Ontario Home Builder - Winter 2015 by Ontario Home Builder

Governments join in the fight against the underground economy P.57 A DAZZLING DOZEN OF ONTARIO’S BEST PLACES TO BUILD P.40

THE COOLEST—AND HOTTEST—TRENDS IN ENERGY EFFICIENCY P.75

of el of O n ex tar pe io’s rts Pa hous forec ge ing ast 34 m s t ark he et f u t u re

breathing new residential life into classic structures P.48

PM 42011539

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contents

57 32 Inching Forward Slow growth projected as industry preps for correction

34 Don’t Fear the Future Experts forecast affordable housing & rental trends

40 Hot Spots Kitchener, Cambridge top Ontario’s dazzling dozen best places to build

48 Everything Old is New Again Breathing new life into classic buildings

57 Beat the Cheats Stepping up the fight vs. the underground economy

63 Faking ’em Out Illegal builds are on the rise

09 One Voice By Joe Vaccaro Government takes aim at the underground economy

19 Health & Safety By Laura McKeen

66 Better Building

Is your business AODA-compliant?

11 Ontario Report OHBA Hosts Queen’s Park Day, associations net Wood Champion Award, meet your 2015 area presidents, Energy Star kudos for Midhaven, reviewing the OCOT, Waterloo’s March to the Top and EnerQuality Awards

23 Marketing By Nick Monteleone

Website designs need to think ‘mobile-first’

Getting lenders hooked on your project, a better way to put out the trash, 3D wall measurements for exterior jobs, the Italian experience in Toronto residential construction and the 2015 OAA Awards

25 Technology By Clinton Howell

75 Product Focus By Dan O’Reilly

17 Human Capital By Barbara Green

27 Top Shelf Leading-edge home builder gear

Lesson One on terminations without cause

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Heating and cooling get even more energy efficient 82 Outside the Box By Avi Friedman

Some bright ideas to colour your winter blues ontario home builder winter 2015

EASIER, FASTER INSTALLATION OPTIMUM PERFORMANCE DESIGN

The official publication of the Ontario Home Builders’ Association Winter 2015 | Vol. 31 Issue 1

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Ted McIntyre ted@laureloak.ca associate editor

Norma Kimmins, OHBA art director

Erik Mohr graphic designer

Alysha DeMarsh copy editor

Barbara Chambers contributors

Avi Friedman, Barbara Green, Tracy Hanes, Clinton Howell, Marc Huminilowycz, Alison King, Laura McKeen, Nick Monteleone, Michael Ryval, Dan O’Reilly, Joe Vaccaro PHOTOGRAPHY

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ohba.ca Ontario Home Builder is published six times per year (Winter,Spring, Renovation, Summer, Fall, Awards). All rights reserved. No part of this magazine may be reproduced without the written consent of the publisher © 2015. For address corrections please email info@laureloak.ca or Phone: (905) 333-9432. Single copy price is $5.00. Subscription Rates: Canada $12.95 + HST per year, USA $29.95 USD.

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One Voice

Persistence Pays Off Underground economy on government radar By Joe Vaccaro For more than a decade, OHBA has been sounding the alarm to consumers about the negative impact of the underground economy in the construction sector—whether in new home construction or renovation. We all know that paying cash ‘under the table’ can have dire results for homeowners. Consumers often do not have any legal recourse in the event of a botched job and could be subject to significant liability if an accident happens in the home under construction. As well, illegal building introduces health and safety risks to construction workers and the homeowners who hire them. In a 2010 OHBA-commissioned Environics Research survey, a majority of Ontarians (56%) polled admitted to paying cash for a construction job. Anecdotally, however, one only has to view the growing barrage of TV personalities hosting home improvement shows that deal with fixing bad cash-construction projects to realize some consumers are not yet appreciating the potential dangers of a cash deal. Our industry, its associations and stakeholders take an active role in helping educate consumers on this issue, whether through CHBA’s ‘Get it in Writing’ initiative, the successful RenoMark program founded by BILD and embraced by local associations, or the OHBA/Tarion information sessions on illegal building organized throughout the province. But there is a long way to go. The key question is, “How can we get more consumers to hire professional home builders and renovators over cash contractors?” Government decisions, such as introducing the GST in 1991 and then the HST in ohba.ca

Ontario in 2009, certainly exacerbated an already challenging problem. As a result, curbing the underground economy will require a broad approach by government, industry and consumers to be successful. And it appears federal and provincial governments are finally getting that message (see full story on page 57). Late last year, Ontario’s Minister of Finance, the Honourable Charles Sousa, announced the government’s intention to crack down on cash construction. This initiative will be overseen by the Parliamentary Assistant to the Minister, MPP Laura Albanese, who, in her previous work with the Ministry of Labour, prepared a report on the underground economy . She is well-informed on the issue thanks to her participation at a number of OHBA events. In addition, the federal Minister of Revenue, the Honourable Kerry-Lynne Findlay, has established a new Underground Economy Advisory Committee. Including representatives from our industry, it will provide the Minister and the Canada Revenue Agency with industry perspectives and input to help develop a strategy for tackling the underground economy. It is encouraging to see both levels of government recognize that curbing the underground economy should be a priority. And it is a testament to the tenacity and determination of OHBA and its members in our 31 local associations who have kept this important issue at the forefront. OHB

“Government is finally getting the message.”

Joe Vaccaro is the CEO of the Ontario Home

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Ontario Report

OHBA Hosts Queen’s Park Day

OHBA hosted an Annual Queen’s Park Advocacy Day on Nov. 19, meeting with MPPs and their staff at Queen’s Park to inform and educate participants about the importance of the housing and renovation industry in Ontario and discuss issues that impact the viability of this important sector. In addition, all five candidates vying for the leadership of the Progressive Conservative Party of Ontario addressed OHBA members to express their perspective on a variety of issues facing Ontario. Candidates included Patrick Brown (MP for Barrie). Christine Elliott (MPP for Whitby-Oshawa), Vic Fedeli (MPP for Nipissing), Lisa MacLeod (MPP for NepeanCarleton) and Monte McNaughton (MPP for LambtonKent-Middlesex). The very successful day ended with a reception that included MPPs from all political parties, a number of cabinet ministers, as well as Premier Kathleen Wynne and a welcome address from MMAH Minister Ted McMeekin. To view more photos from the Queen’s Park Day, please visit our Facebook page. 1. Premier Kathleen Wynne with OHBA President Vince Molinaro. 2. Brantford HBA President Don Wright, Speaker of the House and Liberal MPP Dave Levac, OHBA President Vince Molinaro and Brantford HBA EO Fred DeCator.

3. Premier Kathleen Wynne with OHBA President Vince Molinaro and OHBA 1st Vice-President John Meinen. 4. Hamilton-Halton HBA Past President Jeff Paikin, Minister Ted McMeekin and OHBA President Vince Molinaro. 5. Minister Glen Murray, OHBA President Vince Molinaro and BILD Board member Corey Libfeld. 6. Hamilton-Halton HBA Past President Jeff Paikin, Liberal MPP Eleanor McMahon, OHBA President Vince Molinaro, Minister Tracy MacCharles and OHBA CEO Joe Vaccaro. 7. Durham Region HBA EO Anita DeVries, NDP MPP Jennifer French and OHBA Past President Victor Fiume.

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8. PC MPP Bill Walker, OHBA 1st Vice-President John Meinen and Minister Charles Sousa. ontario home builder winter 2015

Ontario Report

Government to Review OCOT Accepting the Wood Champion Award from Wood WORKS! Ontario is OHBA CEO Joe Vaccaro, BILD Chair Steve Upton, OHBA President Vince Molinaro, RESCON President Richard Lyall, RESCON Chair Tad Putyra, Wood WORKS! Ontario Executive Director Marianne Berube, Kenora Mayor and NOMA Chair David Canfield, Kapuskasing Mayor and FONOM Chair Al Spacek and Tembec Inc. President and CEO James Lopez.

We Got Wood! Associations’ advocacy work honoured

OHBA, BILD and RESCON were presented with a Wood Champion Award from Wood WORKS! Ontario for being champions and advocates of building with wood in the province. The three industry associations worked with government partners and advocated for the newly adopted Made-in-Ontario change to the Building Code, which will allow for the construction of six-storey wood-frame buildings as of January 1, 2015. “We are not only privileged to recognize the winners of this year’s awards program but also pleased to celebrate the Ontario Building Code changes that have created opportunities for the construction of entirely new building types in Ontario,” said Marianne Berube, executive director of the Wood WORKS! Ontario program. Berube presented the award at the 14th annual Wood WORKS! celebration in Toronto in November. “The arrival of six-storey wood in Ontario means there will be new housing, rental and mixed-use options for consumers, businesses and municipalities, which means more choices for homeowners,” added OHBA CEO Joe Vaccaro.

As promised in their election campaign platform, the government has announced a review of the Ontario College of Trades. OHBA issued a media release responding to the announcement with our expectation that the consultative process will visit communities outside of Toronto in order to provide a complete perspective of the apprenticeship and skilled trades system in Ontario. The review will be led by Tony Dean, the former Secretary of the Cabinet and head of the Ontario Public Service. In 2010, Dean led a review of Ontario’s Occupational Health and Safety Act. As part of the review of OCOT, there will be no compulsory certification reviews during the consultation period. This means a review of the general carpenter trade, which includes renovators, is on hold. OHBA has been an active stakeholder group on this file and will continue to take a leadership role in providing policy recommendations that promote careers in the skilled trades and increase apprenticeship opportunities. According to the terms of reference, the review is expected to take a year, with a final report submitted to the Minister no later than October 2015. As the review begins, OHBA will be publishing a regular newsletter, College of Trades Report, which will update members on our advocacy work and ways members can engage the review to have their voice heard.

2015 OHBA Local Association Presidents Steve Deveaux (Chair) BILD

Shane Sisson

Haliburton County

Gord McCrady

Murray Leis

Bluewater

Allan Roshko

Hamilton-Halton

Dean Fuisz Renfrew

Don Wright

Brantford

Dan VanMoorsel

Chatham-Kent

KingstonMark Fox Frontenac

Cornwall Joe Adams Construction

Darwin Code

Lanark-Leeds

Ted Melchers

London

Henry Jansen

Greater Dufferin

Ed Lucchetta Niagara

Victor Fiume

Durham Region

Doug Sowerby

Grey-Bruce

Robert Miller North Bay & District

Darrin Drake Guelph & District

Pierre Dufresne

Greater Ottawa

Steve Hunt

Oxford County

Sam Bunting Haldimand- Norfolk

Garnet Northey

Peterborough & the Kawarthas

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Sarah Steele

St. Thomas-Elgin

Scott Henderson

Sarnia-Lambton

Wally Halliday

Saugeen

Shawn Still

Simcoe County

Courtney Teahen

Stratford & Area

Louie Zagordo

Sudbury & District

Chris Kelos Thunder Bay Steven Harris Waterloo Region Ben Klundert Windsor Essex

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Ontario Report

Midhaven EQ Honoured for Awards Leadership Gala Congratulations to Midhaven Homes, which has received two 2014 Energy Star Market Transformation Awards from the federal Ministry of Natural Resources (NRCan). Midhaven was awarded the 2014 New Homes Builder of the Year honours and Energy Star for New Homes Promotional Campaign of the Year. The Honourable Greg Rickford, Canada’s Minister of Natural Resources, presented the Oshawa-based company with the awards, noting: “Midhaven is setting an example for the Canadian business community through their sustained leadership in promoting responsible energy use. We applaud their work in encouraging Canadians to save money and conserve energy by making energyefficient choices.” Midhaven Homes was founded in 1986 by Peter and Sam Saturno. Peter, a past president of OHBA, was presented with OHBA’s 2014 Lifetime Achievement Award at the association’s fall conference.

Revs Up!

On Thursday, Feb. 19, EnerQuality, Canada’s leading certifier of energyefficient homes, is hosting a full-day conference exploring the future of residential construction, followed by a celebration of the industry’s biggest achievements at the EQ Awards Gala. The event, hosted at the Sheraton Parkway Toronto North Hotel, will offer insightful seminars, as well as networking and educational opportunities with some of the brightest minds in the industry. Some of the highlights include: • The EQ Innovation Trade Show, where you can explore the most compelling and groundbreaking products and services • The Innovation Gauntlet, a Dragons’ Den-style competition featuring industry players pitching their smartest, most innovative products and services to be judged by the audience • The revamped EQ Awards Gala, where the industry’s leading innovators and influencers will be acknowledged as we celebrate the 10th anniversary of ENERGY STAR for New Homes. Register today at www.eqinnovation.ca.

WRHBA’s Industry Luncheon – a March to the Top

From left to right: The Honourable Greg Rickford, Canada’s Minister of Natural Resources, who presented the awards to Midhaven’s Peter Saturno, with Kristina Petrie and Rebecca Evans. (Photographer: David Ashe, NRCan) 14

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Join the Waterloo Region HBA at its 24th Annual Industry Luncheon on Friday, March 27 at Bingemans, Marshall Hall. This year’s event features Ben Webster, acclaimed speaker, television producer, documentary filmmaker, photojournalist and one of the world’s most accomplished expedition leaders. Focusing on his most recent adventure, March to the Top, a documentary following 12 Canadian vets wounded in Afghanistan on an expedition led by Ben to summit Island Peak, Ben’s keynote presentation will enrich guests with a renewed vision and the determination to execute. For ticket and sponsorship information, contact Julie Burdett, Event and Marketing Coordinator for WRHBA. Email: events@wrhba.com or call (519) 884-7590.

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Human Capital

You’re Fired! A brief primer on terminations without cause By Barbara Green A termination of an employee without cause occurs when an employer terminates an employee for no reason to do with the employee or his/her performance. It could be for a variety of reasons, including budget cuts or company reorganizations. When terminated without cause, an employee is almost always entitled to notice pursuant to the Employment Standards Act, the governing statute in employment law, and sometimes severance pay. These notice periods are extended by common law. The Employment Standards Act requires most employers to give an employee who has been continuously employed for three months or more notice of termination. Notice is a warning of the impending termination, after which an employer may wish to have the employee continue working or cease his/her employment effective immediately and offer payment in lieu of notice. Compensation known as termination pay must be paid to the employee during the notice period. During that period, an employee’s wages and benefits, including pension and RRSP contributions, cannot be reduced. The sum of notice pursuant to the Employment Standards Act is approximately one week of pay for every year of employment to a maximum of eight weeks (however, a mass termination has its own rules). An employer can provide a longer notice period, but that period can’t be shorter than the Act minimums, even if a contract states otherwise. Notice at common law

Unless the obligation to provide common law notice is contracted out of (see below), that notice period must typically be awarded to employees who are terminated without cause. These notice periods are far more generous than the statutory minimums under ohba.ca

the Employment Standards Act. Under the common law, appropriate notice periods are determined by a number of factors, including: length of service (the longer the service, the longer the notice period); the employee’s age (employees older than 40 are usually given longer notice periods); the availability of similar employment; the nature of the employment (managerial functions may warrant a longer notice period); and the circumstances surrounding hiring. While a two-year notice period is usually the most that would be awarded by a court, there is no set rule for determining notice at common law. Under the common law, employees who have been employed for only two years could be entitled to many months of notice, depending on the circumstances.

stances, an employee qualifies for severance pay (in addition to termination pay) when his or her employment is severed, he/she has worked for the employer for five or more years and the employer has an Ontario payroll of at least $2.5 million, or the employer has severed 50 or more employees in a sixmonth period. Severance pay is calculated as approximately one week of pay for every year of employment, to a maximum of 26 weeks. Limiting common law liability

Severance pay

An employer can’t contract out of the Employment Standards Act, but can contract out of its obligation to pay common law damages via a properly drafted employment contract. Employers should seek legal advice in respect of the preparation of employment contracts to ensure that the terms are enforceable. OHB

Severance pay under the Act is an entirely different category of payment to an employee terminated without cause. In most circum-

Barbara Green is a lawyer with Robins Appleby LLP (robinsappleby.com). ontario home builder winter 2015

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Access-Ready Get ready for the new AODA compliance regulations By LAura McKeen On January 1, 2015, businesses across

Ontario were officially required to meet additional accessibility requirements. The Integrated Accessibility Standard, created under the Accessibility for Ontarians with Disabilities Act, 2005 (AODA), contains requirements for organizations in Ontario in the areas of employment, information and communication, transportation, and public spaces (the built environment). The AODA’s Customer Service Standard and some parts of the Integrated Accessibility Standard have already been phased in. Businesses in Ontario are required to meet certain accessibility requirements under the AODA, including all of the requirements under the Customer Service Standard (including the additional requirements if you have 20 or more employees), providing employees with workplace emergency response information and making emergency information accessible to the public. There are also certain reporting requirements that are already in place for businesses. W hereas, as of Januar y 1, small businesses (1-49 employees) are required to develop accessibility policies related to the areas discussed above, large businesses (50+ employees) must put those policies in writing. That includes a multi-year accessibility plan, with those policies available to the public, as well as providing training, accepting feedback and meeting additional reporting requirements. Creating accessibility policies

Businesses have some flexibility when creating accessibility policies, but the policies must describe how your business achieves accessibility by meeting the regulation’s requirements. The following are some tips to consider when creating accessibility policies: ohba.ca

• Determine what requirements apply to your business.

