COVID CASE FILES: THE PANDEMIC HAS GIVEN RISE TO NEW LEGAL ISSUES P.39 DANGER ZONES: DIGGING INTO WORKER SAFETY P.45
GOING ONE-ON-ONE WITH HOUSING MINISTER STEVE CLARK P.17
COULD THIS PROJECT SIGNAL A NEW ERA FOR MID-RISE WOOD? P.26
UP IN THE AIR The highs and lows of building in 2021
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Contents
32 Soft Landing
There is a silver lining to the COVID-19 economic forecast
39 COVID Case Files Five legal issues the pandemic has brought to the fore
26 Cut Above
Could this innovative pilot project clear the path for mid-rise wood? 9 One Voice Anxiety is high as 2021 dawns, but provincial support has given builders the tools to meet the coming challenges.
17 Inside Storey Housing Minister Steve Clark recalls his first home, while trying to help builders meet the demand for new homes.
11 Ontario Report HSAP conference recap, a big move within OHBA, your 2021 presidents list, and are you ready for the HRCA/Tarion division?
21 Trending From a heavenly shower to the perfect sauna, and from a new-age glass of wine to a compact elevator, all the latest products.
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51 Building Buzz A new plan for women in trades and two huge home builder hires. 57 Product Focus In the heating and cooling world, the air we breathe has never been safer. 62 Frame of Mind The pandemic can provide pause for reflective design.
45 Why Accidents Happen
Identifying the danger zones of residential construction ON THE COVER
While COVID-19 continues to plague Ontario’s economy, it’s not all bad news as our forecasters peer deep into 2021.
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One Voice
FILLING THE CALENDAR This promises to be a busy year for the industry, as we happily put 2020 in the rearview mirror I HOPE THE DOOR DIDN’T HIT YOU
on the way out, 2020. Well, maybe I do. But while COVID-19 was messing with our private lives and business, all three levels of government were moving plans and policies into place that will shape the industry in a positive way for the next few years. As we look forward, optimistic of returning to pre-pandemic life, what does 2021 hold for the industry? Here are a few things to watch closely. In October, the federal government announced a plan to bring 1.2 million immigrants to Canada in the next three years. In the past, Ontario— and the Greater Golden Horseshoe specifically—had received over 50% of Canada’s immigrants, which means that this region could see 600,000 ohba.ca
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HOMEOWNERSHIP TELLS THE WORLD, “I AM HERE AND I’M READY TO CONTRIBUTE.” people joining our neighbourhoods from that alone. The plan expects that 60% of those new arrivals will be coming through the economic class, which means new residents with economic and business assets to put to work in communities. This plan just re-inforces Ontario’s 30-year population forecasts, with projections that 2 million more
#homebelievers will join Ontario communities in just the next decade. The Ontario government—specifically through the work of the Hon. Steve Clark, Minister of Municipal Affairs and Housing—has completed the regulatory work to support the Housing Supply Action Plan and the More Homes, More Choice Act. Those tools finalize the details on development charges and community benefit charges, provide more guidance on the ‘missing middle’ and tiny homes, Minister’s Zoning Orders and new Lands Needs Assessment processes, all of which will be implemented at the municipal level starting this year. In February, the regulatory framework will begin with Tarion and the new Home Construction Regulatory Authority. And Ontario Building Code changes can also be expected, due to a harmonization with the national building code. At the local level, beyond the implementation of those provincial polices, the response to COVID-19 meant bringing new service tools forward. Virtual public meetings, hearings and inspections have kept municipal services going, while getting keys into the hands of new homeowners. It has been wonderful to watch. The great Canadian dream of homeownership is a cornerstone value, as it connects you to the neighbourhood and tells the world, “I am here and I’m ready to contribute.” And now the province has set the framework, and the municipalities have the tools required to get housing approved, built, inspected and occupied. COVID-19 may have changed us, but the elephant is still in the room: the real and ongoing need for housing. Fortunately, this is a challenge we can cure. OHB
JOE VACCARO IS THE CEO OF THE ONTARIO HOME BUILDERS’ ASSOCIATION
ONTARIO HOME BUILDER WINTER 2021
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Ontario Report
BILD Chair Cheryl Shindruk, OHBA President Bob Schickedanz and Minister Steve Clark made this year’s Housing Supply conference a virtual affair.
