Metropolitan Centre, StudioCentre, Westside Mall and Highway 7 and Highway 400, all in the Greater Toronto area and now this project in the Montreal area, we are building an extensive pipeline of mixed-use projects to provide long term value for our unitholders,” added Thomas.

Quadrangle recognized for accessible design

Quadrangle was recently presented with a Silver Award in the Architecture category at the sixth annual International Association for Universal Design (IAUD) Awards for its work on 100 Broadview Lobby.

The awards recognize individuals and firms from around the world that “contribute to the healthy development of society, and improve the welfare of humanity as a whole, through further disseminating and actualizing of universal design.” The 16 entry categories celebrate the proposal and creation of new products, systems and urban development initiatives that promote accessibility.

100 Broadview started out as a storage facility that was converted into a commercial rental building. However, the building’s entranceway was inaccessible and lacked street presence and visibility. The building’s owner chose to give up leasable space to overhaul the entranceway to include a bold design featuring ramps that distinguish the property as a creative hub open to strollers, bicycles and mobility devices.

To encourage accessibility, Quadrangle used universal design on various levels to accommodate those with vision loss and all levels of mobility. Vibrant, high-contrast pathways and tactile ground surface indicators greet those that enter the lobby, along with a bold, orange feature ramp to accommodate mobility devices of various widths. Quadrangle also included colourful, custom-designed way-finding elements throughout the building’s hallways to provide clear navigation and branding throughout the space.

“100 Broadview is a physical manifestation of openness, breaking down both physical and psychological architecture through inclusivity – actively demonstrating the benefits of a more accessible city,” said Quadrangle principal Richard Witt in a press release. “We’re thrilled to be recognized internationally by the IAUD for our unique solution to the retrofit of an existing building.”

This is the second IAUD honour for Quadrangle, which received a Universal Design in a Studio Environment Award for its own studio in 2013.

New high school and community hub set for Bloor-Dufferin area

Ontario is investing a total of $20 million to construct a new state-of-the-art high school and community hub at the southwest corner of Bloor Street and Dufferin Street in Toronto.

The new facility will be built on the current site of Brockton High School to accommodate about 900 students, including those from Bloor Collegiate Institute and ALPHA II Alternative School. In addition, the province is working with the Toronto District School Board (TDSB), City of Toronto and local community groups to secure up to 30,000 square feet for the planned community hub on the site, which will include a licensed child care centre and space for community programming.

“Community hubs across Ontario offer a wide range of services through a variety of models, reflecting the province’s diversity,” said Bob Chiarelli, Minister of Infrastructure, in a press release. “They make good use of public properties and encourage the creation of multi-use spaces. I know this hub in the vibrant Bloor-Dufferin neighbourhood will be a boon for all who live in the community.”

The Ontario government and the City of Toronto will be working with community groups in the region to help develop a vision for the community hub.

“This announcement is the result of an unprecedented level of cooperation between the TDSB, the Ontario government and the City of Toronto, who agreed to use surplus school land in a way that maximizes value and keeps supporting the community by bringing new services to its residents,” added Robin Pilkey, Chair of the Toronto District School Board.

Improving hand hygiene in healthcare facilities

Anyone who sets foot in a health facility hopes to leave healthier than, or as healthy as, when one came in. The problem is that health facilities are under constant threat of healthcare-associated infections (HCAIs), described by the World Health Organization (WHO) as one of the most frequent harmful situations during care delivery .

Incidents can result in longer hospital visits, long-term disabilities, significant financial burdens on healthcare institutions and, most severely, an increase in deaths. According to the Public Health Agency of Canada (PHAC), more than 200,000 patients are infected every year while receiving treatment, with 8,000 of these cases resulting in death . To combat this concern, the PHAC issues infection control guidelines for all provinces, territories and healthcare organizations.

Hand hygiene remains the single most effective way to prevent the spread of communicable diseases and infections. Recommendations from the WHO and PHAC essentially shed light on individual behaviours to help curb HCAIs in health facilities; however, it is equally important to consider the environment in which health professionals, patients and visitors are asked to practice safe hand hygiene.

Actually, studies indicate that hand hygiene behaviour alone is not the only key factor for achieving higher compliance rates; it turns out that the placement of soap/sanitizer dispensers plays an important role as well .