• Implement your accessibility policies.

Before you create your policies, you need to have a clear understanding of all of the requirements that will eventually apply to your organization. Even though these requirements may not be phased in for several years, you will need to have the policies in place in advance.

Once you have created your accessibility policies, make sure staff are notified and trained appropriately. In order to be effective, the policies and procedures need to be understood by your employees and should accurately reflect your business practices. • Follow up.

• Where possible, develop policies that fit into your existing business practices.

Businesses often find that the policies required under the regulations are compatible with their existing practices (e.g. a return-to-work process). Where you have existing policies, you can amend them instead of creating new or parallel policies. Whether you’re amending existing policies or creating new ones, they should be practical and created with your specific business in mind.

Policies and procedures may get outdated or you may find that improvements can be made. It’s a good idea to appoint someone in your business (e.g. human resources or an accessibility officer) to be responsible for the development, implementation and review of your accessibility policies. Expect more enforcement in 2015

Another thing we can expect this year is increased enforcement from the Accessibility Directorate of Ontario (ADO). In 2014, we saw the ADO begin to take formal ontario home builder winter 2015

“

enforcement steps against organizations that failed to meet their obligations under the AODA. Several of these cases went to the License Appeal Tribunal (LAT), which has jurisdiction over the AODA. With another reporting deadline approaching, we expect to see the ADO utilize some of the powers under the AODA to require businesses to comply with their obligations. In the LAT’s first decisions pertaining to AODA compliance, it confirmed that the failure to file an accessibility report is a “minor” contravention. This is consistent with the regulations:

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ADMINISTRATIVE PENALTIES FOR CORPORATIONS Impact of Contravention: Major Moderate Minor Contravention History: Major $15,000 $10,000 $5,000 Moderate $10,000 $5,000 $2,500 Minor $2,000 $1,000 $500 Source: O. Reg. 191/11, Schedule 3

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Absent other factors, corporations can expect an administrative penalty of $500 for a first conviction for failure to file an accessibility report. However, if your business has failed to comply with the more substantive obligations of the AODA and the regulations, you can expect higher fines will be imposed. In addition to administrative penalties, a business’s failure to meet its obligations under the AODA may be a relevant factor in a proceeding at the Human Rights Tribunal, the Workplace Safety and Insurance Appeals Tribunal or in civil litigation. Additional obligations may apply

This is not a complete list of all of the requirements under the Integrated Accessibility Standard and organizations are encouraged to review the AODA, the resources provided by the Ministry of Economic Development, Employment & Infrastructure, as well as to consult with legal counsel to ensure that these new requirements are being met. Note that the AODA does not replace or supersede your obligations under the Human Rights Code or any other provincial or federal legislation, including the Employment Standards Act or the Ontario Building Code. If you are unsure about whether or not the AODA applies to your business or whether you are compliant, please contact a lawyer that specializes in the field. OHB Laura M. McKeen is an administrative

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marketing

Phone Home It’s time to think ‘mobile-first’ By nick monteleone historically, web designers and clients approached a website redesign by tackling the desktop layout first, with the presumption that most Canadians started their search on a desktop computer. However, the past few years have seen a major shift in the way people are searching for properties— meaning developers and designers have had to change their games, too. The strategy? Go mobile first. Sure, ‘mobile first’ is a buzz term used as often as ‘viral’ and ‘social’ by digital pundits, but the statistics speak for themselves. According to the agency We Are Social, 56% of Canadians have smartphones and the average person spends a whopping hour and 51 minutes on their mobile devices every day. Eighty-nine percent of those users search for local information, which could mean property listings, social recommendations by past purchasers and handy neighbourhood guides for project websites. Even more enticing, 77% of Canadians use their smartphone to research products and many of those searchers have used their device to purchase a product. The lesson: agencies and in-house designers should implement a strong mobile strategy, rather than just ‘adapting’ the regular desktop website to fit a smaller screen. The benefits of starting with mobile in the design process are numerous. First, it’s one of the primary platforms on which property searchers discover new homes. Think about prospects who are taking leisurely strolls downtown when they see project signage (parting the clouds, surely). They grab their smartphone and search the URL, meaning the mobile site will be their first impression of the project, so it had better be a good one. If the navigation of the mobile site isn’t a positive or easy experience, they’ll close the search bar and keep walking. ohba.ca

Another reason to start mobile? When creating a website, it’s easier for designers to start simple and work their way up. Since mobile offers the bare bones of a website, it’s easier to integrate new features afterward when designing the fully integrated website. Comparably, when designers start with a desktop platform, they often build a beautiful full-service website that takes advantage of everything the platform has to offer. When they realize that none of it scales down well to a mobile site, the result can seem more like an afterthought. Instead of cutting and trimming, starting with mobile allows designers to make it more robust as a natural evolution. A great example is the mobile website for Smart House Toronto, which hits all the design elements that make an effective mobile site, including a strong logo as the primary visual. Since there is minimal screen space, the designers had to think about functionality first. The content boasts

readable type size, with the most important info on the top. The site is compatible with all devices, from iPads to smartphones, and there are plenty of social sharing buttons. Once you’ve launched your mobile site, invest in proper mobile ads so you’ll get a high click-through rate. Another way to ensure prospects see your mobile site is to be active on social media by sharing your website on Twitter and Facebook, since many access their social profiles on their phones. Creating a website that looks great on all devices seems like a no-brainer, but a surprising number of companies still don’t operate with a real mobile strategy. Even if it’s not ‘first’ in your process, make sure to emphasize mobile development in your strategy next time you develop a project or corporate page, because we assure you, mobile is here to stay. OHB Nick Monteleone is the principal and

creative director at 52 Pick-up Inc. ontario home builder winter 2015

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technology

Science for the Senses Install audio visual right the first time As is the case with most aspects of the home building industry, quality is better than quantity. This is certainly the case when it comes to home theatre systems and multi-purpose rooms, home automation and home security systems. In working with home builders across the GTA, I’ve learned that homeowners want the best in quality when it comes to their home theatre needs. They want to be entertained, they want convenience and they want safety. They also want to be educated as to how to establish a budget to obtain the best in products and services so they can enjoy the modern conveniences of new technologies. When it comes to home electronic systems, it is easy for homeowners to get caught up in the endless array of the so-called “must-have” features. In turn, home theatre companies are also culpable in offering too much lingo while recommending flashy products that lack depth and quality. This is why working with a reputable home theatre consultant during your custom home design or reno project is important, as they will help you choose the right quality of products—from TVs, to screens and projectors, to speakers—to make the home theatre experience work optimally within a given space and budget. When it comes to building a home theatre system, it’s important to work with homeowners to assess their lifestyle. From there, everything else falls into place. Next, you need to help them find the right place for their home theatre room. Homeowners typically want a multi-purpose room where their family and friends can have that ongoing memorable home theatre experience with the essential decor. Next comes the most important part: ohba.ca

planning for audio and visual. There are a number of options, mainly with screens and projectors or large flat-screen TVs. Choosing the right quality speakers is also so important. Going on the cheap devalues the home theatre experience, whereas spending an extra few bucks means homeowners are more likely to indulge. More important, prioritizing a homeowner’s needs ensures their money is being spent on the right things. I always tell homeowners that if they are going to have a home theatre system, do it right the first time so there are no regrets later. Doing things right means you can add other features much more easily in the future. Most people underestimate the value of a superb-quality sound system. When I demonstrate the power and uniqueness of a top-notch audio system (wall speakers, invisible speakers or floor tower speakers), homeowners understand right away and appreciate the value of the proper system. Home automation is also popular with today’s homeowners, who are seeking new

ways of controlling their home theatre systems, lights, thermostats, air conditioning units and security systems. These are areas where you don’t want to skimp. Why would a homeowner have eight low-quality cameras when they could have four that capture far superior images? The same goes for home automation. Does every home need a touch screen in every room? Probably not. Again, the key is understanding the needs of the homeowners and their families. Sure, some will have bigger budgets, others smaller. But that doesn’t mean you have to compromise. Just remember that having all the buttons and bells is pointless if the sound and visuals are not right. Always think “quality over quantity.” It’s an expression I live by. In the words of inventor John David Stanhope, “The bitter taste of poor quality remains long after the sweet taste of low price is forgotten.” OHB Clinton Howell is the founder and owner

of the multi-award-winning H2 Systems Inc. in Burlington (h2systems.ca). ontario home builder winter 2015

photo: H2 Systems Inc.

By Clinton Howell

Higher energy-efficiency ratings and lower cabinet heights

Goodman® high-efficiency gas furnaces now offer more features and benefits than ever. And all of them help to make Goodman gas furnaces easier to sell and install. Take a look at some of the enhancements you’ll find on select Goodman brand gas furnaces.

30,000 BTU

AVAILABLE SOON!

- Energy-efficiency performance ratings up to 97% AFUE

Goodman Locations

- Newly designed tubular heat exchanger with wrinkle bend technology

1055 Cardiff Blvd., Mississauga, ON L5S 1P4

905-564-9791

1161 Parisien Street, Ottawa, ON K1B 4W4

613-745-3846

15700 Robins Hill Road, London, ON N5V 0A4

519-453-1200

46 Zatonski Avenue, Brantford, ON N3T 5L8

519-757-0965

8305 Jane Street, Unit 3, Vaughan, ON L4K 5Y3

905-760-2737

963 Brock Road, Suite 1-5, Pickering, ON L1W 3A4

905-420-4001

41 Brockley Dr, Unit #8, Hamilton, ON L8E 3C3

905-573-6565

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450-674-3883

- Thumb screws on the cabinet doors for easy access without tools

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- 20,000 BTU firing rate per burner to deliver capacities from 40,000 to 120,000 BTU - Vertical gas valve for easy field connection to either side of the cabinet

- Overall cabinet height reduced to 34.5 inches ®

- ComfortNet communicating control system compatible

www.goodmanmfg.com

For a closer look at the new line of Goodman high-efficiency gas furnaces, simply visit www.goodmanmfg.com or contact your local Goodman brand distributor.

Top shelf Ideas for Builders & Renovators

Go with the flow Winner of the prestigious “Red Dot: Best of the Best” award, GROHE’s Minta Touch kitchen faucet features an elegant silhouette and innovative EasyTouch technology. In addition to conventional lever operation, the flow of water can be triggered by skin contact with any part of the spout. This means whenever the fingers are dirty from preparing food, a simple touch with the back of the hand or the lower arm will start the flow of cool and cleansing water. grohe.com

ohba.ca

ontario home builder winter 2015

Top shelf

A roof that pays for itself Complemented by federal and provincial tax incentives and backed by a 20-year performance warranty, DOW Powerhouse is a dual-functioning roof system that offers improved aesthetics over rack-mounted solar panels and is certified as both a roofing and solar product. It’s a turnkey package that includes a custom system for each home, as well as a web-based monitoring system that provides real-time system performance. Exclusively distributed in Canada by Canadian Energy. Cdnrg.com/powerhouse

Sounding off With a mere 71.5 dBA reading, DeWalt’s Heavy Duty 200 max PSI Quiet Trim Compressor is 50% quieter than the PorterCable pancake-style compressor, contends the manufacturer. Operating and storing either horizontally or vertically, it offers 3.0 SCFM at 90 PSI, a 2.5-gallon tank and 200 max PSI—enough to run three finish nailers at once. dewalt.com

The ABC’s of DCS pro cooking Inherently simple and utilitarian, the new DCS professionalgrade kitchen equipment line by Fisher and Paykel is designed to be visible rather than hidden. Home chefs can now select from two different handle profiles (round or square) to suit their cooking style, as well as their kitchen. Range and oven control knobs have an illuminated halo system so home chefs can see what’s happening at a glance. dcsappliances.com/company/who-we-are/

ontario home builder winter 2015

You’ll be a fan of this DewStop’s latest bathroom exhaust fan model (FS-300) integrates QUE Weather Prediction Software, which automatically turns the fan on when the user’s preset threshold has been reached. Userfriendly and costeffective, it not only reduces the possibility of damage to property but also prevents mould and mildew proliferation. Available at Home Depot or direct at Dewstop.com. ohba.ca

Thank you for helping us build a more energy efficient Ontario. Alliance Homes

Empire Communities

Habitat for Humanity

Midhaven Homes

Andrin Homes

EQ Homes

Halminen Homes

Minto

Solmar

Arista Homes

Fandor Homes

Heathwood Homes

Tamarack Homes

Ballymore Homes

Fernbrook (Castlemore)

Jeffery Homes Ltd.

Monarch Corporation

Briarwood Homes

Lancaster Homes

Mosaik Homes

Thornridge Homes

Brookfield Homes

Fieldgate Developments & Construction

Laurier Homes

Orchard Ridge

Times Group

Cardel Homes

Flato Developments

Lindvest

Townwood Homes

Centro Homes

Fourteen Estates

Madison Homes

Reid’s Heritage Homes

Corvinelli Homes

Geranium Homes

Marshall Homes

Coughlan Homes

Great Gulf Homes

Mason Homes

Delta-Rae Homes

Greystone Homes

Mattamy Homes

Royalpark Homes San Diego Homes Sean Mason Homes

Signature Homes

Tartan Homes

Urbandale Wycliffe Yorkwood Homes Zancor Homes

We look forward to building the future with you in 2015. From early design to construction, Enbridge is here to support and reward you with performance incentives for constructing energy efficient, healthy and sustainable homes beyond code requirements.