Putting Policy Into Action Housing Supply Action Plan Conference 2.0 BY MICHAEL COLLINS-WILLIAMS
In November, OHBA and BILD hosted its second Housing Supply Action Plan (HSAP) conference—the associations’ first fully digital joint conference. The two-day virtual event focused on the implementation of HSAP, with both Bill 108 and Bill 197 being passed and the provincial initiatives that support new housing supply now a reality. The conference focused on the provincial framework encouraging new housing supply, as well as the municipal implementers that are bringing their local plans into conformity with provincial policy. The event kicked off with an in-depth ‘virtual’ fireside chat between the Minister of Municipal Affairs and Housing, Hon. Steve Clark, OHBA President Bob Schickedanz and BILD Chair Cheryl Shindruk. With more than 275 members following online, Minister Clark shared the provincial government’s proactive approach of cutting red tape to help get new housing built in the right places, while helping the housing sector lead Ontario to a post-pandemic recovery. Minister Clark highlighted the fact ohba.ca
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that the old Section 37 regime of caseby-case negotiations was unpredictable and that the new framework improves certainty and transparency. He spoke about market choice and the creation of more and different types of homes, and of the government’s desire to make it easier for families to find the homes they need at a budget they can afford. OHBA Builders’ Council Chair Doug Tarry later welcomed the Minister of the Environment Conservation and Parks (MECP), Hon. Jeff Yurek, who covered a lot of ground, including the implementation of the Made in Ontario Environment Plan. As part of this plan, MECP is streamlining the Environmental Assessment process (to which OHBA has made five separate submissions), and updating the Endangered Species Act with a new Species at Risk Conservation Fund. MECP is also in the midst of implementating new Excess Soils regulations with a new Excess Soils Registry. The Ministry is also streamlining approvals for Short-Term Water Takings. Finally, after more than a year of consultations, the MECP has made amendments to
the Conservation Authorities Act to better focus on their core mandate of protecting people and property from hazards and flooding. The conference also featured an in-depth panel of Ministry staff, who broke down several key components of HSAP, including the recently passed Bill 197 (COVID-19 Economic Recovery Act, 2020), the new Community Benefits Charges framework and recent amendments to the Growth Plan for the Greater Golden Horseshoe. Day Two of the conference saw industry experts Rob Howe of Goodmans LLP and Mathew Cory of Malone Given Parsons discuss what the Growth Plan changes, new Community Benefits Charges framework and amendments to the Development Charges Act mean for builders. The event’s final panel included planners Richard Forward (Brampton), Andrew Whittemore (Mississauga), Gregg Lintern (Toronto), Andrea Miller (Barrie) and Heather MacDonald (Burlington), who discussed Growth Plan conformity at the local level and how they are navigating key aspects of HSAP. ONTARIO HOME BUILDER WINTER 2021
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Ontario Report
PREPARING FOR THE ONTARIO BUDGETS
Collins-Williams to head up WEHBA
Suffice it to say the West End Home Builders’ Association (WEHBA) is pleased with securing the services of Mike Collins-Williams as its new CEO. “We’re beyond-words happy,” exclaims outgoing WEHBA President Robert Molinaro. “Everyone says, ‘Fantastic acquisition!’ We’ve received hundreds of texts and emails, even from those who aren’t part of the West End HBA. Mike’s going to be a great fit for us.” Collins-Williams, who had previously served as Senior Director, Planning and Policy at the OHBA’s head office, is eager to take the reins of the Hamilton-Halton association. “I’ve had the opportunity through my years at OHBA to work with numerous WEHBA presidents and I’ve always been impressed by the strong leadership role that association has played—not only in the Hamilton and Halton regions, but at the provincial level of the association with some great OHBA presidents. I also think that with the tremendous growth coming to the west end in the decade ahead, this particular region is well positioned to become one of the most dynamic centres for growth in North America. “I’m excited to get to work building relationships in our efforts to build new communities and revitalize existing neighbourhoods,” says Collins-Williams, who officially takes the reins February 1. Not that it was an easy decision. “I definitely have mixed emotions leaving OHBA after 17 years and all of the incredible opportunities that the association has given me,” CollinsWilliams says. The move is particularly bittersweet for Vaccaro too. “We are happy to see the Association has gotten stronger with MCW joining the WEHBA,” Vaccaro says. “Mike has been an incredible provincial asset for all our members across Ontario.” 12
ONTARIO HOME BUILDER WINTER 2021
In March 2020, Ontario’s Finance Minister, Rod Phillips announced that due to the ongoing COVID-19 pandemic and to ensure the Province had the best possible plan to navigate these uncharted waters, they would provide a fiscal update later that month and a full budget in November of 2020. Just like any organization in a pandemic, OHBA had to adapt its advocacy efforts to meet the new normal. To that effect, OHBA was very active in the lead-up to the November provincial budget, Ontario’s Action Plan: Protect, Support, Recover. Following the Finance Minister’s announcement of the new budget day in November of 2020, OHBA hosted several virtual meetings with provincial cabinet ministers, parliamentary assistants and MPPs regarding economic and job recovery. These meetings served as a great opportunity to speak directly with provincial decision-makers on how the residential construction sector has boosted job and economic recovery in the wake of large-scale events, such as the 2007-2008 financial crisis. We reiterated that OHBA members are ready to once again be that job and economic driver as we emerge from COVID-19, all while keeping jobsites healthy and safe. In the lead-up to the November 2020 budget, OHBA hosted meetings with Minister of Finance / MPP for Ajax, Rod Phillips; Minister of Municipal Affairs and Housing, Steve Clark; Minister of the Environment, Conservation and Parks, Jeff Yurek; Minister of Government and Consumer Services, Lisa Thompson; Minister of Labour, Training and Skills Development, Monte McNaughton; Associate Minister of Small Business and Red Tape Reduction, Prabmeet Sarkaria; Associate Minister of Children and Women’s Issues, Jill Dunlop; as well as Parliamentary Assistants & MPPs David Piccini (Northumberland-Peterborough South), Andrea Khanjin (Barrie-Innisfil), Will Bouma (Brantford-Brant), Stan Cho (Willowdale), Mike Harris Jr. (Kitchener Conestoga) and Lindsey Park (Durham). As we approach the next provincial budget in March, OHBA will continue to secure these advocacy meetings to further share our policy proposals for a strong residential construction sector.