Hand hygiene recommendations

There are a multitude of recommendations on lowering the number of HCAIs worldwide. The WHO highlights the importance of good hand hygiene in preventing HCAIs. It suggests the most important aspect is “cleaning your hands at the right time and in the right way.”

In addition to the WHO’s hand hygiene improvement strategy and guidelines on healthcare hand hygiene, it identifies five moments for hand hygiene in healthcare. Analyzing the natural workflow of the healthcare system, they highlight the following moments to be mindful of: before patient contact, before aseptic task, after body fluid exposure risk, after patient contact and after contact with patient surroundings .

Similarly, according to the PHAC, “adherence to hand hygiene recommendations is the single most important practice for preventing the transmission of microorganisms in healthcare and directly contributes to patient safety.” In 2014, it released Best Practices for Hand Hygiene, which outlines specific steps in reducing the chance of infection in patients. Some of PHAC’s key recommendations include: knowing why and when to perform hand hygiene, understanding barriers and enablers that might influence hand hygiene, choosing hand hygiene agents and applying the correct hand hygiene techniques.

While identifying and correcting behaviour is essential in reducing the number of HCAIs, it is important to remember the impact environment has on behaviour. The layout and landscape of a healthcare facility can directly affect the accessibility of dispenser stations and, therefore, the regular practice of proper hand hygiene within the facility.

Strategic dispenser placement

Making sure dispensers are correctly placed is essential to improving hand hygiene practices. In fact, optimizing dispenser placement can result in a 50-per-cent increase in use. Furthermore, enhancing the visibility of dispensers does more to increase usage than simply increasing the number of dispensers within a healthcare facility.

General principles have been developed based on both SCA-sponsored research and independent findings from academic research. Keeping the WHO five moments in mind, these principles are built around four areas commonly found in hospitals and recommend strategic dispenser placement as follows:

Hospital entrance: Few visitors perform hand hygiene when entering the hospital, which is why clear placement is integral to the education of visitors. Clear and simple information regarding hand hygiene should also be provided near dispensers.
Semi-private patient room: These rooms require multiple dispensers to ensure use. Dispensers placed near the entrance and sink are used more frequently, as consistent and familiar locations increase likelihood of use.
Private patient room: Dispensers should be placed on ‘walking routes’ and immediately visible when entering the room. They should be clearly visible and located near areas care is performed.
Nurse station: Patient visits usually begin and end at the nurse station, so dispensers should be placed visibly nearby. In an SCA-sponsored study, dispensers placed by the nurse station were used more frequently than dispensers placed behind patient beds.

The focal point of the study is ensuring the visibility and ease of access to dispensers. Doctors and nurses are often busy and should not have to go out of their way to practice hand hygiene protocol.

Moving forward

HCAIs present an important obstacle in healthcare which must be addressed. Research indicates ways it’s possible to effectively combat the presence of HCAIs in healthcare facilities through a combination of behaviour and environment.

While there are certain behaviours recommended by the WHO and PHAC that may be adjusted to limit the occurrence of HCAIs, the facility’s environment plays a large role in preventing infection. Ensuring soap/sanitizer dispensers are visible, easily accessible to visitors and staff and mirror the workflow of nurses and doctors is an important step towards lowering the risk and number of HCAIs worldwide.

Tom Bergin is health care marketing director for SCA’s Away from Home Professional Hygiene business in North America.

Toronto construction site hoarding depicts history

A commemorative art installation is currently decorating the construction site of the new Toronto courthouse project, located in the city’s downtown core, as part of work honouring the site’s rich history.

Infrastructure Ontario (IO) celebrated the unveiling of the installation, called “Picturing the Ward”, at the site that was once part of St. John’s Ward (the Ward), one of the city’s earliest immigrant and migrant settlements. The installation is meant to catch the interest of pedestrians and provide insight into the region’s past.

Last year, IO led an archaeological dig of the site, which had previously been used as a parking lot. The successful excavation project recovered tens of thousands of artifacts, many of which were from the late 19^th and early 20^th centuries. These artifacts include children’s toys, shoes, perfume bottles, dentures, glass soda bottles, ceramic pitchers and dominoes, among other items.