Learn more at build.savingsbydesign.ca

Top shelf

Canadian approval for U.S. insulation Johns Manville’s signature JM Spider Spray-in custom fibreglass insulation has received Canadian Construction Materials Centre approval (CCMC 13212-R) for a thermal resistance of R-24 in a 2x6 wall cavity, complying with 2010 National Building Codes. A professionally installed spray-in insulation system, JM Spider can be used in either wall or overhead applications and in both wood and steel framing. jm.com

PVC in technocolour PVC windows may be durable, efficient and affordable, but options for adding colour to PVC frames has always been limited, since paint doesn’t last and metal cladding can be costly. But All Weather Windows has introduced Renolit EXOFOL FX, a highperformance acrylic-based film that permanently bonds to PVC window frames. Weather- and UV-resistant, the film comes with a 10-year warranty and is available in five popular colours. Allweatherwindows.com

Napoleon on the Ascent Napoleon’s Ascent 30, 35 and 42 series provides an attractive, cleanfaced direct-vent fireplace to match almost any room in the home or building model. Convenient to install, the series features Napoleon’s exclusive PHAZER log set, producing a beautiful display of yellow dancing flames. The Ascent 42 offers 25,000 BTUs, a pan-style burner, millivolt or electronic ignition, a flex connector and shutoff valve, a safety screen and optional decorative accessories. napoleonfireplaces.com

that’s A ‘tite’ seal! Combining superior thermal insulation performance with an industry-leading air-leakage rating, WALLTITE is a sprayapplied, medium-density, closed-cell polyurethane foam insulation/air barrier system designed to improve the energy efficiency of any building. It requires no fasteners and adheres to virtually any surface, providing a gap-free, durable air-tight envelope that won’t support fungal growth. walltite.com 30

ontario home builder winter 2015

ohba.ca

inching forward

Slow growth forecasted for 2015 as home building industry preps for a correction By Michael Ryval

ohba.ca

The global economy is expected to experience modest growth in 2015, yet there is a diverging trend between regions and countries. “Within North America, the momentum appears to be stronger,” says Diana Petramala, real estate economist at Toronto-based TD Economics, a unit of TD Bank Group. “The U.S. is shaking off the financial crisis and is looking to sustain decent economic growth over the medium term, whereas there are still a lot of risks in the global economy. Europe’s and China’s economies are very vulnerable.”

he positive picture regarding the U.S. is based on factors such as consumers being more willing to spend and the continued recovery of the housing market. “Canada is more tightly hitched to the U.S. than anywhere else in the world,” says Petramala, noting that our economy is doing well despite recent equity market performance. “As long as the U.S. continues to recover, the outlook for our export sector will continue to be positive.” Higher interest rates are expected in the U.S. in 2015, and since Canada’s long-term interest rates tend to move in lockstep with its neighbour, it could negatively impact the housing sector. “Our housing market is slightly over-valued,” suggests Petramala. “Consumers and the Canadian housing market are a little more sensitive to higher rates than they have been in the past.” By the end of 2015, benchmark five-year Government of Canada bond yields could climb one percentage point to about 2.5%. It’s possible, says Petramala, that five-year mortgage rates could be as high 4.25% by the end of 2015. “Rates are going up from here.” In terms of GDP growth, Canada’s economy grew 2.4% in 2014, a trend that should continue, with an estimated of 2.7% growth in 2015, followed by 2.4% in 2016. “A combination of improved U.S. growth and a lower Canadian dollar is expected to boost our export sector. These are the main drivers of economic growth,” says Petramala. Noting that 75% of our exports go to the U.S., she adds: “The U.S. economy is what matters to Canada. Europe is growing, but with a GDP growth rate that is sub-1%, it is still struggling.” Ontario will be in line with the national economy and grow an

estimated 2.7% in 2015. “We see strength in the export sector that will help Ontario’s manufacturing base,” says Petramala, adding that until recently the dependence on manufacturing had hurt the province. Yet there is one constraining factor in the form of a “deeper” slowdown in the province’s housing and construction sector, relative to other provinces. “We’re seeing an unwinding in construction activity. Housing starts have fallen from peak levels and will continue to fall in 2015 and 2016.” In 2014, there were 60,000 housing starts in the province, which exceeded the forecasted 57,000 starts. “The continued low-interest-rate environment resulted in better-than-expected numbers,” says Petramala. Yet housing starts are expected to fall to 58,000, partly because rising interest rates are expected to dampen demand for new homes. The other limiting factor is that construction in some areas has outpaced the demographic fundamentals. “Our population has not been growing as quickly as it has in the past,” observes Petramala, noting that about 100,000 immigrants came to Ontario in 2013, far below the annual inflow of 110,000-120,000 in previous years. “People have also been moving out west to work in the commodity sector, where the economic conditions are better.” Condominium construction commands a growing market share in Ontario’s new-home-building sector. “There is a lot more slack in that market, which has the potential to become a buyer’s market, and condo prices are not growing as quickly as singlefamily homes,” says Petramala, who notes that condo resale prices are increasing at approximately 4%, compared to 7% for single-family homes. Indeed, the 5% average increase in resale prices in 2014 exceeded expectations. Driven largely low interest rates, the increase pushed the average home in Ontario to $409,000. But Petramala does not believe the rate of price inflation is sustainable and expects it to fall to about 2% in 2015. “Going forward, we think a lot of the new condo units will hit the market and that will help temper price increases,” says Petramala. “At the same time, affordability for single-family homes has really become an obstacle in Toronto, especially for the average homebuyer. That will limit demand for single-family homes and ease some of the pressure on pricing. As demand cools, prices will not accelerate as quickly.” Moreover, Petramala argues that fears of a housing correction are overdone. “Modest economic growth will support the housing market in general. There has been some froth and overbuilding,” says Petramala, who believes that resale prices may actually fall about 1.2% in 2016. “Prices have risen faster than incomes. But there will be an unwinding of that froth— not a crash in the housing market.”

by the numbers

2.4% 2.7% 57,000 60,000 4% $409k Canada’s economic growth in 2014

ohba.ca

Canada’s expected economic growth in 2015

Projected 2014 Ontario housing starts

Actual 2014 Ontario housing starts

Increase in Ontario condo prices in 2014

Average Ontario resale home price in 2014

ontario home builder winter 2015

don’t fear the future Market analysts discuss affordable housing and rental trends in 2015 By Tracy Hanes

ontario home builder winter 2015

ohba.ca

here’s no reason to fear for the health of the Ontario housing market in 2015. The momentum that propelled the provincial market through 2014 will continue for most of 2015, and even with looming challenges such as slightly higher interest rates and affordability issues, there’s reason for optimism. We asked Ted Tsiakopoulos, CMHC’s Ontario Regional Economist; Robert Hogue, RBC’s Senior Economist for Economics Research; and Ben Myers, Senior VP, Market Research and Analytics at Fortress Real Developments to share what they see for the year ahead.

How will the housing market in 2015 be different than 2014? Ted Tsiakopoulos: The economy will play a more pivotal role in supporting the housing market. After lacklustre growth since the recession, for the first time in over a decade the Ontario economy will grow faster than the rest of the country. The lower dollar and lower energy prices are good for the economy and our largest trading partner, the U.S., is showing signs of strength. With a forecast job growth of 1.9% in 2015, there’ll be a nice pickup. Our models tell us when the job market grows; it impacts the housing market three to six months later, as people feel more confident about buying. It typically has a quicker impact on resale than new construction does.

Ontario annual home starts will grow to 63,000 units in 2015, before slowing to 60,400 units in 2016. The picture we saw this year, with the resale market more robust than new housing, will continue into 2015 and 2016. Resale is less expensive and that market will hold up better. The building community has done a good job of channelling demand for new homes towards a build-up of inventory and have cut back on projects. Overall, it’s a stable market, but I think there’ll be more growth in resale. Robert Hogue: It’s going to be interesting. Prices are rising stronger than we expected—a little bit stronger than we like, but we are not in the danger zone. We expect the rate of housing-price increases will moderate. I’m not expecting home prices to decline outright next year in Ontario but to rise at a significantly slower pace by 1.1%. The price increase in 2014 was quite strong at 6%. The market will make us slightly uncomfortable, but I think the market can execute a soft landing. Ben Myers: I’m more bullish going into 2015 than going into 2014. The strength of the 416 area code carried the high-rise market and the 905 was a little slower, with the exception of Milton and Burlington, where it performed very well. If underlying land prices are any indication, affordability in the new housing market will continue to be constrained, and I expect new home prices to continue to appreciate and, with a lack of new supply, resale prices to escalate as well. It (2015) should be a strong year for new starts.

How are escalating housing prices and rents impacting the market? Ted Tsiakopoulos: The market is going to respond to higher prices by moving to less expensive housing. We will see continued growth of townhomes and apartments in pricier markets like Toronto and Ottawa. There is room for growth, even with prices going up.

meet THe players

Ted Tsiakopoulos Specialties of CMHC’s Ontario Regional Economist include economic & housing analysis, macro economic forecasting, investment management and evaluation of overvalued and undervalued markets. ohba.ca

Robert Hogue As RBC’s Senior Economist for Economics Research, Hogue is responsible for providing analysis and forecasts for the Canadian housing market and for the provincial economies.

Ben Myers Among the duties of the Fortress Real Developments’ Senior VP of Market Research is to educate investors on the conditions of local, metropolitan and national housing markets. ontario home builder winter 2015

Six-storey wood-frame construction will be another way the industry is responding to higher home prices. Building with wood not only lowers costs for builders, but for buyers too. The demand will shift to less expensive housing and part of that equation is rental. The demand for rental demand will grow faster than ownership demand. Some buyers, especially first-timers, are finding it difficult to jump into ownership, so are shifting to rental. We’ve seen some new purpose-built rental come on stream and it has to compete with new condo rentals and is offering similar features. The younger generation doesn’t necessarily see rent-versus-owning as an issue, but a lifestyle opportunity, where they are close to transit, entertainment and can walk to work. Robert Hogue: In the GTA, housing prices have gone up so much that being a renter may become the norm. There are more and more renters and there’s not the same stigma as in the past. It parallels with larger cities in the world, where more people might accept that living in a big city like Toronto means renting and not owning. But what we’ve seen anecdotally is wealth transfers from parents to kids: “I’ll give you a lump sum as a down payment.” I’m not sure of the magnitude, but it’s a recurring theme and I would not dismiss it as a fringe phenomenon. It might become a new way to adjust to the high cost of housing. Ben Myers: The average first-time buyer is 37 years old. It’s different than generations before. Younger people change jobs and move up in the world and don’t want to commit to any one place. But the affordability crunch is affecting them. A lot of them would like to buy, but are not going to ruin their budget; they’d rather spend on nice clothes or going out. Young people will stay in the 416, but those who desire more space will find it more and more difficult. New single detached homes are catering to the wealthy. If homebuyers want something affordable, they are going to have to travel for it. Condos will do well in Toronto, along with mid-rise projects in the 905 region with buyers who can’t afford to get into the low-rise market.

How is the shift toward intensification impacting consumers and the housing industry? Ted Tsiakopoulos: We don’t think intensification is strictly policy-driven. The shift towards higher density began long before Places to Grow. The ’70s, ’80s and ’90s were about deurbanization and suburban living, but by the new millennium we began to see re-urbanization take hold and a real boom in 36

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high-density construction. Intensification has stretched beyond the traditional Toronto and Ottawa markets and we’re seeing it in Kitchener-Waterloo, Hamilton, London and Barrie. We see it proliferating to non-traditional communities that were typically single-family communities. We’re seeing more efficient use of land and more choice in the marketplace, and affordability is driving it. Single-home prices have been outpacing condo prices post-recession and we’re seeing single-detached prices grow much faster than apartments. Through the latter part of 2015 and 2016, we will see more condos and towns and the price gap will slow. Robert Hogue: Intensification is here to stay and municipalities are bound (by Places to Grow) to favour building up instead of out. That’s a good part of the reason for the condo boom, especially in the GTA. On top of that, there’s the issue of affordability, and for many, condos are the only option for ownership. The bigger picture in Ontario is that there are infrastructure issues, especially with transit, and it’s clear urban sprawl will be contained as much as possible. Ben Myers: It’s a whole different world, where young people are buying into a neighbourhood as opposed to buying a unit. They are getting used to smaller spaces and are more concerned about being close to amenities, restaurants, bars and whether they can they walk to work since they don’t want cars. Cars are expensive—you have to be concerned about parking and one of the key things is they can’t be connected on their smartphones if they are driving. That’s a big deal. I recently declared that the American dream with the yard and white picket fence is dead—that many buyers want ninefoot ceilings, stainless steel, hardwood and wall-to-ceiling windows, as opposed to a piece of dirt. It’s a fundamental shift and hard for some people to fathom.

Will Canada continue to be a destination for international buyers and capital? How has this impacted the market? Ted Tsiakopoulos: It is difficult to determine the impact of international buyers, as there is not a lot of hard data, but we think it’s big. I think we need to make a distinction between a foreign investor and a new immigrant, as there is often confusion about the two categories. New immigrants have been here awhile, they are permanent residents and they have roots. Immigration has accounted for three-quarters of the population growth in Ontario in the past decade. About two-thirds of them typically rent, but after three or four years, they are buying housing. They have a need and ohba.ca

ohba.ca

ontario home builder winter 2015

appetite for real estate. Real estate is not just perceived as a consumable good; there’s an investment aspect and it has contributed to wealth over the past three decades. Since 9-11, people have naturally gravitated to residential housing as an oasis of stability and this has encouraged more investment. From 2001 to 2012, the average investor’s appetite for risk was quite low and money was flowing into residential real estate. Since 2012, the appetite for risk has been higher and investments in gold and bonds have slowed, as well as investment in rental condos. Does this mean investors will bail? I suggest no—they are there for the long term and will hold for five years or more, since there is more stability in real estate than the stock market. Robert Hogue: This is a phenomenon that has not been measured but relies on anecdotes. I do buy into this storyline of foreign buyers, but they are more an element of the Vancouver market than in the GTA or Ontario. Toronto is a thriving city and a magnet for immigrants and it does attract high-calibre individuals. Population growth is still robust in the GTA and creates a constant demand, and I don’t see an end to the run for Toronto. It will continue to attract investors, and that market is healthy. Ben Myers: Canada is stable politically and on the global stage. Toronto units are still considered affordable and there’s a strong rental market. Many international buyers believe the best place to put their money is into bricks and mortar, and I certainly don’t see it dropping off.

Is 2015 the year interest rates start to creep upward? How are these historically low mortgage rates impacting the market and consumers? Ted Tsiakopoulos: We think interest rates will remain low over the next 12 months. By late 2015 and 2016, rates will move gradually higher and respond to the pick-up in the economy. They’ll increase by 50 to 75 basis points but will still be fairly low from a historic perspective. The good news is that almost 70% of mortgages are fixed-rate and if rates creep up, an overwhelming number of mortgage holders will be insulated. For new buyers, we will see more of a shift to less expensive housing. I still think they will stay on the sidelines and we’re not looking at any significant first-time buying activity. Repeat buyers will continue to drive the market. Robert Hogue: We expect interest rates to start rising and we are sticking with that story. When you look at financial markets 38

ontario home builder winter 2015

in terms of U.S. monetary policy, short-term interest rates might start rising, and in Canada we might not be that far behind. We expect bond yields to start moving higher and that will impact fixed mortgage rates. Ben Myers: It will be 12 to 18 months before interest rates go higher. A CMHC investor report found that more than 50% of buyers were taking fixed-rate mortgages, so that takes the worry off their plate if rates increase since they aren’t going to be immediately hit.

What do you see as emerging opportunities in the housing market? Ted Tsiakopoulos: One opportunity will be in the renovation market and another is in the rental market. The population is aging and about 80% of seniors want to age in place. Given that cohort is growing by 5% to 10% a year and they will hire contractors to make their homes more user-friendly, it opens opportunities for the renovation market. It is a $24 billion market annually in Ontario, with more growth than in new construction. Echo Boomers who are currently renting or living in their parents’ homes will be entering the ownership market sometime in the next five years. They are not do-ityourselfers and will hire help. The rental market is another opportunity and is going to be growing faster than ownership in the next year or two. There are not a lot of purpose-built rentals—only about 4,000 to 5,000 completions a year are forecast in Ontario and we are looking in excess of 17,000 to 18,000 new renter households a year. There is a gap here. Condo rentals are filling some of that gap, but we need more purpose-built rentals. There are challenges—you have to find sites, land is costly and there are rent constraints, but I think this is an opportunity. Robert Hogue: There are opportunities across the board, but particularly on the reno side. This is not unique to Toronto or Ontario, but across Canada. In Toronto, we’ll continue to see infilling of the downtown core for another 10 to 20 years. Ben Myers: There are only so many mega-towers we can produce. Those now living in 400-, 500- or 600-square-foot units and who want to stay in the city will be looking for stacked townhouses or mid-rise buildings to move up to in their neighbourhoods. I see opportunities with six-storey woodframe buildings and a move to that type of product. In the 905, there’ll be opportunities for three-storey detached homes or four-storey townhouses, or perhaps we’ll see something like I’ve seen in the United Kingdom, where townhomes all back onto each other and they have shared backyards. OHB ohba.ca