A NEW BUILDER REGULATORY AUTHORITY The passage of the Rebuilding Consumer Confidence Act (Bill 159) in July 2020 signalled a big change on the homebuilding horizon in Ontario. Beginning Feb. 1, all builder licensing and renewals required to build and sell new homes in Ontario will be moving to the Home Construction Regulatory Authority (HCRA), with Tarion Warranty Corporation
serving only as the warranty authority. All registered builders renewing between Nov. 1, 2020 and Feb 1, 2021 should have received a formal 150-day extension to their licence from Tarion until HCRA officially opens its doors. Visit hcraontario.ca for more information. Tarion will continue to be the warranty authority with responsibilities for underwriting and
enrollments. A new enrollment process will be in place, along with undated Builder Bulletins. It is important that all licensed builders review this new information at Tarion.com. Tarion’s enrollment fee will increase by $90 on all new enrollments beginning Feb. 1 to support HCRA as a result of the changes to the new home warranty system in Ontario. ohba.ca
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Ontario Report
GET READY NOW FOR NEW STAIRS REQUIREMENTS IN 2022 On Jan. 1, 2022, changes made regarding stairs, guardrails and handrails under the 2019 amendments to the OBC will come into force. It is important for builders to review the plans for any homes expected to be under construction after January 1, 2022 to make sure they are following the new OBC requirements, even if they were sold prior to the changes. With townhomes and other housing types building up to the property line, these new stairs requirements may require design modifications before you apply for a building permit.
2021 LOCAL HBA PRESIDENTS BILD:
Jason Sheldon BRANTFORD:
Douglas Stewart CHATHAM-KENT:
John Rumble CORNWALL:
Alex Markell DURHAM REGION:
Johnathan Schickedanz GREATER DUFFERIN:
Paul Janssen
GREY-BRUCE:
Bryden Hamilton GUELPH & DISTRICT:
Tom McLaughlin
HALDIMAND-NORKFOLK:
Len Herrewynen
HALIBURTON COUNTY:
Glenn Evans
KINGSTON-FRONTENAC:
Matt Blommestyn LANARK-LEEDS:
Andy Cockburn
SCHICKEDANZ GIVES BACK In a year that was highlighted by builders giving back to their communities during trying times, one donation that stood out in 2020 was that of Daniel Schickedanz. “In appreciation for all the blessings this great country has bestowed upon him and our family, my father made a $1 million donation to the Canada Lutheran World Relief (CLWR), specifically to help and support refugees immigrating to Canada,” relates Daniel’s son, Ontario Home Builders’ Association President Bob Schickedanz. “The ongoing work of CLWR continues to provide lifealtering assistance to refugees around the world.” Now age 92, the young Schickedanz first set foot in Toronto on August 18, 1950, with just a suitcase in hand. Born 14
ONTARIO HOME BUILDER WINTER 2021
in Lithuania in 1928, he was a refugee of World War II in search of a new life. Under the auspices of Canada Lutheran World Relief, Daniel travelled from Bremen, Germany to Toronto (via Quebec City), onboard the MV Beaverbrae. The assistance of CLWR required a promissory note to pay back the fare. He worked to repay his passage at a Mennonite dairy farm in Kitchener. After nine months, having completed his commitments, he moved to Toronto to join other family members. Upon his arrival in Toronto, Daniel and his three cousins founded Schickedanz Brothers Ltd., a company of builders and developers. The company was instrumental in the creation of numerous neighbourhoods in the suburbs of Toronto and beyond.
LONDON:
Dave Stimac NIAGARA:
David Samis NORTH BAY & DISTRICT:
Robert Miller
GREATER OTTAWA:
Roy Nandram
PETERBOROUGH & THE KAWARTHAS:
Rick Coker QUINTE:
Jon Van Huizen SARNIA-LAMBTON:
Scott Henderson
SIMCOE COUNTY:
Sue Cerilli
ST. THOMAS-ELGIN:
Richard Cox
STRATFORD & AREA:
Heather Galloway
SUDBURY & DISTRICT:
Louie Zagordo
THUNDER BAY:
John Simperl
WATERLOO REGION:
Maria Kyveris WEST END:
Bianca Bruzzese WINDSOR ESSEX:
Ryan Lane
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Inside Storey and feeling of independence. It was like nothing I’d ever experienced in my life. And that’s the same feeling I bring as Minister. There are so many young couples who don’t feel they will ever realize the dream of homeownership. And whether you’re a single or couple or a senior—whoever you are—I want to make sure you have that opportunity to realize homeownership just like I was able to. For too many Ontarians, it’s out of reach, and I think the government needs to re-adjust its policies. And that’s what I’ve tried to do from the day I was sworn in as Minister.” WHAT STRUCK YOU DURING EARLY MEETINGS WITH OHBA?