The exhibit showcases a collection of images of the recovered artifacts, as well as the personal stories and photographs from six Toronto residents that can trace their ancestral roots to the historic St. John’s Ward neighbourhood. The exhibition explores issues of belonging, family, labour, citizenship and identity; experiences all felt by the migrants that left their home countries to look for new opportunities in Toronto.

IO is one of the first organizations in the city to produce a large-scale, original art installation that features historic material. The installation was conceived following a recent municipal bylaw requiring new construction sites to use art on hoarding to deter vandalism while helping to beautify public spaces.

IO has commissioned The STEPS Initiative (STEPS), an award-winning public art organization, to manage the exhibit’s design and installation, which it is doing through its associated public art consultancy, PATCH. IO and STEPS have recruited PA System, a local artist duo, to create the work. The Toronto Ward Museum collected and curated the oral histories and archival research for the exhibit.

“I would like to recognize the tremendous teamwork, dedication and ingenuity that went into developing Picturing the Ward,” said John McKendrick, EVP of project delivery for Infrastructure Ontario, in a press release. “A more formal and permanent commemoration plan is being developed with our Heritage Interpretation Working Group over the coming months and we are excited to see how that will look in the final design of the new Toronto courthouse.”

In October, IO issued a request for proposals to pre-selected teams to design, build, finance and maintain the courthouse. Construction is expected to begin in late 2017.

Neilas rebrands as Storey Living rental

Toronto-based developer Neilas Inc. will be rebranding as Storey Living, Canada’s newest entry to luxury rental living. Known for its award-winning condominium projects that have won public and media accolades, principal Jim Neilas has turned the company’s attention to creating high quality units to answer the call for more availability in better rental homes.

Formerly focused on land development, Neilas wanted a new name to signal the lifestyle message of its new direction and growth as a rental company.

Storey Living begins with three exciting new architectural landmarks in downtown Toronto and Oakville.

According to Neilas, the new name reflects both the architectural term describing a level of a building, and the narrative we all have of our lives. With its open concepts, spacious designs and quality finishes in every residence, Storey Living proposes: “We provide the beautiful space. You write your own story.”

Impact Cleaning Services: Blueprint for Success

Touring Impact Cleaning Services’ newly renovated and expanded head office in the west end of Toronto, it’s hard not to be impressed with the 62-year-old cleaning company. Besides it being pristine, the 6,500-square-foot space features a modern eat-in kitchen fully stocked with tasty and healthy office snacks to keep staff energy levels high, on-site laundry facilities and a vibrant blue accent wall that mirrors the colourful personalities of two of the company’s youngest employees. Above all else, the passion and enthusiasm of the Boutsalis brothers — George, 26, and Yiannis, 24 — for the family business left a lasting impact.

The two began working for the janitorial and facility services contractor as day porters during their sophomore year in high school. They quickly rose through the ranks and moved into progressive management roles much like their father Chris did when he joined Impact Cleaning almost 40 years ago. Chris is now president of the well-established cleaning business, which has roots dating back to the 1950s.

The Big Picture

The story of Impact Cleaning begins in 1954, when a young man by the name of Ronald Young started cleaning storefront windows in Toronto for the cut-rate price of 75 cents. By 1960, Young had expanded the business into all facets of contract cleaning and officially adopted the name, Impact Cleaning Services. From there, the company grew to become a dominant force in the local cleaning market, providing professional, quality services for an exceptional value.

Chris was first introduced to Impact Cleaning in 1978, when the company he was working for at the time, Aggressive Building Maintenance, merged with the then 24-year-old cleaning business. His entry into the world of contract cleaning, however, occurred years earlier. In the mid ‘70s, while waiting tables at a Toronto restaurant, Chris seized an opportunity to earn some extra cash by offering cleaning services to the small office space next door.

“The first time I cleaned the building it took me 12 hours,” reminisces Chris about the 10,000-square-foot space. “By the end of the first week, I was able to clean it in just five hours overnight.”

Soon after, the young entrepreneur secured four more cleaning contracts. But instead of building up his own operation, Chris joined Aggressive Building Maintenance — a move he is lauded for to this day.