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hot spots Kitchener, Cambridge and Hamilton top the list of Ontario’s 12 best places to build By Ted McIntyre & Jeffrey Reed

ontario home builder winter 2015

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If you find someone in an economic development office who suggests theirs is a bad community to invest in, you’ve probably stumbled upon an incredibly honest soul, not to mention an employee who might want to dust off their resumé. Most municipal staff in Ontario believe, for one reason or another, that their town is the best place to live, work and spend money. But when the folks in Kitchener and Cambridge say it, they’re not alone. According to the Real Estate Investment Network’s (REIN) 2014 Top Ontario Investment Towns report, Kitchener and Cambridge are tied atop the list of the province’s best places for real estate investment, with Hamilton nipping at their heels. REIN’s 2014 report cites almost the exact same list of 12 cities and towns as the 2012 edition, with only Milton being added to the roster and Brantford deleted. Even the ranking of that dazzling dozen is fairly similar, with Kitchener/ Cambridge flip-flopping with Hamilton to take over top spot. Since 2004, REIN, a prominent Canadian real estate research organization, has produced the Top Ontario Investment Towns report in response to growing demand from investors to know the province’s best locations for cash flowing properties. Released every second year, the report provides investors with comprehensive information ohba.ca

on which areas of the province are expected to outperform others over the next five years. The report asks a number of key questions, among them: Is the area’s population and average income growing faster than the provincial average? Is new infrastructures being built to handle that growth? Is the area creating new jobs and taking steps to maintain current employment levels? Is political leadership creating an economic growth atmosphere and are major transportation improvements in the works? Is the area in the RBC Affordability Index Hot Zone (25% to 39%)? Will it benefit from an economic or real estate ripple effect? Does it have more than one major employer? Is it attractive to Baby Boomers’ lifestyle? Is there a short-term problem occurring that is slated to disappear in the future? Is there a noted increase in labour and materials cost in the area? The communities listed in REIN’s

REIN’s 2014 Top Ontario Investment Towns 01. & 02.(tie) Kitchener & Cambridge 03. Hamilton 04. Barrie 05. Waterloo 06. Brampton 07. Ottawa 08. Vaughan 09. Durham Region* 10. Toronto 11. Milton 12. Orillia *(represents Whitby/ Pickering/Ajax)

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report are ranked according to their long-term investment potential, not short-term speculative market runs. Several sources are consulted, including Canadian Mortgage and Housing Corporation (CMHC), Multiple Listing Service (MLS), Statistics Canada, regional real estate boards and local economic development offices, among other individual experts (the entire report is available for download at topontariotowns.com). In reference to Kitchener and Cambridge, REIN president Don R. Campbell states that “the presence of world-leading companies such as Microsoft and Google attest to the R&D capabilities and significant competitive advantage the region has to offer. Major transportation improvements over the next five years will entice even more businesses to locate within the region as commute times and inner-city congestion are reduced. In-migration is strong, average incomes are strong, the available older housing stock is there and overall job growth continues. The two communities will remain part of the ‘Economic Alberta of Ontario’ in the foreseeable future.” While Hamilton has received 42

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recent positive press from mainstream media, Campbell’s report accurately predicted the city would develop into a hot spot more than four years ago. “We forecasted the (surge in Barrie development) pretty well too.” Campbell sees Vaughan as another place with huge potential. Although the six-stop subway extension from Downsview Station to the Vaughan Metropolitan Centre (currently in development) has seen multiple delays and may not be complete until the beginning of 2017, its connection to nearby York University and the GTA will be a huge boost for Vaughan residents and businesses. “You’re going to see the demand for housing in that area dramatically increase,” says Campbell. “I’m willing to bet that Vaughan will be higher up on our list three years from now. There’s land on which to build there, whereas in Toronto that the land is getting so ridiculously expensive that it’s pushing a lot of the builders—other than condo builders—out to the ’burbs. And that’s added a little bit of a fear into the equation for those people, because there’s an unknown in building way out here in the middle of what many consider nowhere. So

this report has been able to provide those builders with some stats and data—‘OK, I’m gonna build in Whitchurch-Stouffvile, and I’m going to be okay.’” Here’s a breakdown of the REIN report’s 12 areas to watch:

Kitchener experienced a surge of new building permits in 2014, particularly in the urban core.

Tie Kitchener & Cambridge 1

“Once a manufacturing centre, the region is morphing into a high-tech and life sciences mecca,” reports REIN. “The region is poised to see major transportation improvements over the next five years, reducing commute times and helping ease inner-city congestion, which will entice even more businesses to locate within the region. It is only a matter of years before Southern Ontarians will reap the full benefits of these projects.” “We have a diversified and entrepreneurial economy that adjusts quickly to changing market conditions,” says Kitchener’s Economic Development executive director Rod Regier. “Our businesses are often at the cutting

Affordable development costs and an open-forbusiness policy with its Economic Development Office are helping Hamilton shake its “Steel Town” image. ohba.ca

edge of technology and the startup ecosystem supported by our universities and colleges, Communitech and the Accelerator Centre continually invent and capture new economic opportunities. As a result, highly innovative companies ranging from startups like Vidyard, Thalmic Labs and Clearpath Robotics, to global giants like Google and Electronic Arts are flourishing in our city. “We are seeing a surge in urban home building with a significant concentration of new building permits in 2014 in the urban core and central neighbourhoods,” Regier adds. “This trend is expected to continue with the implementation of the Ion, Waterloo Region’s light rail transit system and two-way GO express rail. This infrastructure is driving urban intensification and residential development in future Ion station areas.” Cambridge, meanwhile, highlights its excellent parks, trails and recreation facilities and location along the Grand River as keys to its continued growth, augmented by a thriving arts and culture scene and excellent school systems. The city has also been streamlining the way in which it handles development applications, while nurturing existing businesses. New arrivals include Heroux Devtek, an aerospace manufacturing company that will begin manufacturing the landing gear for Boeing 777 aircraft this year. Further, to ensure it has an adequate supply of employment lands, Cambridge recently completed a master environmental servicing and community plan for a 300-hectare area in the north of the

city on the Waterloo border known as the East Side lands.

Hamilton

“Once known only as a hard-working steel town, Hamilton has quickly begun to shed this image in the eyes of potential investors,” the REIN report notes. “Several years of record-breaking building-permit values and exponential population growth have done wonders to change the city’s reputation.” Why build new homes in Hamilton? “Because of available employment lines, affordable development costs and an open-for-business staff and council,” says Michael Marini, marketing coordinator for the City of Hamilton’s Economic Development Office. Revamping its core bit by bit and an influx of businesses of all shapes and sizes thanks to the city’s lower start-up costs are also giving reason for new home and condo buyers to call Hamilton home. “Many of the people who are building and buying homes in Hamilton are coming from the GTA,” says Marini, “and when they come here, they can get two or three homes for the price they are paying in Toronto.” Certainly the city’s geographical position remains a selling point. “We have all four modes of transportation—road, rail, air and port—and you are right in the middle of major highway infrastructure, and you can get to the GTA and to the U.S./Niagara border in a short amount of time, so the lack of gridlock is an advantage,” says

Marini, whose office has been ranked No. 1 in Canada is terms of its use of social media and web marketing. “A lot of municipalities say theirs is a great place to live, work and play, but in Hamilton’s case, it certainly is, because we have over 125 waterfalls, access to trail systems that go across Canada, among other great locations. Here you have room to move and play.”

Barrie

“Located on the shores of Lake Simcoe, and less than an hour’s drive from Toronto, Barrie is an attractive community for people seeking the nearness and vitality of the big city, but wanting a more laid-back lifestyle,” suggests the REIN report. “Barrie has really begun to expand from a ‘recreational’ area to a solid year-round diverse economy. Job growth, major transportation improvements and a very aggressive economic development team have helped it become a magnet for new residents, new development and new businesses. Construction was recently completed on Barrie’s second GO Station, which will increase the demand for property throughout the region.” Barrie’s population has grown from just 45,000 in the 1980s to approximately 143,000 today, with a projected population of 210,000 by the year 2031, making it one of Canada’s fastest-growing metropolitan areas. What makes Barrie further attractive to home builders? Available competitively priced land, for one. Although many believe that most of Barrie’s land has been developed, provincial growth targets, a push for intensification and the preparation for development of 5,770 acres annexed in 2010 from Innisfil should mean ample building opportunities for years to come.

Waterloo

A high level of immigration and constant influx of students to some of Canada’s top post-secondary institutions—University of Waterloo, Wilfrid Laurier University, Conestoga College, as well as think tanks like Perimeter Institute, Centre for International Governance Innovation and Institute of Quantum Computing— ohba.ca

ontario home builder winter 2015

continue to drive strong economic sectors and a high quality of life. Other factors to consider are its growing technology, financial and manufacturing sectors (Waterloo is home to many Canadian and international headquarters such as Manulife Financial, Sun Life Financial, OpenText, SAP and BlackBerry), as well as great access to transportation amenities, including an approved LRT system and proposed all-day two-way GO service with Toronto. Touting its extensive trail systems and active park spaces, the city plans to continue its high-quality urban intensification in its uptown core, while adding new park space, office spaces and a broad range of housing.

Brampton

With a population of approximately 524,000 and a diversified economy that’s home to more than 8,500 businesses, Brampton is the ninthlargest and second-fastest-growing city in Canada, averaging growth of 4.2% (or 18,000 new residents) per annum. Further, of the cities and towns located within 40 kms of Pearson International Airport, Brampton has the largest inventory of designated vacant residential and employment land for new construction. It’s also home to the 4 4

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largest intermodal railway terminal in Canada and has immediate access to an extensive network of transcontinental highways. “The home building sector is strong in Brampton as a result of population growth and the highquality lifestyle amenities the city offers,” says Nancy Johnston, manager of business development and marketing for Brampton’s Economic Development Office. Those amenities include 850 parks, 217 kms of city-owned trails, several recreation centres, the state-ofthe-art Brampton Civic Hospital and the Peel Memorial Centre for Integrated Health and Wellness (currently under development), an internationally recognized Fire and Emergency Services team, a growing arts and culture scene, two major shopping facilities, as well as a designation as an International Safe Community by the World Health Organization. A new university is also in the planning. “For investors who are willing to do a little homework and pick their neighbourhoods carefully, Brampton can provide solid positive returns for years to come,” cites the REIN report.

Ottawa

“Unlike other cities that rely on a small number of industries or

sectors, Ottawa’s diversity allows it to weather an economic storm better than most,” advises the REIN report. The downside for home builders is that numerous research and development centres, government institutions and post-secondary education facilities provide the city with a steady flow of quality renters, as opposed to those looking to make Ottawa their permanent residence. Still, “according to the economic fundamentals, Ottawa should provide homebuyers and real estate investors with solid returns on their investments over the coming years,” says the report. “Sophisticated investors will look towards revitalization areas, such as properties located along the O-Train expansion. Watch for new developments coming on board in the coming years as demand for rentals and condominium living continues to be strong.”

While Ottawa typically draws more renters than homebuyers, growing demand will require additional development.

Vaughan

“Transitioning from a suburban municipality into a fully metropolitan community, Vaughan offers some of the lowest commercial and industrial taxes in the GTA,” indicates the report. Having already experienced tremendous growth

An increase in Toronto residential prices will mean a boom for Durham Region, which anticipates an 83% hike in its housing supply by 2031 to accommodate. ohba.ca

in the past decade, once all the region’s transportation projects are completed— including the subway extension, as well as the extension of Highway 427 north to Major Mackenzie Drive—Vaughan will be among the most accessible regions in Ontario. Due to population targets set by the province and servicing allocations from York Region, Vaughan’s estimated population of 314,117 is expected to grow to 416,600 by 2031, with a multicultural blend of families continuing to be attracted by the area’s welcoming environment (46% of the population is foreign-born and residents speak 99 different languages). The Mackenzie Vaughan Hospital is set to open its doors in 2019, and the new Vaughan Metropolitan Centre mega-project will anchor the city’s future downtown, as well as being home to 25,000 residents living in a diverse housing mix.

Durham Region

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Including the towns of Ajax, Brock, Clarington, Oshawa, Pickering, Scugog, Uxbridge and Whitby, Durham counts 18 interchanges to Highway 401 and 62 GO trains travelling every 30 minutes to downtown Toronto each day. “The region has experienced a ripple effect from Toronto as people move east of the metropolis in search of more affordable homes,” observes the REIN report. With one of the fastest-growing populations in Canada, forecast to go from its current 650,000 to nearly one million people by 2031, “the Durham Region has come to be known as an ‘emerging power’ within the GTA.” To accommodate that anticipated growth,

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ontario home builder winter 2015

the housing supply is expected to increase by 83.%, says Kathy Weiss, Durham’s director of Economic Development and Tourism. From an infrastructure standpoint, more than $2 billion in projects have been recently completed in Durham, including the Automotive Centre of Excellence, GO Bus maintenance facility, the Energy Systems and Nuclear Science Research Centre, the Durham College Whitby Campus Expansion and the Ontario Power Generation Darlington Energy Complex. There was an additional $1 billion of private capital investment in 2013, and another $3 billion in public projects are currently underway, including phase one of the Hwy 407 extension. Says Weiss: “The region’s strategic location, shovel-ready development lands and increasingly diverse economy provide the perfect environment for businesses and investors alike.”

Toronto

“As the financial and head office capital of the nation, Toronto’s economic potential, combined with the influx of immigrants and post-secondary students, will 46

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provide a continuing source of home ownership demand as well as rental demand,” notes the REIN report. “However, high average real estate prices make it difficult for investors to enter the market. But with a population of over 2 million, it is impossible to rate Toronto as a whole; some regions of the city will prove to be provincial leaders, while other regions will lag sadly behind. That is why, when considering a home purchase or investment in the city of Toronto, you must dive deeply into the facts and figures of your specific target neighbourhood.” “Few cities in the world can match Toronto’s multi-sector strength, depth of talent and its diverse, thriving economy,” says Michael Thompson, Councillor, Ward 37 Scarborough Centre, and chair of the city’s Economic Development Committee. “Toronto’s attractiveness to developers and homebuyers is reflected in the fact that for several years this city has had the most high-rise and mid-rise buildings under construction in North America.” A 2014 KMPG report ranked Toronto as the world’s most taxcompetitive major city, compared to 51 international locations, Thompson says. “In its 2014 budget, City Council ensured that the tax rates for commercial properties

remain below the rate of inflation, while multi-residential and industrial properties received a tax decrease. Toronto’s DC rates are the lowest in the region and the City offers business and tax incentive programs that encourage property development and redevelopment. And our improved e-service application processes and other business-oriented innovations reflect our ongoing commitment to continuously improve service to the business community.”

Strong immigration, renowned postsecondary education and growing tech, financial and manufacturing markets continue to propel Waterloo’s high quality of life.

Milton

In the battle for Canada’s fastest-growing city, all other municipalities bow to Milton. Registering a current population of approximately 103,000, the number of residents is expected to skyrocket to approximately 228,000 by 2031. Milton’s last major census (2011) revealed that 73% of residents have postsecondary educations, that the median age of 34.1 was one of the youngest in Canada, that average family income was $114,495, and that the labour force—47,200 in 2011—was expected to grow to 81,106 by 2021. Other attractive numbers include residential construction value ($105.6 million ohba.ca

in 2013) and the fact that it boasts amongst the lowest residential and business property tax rates in the GTA. Centrally located on Highway 401 and near Highways 407, 403/QEW, 410, 427 and 400, Milton also has direct CN and CP rail access, commuter rail (GO Transit) links to downtown Toronto and quick access to Toronto Pearson International Airport. “The town’s proximity to Toronto and the growth of the surrounding economy will push Milton’s physical and economic growth limits in the next decade,” the REIN report predicts. “Milton’s leadership is handling the tremendous growth better than others in the province. Affordable housing is a growing problem in Toronto, and Milton will benefit from lower average house prices.” Some caution was expressed, however, by a recent report on Milton’s future employment growth, which observed that additional lands will be required to support anticipated population growth.