MINISTER OF HOME Putting action into the Housing Supply Action Plan BY TED McINTYRE WITH HON. STEVE CLARK, MINISTER OF MUNICIPAL AFFAIRS AND HOUSING
IN HIS OPENING address during a virtual fireside chat with OHBA members in late November, the Hon. Steve Clark, Minister of Municipal Affairs and Housing since 2018, sounded alarm bells over what a change in government could mean for recent strides made in Ontario housing development. “It’s very unfortunate that the opposition has raised a housing platform that I think promises in my heart of hearts to reverse the progress,” Minister Clark observed. “I couldn’t believe my eyes when I saw vacancy control added to their platform, meaning that landlords aren’t going to be able to deal with the rents that they charge. I looked at the gains that we’ve made going back to 1992 housing starts, and this will destroy the rental market in Ontario, making investing in, building and maintaining rental housing less attractive. Given the progress we’ve seen, we cannot allow that to happen if we’re going to succeed ohba.ca
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in building the housing supply Ontario desperately needs.” Clark knows how to send a message. He first announced his presence on the political stage in 1982 when, at the age of 22 and fresh out of university, he was elected Mayor of the City of Brockville, making him the youngest person in Canada to hold the mayoral post. He was elected MPP for Leeds-Grenville in a March 4, 2010 by-election, crushing his opponent by a 66% margin, and has guided the renamed riding of LeedsGrenville-Thousand Islands and Rideau Lakes ever since. OHB: TELL US ABOUT YOUR FIRST HOME PURCHASE. MINISTER CLARK: “Twenty-one
Amy Street in Brockville. A nice little powder blue two-storey with a garage that could barely fit my car. There was a patch of grass that I could cut and a driveway and walkway I could shovel. “It was a wonderful feeling to be a homeowner, to experience that power
“There was an appreciation for the size of the organization. They have over 4,000 member companies. Yes, it includes builders and developers, but there are also trade contractors, suppliers—there are so many involved. I think a lot of people don’t realize the depth and breadth of the organization. And the fact that it’s a voluntary group that advocates for the industry. I’ve dealt with Joe (CEO Joe Vaccaro) both as part of the opposition and since in government. And Bob (President Bob Schickedanz) has also been a tremendous advocate for OHBA. “I want to thank all the members for the #HomeBeliever campaign. I think they’ve made the difference, and in a very non-partisan way. To look at the strides they’ve made with all the parties is really a testament to the work that the members and the association are doing.” CAN YOU DISCUSS THE MOTIVATION OF THE MORE HOMES, MORE CHOICE ACT?
“Our Housing Supply Action Plan started with More Homes, More Choice. It was part of a concerted effort from our government to ensure that people had affordable homes in every corner of the province. It was something previous governments neglected for many years. And let’s face it, the status quo wasn’t working, and we had to take definitive action ONTARIO HOME BUILDER WINTER 2021
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to address the crisis, whether it be the More Homes, More Choice Act, the Community Housing Renewals Strategy, the work that we’ve done with the Provincial Policy Statement (PPS), the Growth Plan for the Greater Golden Horseshoe—we needed to make it easier and more predictable to build new homes. We needed to take action to reduce planning timeframes, to help build the right type of homes in the right places more quickly, and to deal with the affordability issue. “I’ll give you an example. There weren’t enough purpose-built rentals in Ontario. And looking at the numbers just prior to COVID, we had seen (huge numbers in) new starts, applications, units under construction—levels we hadn’t seen since 1992. Even with COVID we’re still seeing a tremendous amount of purpose-built rental.” SO WHAT’S THE GOAL A YEAR FROM NOW?
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“Our government remains committed to addressing the housing crisis in Ontario, to continue to find ways to move our agenda forward in terms of increased affordability and more housing supply. “And people have told me over and over again they want us to intensify around major transit stations. People want to live near transit. We’re committed to accelerating the construction of complete communities around transit, including affordable housing. And we believe Minister’s Zoning Orders are a tool we have at our disposal to ensure that homes that people need get built as soon as possible. It’s a collaborative tool. We work alongside municipalities. We’ve made a number of those zoning orders to accelerate critical projects. And I’ll tell you, (between January 2019 and November 2020) we’ve accelerated more than 15,900 homes, including 720 affordable and 100 supportive housing units. We’ve created an opportunity to create 3,700 more long-term care beds, over 1,000 homes for seniors and more than 26,000 jobs. And jobs are needed now more than ever as we move to a recovery model because of COVID-19. “It doesn’t matter whether it’s ohba.ca
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purpose-built rental, second suites in basements, laneway homes, midsize rental apartments, family-sized condos—we have to put policies in place to create that ‘missing middle,’ and we’re going to continue to streamline approvals, work with municipalities and work with other ministries to accomplish our goals.” WHICH OF THOSE TOOLS ARE YOU MOST PROUD OF?
“I think the Housing Supply Action Plan in its complete form. I realized right from the first day I took over that there’s no silver bullet, not any one thing that will lead to success. You have to look at all of the planning processes. And we’ve reviewed the PPS and created changes that took effect in May, and worked toward changes I tabled in the Growth Plan and the new Lands Needs Assessment methodology. There are a whole bunch of things we needed to put in place after years and years of neglect by the previous government. And there’s much more work we need to do.” WHAT CAN BUILDERS DO?