“If he hadn’t pursued this opportunity, his life course might have been very different,” says Chris’s eldest son, George, who is now Impact Cleaning’s director of business relations. “The right opportunity presented itself and Chris had the foresight at 23 years old to take it.”

Chris’s ability to see the big picture and put aside short-term gains in favour of long-term goals has served him and the company well. As a salesman and then vice-president of sales and marketing, Chris helped increase Impact Cleaning’s financial and geographic growth year-over year, steering it to a profitable future. In his role as vice-president of operations, Chris propelled the company to branch out and offer specialized services, including emergency restoration and total carpet care, which his brother John (a 30-year company veteran) oversees. By the time Chris became president in 1998, he had already begun to lay the foundation for Impact Cleaning to become what it is today — a ‘green’ one-stop full-service cleaning company. Once he bought out the business’ remaining partners in 2003 to become the sole owner, he was finally able to turn his astute vision into a reality. Today, the company services 22 million square feet across Ontario daily. While Impact Cleaning’s primary source of business comes from the office sector, its client list spans multiple industries, including multi-residential, education, health care, retail, hospitality, industrial and government properties.

Chris Boutsalis, President, with his two sons: Yiannis Boutsalis, Project Manager and George Boutsalis, Director of Business Relations.

Leading by Example

Although Impact Cleaning has evolved since Chris took over the reins, with estimates that it has tripled in scope and size, the company has remained staunchly committed to providing exceptional service and value to customers. This is largely behind its pursuit of the CIMS (Cleaning Industry Management Standard) designation over the past five years.

“We have never strayed from our dedication to doing things the right way,” says George.

Administered by the International Sanitary Supply Association (ISSA), CIMS applies to an organization’s management practices, internal operations and delivery of service to customers. Conformance demonstrates a company is structured to provide consistent, high-level janitorial and maintenance services. To obtain the designation, a contractor must undergo a comprehensive assessment conducted by an accredited third party testing agent.

In 2011, Impact Cleaning achieved CIMS certification for its City of Toronto properties, as mandated by the municipal government in its request for proposals. Two years later, when the City buildings were subject to reassessment to keep the designation in good standing, Impact Cleaning’s entire building portfolio was audited at the company’s request. To its delight, all 165 properties were certified with honours.

“This was a huge accomplishment,” says George about obtaining the North American benchmark accreditation for cleaning companies. “Impact Cleaning was one of the earliest proponents of CIMS, and one of the first to introduce it to the commercial building sector.”

Impact Cleaning has also achieved CIMS-GB company-wide, again with honours. The ‘green building’ component of the standard establishes a contractor is capable of providing an environmentally preferable cleaning service and assisting clients in earning LEED EB:O&M (Leadership in Energy and Environmental Design for Existing Buildings: Operations and Maintenance) points.

As part of its green cleaning program — aptly titled Team Green, as a collective effort is required to reduce environmental impacts at the company’s work sites as well as its corporate head office — Impact Cleaning only uses cleaning materials and products that are recyclable and eco-friendly, such as biodegradable garbage bags and containers, and cleaning solutions that carry the Green Seal or EcoLogo (also known as Environmental Choice) label. The company also consistently upgrades equipment to meet and exceed green standards.

“We realize the impact of a greener and cleaner tomorrow so we aim to reduce waste and divert pollution wherever and whenever we can,” says George.

With the goal of one day becoming carbon neutral, the forward-thinking company has rolled out a number of initiatives that illustrate it doesn’t just ‘talk the talk.’ Impact Cleaning now maintains an on-premises laundry facility, which allows for more control over the laundering process and, resultantly, a reduction in the amount of water and cleaning agents used; is in the process of replacing the vehicles in its fleet with hybrids; appoints supervisors that live close to the buildings it serves to conduct cleaning inspections in order to curtail harmful carbon emissions; and recycles unused uniforms to reduce waste going to landfills.

“When we give our cleaners new uniforms, we take back the old ones and have them turned into scraps, which are used as cleaning materials at industrial sites and during exterior grounds maintenance,” explains project manager Yiannis.

Yiannis Boutsalis and George Boutsalis

Technology in Touch

Staying ahead of the curve in a rapidly changing industry has been essential to Impact Cleaning’s success. The company has been at the forefront of the green cleaning movement, is currently on the leading edge of the sustainable cleaning movement (or what it calls, “cleaning forward”) and is a tech trailblazer.