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Orillia

“Orillia has become part of the ‘sanctuary trend’ that we have witnessed in other areas of the country, such as Sylvan Lake in Alberta,” notes the report. “People looking for that small-town feel with the amenities of a major city like Toronto less than a two-hour drive away have flocked to the city. Residential building will continue to rise to feed the growing demand. Orillia’s leadership has focused on making the city an economic and educational centre.” At the crossroads of Highways 11 and 12, and nestled between Lakes Simcoe and Couchiching, Orillia’s waterfront playground is a big lifestyle lure. But its new 150-acre West Orillia Employment Park and Lakehead University’s construction of a $45-million regional campus feed the area’s growing momentum. Excellent healthcare at Soldiers’ Memorial Hospital, which recently underwent an $83-million redevelopment and expansion project, its location as headquarters for the OPP, and the nearby Casino Rama, the province’s most successful commercial casino, are also attractive commodities for many potential residents. OHB ohba.ca

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Everything is

again 48

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Builders are breathing new life into classic architecture By Alison King

old new

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daptive re-use. It seems the term is everywhere these days, from high-end condo concepts to proposals for infill housing projects. Far more than just the latest marketing term or industry buzzword, however, adaptive re-use is a powerful tool that can be used to protect heritage structures, conserve greenspace and contain sprawl. It can provide very real economic, environmental and social benefits that are attractive to developers and buyers alike. Although often associated with the conversion of historic properties, adaptive re-use goes much further. By taking abandoned or underused buildings and re-purposing them, developers breathe new life into these physical structures, and often their surrounding communities as well. Such projects are a key means of achieving intensification, and as they are generally located in mature neighbourhoods, they tend to have immediate access to the amenities, service and transit options that can take years to develop in new communities. The economic advantages seem obvious: re-using existing materials and structural elements such as foundations and exterior walls can result in significant cost savings. A study conducted by the Heritage Resources Centre at the University of Waterloo found that adaptive re-use projects could realize a cost savings between 10% and 20% over building new. However, the key word in that finding is “could.” The same study also reported that some conversions can cost twice as much as new builds. Why the discrepancy? The most significant pitfall with conversion projects is the element of the unknown. Unlike new builds, where materials and time can be accurately predicted, the demolition phase of conversion projects can reveal some unwelcome surprises. Structural issues, site contamination and environmental concerns can all lead to quickly escalating costs. And even if all goes as planned, preserving and restoring heritage details such as original tile, stone or plaster work may require the services of ontario home builder winter 2015

specialized artisans—at considerable time and expense. However, the financial rewards can outweigh the potential risks. Often benefitting from desirable locations, unique architectural details and the added cachet of a storied history, well-executed conversions can command a significantly higher price per square foot, both from commercial tenants and residential buyers. As well, many municipalities offer developers incentives to re-use and convert existing buildings and vacant or underused lots. The environmental payoff is more clear-cut. Re-using existing structures and materials as much as possible reduces the resources required to manufacture and transport new products. Existing mature landscaping can often be preserved and enhanced, while the addition of efficient, modern HVAC and lighting systems can minimize the environmental impacts of an older property. Many discussions about the social benefits of adaptive reuse focus solely on the redevelopment of historic buildings and praise its role in preserving our cultural heritage. Honouring the past is certainly an important element of many such projects, but the ability to transform the present and future success of communities is where adaptive re-use projects may have the biggest social impact. Consider what happens to properties when they are neglected for lengthy periods. Empty lots become a dumping ground for garbage and other waste. Buildings may be vandalized or attract squatters. The value of surrounding properties is lowered; businesses and residents look to move elsewhere. 50

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When a long-empty lot or building is re-purposed, however, it spawns a renaissance in the entire community. There is a sense of pride among buyers who choose to live in such properties, a shared appreciation for the unique character and inherited quirks that older buildings and established neighbourhoods offer. Existing local businesses can thrive from the influx of new residents, while increased demand creates opportunities for new business in the neighbourhood. Property tax revenues increase, allowing municipalities to add and improve services for all. Two leading Ontario developers are banking on that transformative power with an ambitious project in downtown Hamilton. Formerly a booming industrial city, Hamilton had fallen on hard times in recent decades, but thanks to its affordable housing prices, innovative development projects and concerted efforts from its municipal government, a renaissance has begun. The Royal Connaught is a symbol of the city’s prosperity, decline and turnaround. In its heyday, the elegant Edwardianstyle hotel opened its doors to a who’s-who of the time, hosting glittering social events and counting captains of industry, Hollywood stars, prime ministers and royalty among its loyal guests. Until recently, however, it sat neglected, a sad reminder of the city’s glorious past. Developers The Spallacci Group and Valery Homes have teamed up to save the building and play a key role in Hamilton’s downtown revival. The project is not for the faint of heart. The exterior and grand lobby have been carefully preserved and restored, while the interior of the original hotel building is being transformed into ohba.ca

Clockwise: Curated Properties’ Lanehouse project in Toronto (opposite page and top left) had an industrial past—most recently Pendell Boiler Ltd; the centuryold Thorburn Mill in Almonte has been lovingly transformed; MOD’s FIVE development melds 19th-century buildings with a new 48-storey condo; and the transformed lobby of the new Royal Connaught in Hamilton, with an image of the building’s previous incarnation, the Waldorf Hotel (circa 1914), at bottom left.

stunning modern condo units and common spaces. Future plans call for three new glass towers and a total of 700 condo units. Valery Homes’ principal Ted Valeri admits they could have turned their money over faster—perhaps even multiple times— by demolishing the building and starting from scratch. However he and partner Rudi Spallacci agree the Royal Connaught is worth the wait. “You can’t put a price on the history inside these walls,” says Valeri. “This is not your typical development project and it required a huge investment up front. Rudi and I took it on for pride, because we are both Hamiltonians and this is part of our city’s history that needs to be preserved. There was a genuine risk that this building could have been lost forever and that just wasn’t acceptable to us, or to the community.” “The value is in the nostalgia, as well as in the unique architectural details and the quality of the original construction,” agrees Spallacci. “That’s a challenge in itself as we had to find craftsmen who had the skill to restore elements like the plaster and stonework, which originally would have been constructed by hand. This project isn’t about doing things the easy way; it’s about doing them the right way and creating something truly special.” The partners knew the development could be risky, and say each day of demolition uncovered a new revelation that affected costs. However they minimized the risk by completing the demolition phase—“exposing the building’s bones,” says Spallacci—before designing the new interior, so that they knew exactly what they’d be working with and ohba.ca

Municipal incentives While repurposing existing sites can be unpredictable, the risk of higher costs can be offset by the many incentives offered by most municipalities. Each region has its own unique programs and qualifying criteria, so check with your local municipality for specific details and application procedures.

Brownfield development Vacant or underutilized sites where past industrial or commercial activities may have left contamination can be developed to meet health, safety and environmental standards. Many cities offer grants or a reduction in development charges to offset the costs and encourage the transformation of brownfield sites into residential, commercial or community-use properties.

LEED certification Most municipalities offer funding assistance to encourage sustainable development and land use. Both new builds and conversion projects may qualify for grants to assist with achieving LEED certification.

Downtown / BIA revitalization Many cities and towns have identified core areas where they would like to encourage intensification and mixed-use development, whether as part of a downtown revitalization or in specific Business Improvement Areas (BIAs). Grants, tax credits or reduced development charges may be offered to qualifying projects in these locations.

Heritage properties Properties that have been designated under the Ontario Heritage Act may qualify for municipal funding to protect their structural integrity and to conserve and restore heritage features.

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minimized surprises in the build phase. Not all the surprises were unpleasant. After peeling back layer upon layer of flooring, the construction crew uncovered the original lobby tile dating back to the hotel’s 1916 opening. It was in remarkably good condition and, thanks to the restoration skills of a retired craftsman from Italy, is once again a signature feature of the grand lobby. “We also found incredible stonework behind marble tile at the entrance exterior walls,” says Spallacci. “We were expecting to find stone that at one point in time had been damaged by human intervention and/or nature. But once the marble tile was removed, we found the stonework to be intact, with little work required to bring it back to life. We won the lottery there!” The developers believe repurposing the Royal Connaught for residential use can serve as a catalyst to kickstart the rejuvenation of Hamilton’s downtown. It already benefits from its location close to shops, restaurants and transit, and lies literally steps from Gore Park, one of the city’s most striking revitalization projects. The positive reaction from the public and strong sales supports that belief. “People buying here feel the beginning of a renaissance and want to be part of it, shaping what the outcome will be,” says Spallacci. “For them it’s more than just investing in a property at a good price; they are invested in the community where they live. For us that makes the trials and tribulations of this type of project more than worth it.” If anyone understands the trials and tribulations of adaptive re-use on a large scale, it’s Gary Switzer, the Toronto-based architect and CEO of MOD Developments. Switzer has developed some of the most successful and award-winning projects in Toronto, including The Saint James, The Morgan,The

Protecting your investment There are three main types of condo conversions: Change of use

Transforming a former commercial, industrial or religious property into a residential development

Same use

Converting an existing residential building into condominiums without altering the physical structure

Conversion with additions

Enhancing existing residential buildings by the addition of new towers, common spaces, parking structures, etc.

Though well known as the warranty protection program for new homes, Tarion does not cover any of the above types of condo conversions. Current rules do not allow Tarion to offer coverage in older buildings, even those that have not previously contained residential units. However, that could soon change. In 2013, Tarion conducted extensive research to determine the feasibility of providing statutory warranty coverage for condominium conversions. This research has been presented to the Ministry of Government and Consumer Services for further consideration. Any potential changes to condominium conversion coverage may be incorporated into amendments to the province’s upcoming Condo Act review. Stay tuned!

ontario home builder winter 2015

Hudson, 18 Yorkville, X and Charlie, and is a driving force behind two of the city’s most ambitious conversions: FIVE Condos and Massey Tower. FIVE is a true blend of old and new; the property takes a row of 19th-century buildings on Yonge Street and the 1905 brick facade of a factory on St. Joseph, and melds them with a new 48-storey glass condo tower. Located in the heart of downtown, just steps from the Queen Street subway station, the Massey Tower project will see the four-storey portion of the historic 1905 Canadian Bank of Commerce building completely restored and repurposed as the condo’s new lobby, while a graceful new tower designed by Hariri Pontarini Architects soars 60 storeys above. Switzer points out that buildings have been re-purposed for thousands of years, citing ancient Roman temples that are now modern-day churches, and historic Roman theatres have been converted to residential apartments. Unfortunately, he believes Toronto was late to catch on. “In the 1930s Toronto was a dense, thriving, urban city. If preserved, it could have been our version of Old Montreal,” he says. “We went through a very bad period in the ’50s and ’60s where the city was essentially torn down and paved over for parking lots. It looked like there had been a war. Luckily people caught on to the fact that new isn’t always better. From both an economic and environmental standpoint it makes sense for good, solid buildings to be adapted to new purposes.” Switzer cautions, however, that there must be a valid reason for preserving and re-purposing an existing structure. It has to be a “good” building, structurally sound with unique architectural features that are appealing to modern tenants and buyers. With the goal always in mind of making the building better than it was pre-conversion, he feels the rewards of such projects are worth the costs and risks. “People don’t want to live in a building that is identical to all the others on the block, and cheapest doesn’t always win either,” he states. “Today’s buyers are willing to pay more for quality and for character.” Quality and character are two of the defining features drawing buyers to the small town of Almonte, a scenic mill town located 45 minutes southwest of Ottawa. Though the mills that played such a key role in the area’s history closed years ago, they continue to shape the town’s future. Two condominium projects—Thorburn Mill and Victoria Woollen Mill—have seen century-old industrial buildings lovingly transformed by architect Peter Mansfield into unique residential spaces. “These are not heritage buildings in terms of the ornate churches and banks we’ve seen converted elsewhere,” says Mansfield. “They are workhorse buildings that have weathered the decades and are part of Almonte’s history. Repurposing them into condos is a wonderful way to connect people to their heritage and roots.” Mansfield believes there is a lot of equity in abandoned industrial properties, and that developers are beginning to recognize the value is worth the potential risks and extra costs. “The Almonte buildings were built well in excess of today’s residential requirements,” he says. “They are hard-working buildings—beautiful, big and robust, with features that allow them to have a long lifespan: giant beams, massive walls, thick ohba.ca

Create a lasting impression...

floors and high ceilings. They’ve got some unique benefits that we would never have with a new build, such as their location right on the river. A new project would be subject to regulations that require much greater setbacks from the water. The result of adapting them is often an unpredictable, wonderful, surprising and quirky space that’s anything but cookie-cutter. Though restoration and renovation might take longer and can cost more than building new, the rewards are worth it.” Mansfield notes that adaptive re-use is not only about repurposing older structures but about designing properties— both renovations and new builds—to be flexible and adaptable in the future as well to increase their longevity. Tenants and owners will change several times over a building’s lifespan, as will fashions and tastes. Mechanical systems will require maintenance and replacement. All the HVAC, electrical and sprinkler systems in the Almonte projects were kept separate and left exposed, both for practical and aesthetic reasons. Buyers are attracted to the raw, industrial aesthetic that reflects the building’s past. More practically, when system maintenance is inevitably needed, they can be easily accessed with minimal disruption and reduced cost. The pride Mansfield feels in the properties is exceeded perhaps only by that of the developments’ new residents. “Walking through these buildings is like architectural archeology,” he says. “They are wonderful storytellers, like the complexion of an older person. Every line, every layer tells you something about their history and their character. There’s a sustained sense of pride among the people who choose to live here, and a deep level of affection for their individual units and the common spaces. It’s really created a sense of camaraderie and community within the properties.” Another company that’s made a living adapting older, previously-non-residential structures into infill custom homes is Curated Properties. Its latest example is Lanehouse, a distinct project of 13 loft-houses and three flats off Bartlett Avenue in Toronto. Featuring an industrial past—it was formerly a yarn factory and most recently the site of the Pendell Boiler Ltd.—Laneway is one of the first residential laneway projects in Toronto. "There are certain things that you have to expect when it comes to working with an old building, such as the roof being in terrible condition and quite often windows that are not worth saving. That said, we were pleasantly surprised with the condition of the brick and brickwork inside the old industrial space that will transition to beautiful laneway loft-houses,” says Adam Ochshorn, principal of Curated Properties, whose designheavy team included Nivek Remas and AUDAXarchitecture. “The challenges in laneway development are that unless, in the City of Toronto, your laneway project has frontage to the street in some way, it’s impossible to develop a site on a laneway, since you don't qualify for sewage, water access and other important things like fire route access,” Ochshorn explains. “In the case of Lanehouse on Bartlett, we own a house that fronts the street; therefore we don't need the laneway for city services.” Expansive 18-foot ceilings draw the eye up and allow natural light in at the Lanehouse project, as do skylights in the master walk-in closet and over the tub in the master bath. Double-height areas transition into intimate-feeling rooms. 54

ontario home builder winter 2015

Holy housing

It may seem unorthodox, but some of the most sought-after properties for conversion today are churches. Pressured by declining congregations, increasing property taxes and the costs of maintaining older structures, many churches are closing down parishes. Often featuring a rich history, unique architectural elements and prime locations, these buildings are highly desirable for buyers and developers alike. The city of Toronto boasts a number of these creative conversions:

Abbey Lofts Formerly: Howard Park Methodist Church Originally built: 1910 Redevelopment completed: 2008 # of units: 24 Architectural features:Gothic style, exposed beams, stained glass windows, bell tower

Victoria Lofts Formerly: Victoria Presbyterian Church Originally built: 1885 Redevelopment completed: 2011 # of units: 38 Architectural features: Romanesque style, soaring ceiling heights, copper steeple

Glebe Lofts Formerly: Riverdale Presbyterian Church Originally built: 1912 Redevelopment completed: 2005 # of units: 32 Architectural features: 14-foot ceilings, exposed masonry, exposed trusses

Church Lofts Formerly: Centennial Methodist Church Originally built: 1891 Redevelopment completed: 2010 # of units: 28 Architectural features: Neo-Gothic style, Art Nouveau stained glass, exposed brick, restored masonry

Private rooftop terraces are wrapped in custom-designed wood enclosures to allow for both privacy and air circulation. The various residences range from 1,000 sq. ft. to almost 2,000 sq. ft., plus balconies and rooftop terraces, and will start from the low $500,000s. “We take satisfaction in respecting Toronto’s past by restoring old buildings, rather than demolishing and building new ones,” says Ochshorn. “With Lanehouse, we’re trying to convey what we anticipate to be the future of Toronto’s development scene— something more conscious and eclectic.” OHB ohba.ca

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ontario home builder winter 2015

Fighting the Underground Economy

Cheating the system Government stepping up efforts to fight the underground economy By Ted McIntyre

“So I’m doing a basement job in Oakville, just hooking up lights and plugs. It wasn’t a big job— they just wanted switches instead of pull chains,” recalls George (not his real name), a certified Mississauga electrician who admits he frequently accepts cash payment for work. “I go to hook it into the panel, to create a new circuit. I take the panel cover off, and the wire on the top breaker that is feeding the washing machine down there is burnt, with no insulation, right next to the box—a live wire sitting there smoking, because somebody forgot to tighten the screw down on that breaker. So every time the homeowner turned on the washer, the wire would heat up and the insulation would burn off. It was half-an-inch from going through to the wood in behind the panel.” turn the page for more...