“I think the Housing Supply Action Plan gives builders some innovative approaches to housing and homeownership. There are about 30,000 to 35,000 new homes built each year in Ontario and many have the potential to add additional suites. Many homeowners and builders are looking for creativity, whether it be laneway homes or new existing homes. I think there’s a lot of opportunity to attack the affordability model. “The other thing builders need is certainty, and the Community Benefits Charges tool that we created enables municipalities to still collect funds for those very important projects. But it also makes it easier for builders to quantify development costs pertaining to infrastructure and benefits right from the start. “Again, we made these changes because the status quo wasn’t working. We need to have new ideas and new approaches. And we appreciate the collaboration we’ve had with all the stakeholders, including the OHBA.” OHB ohba.ca
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R-Hauz pilot project could signal a new era for mid-rise wood BY T E D M C I N T Y R E
“I
’m standing in Berlin on a Building Industry and Land Development Association tour in 2013, looking at these brilliant 20 foot-wide, six-storey concrete townhouses,” relates Leith Moore, “and I thought to myself, ‘That’s what we need in Toronto. Except I want to build them out of wood!’” Vice-President of Development with the Sorbara Development Group at the time, Moore had long been familiar with elaborate developments and high-rise construction. But a burning desire to pursue smaller, more efficient infill projects had long been incubating between his ears, eventually leading to the formation of R-Hauz, a laneway suites and six-storey townhouse development company co-founded by Moore, Michael Barker and R-Labs CEO George Carras. “I’d been in the business a long time and things had become more and more high-rise-focused,” Moore shares. “It was a form of building I was just never that attracted to. But the problem has always been, ‘How do you make mid-rise projects economically sustainable?’ The industry has had a hard time adapting to small projects. They were always one-off boutique builds, and by the time you finish your design and approval work, figure out how to build it and work around these small sites, you just couldn’t make money. A lot of companies have tried mid-rise projects, because there is a big market for them, but then they find that it takes just as long to get a mid-rise approved as a high-rise, and you’re using a lot of resources for fewer units. And it’s hard to get the parking to work in a mid-rise setting, so it’s actually costing you more per square foot. So the model starts to fall apart.” But as Moore surveyed those Berlin townhouses, the puzzle pieces slowly began to fall into place, beginning with the primary building material. “Wood is easier to panelize,” he notes. “I didn’t want to bring in big cranes and pour concrete for six storeys; I wanted to panelize them, bring them in, tilt them up, and do them in 20’ increments—not 150’ or 200’. “But there was still the issue of scalability,” Moore adds. “It took me a couple more years to finally come to the conclusion that the building policy we had in place was not the problem; we just had to adapt how we build, design and approve things to make that policy work for us.” The next key element was off-site factory construction, Moore deduced, “so that it’s less wasteful and easier to build. And if I panelized them at the right size, I could bring them in through a rear lane situation, which Toronto has a ton of, and not have to pay to close roads. And with fewer trades involved, you don’t have to use hoists and elevators to get people in and out, so
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Laneway access meant no blocking of main roads for R-Hauz’s pilot, while prefab construction kept the site tidy.
there’s a lot less traffic management.” But there was one last piece missing: a repeatable design. “You spend six months designing a little mid-rise building— all-new structural engineering, mechanical, electrical, architectural. And then you price it, and every time it’s a brand new experience for everyone involved and new pricing,” Moore explains. “So I realized that the only way to take advantage of the existing policy was to create a structure you could repeat. So that’s what we’ve done.” A repeatable product has multiple inherent financial advantages. “Since we have a predesign, we can amortize design costs over a hundred of these buildings rather than just one,” Moore says. “And our Integrated Program Delivery formula allows our key trades to be part of an integrated design team that becomes part of a 50-unit build rather than a one-off. So it gets faster, more efficient and less expensive.” The degree of completion of the pre-assembled products will also improve, adds Moore. “The level of completion of the side panels is high, but as we go forward the cross-laminated timber (CLT), exterior cladding, outsolation, vapour barrier and interior studding will all be included when the panels arrive and get tilted up. So then we just have to install the interior insulation, vapour barrier and drywall and lay down flooring. We’re also working on bathroom pods that we can slide in to the floor as we go. And I think some of the window portions in the fixed part at the back will also be included down the road.” There’s still flexibility to the design, however, Moore notes. “The front will always be more of a site adaptation, because it’s intended to be customizable to the neighbourhood character, including different window patterns, balconies, etc. And we’ve put our plumbing in a ‘wet core’ so that we can change the configuration of rooms and layouts without changing how our plumbing and heating is run.” With the structural module fashioned into a 3D, BIM Revit computer design by Barker, R-Hauz can churn out 20-, 40- or 60-foot-wide structures, with the same depth and architecture. And while R-Hauz’s 26,000 sq. ft. pilot project on Queen St. East at Coxwell Avenue—the first all-wood, 28
ONTARIO HOME BUILDER WINTER 2021
mass-timber, six-storey building in Ontario, right down to its wooden elevator shaft and stairwell—required nine months to compete, Moore expects a seven-month timeline for their next project, and just six months after that. “By comparison, my old mid-rise projects—one level underground and six to eight storeys above—were 18 months of construction,” Moore says.