“We’re always working to implement new technology and innovative software to deliver cost-effective and high-quality services,” says Yiannis.

Six years ago, Impact Cleaning implemented barcode scanners at its shopping centres to monitor labour efficiencies. In 2014, the company introduced biometric time clocks and fingerprint readers at 20 per cent of its sites to manage its workforce and reduce payroll expenses, and has since rolled the technology out to half of its building portfolio. These systems automatically collect and track employee time and attendance, virtually eliminating the risk of human-generated payroll errors and the practice of “buddy punching” (when a worker clocks in and out for another), resulting in money loss. Recently, it switched from using CleanTelligent to Accelerator CC. The cloud-based commercial cleaning mobile software helps users profitably manage contracts, bids, operations, sales and staff, while providing advanced on-site inspection and quality assurance to their customers. As a SaaS (software as a service) platform, it delivers an advanced level of automation, remote or field connectivity and built-in practices that specifically target the needs of commercial cleaning organizations and their customers.

“We made the transition to Accelerator six months ago because it has a lot more flexibility and customization, and provides real-time cleaning data and metrics,” explains Yiannis. “This allows us to see the big picture, which is critical to maintaining our competitive advantage.”

But it’s not the only contributing factor. The company’s strong and positive corporate culture has been instrumental in achieving its competitive edge.

“We’re a family,” says Yiannis. “We’re in this together — not just Chris, George, John and I — but the entire Impact Cleaning team.”

Clare Tattersall is the editor of Facility Cleaning & Maintenance

Photos by Robyn Russell

RCMs may have head start in move to licensing

Registered Condominium Managers (RCMs) may be on the fast track to obtaining the license that will soon be required to manage condominiums in Ontario. Those who possess the professional designation might simply have to pass an exam on the recently reformed Condominium Act to fulfill the criteria anticipated in forthcoming regulations.

“I can stand here and tell you that we have been told that the RCM program will be deemed as complying with all of the educational requirements of the Class 2 license,” said Dean McCabe, board director of the Association of Condominium Managers of Ontario (ACMO) and president of the Meritus Group.

McCabe was speaking Nov. 30 in the PM Expo seminar Education and Regulation: The Future of Condominium Management, which he prefaced with a disclaimer that some of what would be discussed would be “best guess” since the full details of new legislation are not yet known. The ACMO-sponsored presentation updated attendees on the status of the Ontario government’s plans to license condominium managers.

The impending regulation of the profession arose out of a review of the province’s outdated condominium laws, launched in 2012. Over the course of 18 months, the Ontario government consulted with both consumers and industry stakeholders to identify issues, struck working groups to propose solutions and asked an experts’ panel to make recommendations.

The recommendations formed the basis for Bill 106, which reformed the Condominium Act and introduced the Condominium Management Services Act. The province has passed the legislation but has to finish drafting accompanying regulations before it can be put into effect.

The licensing of condominium managers is expected to be a two-stage process, said McCabe. He added via email, after the seminar, the caveat that his comments reflected ACMO’s recommendations to the Ontario government, and that nothing can be taken as certain until the regulations have been released for public review and finalized.

Assuming those recommendations are adopted, candidates that met basic qualifications and passed an entrance exam would get a Class 1 license. Candidates would graduate to a Class 2 license after completing four mandatory courses and clocking two years of on-the-job experience.

The two-stage process for licensing condominium managers proposed during the review of Ontario’s condominium laws closely mirrors the requirements of ACMO’s RCM program. How closely forthcoming regulations will align with those recommendations remains to be seen.

It’s anticipated that the regulations will be released in stages, with the provisions concerning the licensing of condominium managers to come as early as the end of 2016, McCabe indicated.

“We are anxiously awaiting that, just to ensure that the recommendations from the experts’ panel and manager qualifications working group have been followed through in the regulations,” he said.

If the regulations do largely align with the recommendations, condominium managers would have to meet the same basic qualifications required of condominium board directors, McCabe remarked. Like board directors, candidates applying for a Class 1 license would have to be at least 18 years old, not be an undischarged bankrupt, be of sound mind to manage property under the Substitute Decisions Act and possess insurance as required. Unlike board directors, these candidates would also have to hold a high school diploma or equivalent, pass an entrance exam and undergo a criminal background check.