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Fighting the Underground Economy Whether it was the homeowner or another contractor who did the work, there clearly had never been an inspector to review the finished product, meaning no permit had ever been taken out. Did that surprise George? Hardly. He estimates nearly half of his projects are under-the-table cash jobs. And in a renovation industry whose main source of marketing tends to be word of mouth, expect the trend to continue, he says. “You technically need a permit just to change a plug, but if it’s going to cost people $100 to go through that process, they’re not going to do it above board. And most don’t even know that they need a permit for that, so if the government further educates consumers about what is required, we could theoretically see even more underground work, or more DIYers, either of which would pose a dangerous situation.” Whether it’s a failure to file or register, a failure to report a business activity or part of a business activity or income, or not reporting employment income, reducing the volume of underground became a clear mandate of federal and provincial government in Canada with the Nov. 17 tabling of the Canada Revenue Agency’s new strategy document, Reducing Participation in the Underground Economy — 2014-2015 to 2017-2018. While Canada’s tax compliance rates are among the best in the world, in 2011, Statistics Canada estimated the upper bound for total underground economy (UE) activity in Canada was 2.3% of GDP, or $41 billion. In some areas, that percentage is significantly higher. According to OHBA, the residential renovations and repair sector currently supports 182,100 jobs, while accounting for $24.3 billion in renovation activity. Prior to the implementation of the HST, “cash” renovators represented at least 37% of residential contractors in Ontario (meaning a whopping $5.2 billion of UE activity), while undermining the economy to the tune of nearly $2.4 billion in evaded taxes and revenues from CPP, WSIB, EHT and EI premiums. Beyond the billions of dollars in lost ohba.ca

funds that could have been used for a variety of projects over the past decades, from infrastructure to social services to health care, there is also the concern for the safety of homeowners. On Oct. 31, Thunder Bay contractor Gino Macchi was convicted and fined $3,750 for doing

“Homeowners don’t realize that the unlicensed person will, in many cases, make errors that will not only be costly to fix but, more important, could also cause serious injury from a shock or cause a fire that could destroy the home.” electrical work without a licence. The ESA reported in a news release that when a homeowner hired Macchi to replace an electrical panel, he had the homeowner apply for the electrical permit for the panel change in their name. As part of a routine inspection, an ESA inspector witnessed Macchi working on the panel change and recognized him as being an

unlicensed contractor. The homeowner consequently had to hire a licensed electrical contractor to complete the panel change and ensure the work met Ontario Building Code requirements. “Homeowners don’t realize that the unlicensed person will, in many cases, make errors that will not only be costly to fix but, more important, could also cause serious injury from a shock or cause a fire that could destroy the home,” Normand Breton, registrar and director of Contractor Licensing and Powerline Safety at ESA, told the CBC. Earlier that same month, Richard Hazel was sentenced in a Hamilton court to 30 days in jail—a first in an Ontario court for this type of offence—and fined $6,250 and two years probation for charges related to illegally performing electrical work, as well as $7,400 plus one year probation for violating several Ontario College of Trades’ requirements. Convictions like that are encouraging, as is the financial impact made by recent federal initiatives. In 2012–2013, the CRA audited 10,822 underground economy files, with a total dollar value of taxes assessed of $305 million, an increase of 17% over 2011–2012. Still, as the new CRA report suggests, a more concerted effort is required. On the provincial front, in November 2014, Finance Minister Charles Sousa announced the government’s intention to “tackle areas where there are schemes and practices that avoid the payment of required provincial taxes.” The Ontario government is facing a $12.5 billion dollar deficit and is taking aim at the underground economy in the hopes of bringing in an additional $700 million to the treasury over the next four years. Laura Albanese, MPP for York SouthWeston and Parliamentary Assistant to the Minister of Finance, is charged with coming up with some workable, practical solutions to tax avoidance by the spring of 2016. “Our focus is to protect both consumers and workers, while also protecting our legitimate businesses,” says Albanese. “We’re taking action to address unfair and unsafe business practices in Ontario. Our legitimate ontario home builder winter 2015

businesses suffer when not everyone is paying their fair share.” The home building and renovation industry figures prominently in the federal strategy, as evidenced by CHBA CEO Kevin Lee’s quote on page 1 of the CRA document’s Executive Summary: “The underground economy in home renovations exposes homeowners to significant risk they often don’t understand and that can threaten their financial security,” said Lee, an Advisory Committee member for the CRA project. “Furthermore, legitimate businesses suffer when they are forced to compete with those who cut corners, and don’t pay their fair share of taxes. We are pleased to be working with the Canada Revenue Agency to combat the very real harm and risks posed by the underground economy.” The “Get It In Writing!” campaign, a joint initiative with the CHBA and the Canada Mortgage and Housing Corporation, is also directly referenced in the strategy as a best practice. In a statement on its website, the CRA explains the wide-ranging effect of the underground economy: “It undermines the competitiveness of businesses that follow the law. In every community, there are honest business owners who are contributing to their neighbourhoods: creating employment, making investments in local economies and supporting community activities such as sports teams. Participating in the UE hurts them and, in turn, hurts the community. It robs the tax base of needed

When legit renovators get zapped When Richard Hazel, operating under the name of Volton Electrical Services, was convicted in October for illegally performing electrical work on Hamilton homes, his actions made life difficult for Greg Barwinski, a fully licensed electrical contractor in

ontario home builder winter 2015

“Legitimate businesses suffer when they are forced to compete with those who cut corners, and don’t pay their fair share of taxes.” funds for schools, hospitals and more.” It’s all part of addressing the behavioural factors that motivate otherwise compliant people to participate in the UE. “Among some segments of the population, participation in the underground economy is socially acceptable; we want to change that perception,” the report notes. “Littering and driving without a seatbelt were, in the past, tolerated or perceived by some to be acceptable, but—due to longstanding efforts to change social views—are no longer perceived to be

Burlington. Barwinski operates the almost identically named Voltcom Inc., which he founded in 2010. Since Hazel’s story hit the news, it’s expectedly had a negative impact on Barwinski’s legitimate business. But it doesn’t have to be that way, says Lefteris Karagiannis, principal at Mane Construction Group in Toronto, a board member of the Toronto-based Building Industry and Land Development

acceptable and are now far less prevalent. Similarly, we will seek to reduce the social acceptability of participation in the underground economy so that, over time, overall participation…is reduced.” That push will entail, among other activities: public speaking engagements and educational activities in high schools and trade schools; working with the Federal Provincial Territorial Underground Economy Working Group; publishing on the CRA website the consequences for noncompliance (from tax cheating to tax evasion and fraud); raising awareness of how the underground economy increases the burden on responsible businesses and individual taxpayers and poses risks to workers and consumers; and engaging federal and provincial partners, as well as professional and industry associations and other stakeholders to help raise awareness. Plans also include the creation of specialized UE audit teams with advanced training in identifying unreported and underreported income and creating the Atlantic Underground Economy Compliance Measurement Initiative, which focuses on noncompliance in the construction industry. “Making key investments in personnel, technology and software to support our efforts” is critical in the approach. “For me, the underground side of things is a bit like an iceberg—you see just a small part of it, but you know there’s a lot more you can’t see,” says renovator Stefanie Coleman-Dias, who

Association (BILD) and an active proponent of the nationwide RenoMark program. Founded by BILD and endorsed by CHBA and OHBA, RenoMark provides consumers with professional advice and a list of legitimate, licensed contractors in good standing. And while it has helped curb the use of cash contractors, the public needs to be better educated about the existence of the program.

“With each year that goes by, I’m seeing more recognition, but I think there’s more than that can be done,” says Karagiannis. “I know there are initiatives being put forth—national campaigns that will identify the touch points of the program: the importance of hiring a RenoMark contractor who carries $2 million of liability insurance; who supply a two-year written warranty and who have written contracts. It

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Fighting the Underground Economy founded Coleman-Dias Construction Inc. in St Thomas 10 years ago. “Recently, we were contacted by a single woman, nearing retirement, who had limited funds and was looking for repairs to correct a renovation that had gone wrong. She had hired a guy to do some renovations on her bathroom—someone who’d offered her an unrealistically low price for the work involved. Having limited experience with renovations and living on a tight budget, she agreed. In the end, she was charged double the original estimate and was left with a mess. They’d installed electrical fixtures that were not approved for wet places inside a shower. The toilet swayed back and forth. No building permits had been obtained, even though she’d asked the contractor numerous times about the need for a permit. No inspections had been carried out. She had no warranty protection. “It hurts hard-working, legitimate companies like ours, because when a ‘cash’ operator rips off a customer, everyone’s reputation suffers,” says Coleman-Dias. “Homeowners need to understand that underground operators don’t just cheat on taxes, they cheat their customers too.” Darrin Drake, a Customer Care Manager with Winmar Guelph – Orangeville, experienced similar examples in the wake of Toronto’s severe flooding in 2013. “When homeowners go with one of the insurance company’s regular contractors—companies like ours—the insurer warrants that the work will be done properly and makes sure

increases consumer confidence by showing them that these renovators are not just members of an association, but that they have a code of conduct and are held to a standard by other members, as well as BILD and the other associations.” One of Karagiannis’ best opportunities to encourage consumers to follow the proper channels is at the Destination Renovation area of the National Home Show every

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“For me, the underground side of things is a bit like an iceberg—you see just a small part of it, but you know there’s a lot more you can’t see.” the contractor delivers,” explains Drake, whose company conducts a wide range of home renovation work but specializes in disaster restoration. “However, homeowners can also simply take a cheque for the agreed amount and hire their own contractor at their own risk. And this is when the underground operators begin showing up on people’s doorsteps, offering to do the work for substantially less than the insurance payout, and offering to start ‘right away’—but they want to be paid in cash. We saw a lot of this after

spring in Toronto. “We provide free expert advice—the Coles Notes version of how to embark on their renovations or additions. When we’ve completed our chat, nine times out of 10 they are a bit overwhelmed by all the moving parts they weren’t aware of, and they appreciate us giving them some clarity amid those murky waters. “I don’t usually try to scare them that their insurance may be null and void if

the flooding in Toronto. And we saw the results—poor-quality restoration work done by fly-by-nighters—work that needed to be redone, at more cost and inconvenience to the homeowners. “At times, the underground guys were so brazen, they would go to a homeowner and tell them that, because our company was too busy, they could come over to do the work more quickly!” Drake continues. “(Too often) homeowners simply don’t recognize the risks involved—just the low price. I’m glad my industry association is working with Minister Findlay to find ways to shut down the underground.” The quickest way to address the problem, most experts agree, is a return to the Home Renovation Tax Credit. In a 2011 poll, 68% of Ontarians said a similar program would make them more likely to avoid cash deals and to pay tax. Our Mississauga contractor George would love to see the provincial government bring back the policy. Barring that, he believes that fear might be the single biggest motivating factor in fixing the problem. “Maybe the key is to put it on the homeowners—have them understand that if the house burns down or there’s flooding, or if a family member or a worker dies as a result, it’s all on them—that their insurance is null and void because they did not hire a certified contractor, get a permit and have the inspector in afterward. That realization might encourage people to be more protective. It’ll never get everybody, but it’ll get a lot more people on board.”

something goes wrong, but explain that there are a lot of players involved that you have to account for,” says Karagiannis. “You have the insurance company, the City of Toronto or your local municipality. Aside from having quality work done, you have to make sure the work is done in accordance with all applicable jurisdictions, because if something happens to you or the contractors working on your home, you could be liable.

A lot of homeowners don’t understand that when they’re hiring licensed contractors they are protecting not just their assets, but the workers too. “I try to explain to consumers that if they don’t have a paper trail, where everything is spelled out clearly to protect their assets and all parties involved, including their own families, it is very hard—and very expensive—to prove their case afterward.”

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Fighting the Underground Economy

Faking ’em out

Tarion takes aim at Ontario’s illegal builders By Marc Huminilowycz

You’re a reputable home builder who quotes a client on the construction of their new home. Your bid is not accepted, and you find out later that the client has applied for a building permit themselves and hired another contractor. What’s wrong with this picture? According to the residential building industry, this scenario is likely an indication of illegal activity known as “fake owner builds” (FOBs). The province’s New Home Warranties Plan Act, regulated by the Tarion Warranty Corporation, requires all new home builders to register with Tarion and pay a nominal fee for every new home they build. However, the rule does not apply to individuals who build their own homes. This is where the problem arises. In order to avoid paying Tarion fees, some contractors are encouraging their clients to secure building permits themselves. Across the province, a growing number of shady builders are working under the radar, choosing not to register with Tarion and bypassing Tarion fees for the sake of securing new-home contracts by saving their clients money. Illegal building is a growing trend that worries Ontario’s builders, the OHBA and Tarion and Ontario’s municipal building officials. It is a frustrating practice for reputable builders trying to compete with others who are not playing by the rules. And it can lead to serious liability issues for consumers if their illegal contractor’s workers are not insured for injuries on the job by the WSIB. Fake owner builds appear to be particularly prevalent in Sudbury, according to Phil Monkhouse, president of the Sudbury & District Home Builders’ Association and owner of Monkhouse Homes. “Almost 50% of homes built here are registered for building permits under a private name, which makes us suspicious,” he says. “Illegal building is a big problem in Sudbury, and it’s been growing over the years. Our members, who are all registered with Tarion, are losing a lot of business because of it. We’re playing by the rules and some people just ignore them.” From a personal perspective, Monkhouse cites numerous instances where his company has failed to secure building contracts—on private land and in new residential developments— ohba.ca

because the owners chose to build themselves. He attributes the growing trend to the rising costs of building. “When you factor in the HST, the rising cost of land, increasing development charges and constantly changing building codes, it’s becoming more and more expensive to build and people are looking for ways to save money,” he says, noting that fake owner builds are particularly prevalent in Sudbury’s cottage country—a “grey area” where, in some cases, buildings do not have to be registered with Tarion. As reputable builders, Monkhouse feels that he and his fellow association members are doing their part to curb FOBs by reporting incidents of illegal building. “We understand that finding illegals is difficult, and that Tarion is doing a good job of enforcement across Ontario,” he says. “But with the power to penalize offenders, we’d like to see Tarion set an example in Sudbury by focusing on better investigation and enforcement, as well as realtors selling illegal builds.” This past summer, Tarion and OHBA representatives visited Sudbury and met with Phil Monkhouse as part of a provincewide tour designed to educate consumers about the provincial new-home warranty program and the risks associated with illegal building. Tarion President Howard Bogach admits that finding illegal builders is not easy, and that trying to cover all of Ontario is challenging. “It’s like trying to nab dangerous drivers on Hwy 401. Only a few get caught,” he says. According to Bogach, every homeowner in Ontario is legally entitled to a warranty on their new home. Tarion-registered builders pay a premium on each new home they build. The warranty—costing the builder a fee ranging from $385 to $1,500 plus HST—is passed on to the homeowner, and it stays with the home for seven years. In the event of a claim, it could be worth up to $300,000 to the client. Yet many unscrupulous ontario home builder winter 2015

What you can do to help stop illegal builders

is responsible for enforcing the Act and managing a guarantee fund to ensure that builders’ warranties are honoured. Under the Act, fines of up to $100,000 can be imposed by Ontario Courts. Worse, convicted offenders may be imprisoned up to one year or placed on probation. In addition to receiving tips from the public, reputable builders and suppliers regarding suspect building activity, Tarion utilizes an intelligence-based software system and its own enforcement team that works with municipal building officials, the Ministry of Labour and Ontario’s local home builders’ associations to investigate and charge illegal builders. Thanks to the provincial Good Governance Act (Bill 212), municipal chief building officials are required to disclose to Tarion every building permit they issue. “This helps us, but it’s after the