LAYING THE GROUNDWORK Although the building codes in B.C. and Quebec already permit an all-CLT structure, the Ontario mandate of noncombustible stairs has thus far required concrete stairwells in similar buildings. “But in the past six years a lot has happened with respect to fire and building code technology regarding wood,” notes Moore, who amassed volumes of research and scientific study over the course of two years in satisfying the Province with his methodology. In the end, “Toronto was very comfortable approving an alternate standard” to the code. The ability to go all-CLT also eliminated a common obstacle with mid-rise wood: meshing concrete and wood together. “They have different properties and shrink or settle at different rates,” Moore reminds. “Connecting the two is never an easy task, and it’s far better if you don’t.” But even more vital groundwork had previously been laid to clear the way for tall wood construction. “If it weren’t for OHBA’s initial pressing for six-storey wood, we wouldn’t even be close to this right now,” Moore declares. “(CEO) Joe Vaccaro and Mike Collins-Williams and the team were very much on the front lines.” Moore, for his part, was president in 2012-2013 as the OHBA’s push began in earnest. “The Ontario Building Code used to have a four-storey limit on wood-frame buildings, so essentially you got semidetached, single and stacked townhomes. But it didn’t allow for a mid-rise housing typology,” explains Mike Collins-Williams, OHBA’s Senior Director of Planning and Policy. When B.C. updated its code in 2009 to allow up to six-storey wood-frame buildings, OHBA took a lead role in working with the Ministry of Municipal Affairs and Housing and other politicians to ohba.ca
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A TIMELINE FOR ONTARIO MID-RISE WOOD
As the OBC is harmonized with aspects of the national code, OHBA expects clearance for up to 12 storeys within two years.
demonstrate why it was something that should be permitted here. There is all kinds of great rationale for it, from the urban planning perspective on transit-oriented communities and density along avenues, to the fact that it’s just a more scaled pedestrian-friendly building. “OHBA put together a coalition including BILD, RESCON and the Canadian Wood Council and together we pushed an advocacy, information and education campaign at the provincial and municipal level,” explains Vaccaro. “We pulled together all the research covering everything from the ‘missing middle’ housing supply to the important issues of fire risk and climate change innovation. “It took four years to get the Ontario Building Code changed (effective January 2015),” Vaccaro adds. “And now it’s 2021 and we are starting to see more members take this advocacy win and innovate and bring more housing supply to the market.” With Ontario currently going through a process to harmonize aspects of the OBC with the national code, OHBA expects clearance for up to 12 storeys within two years.
TEAMWORK While Moore may have hatched the design-for-assembly strategy, R-Hauz has quickly grown its partnerships, including a November announcement of $4.5 million in seed funding from Business Development Canada, R-LABS, corporate investors, as well as several angel investors from the Toronto real estate industry. The architecture for the pilot project was done in conjunction with CMV Architects’ Dan Cowling. “And then we have some very reliable trade partners, including Birnie Electric and FitMech mechanical, as well as structural engineer David Moses,” Moore says. “The prototype is built for a very narrow and tall site up to six storeys, which allows us to maximize the use of wood with the latest building code,” explains Moses, a noted champion of wood construction in his own right. “But that presents some technical challenges from an engineering point of view, mostly around stability of the building in that narrow direction—for example, if you could picture wind blowing on ohba.ca
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APRIL 2009: British Columbia changes its building code to increase the limit on wood-frame construction from four to six storeys. 2011: OHBA files initial reports to Provincial government to advocate for mid-rise six-storey wood in Ontario. APRIL 4, 2012: Ontario’s Wood First Act is tabled by MPP Bill Mauro, Thunder Bay-Atikokan. The Private Member’s Bill promoted the use of wood as the primary building material in publicly funded buildings. The legislation also proposed that the OBC increase the maximum height of wood-framed buildings from four to six storeys. The Private Member’s Bill did not pass. Bill Mauro OCTOBER 2012: Vic Fideli, Member of Provincial Parliament for the northern riding of Nipissing, introduces his first Private Member’s Bill, entitled the Ontario Forestry Industry Revitalization Act. The Act would proposed to amend the OBC to allow for woodframe construction to be used in mid-rise buildings up to six storeys. The bill never passes. The Private Member’s Bill did not pass. Vic Fideli MAY 2013: OHBA, BILD and RESCON outline strong planning and economic rationales in new report, Unlocking the Potential for Mid-Rise Buildings: Six Storey Wood Structures. SEPTEMBER 23, 2014: OHBA, BILD and RESCON (Residential Construction Council of Ontario) hold press conference at OHBA Annual Conference to welcome the Provincial government’s commitment to permit six-storey wood-frame buildings in Ontario as of Jan. 1, 2015. Minister of Municipal Affairs and Housing, Hon. Ted McMeekin, addresses the OHBA President’s Gala that evening to announce amendments to the OBC supporting mid-rise wood-frame Ted McMeekin construction. MAY 22, 2017: OHBA, BILD, RESCON and the Canadian Wood Council hold a news conference to release a report calling for changes to Ontario’s building code to allow for safe, affordable wood-frame housing in the GTHA.
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Planning, building and financial departments must all adapt to take advantage of the prefabrication approach, says Moore (left).