Class 1 licenses would likely come with restrictions and stipulate supervision by a Class 2 condominium manager, McCabe said. He suggested that one such restriction could be that Class 1 condominium managers not be permitted to sign status certificates. Supervision could be a challenge in certain parts of the province, he added, citing a northeastern Ontario city that is home to just one condominium corporation.

Again, if the recommendations from the Condominium Act review are followed, Class 1 condominium managers would have to complete courses in condominium law; financial management and reporting; physical building management; and condominium administration and human relations. In addition to fulfilling requirements for on-the-job experience, they would have to continue to meet the basic qualifications for a Class 1 license, including following a prescribed code of ethics, to obtain and retain a Class 2 license.

Any time limits on meeting the requirements to graduate from a Class 1 to a Class 2 license will be laid out in the regulations, McCabe said via email, after the seminar. So will any grandfathering provisions to help transition existing condominium managers to the coming licensing regime.

The recently created Condominium Management Regulatory Authority of Ontario (CMRAO) will be responsible for enforcing the new legislation governing the profession. Among other activities, that will involve issuing licenses.

Like other delegated administrative authorities, such as the Technical Standards and Safety Authority, the not-for-profit organization will operate at arm’s length from the provincial government and be required to self-fund by way of fees. Licensing fees are projected to run between $700 and $900 per year, said McCabe. That estimate is based on the size of the profession — roughly 3,000 to 3,300 condominium managers — and what it costs to run the regulatory authority for a comparably sized profession: funeral home directors.

It’s difficult to get an accurate count of condominium managers, McCabe noted, as the task relies on these professionals voluntarily identifying themselves. One way the new legislation will push these professionals to do so is by preventing unlicensed condominium managers from suing for compensation owing.

Of the some 3,000 condominium managers in Ontario, 950 are RCMs. ACMO counts a further 400 condominium managers as candidates for the designation as well as 158 students.

The association hopes to be recognized as an education provider of the coming mandatory training, McCabe said via email, after the seminar, but that decision rests with the regulatory authority. During the seminar, Janice Schenk, director of education, ACMO, noted the difference between an education body and a licensing body. The education body provides education, while the licensing body, in this case the CMRAO, issues licenses and sets out what training is required and where it may be completed, she clarified.

Meanwhile, amid growing demand, the availability of the RCM program is increasing. Its courses are currently offered at Humber College and online through OntarioLearn. Beginning in January, George Brown College will also host the RCM program. ACMO is now preparing to offer its courses in French to accommodate Francophone markets.

After earning their RCM, condominium managers have to stay up-to-date on their annual ACMO membership fees and yearly quota for continuing education credits to keep the acronym at the end of their name, as Schenk underscored.

When licensing comes into full force, the requirements to earn the designation are expected to become the baseline for the industry. That may help explain why ACMO is planning to debut an advanced designation at its AGM in April.

“It’s going to be for those senior RCMs who wish to take their education to the next level,” said Schenk.

But not everyone involved in condominium management will be required to meet the new industry baseline. The legislation allows for exemptions, which are to come in the regulations, McCabe said. These exemptions may address outstanding questions about under what circumstances administrators and individuals running self-managed condominiums will be subject to requirements to meet basic qualifications and complete prescribed education.

Exemptions aside, the call for the licensing of condominium managers dates back five years. That’s when a major fraud case captured headlines in Toronto. The president of a property management firm allegedly bilked several condominium corporations of millions and reportedly fled the country. It served as a wake-up call for the industry, recalled McCabe. Subsequent and more recent headlines have reinforced the need for regulations, he said.

ACMO can strip the RCM designation from condominium managers it finds to have acted unethically, McCabe explained. The trouble is, the association only has authority over those who voluntarily participate in its program, and even so, RCMs who are stripped of their designation remain free to manage condominiums. The CMRAO is expected to have the power to discipline and revoke the licenses of condominium managers.

“If that happens, we will finally have what we never had for the last 40 years, and that is an ethical body that has the teeth to remove someone from practicing in the industry to truly protect condominium owners,” said McCabe.