“Illegal building puts homeowners at risk and harms reputable builders. It creates an unbalanced playing field.” photo: courtesy sudbury star

contractors refuse to register with Tarion, promising instead to save homeowners money by offering their own questionable warranties or recommending that their clients apply for building permits themselves. “Illegal building puts homeowners at risk and harms reputable builders. It creates an unbalanced playing field. If you’re not playing by the rules, anything goes,” says Bogach, who also notes that the issue, while prevalent in the GTHA, is particularly worrisome in rural Ontario. Bogach claims that illegally built homes often do not meet Ontario Building Code standards. They may be constructed with inferior materials installed by unqualified trades. They might even contain stolen appliances or fixtures. Tarion has a legal mandate to provide warranties for all new homes built in the province, even those considered illegal. Yet many buyers of illegal builds are unaware that they are entitled to warranty support. According to Howard Bogach, Tarion pays about $1 million per year in claims related to illegal building—roughly 10% of all its claims. Although enforcement has been challenging, Tarion’s record of illegal-build investigations and fines has improved significantly over the years. January-through-September 2014 convictions and fines numbered 135 and $320,000, respectively, compared to 51 convictions and $167,000 in fines for the same period in 2013. Of particular note, Ancaster’s Ranjay (Roger) Singh of Rocket Homes and Property Management incurred a $25,000 fine last February after failing to register as a builder and to enroll two homes with Tarion. He had been refused registration in 2010, but kept on building. That same month, Tarion levied one of its largest penalties ever when Brockville contractor David Alexander Parken of Awela Incorporated (operating as Project Management Plus) was fined $81,250 for failing to register as a builder and enroll two homes with Tarion. After a Tarion inspection, it was concluded that one of the homes contained 21 deficiencies requiring repair. Tarion is a private corporation that protects new home and condominium buyers according to the terms of the Ontario New Home Warranties Plan Act. The Act requires every builder in the province to provide warranty coverage to homebuyers, stipulating that they must register with Tarion and enrol every housing unit prior to the start of construction. The corporation

Phil Monkhouse of Sudbury’s Monkhouse Homes joins OHBA President Vince Molinaro and Tarion President Howard Bogach during a Sudbury house tour.

get informed

Have your prospective clients look at Tarion’s licensed Ontario Builder Directory at tarion.com before signing any contracts. The Directory lists all registered builders in the province and provides a 10-year history and whether their licence has been refused or revoked. Put this on your company literature, on your website and your Facebook page. stay up to date

Check Tarion’s website for a monthly list of recently convicted builders. Report

If you suspect illegal activity, call (800) 786-6497 or email enforcement@tarion.com.

ontario home builder winter 2015

ohba.ca

Fighting the Underground Economy fact,” says Bogach. “We are now in discussions with the Ministry of Municipal Affairs and Housing about requiring owner builders to provide an authorization letter issued by Tarion to the Chief Building Official as part of the application materials. This allows us to become the gatekeepers of this information, help us to continue to identify repeat patterns and ultimately try to prevent illegal building before it starts. Rather than policing, we would like to play a more preventive role.” “The government has indicated they would like to see a decrease in illegal building activity and Tarion is working on proposals that would help to achieve that,” notes Mike Memme, Chair of OHBA’s Tarion Liaison Committee and Operations Manager at Mountainview Homes. “From the OHBA perspective, we would like to see a system where residential permit applications for new builds require a registration number from Tarion before building departments accept them. In the case of registered builders, this would be their enrollment number. In the case of owner builders, this would be an exemption number given to them by Tarion. We believe this would be easier for building departments to administer than the current reporting system and would be more effective at decreasing illegal building activity. If a system like this were to move forward, we would be willing to work with Tarion with any municipalities interested in testing the new system before launching it province-wide.” Illegal building is a province-wide problem, but it can hit close to home, as even Bogach admits. His close personal friend, a successful professional, opted to save money and hire an illegal contractor to build his new home. Promising to save him $10,000 in construction costs, the builder convinced the friend to apply for a building permit himself, thereby avoiding a Tarion warranty by registering the home in the owner’s name. In a sense, the friend assumed the role of a consultant in the building process. Now, according to Bogach, he is experiencing serious construction issues with his illegal builder. In Port Dover, Brian Bunting, past president of the Haldimand Norfolk Home Builders’ Association and owner of Prominent Homes, had his own close encounter with an illegal builder. “This guy built a home right next door to me,” Bunting explains. “The homeowners assumed they had a warranty, but they didn’t. Now

Tarion Activity Increasing

New Investigations Active Investigations Charges Laid Convictions Fines Levied

there are problems on the construction site.” Other than this recent experience, Bunting can recall only one other incidence of illegal building in his part of Ontario in the past year (a contractor was red-flagged through the local building department), but he admits that the practice could be a serious issue for his company and other HNHBA members. “Customers assume they have a warranty, but they’re not being looked after,” he says. “It’s not fair for companies like ours who play by the rules. If this kind of activity increases in our region, it could impact us in a big way.” When Prominent Homes originally applied for Tarion registration, Bunting says that Tarion training and testing were thorough and rigorous, involving proficiency in various areas, including accounting, building code knowledge and technical competence. Bunting scored high, meaning that the security deposit he paid to Tarion upon registration was on the low end of the scale—typically $10,000, refundable to the builder with interest. Tarion requires builders to pass a written test based primarily on their knowledge of the Ontario Building Code and their technical competence. The deposit amount varies according to their competence and score. “We’ve been in business since 2000, and we have an excellent reputation for quality,” Bunting says. “If there’s ever a problem, we look after it ourselves.” Tarion and OHBA local associations agree that reputable builders in Ontario are doing a good job of resolving warranty claims by working directly with their clients. From an ethical perspective, it makes sense for builders to ensure the quality of their construction. From a business perspective, the practice helps builders to maintain their good name and reputation in the community. Comparing the complexity of today’s new-home construction to modern cars, Tarion’s Bogach notes a trend to view residential building as a profession versus a trade. “There was a time when you could change the oil in your car yourself,” he says. “Today’s vehicles, like new homes, are integrated systems that require professional knowledge and care. Just as car manufacturers back their products with comprehensive warranties, reputable builders enrolled with Tarion offer homeowners peace of mind for the long term.” OHB

2014

2013

Jan. through Sept.

77 248 199 135 $320,000.00

97 269 128 51 $167,000.00

(incl. victim surcharges) Source: Tarion Warranty Corporation 2014

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ontario home builder winter 2015

THANK YOU TO OUR SPONSOR PARTNERS

Better building

Hit or Miss? How to get today’s lenders interested in your proposal By Paul Rayment When you’re looking to get a small

to medium-sized building project off the ground, it pays to distinguish the hits from the misses. The last thing anyone wants to see is a fully serviced subdivision sitting vacant for three years or a poured concrete foundation lying covered in weeds behind a chain-link fence. Yet it happens. It’s a matter of understanding your market, identifying the type of product that will work there and steering clear of those that won’t. In other words, listening to your head even when your heart says otherwise. You may be dreaming of a 50-unit condominium complex on a golf course in Ontario cottage country, but if the absorption rate is low, it’s a bad investment—and you should know that before approaching lenders to investigate financing options. There are some great construction opportunities available across Ontario right now. Areas surrounding the Greater Toronto Area and near London, Kitchener/Waterloo, Guelph, Ajax, Hamilton, Stoney Creek and Burlington are all expanding, with ohba.ca

ample room for new ideas. To bolster your odds of hitting the mark with a project investors will back, consider the following:

tion on a bus route in a town that’s vibrant and growing, and is within close proximity to a thriving urban centre, a mixed-use condominium makes sense.

Know your market.

Be early, not first.

Early on in the planning stages, you’ll want to get feet on the ground and do your due diligence. Is the economy growing? Is public transit easily accessible? What’s the employment rate? What are town planners saying about growth plans? All of this information is readily accessible and should be included with your building proposal.

There are always those who try to be pioneers. But the first in rarely gets the premium price out. To maximize your investment, aim to be just behind the leaders. Condominium developers, in particular, are hedging their bets in urban fringe areas near the GTA. If you decide to move into new territory with a new product, you can expect most lenders to set a presales threshold.

Do the supply/demand analysis.

There’s no value in moving forward with a single family residential infill project when the competition has standing inventory already reduced to sell. If you need to obtain $600 per square foot to meet your profit margin and they’ve artificially depressed their prices to $400 to get things moving, you’ll have a difficult case to make. On the other hand, if you’ve discovered a great loca-

An idle project is a losing investment.

Long before you enter the building phase, you’ll need to prepare your exit. The goal is to get in and out as quickly and efficiently as possible, which might mean selling off end units or seeking tenants. Investors will want to know how and when they can expect to be paid. A well-thought-out exit strategy is expected. ontario home builder winter 2015

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Better building

Put emotions aside.

At the end of the day, regardless of how proud you are of your design, workmanship and overall concept, your building project is a business proposal. And it needs to be treated as such. If a lender does the math on your project and finds it doesn’t add up, best to heed the warning. One client came to us with plans to build a penthouse unit on an existing small condominium building. It took three years and multiple appraisals, but we finally convinced the developer that given his cost to build, there would be little to no profit in the project based on a realistic value upon completion. Time for a reality check. There will always be an element of speculation associated with new construction. In general, look for areas where the cost of entry is low (land is inexpensive), demand for end product exists and the supply is limited. Foremost Financia l has recent ly financed a client in Guelph who sold 10 out of 16 units within hours of opening sales. The product is a four-storey mixed-use condominium with three floors of residential units above the ground floor commercial space, and on a main artery. The cost of entry is less, the competition is less and the demand is high. As part of their proposal, they included information to point to positive economic signs in the area, including strong employment rates. We have also financed some specialty projects in Brampton and Ajax that hit all of those marks. Not only did the developer’s numbers make sense, but the product—a branded self-serve gas station/convenience store, coffee shop, stand-alone restaurant and car wash combination—is well-suited to a growing commercial and residential area in both locations. A lender’s decision on whether or not to finance a building proposal is based on the merits of the project as well as the builder’s track record. In the end, we’re both looking for the same thing: to build a long-term, profitable partnership— one with a lot more hits than misses. Paul Rayment is a VP at Toronto-based Foremost Financial Corporation, a boutique first-mortgage lender specializing in infill construction financing for residential, commercial or industrial projects. ohba.ca

A new way to put out the trash EarthBin introduces aesthetics and efficiency to an old problem Those standard unsightly out-

door waste bins, overflowing with garbage and nasty smells, could be a thing of the past if Barrie-based EarthBin has anything to say about it. Aesthetically pleasing, durable and environmentally friendly, EarthBin offers a progressive approach to waste management—a completely sealed outdoor litterbin and waste collection point in one package that allows for easy depositing of garbage bags, trash, litter and recycling. And with a sealed-link design

that contains unpleasant aromas typically associated with such containers, there are far fewer animals and insects to worry about. Fitting through a concrete pad base, the handsome container’s lower portion is buried six feet into the ground, where the bulk of the waste is concealed in a plastic bin. A polyethylene sleeve acts as a secondary containment system. Above ground, the container measures 80 inches wide but just 43 inches in height. Easy to load, it has two large feed doors ontario home builder winter 2015

Introducing Amdry, the only insulated subfloor panel with integrated moisture resistant film and raised drainage channels.

that open upward and are held open by sturdy steel struts. The lid is secured with automatic-locking feed doors that prevent illegal dumping into your bin. Constructed of tough and durable polyethylene and corrosion-resistant galvanized and stainless steel, the bins can be emptied by standard front-load garbage trucks without the driver ever having to get out of the truck. The design ensures that all liquid and solid waste cleanly dumps into the truck—and much more quietly than standard steel containers—while the lid automatically locks back into place once the container is placed back on the ground. Companies already employing the new design include Minto Group, Belmont Equity, the University of Guelph, the City of Toronto, Peel Region, the Waterloo Region, Union Gas, Esso, A&W, Harvey’s, CentreCORP and VANDYK residential and commercial properties. earth-bin.com

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New siding measurement comes out on top A partnership between CertainTeed Corporation and EagleView Technologies, a premier technology provider of aerial imagery, data analytics and GIS solutions, is providing CertainTeed-credentialled siding contractors access to the latter company’s state-of-the-art, 3D wall measurement reports for exterior projects, including siding, windows, doors and painting. The full colour, high-res photos and clean, organized presentations and diagrams assist in timely information-gathering, reduce overall costs and increase efficiency and productivity of ohba.ca

business operations. “EagleView is already well known in the roofing industry for its unique aerial measurement services that save contractors time and money by allowing them to walk into the home with all of the details of the project,” said Matt Gibson, director of channel marketing for CertainTeed Siding. “When they developed the same technology for siding, we knew it would be a great benefit to our contractor—so that they could spend less time measuring and more time closing sales.” The tablet- and laptop-friendly, patented wall-measurement tool eliminates the need for multiple trips to the property by having the measurements before visiting the jobsite, while improving accuracy versus traditional hand-measuring for walls, windows and doors. Overall costs are also reduced for inspections and estimating, resulting in increased customer satisfaction and fewer siding replacement and repair claims. certainteed.com; eagleview.com

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Exploring the Italian experience in Toronto residential construction Early Italian immigrants had a significant hand in shaping the current landscape of Toronto’s construction industry, accordohba.ca

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ing to a new book by Stefano Agnolett: The Italians Who Built Toronto: Italian Workers and Contractors in the City’s Housebuilding Industry, 1950-1980. The book explores what Agnoletto dubs the “Italian experience,” where a large wave of Italian immigrants made their way to Toronto during the ’50s and ’60s and worked in construction, particularly the residential sector. “In my opinion, the most important reason why Italians concentrated in the construction industry was because it gave the opportunity to enter the labour market,” says Agnoletto. “Basically, Italians were pushed into that sector because it was the only sector where they could find jobs.” According to the book, 60% of workers in the ’50s and ’60s who worked in the residential sector had Italian roots. The average income for Italians working in Metro Toronto’s labour force was $4,520 in 1960-1961, the lowest compared to other ethnic labour groups, including British, French, Jewish, German and Ukrainian. Italian women brought in just over half of that, averaging $2,394. Working in the residential sector, the Italian niche exposed a dark side of working in a non-unionized sector, which included poor working conditions and worker exploitation. Notably, in 1960, five non-unionized Italian construction workers died while installing a watermain underneath the Don River at Hogg’s Hollow. The news sparked an explosion of emotion in the Italian community and caught the attention of mainstream media as well. The incident became the catalyst to form the Brandon Union Group (BUG), an organization made up of five locals representing residential construction workers. They went on a three-week strike in 1960, pushing for better working conditions, fair pay, a 40-hour workweek and welfare benefits. A second strike led to the Goldenberg Commission, a group of official representatives of international unions in the construction industry. The report recommended a minimum wage, higher vacation pay, maximum hour rules and stricter safety provisions. “After the strikes in 1960 and 1961, we had the first important law on security in the construction industry and we had the first contract in the construction 72

ontario home builder winter 2015

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industry,” says Agnoletto, who currently teaches Business History at the Bocconi University of Milano in Italy.

“The Mesh Book” goes online It’s around the world adding artistry to buildings, reducing the risk of accidents and exposure, and helping people relax on the patio after a hard day. Now, Tyler Mesh is online to provide easy-to-access information and inspiration for design, architecture and construction professionals. Like the book, the online edition of the St. Catharines-based W.S. Tyler product is a resource that features unique designs and facades created with the company’s architectural woven wire mesh—an eyecatching, durable and long-lasting material used to create one-of-a-kind spaces and structures in both commercial and residential projects, as well as indoor and outdoor furniture. It’s formed with either stainless steel or high carbon steel and can provide years of aesthetically pleasing detail with no maintenance in both interior and exterior applications. tylermesh.com

Do you have designs on greatness? The Ontario Association of Architects (OAA) is now accepting entries for the 2015 OAA Awards. This year, the OAA is emphasizing the importance of submitting multi-unit residential and mixed-use projects, including condominium buildings, for the awards.