the building or an earthquake shaking it in that weak direction. Not a big problem on a shorter building, but as you get taller, it compounds itself. But that’s how using cross-laminated timber helps a lot, because it’s a much more rigid material than conventional wood framing. “I think this particular typology will work really well in a lot of neighbourhoods in the city, especially when the City requires things like stepping back so that you don’t create any dark shadows on the street, which is typical around tall buildings,” Moses says. “But what this system does require is a lot more coordination in advance. To get to that point where everything is just delivered and ready to be installed puts a higher demand on the consulting team, with the builder having to be at the table right from the beginning.” But when a plan comes together, it can be an amazing thing. “Here’s part of the beauty of it,” says Mike Yorke, president of the Carpenters District Council of Ontario. “Leith’s project is on the west side of Queen St. at Coxwell. On the east side, there’s a condo under construction that’s not much taller but which has taken a lane of traffic for months and months, whereas Leith’s project is all being done by the back laneway.” It has also kept the locals happy, Yorke notes. “Mass timber makes for a very quiet construction site, compared to concrete trucks and rebar slamming into heavy forms. And there’s virtually no garbage left at the end of the day, because prefab panels come to the site at the correct size, so there’s no cutoffs and wastage.” “The neighbours are remarkably happy with the pilot,” Moore agrees. “But we also didn’t build out the whole depth of the lot. You need someplace to set down the lumber you’re going to tilt up, and to put that hoist/crane to lift things up. So we left the back 40 feet of the lot empty for parking at grade—we don’t dig a hole in the ground; we do slab-on-grade construction. And we didn’t disrupt the streetcars running past. But that’s because we’re building a little less density and not filling 100% coverage. And we use that extra space to build 30
ONTARIO HOME BUILDER WINTER 2021
faster for less money per foot, which makes up for not building more units, slower, at more per foot.”
MODEL OF EFFICIENCY From a procedural standpoint, R-Hauz’s formulaic approach means increased speed of approvals. “And since it’s a patterned build in the factory, the City can approve the projects concurrently,” Moore notes. “It’s been kind of enjoyable working with them. We’re at the point where they’re accustomed to the product.” Cost predictability is another advantage. “We provide buyers with a foundation design and a fixed price for their product,” Moore says. “We adapt the configuration to what you want. The only change in pricing will be due to whatever environmental or soil issues we find on site. But we can actually tell you how much that building will cost in your contract before we build it!” “It’s all part of that evolution of construction—we like to call what we do ‘mass customization,’” Moore says. “Years before when I talked to different companies I worked with about this, they said, ‘It’s not scalable—it’s for the pick-up truck business.’ I never loved the answer, but I think they were right at the time.” But there will be a learning curve as the process unfolds, Moore cautions. “Prefabrication is a deposit-based construction program rather than draw-based program. So even the financing institutions have to get used to paying for things before they arrive on site. They’re used to saying, ‘Thirty days after it’s installed, send us the bill.’ But on this type of construction, when you’re building in a factory, you’re prepaying for that. So it’s not just about municipal planning and building department approvals, it’s financial approvals and cost consultants. It all needs to change so that we can take advantage of a more modern construction approach. “But the real bottleneck on mass timber right now is the lack of experienced, on-site tilt-up crews,” Moore suggests. “The ohba.ca
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OHBA Past Presidents Pierre Dufresne (left) and Leith Moore flank Cricket Energy’s Larry Brydon during OHBA’s Sweden Housing Tour in 2019.
ones that are out there work around North America, because it’s still an evolving market.” And demand will only increase as the popularity of mass timber construction ramps up. But Yorke says that the trade supply chain will be filled. “Skilled carpenters and those who receive training at our College of Carpenters and Allied Trades have multiple transferable skills that they can use on a variety of projects, mass timber among them,” Yorke notes. “And we have a four-week training program for mass timber, with fully one week devoted to health and safety, and hoisting and rigging.” Ironically, one impediment for R-Hauz is not the absurd market cost of wood. “While lumber costs have hit many builders hard of late—especially the smaller ones—mass timber wood has been good, because there are more established relationships with forest providers,” Moore explains. “And they’re adopting a more European approach to whole-tree use, from the forest to the site. You’re not just buying 2’x6’s to make CLT. What they don’t use becomes OSB and pellets, so you’re not overpaying for your wood. Plus, there are some very modern robotic plants opening in Canada, including a new Element5 plant in St. Thomas that will give us Ontario-made CLT. When we started, CLT in Canada was expensive and came from afar. My first project was Austrian wood, but it will be Canadian wood moving forward. “And it’s a lot cheaper to move wood from a plant to a site than precast concrete, and a lot easier to move around smaller sites,” Moore adds. “The two materials will always be complementary, though. Concrete is better for some things and wood is better for some things. I think where we are headed as builders is to have options and innovate, and to use the right material for the right job.”