Complete Accessibility Specializing in residential and commercial accessibility since 1985, Motion Specialties offers the largest selection of mobility equipment to suit any application. Explore our stairlift, vertical lift, and elevator offerings to provide complete accessibility throughout your home or business. 416.617.6326 | elevating@motionspecialties.com | www.motionspecialties.com

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2014-08-18 12:50 PM

Cut Insurance Costs Not Coverage Builders can save 20-30%

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“As populations continue to grow and shift back towards urban centres, architects will need to present creative residential structures that promote density and accommodate mixed uses while engaging within their given context and environment,” says OAA President Bill Birdsell. “It’s important to recognize the architects who are designing exceptional and diverse expressions of our modern lifestyle.” The OAA is also emphasizing that anyone, including developers, industry partners and members of the public, can get involved and nominate a deserving project on behalf of the architect. The OA A Awards highlight the best in architectural design and innovation by Ontario architects, recognizing both emerging talent in the industry as well as some of the province’s most established architectural firms. The deadline for submission is January 26, 2015 at 4:30 p.m. Award recipients will be honoured at the Celebration of Excellence Awards Ceremony at the OAA Annual Conference in Hamilton from May 6-8, 2015. Submission categories include: • Best Emerging Practice • Design Excellence • Sustainable Design Excellence • Lieutenant Governor’s Award • G. Randy Roberts Service Award • Concepts • Honour Roll • Landmark Designation • Lifetime Design Achievement • Order of da Vinci • People’s Choice For full category details and eligibility criteria, please visit oaa.on.ca or call (416) 449-6898.

ontario home builder winter 2015

ohba.ca

product focus

Running Hot and Cold The heat’s on as manufacturers strive for the ultimate in energy efficiency By dan o’reilly

Heating and cooling manufacturers in Canada continue to strive to provide innovative products and solutions to the dual ‘very-hot and very-cool’ climate in this country. In that pursuit, the industry is challenged by the approximate sizing for heating and cooling products, says Warren Heeley, president of the Heating, Refrigeration and Air Conditioning Institute of Canada. ohba.ca

With the increased movement towards more energy-efficient houses, heating and cooling units and systems have become smaller. “But how small can they be? It is a real challenge,” says Heeley. At the same time, the industry has risen to the challenge of designing and creating highly efficient products. With AFUE (Annual Fuel Utilization Efficiency) ratings now in the high 90s, there’s not much room to make further improvements. However, there is an increased focus on the distribution side of heating and cooling and how the numerous components of systems are integrated and work together, says Heeley. To meet that focus, the Institute offers a commissioning course as part of its ongoing two- to three-day training courses, he points out. “Heating and cooling products are applied products. They’re not like a refrigerator, which you just plug in and it works.” You might even call them applied science, given the technology of some of the following models from the industry’s leading manufacturers. ontario home builder winter 2015

product focus

Let there be (controlled) light

Dupont Tyvek Thermawrap R5

House wrap also insulates

Launched in Canada this past September, Dupont’s new and “revolutionary” Tyvek Thermawrap R5 provides continuous R5 exterior insulation, as well as its traditional air and water barrier protection. This dual-benefit feature has been achieved by attaching the insulating blanket to the Tyvek topsheet in one roll, thus reducing thermal bridging and heat loss. Its unique breathability allows any moisture that might get inside the wall to dry and escape to the outside. In turn, this helps to prevent water accumulation and reduce the chance for damage and mould. Using Thermawrap also gives builders the opportunity to strive for International Energ y Conser vation Code (IECC) requirements without dramatically changing their building methods, says Dupont. dupont.com

Baxi Luna Duo-Tec

velux.com

Furnace is quiet and efficient

The new 360⁰+1 product line of furnaces from Rheem are efficient, easy to insert and easy to service. Included in the product line are two builder-focused Energy Star-certified models. They include the R95T 95%-efficient single-stage furnace with a constant-torque ECM motor and the 96%-efficient two-stage R96V unit, also with an ECM motor. The variable-speed motor contributes to a quiet, more efficient operation and has been engineered to provide better humidity control while consuming less power. A pivotal feature is a patented drain sensor that shuts off the furnace when a drain is blocked, preventing water spillage and potential water damage. Rheem suggests the 360⁰+1 furnaces are the quietest on the market. rheem.com

A gas boiler for the (cold) times

With memories of last winter’s harsh conditions still vivid, there are good reasons for installing the gas-adaptive Baxi Luna Duo-Tec boiler in new homes. Up to 98% energy efficient, it can save homeowners a minimum of 35% in annual utility costs, says Marathon International, the exclusive North American distributor. The boiler is teamed with a hydronic air handler that distributes hot or cool air on demand, as well as supplying 3.9 gallons per minute of domestic hot water. It is also ideal for a range of applications, including in-floor radiant, hydro air, radiators, towel warmers and snowmelt systems, says the distributor. The unit should be installed by a qualified heating and plumbing installer with gas experience.

Bringing natural light into a house is critical, especially during the long winter months. But how that light is managed is just as important. The Velux Skylight Blinds collection includes a wide range of colours and patterns in three different styles. Easy to install, they can be controlled manually or by solar power with a smart-touchscreen remote. The blinds make a dramatic statement in any room and can improve the energy efficiency of the skylight by up to 45%.

Velux Skylight Blinds

Rheem 360⁰+1

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product focus

Unit provides two-stage heating

Emerson SensiThermostat No more wasted heating

Homeowners don’t have to worry about wasted heating and cooling if their house is equipped with a Sensi Thermostat from Emerson Climate Technologies. Backed with a five-year warranty, the device allows you to control heating and cooling at any time and from any location. A Sensi application, which can be downloaded for free on smartphones, tablets or personal computers, connects the thermostat with the home wifi router. The thermostat is easy to install and a “C Wire” is not required in most HVAC connections, says the manufacturer. When not connected to wifi, the Sensi operates like a standard thermostat. emersonclimatet.com

Notwithstanding last year’s severe winter, the heating season in most of Ontario isn’t one long continuous blast of subzero temperatures. For that reason, homebuyers may eventually thank their builder for installing Napoleon’s two-stage and variable-speed, energy-efficient 9600 gas furnace. At 96% AFUE, the 9600 will operate on low fire throughout most of the season. During colder temperatures, the furnace will independently switch to the second stage to generate more heat. Ultimately, the balancing of the heat production results in quieter operation cycles, less energy consumed and a more comfortable home environment, says the manufacturer. napoleonproducts.com Heat pump delivers comfort

Steel-Craft Contemporary Series

Designated as one of the Most Efficient Energy Star-qualified products in 2014 and delivering an efficiency rating of up to 23.50 SEER, the Lennox XP25 heat pump maintains ideal temperatures and perfect humidity. A precise comfort technology adjusts fan speed, heat and airflow capacity in increments as small as 1%. Similar to the cruise controls on high-performance cars, the variable-capacity inverter automatically makes adjustments as needed. The upshot for homeowners is that they will save hundreds of dollars in energy costs. lennox.com

Steel door is stylish and strong

Desig ned for use in Ca nad a, t he Contemporary Series insulated garage door has the look, feel and texture of real wood without the maintenance involved. The climate-ready door won’t require staining or painting and will not warp, and its flush clean finish meets a growing homeowner demand for designer-inspired models, says Steel-Craft Door Products. High-quality Canadian galvanized steel finished with exterior polyester paint is used in the manufacturing process. The paint acts as a barrier that protects the underlying zinc coating and extends the life of the door. As well, high-grade perimeter weatherstripping provides protection from the outside elements, while a continuous weather seal between each section prevents air from getting through. steel-craft.ca 78

ontario home builder winter 2015

Napolean 9600

Lennox XP25 ohba.ca

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JOIN THE OHBA TEAM OHBA invites member companies interested in supporting the work of our provincial association to join our elite team of corporate partners. Creative customized partnerships designed to support your marketing objectives are available for a variety of OHBA events and programs. To learn more contact Sajida Jiwani at OHBA offices:

SJIWANI@OHBA.CA

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ontario home builder winter 2015

product focus

A generator with stamina

On new-home projects, contractors need heavy-duty portable generators that can provide power wherever and whenever needed, while withstanding tough site conditions. Equipped with an Isuzu 4LE engine and a diesel oxidation catalyst, Atlas Copco’s QAS 25 is mounted on a durable frame and surrounded by a robust enclosure formed from galvanneal steel and powder-coated for a long-lasting, scratch- and corrosionresistant surface. The durability, quality and dependability of its interior components give it one of the highest resale values in the industry. Comfortable, reliable and easy to use, the QAS comes standard with two-wire remote start capability and features a 72-gallon fuel tank for a 45-hour run time. atlascopco.com

UltraMaxx Thermal Meter Measuring energy consumption

Engineered to measure the amount of heating or cooling consumed by each unit, the UltraMaxx Thermal Meter is a strategic piece of equipment for condominium developers and builders. Since direct in-suite billing usually leads to less energy consumption, they can market the building’s lower maintenance fees and operating costs. The meter can be installed in buildings with centralized hydronic HVAC systems at the construction stage in the fan coil or heat pump unit, says EnerCare, the installer of the Swissmanufactured device. The Torontobased firm provides onsite consulting services. enercare.ca

Radiant floor heating made easy

Goodman GMVM97

A furnace with performance

With a 97% AFUE rating and equipped with a variable-speed circulating blower, the Goodman GMVM97 modulating gas furnace maximizes indoor comfor t and minimizes energy costs. In comparing it to a single-stage unit, the manufacturer explains the GMVM97 ty pically operates at the lowest possible speed to precisely maintain a constant, steady temperature. The high performance is achieved through the combination of a heavy-duty, tubular aluminized-steel primary heat exchanger and a stainless steel secondary heat exchanger. Other features include a quiet, variablespeed induced draft blower, a durable 110-volt silicon nitride igniter and a self-diagnostic control board.

Atlas Copco QAS 25

A new insulating panel for hydronic radiant floor heating systems has been rolled out by Amvic Inc., a manufacturer of Expanded Polystyrene (EPS) building products. Not only will it provide homeowners long-term comfortable energy, the Insulated Radiant PEX panel is easy to mount. An oversized, four-sided tongue-and-groove interlock system makes for quick, easy and secure fitting. Designed to accept 3/8-, 1/2-, 5/8and 3/4-inch PEX pipe sizes, the panel nubs form a mushroom shape that locks the piping firmly into place. Heating subcontractors or plumbers can easily insert the piping by simply by walking on it. The innovative patented panel design will ensure the piping will be completely encased in concrete and not pushed to the bottom of the panel. amvicsystem.com

Amvic Insulated Radiant PEX

goodmanmfg.com

ontario home builder winter 2015

ohba.ca

product showcase

Beaver Valley Stone offers the largest selection of natural stone and precast products in Ontario, including flagstone, both random and saw cut. We also have many different types of drywall, ledgerock, natural stone steps and sills. Our precast concrete products include patio slabs, sills, steps and curbs. We also offer a wide selection of interlocking paving stones and retaining wall systems, from a variety of manufacturers. Accessories available.

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The Interior Foundation Drainage System Be sure to use the Leak-Bye interior foundation drainage system. Used by award-winning builders, Leak-Bye diverts inside moisture from foundation leaks and condensation to the floor slab drainage system below. Leak-Bye, your best defense against water penetration.

Leak-Bye Incorporated

RR#3 Mt. Forest, Ontario N0G 2L0 ATTN: John Plume Toll Free: 1-800-393 LEAK (5325) Tel: (519) 323-4123 Fax: (519) 323-4793

Build Enjoyment!

Luxury Custom Renovations Custom Bathrooms • Kitchens • Wine Cellars • Built-ins Dressing Rooms • Custom Millwork 416.806.2232 • info@torontocustomconcepts.com www.torontocustomconcepts.com 1750 The Queensway Suite#1101 • Toronto, ON • M9C 5H5

ohba.ca

1 888 644 2844 www.almarvinyl.ca

VINYL IS FINAL

FENCE • DECK • RAIL ontario home builder winter 2015

outside the box

Colouring Winter Blues While you can’t beat Mother Nature, a few bright ideas can improve your emotional climate BY avi friedman Among the trade-offs that Canadians make in northern latitude is the partial loss of daylight in wintertime. We, of course, are compensated with longer summer days. But the combination of harsh cold and dark days can be overwhelming. Winter blues in nordic nations are known to influence daily behaviour and mental health, as we tend to spend more time indoors. The relationship between people’s moods, interior design and colour scheme has been well documented. But we often tend to decorate our homes as if we resided down south and enjoy plenty of light year-round. We forget that our immediate surroundings largely affect how we feel. Colours can play an important role in influencing our emotional climate. Several studies have examined the psychological effects of colour. Generally, “cool” tones (green, blue and violet) are known to have a calming effect, while warm colours (red, orange and yellow) are often thought of as making people agitated or even aggressive. Before guests appear on a TV talk show, for example, they relax in a specially painted 82

ontario home builder winter 2015

greenroom. Many hospital interiors also have light-green walls to soothe patients’ nerves. Yellow rooms, on the other hand, have been shown to make babies cry more and adults become impatient. Even the texture of a wall or flooring can plays a role. Rough textures, such as unfinished wood, dark upholstery, carpet or brick, absorb more light and create shadows, while smooth surfaces reflect light. Although it seems to follow that light, smooth surfaces should be used in small spaces, employing a carefully selected variety of colours and textures in a small space can create an environment that feels spacious but also possesses visual interest and character. Creating a white hospital-like setting is not necessary if careful balance is employed. When selecting interior finishes for a home with dark winter days in mind, it is important to conceive of the spaces as parts of a whole rather than a series of separate areas. Keeping colours, textures and detailing to a minimum will help create an area that does not feel cluttered or congested, thereby helping to alleviate sad and dark

winter moods. One particularly effective strategy is to use a single floor material for the entire interior, or at least materials within the same light tonal family. Doing so will help spaces blend into one another, drawing the eye from one space to another and creating the illusion of a larger, less cluttered space. When it comes to wall openings, large windows on a south facade will let in more light. Preferably, the functions along a south wall will be the kitchen or the living room, where family members spend more time. Heavy dark curtains should be avoided. People tend to leave them closed most of the time, not realizing that they may gain privacy but lose precious daylight and therefore affect their spirit in a negative way. There is very little that we can do about the weather. Our interior design choices during the winter, however, can at least affect the way we feel on the inside. OHB Dr. Avi Friedman teaches architecture at McGill University. He can be reached at avi.friedman@mcgill.ca. ohba.ca

WE BUILD

COMMUNITIES

BUILDING OUR LABOUR MANAGEMENT PARTNERDHIP FOR OVER 30 YEARS

Ontario Provincial District Council

ohba.ca

With over 75,000 members across Ontario, LiUNA is

LiUNA’s contribution to building communities exists

committed to building communities throughout the

in the low rise residential construction sector. Repre-

province. Our members are employed in all sectors of

sented by LiUNA Local 183, it is the largest residential

the construction industry: building our roads & bridges,

construction Local in Canada, with more than 40,000

installing our sewers & water mains, developing our

members and retirees. Local 183 is the leading source

pipelines, channeling our energy sources, and expanding

of skilled Labourers, who have built homes for Ontario

our recreation facilities, hospitals & schools.

families for decades.

ontario home builder winter 2015

visit www.local183.ca • www.liunaopdc.org today

Still the Team You Can Trust

Our commitment has always been to offer you the best advice and solutions for your water heating and HVAC needs.

Direct Energy Home Services is now EnerCare Home Services†. Our name has changed but our commitment, focus and experienced team have not. Service & Value:

Experienced account managers offer you the best solutions for your needs.

Innovative Products:

Extensive energy-efficient water heating and HVAC equipment, as well as air handlers, propane & electric water heaters and HRVs.

Experience & Support:

Commitment:

Exceptional technical and professional service, with Same Day Service* for your customers.

Same Day Service*:

When customers call by 5pm for a water heater repair, we’ll be there as fast as the same day.

Over 700 licensed, highly-trained technicians and a dedicated builder support phone line.

Contact one of our Account Managers for a free one-on-one consultation: Port Hope to Cornwall Peterborough & Kawarthas

Ottawa & Valley

Barrie, Durham & GTA North

GTA Central

Southwest Ontario

GTA West – Niagara

Southwest Ontario

Gord McCrady 866-205-5367

Linda Oliveri 866-895-0223

June Thomson 905-717-6264

Carole Solway 416-347-9982

Dennis Mortlock 888-883-0133

Laura Bonise 647-227-1359

Peter Boker 519-521-0595

For more information on the transition, go to DirectEnergy.com/EnerCare On October 20, 2014, EnerCare Home and Commercial Services Limited Partnership (“EnerCare Home Services”) purchased Direct Energy’s Ontario home and small commercial services business. *Available to rental water heater customers whose equipment is not operational (i.e. – no hot water). On average we attend to water heater non-operational calls 90% of the time the same day. TMDirect Energy and the Energy Bolt Design are trademarks of Direct Energy Marketing Limited, used under license. TM EnerCare Home Services is a trademark of EnerCare Home and Commercial Services Limited Partnership, used under license. †