THE NEXT WAVE Yorke is understandably excited about future prospects. “The next generation of carpenters love working on mass timber projects. People are lining up to get on Leith and Mike’s ohba.ca
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project. It’s quite an innovative approach to mid-rise and the ‘missing middle’ sector. We think the versatility and efficiency of mass timber gives it a competitive advantage, because with economies of scale, concrete or steel are not applicable for a six-storey building. If we’re looking for affordable housing and subsidized housing, we’ll need the versatility and speed of mass timber in the mid-rise sector.” Vaccaro also highlights how the building innovation coming from the OBC change should create new Ontario economic opportunities. “Part of the change campaign was to connect the innovations and manufacturing required by these buildings back to Ontario’s forestry industry, to the university and college design programs, to new skilled labour pools,” Vaccaro notes. “When you build a home, there is an entire network supporting that construction, and Ontario can be a North American economic leader in this space.” This year, R-Hauz is planning for 20 new projects, four in the Kipling/Dundas area of Etobicoke alone. And it’s not a hard sell, says Moore. “This approach works great for non-profit groups—they have the land, you have a product. They can build more quickly and cost-effectively, which helps them hit their budgets and targets. And it’s really appealing to a lot of owners with retail. Right now, if you’re in retail, the weakest sector is ‘Main Street.’ And between Covid and subway construction, there are a lot of Main Streets that have had a rough couple of years. Now, if you have a two-storey, 20’-wide site on a lane and a store not doing well and one tenant upstairs, we can come in and build a six-storey rental asset for you and your neighbours. The store can cycle from live-work to retail or office, and you haven’t had to sell it and pay land transfer tax. “And while it does that, it puts effective rental housing exactly where the planners intended—on Main Street, on transit, and of a type that blends itself into the neighbourhood,” Moore notes. “For the first time we’re delivering a mechanism that can make that happen, on economic terms that make sense.” OHB ONTARIO HOME BUILDER WINTER 2021
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SOFT LANDING 32
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The economic outlook remains rosy in some sectors, bleak in others BY T R AC Y H A N E S
With COVID-19 still putting a chill on socializing, retail sales and indoor dining as we enter 2021, will the red-hot Ontario real estate market it helped to fire up in the latter half of 2020 continue? According to four prominent economists, the answer is no. The pace of home sales that characterized the summer and fall of 2020 is bound to ease. However, don’t expect a dramatic slowdown in the province’s housing industry; overall, it will remain robust. But it will be a story of a varied market, with downtown Toronto condos and rentals being at risk, while low-rise sales will continue to be strong. “COVID has affected Ontario workers very unevenly,” said Robert Hogue, Senior Economist, RBC Economics. “Most lower wage earners are affected in terms of job losses and fewer hours than those at the higher end, who are either not affected or affected modestly. Homeownership tends to be for families and higher income earners, so that base of potential buyers has not been as severely affected or not affected at all.” Even though a vaccine may signal the end of the pandemic, it will take some time. And even when COVID is behind us, some of its impacts will linger.
HOW THE MARKET CHANGED Among the trends that COVID has created or accelerated are low interest rates and more people working from ohba.ca
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home, and that has increased demand for low-rise homes in the GTA suburbs and other parts of the province. Those factors, along with a pause on immigration and the loss of many lowerwage jobs, have negative repercussions for the downtown Toronto condo and rental sector that might well continue beyond 2021. The number of people working from home in Canada, according to Hogue, doubled from 2 million workers prepandemic to almost 4 million during. “I suspect a big chunk of them will continue to work from home as a new permanent arrangement,” Hogue surmises. “COVID has been a large-scale experiment in that respect. For some organizations, it’s been wildly successful. I work for a large bank that has 80,000 employees and at one point 80% of us were working from home, and we haven’t missed a beat. It’s been proof of concept, but it’s not a fit for everyone.” Hogue says many organizations will be more flexible about employees working remotely, and that’s helping to drive many out of the downtown core. It’s opened a lot of new frontiers for those no longer tied to a GTA office, as they seek larger houses to accommodate working from home and family living, more greenspace and the ability to safely distance from others in less dense environments. “I think we have yet to see this phenomenon run its course,” he predicted. ONTARIO HOME BUILDER WINTER 2021
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THE TOP BUYER’S AND SELLER’S MARKETS ACROSS ONTARIO
CITIES IN THE GTA
AVERAGE HOME PRICE OCT 2020
ANNUAL PRICE CHANGE
SALES-TO-NEW-LISTINGS RATIO OCT 2020
OCT 2019
1. OAKVILLE
$1,313,481
+25%
69%
SELLER’S MARKET
2. CALEDON
$1,235,473
+26%
85%
SELLER’S MARKET
58%
BALANCED MARKET
3. VAUGHAN
$1,212,174
+21%
59%
BALANCED MARKET
59%
BALANCED MARKET
4. RICHMOND HILL
$1,173,826
+9%
54%
BALANCED MARKET
53%
BALANCED MARKET
5. MARKHAM
$1,074,125
+12%
58%
BALANCED MARKET
72%
SELLER’S MARKET
6. AURORA
$1,052,457
+8%
78%
SELLER’S MARKET
64%
SELLER’S MARKET
7. TORONTO
$1,025,925
+11%
45%
BALANCED MARKET
66%
SELLER’S MARKET
8. HALTON HILLS
$935,612
+27%
78%
SELLER’S MARKET
73%
SELLER’S MARKET
9. BURLINGTON
$917,013
+12%
88%
SELLER’S MARKET
68%
SELLER’S MARKET
10. MILTON
$916,717
+18%
87%
SELLER’S MARKET
76%
SELLER’S MARKET
11. NEWMARKET
$914,865
+21%
80%
SELLER’S MARKET
59%
BALANCED MARKET
12. MISSISSAUGA
$878,276
+8%
57%
BALANCED MARKET
73%
SELLER’S MARKET
13. BRAMPTON
$865,509
+17%
72%
SELLER’S MARKET
69%
SELLER’S MARKET
14. PICKERING
$815,467
+17%
83%
SELLER’S MARKET
65%
SELLER’S MARKET
15. WHITBY
$806,451
+20%
89%
SELLER’S MARKET
67%
SELLER’S MARKET
16. AJAX
$777,822
+16%
83%
SELLER’S MARKET
56%
BALANCED MARKET
17. CLARINGTON
$693,014
+24%
84%
SELLER’S MARKET
54%
BALANCED MARKET
18. ORANGEVILLE
$653,605
+13%
105%
SELLER’S MARKET
114%
19. OSHAWA
$625,692
+24%
79%
SELLER’S MARKET
57%
Sal Guatieri, Director and Senior Economist at BMO Financial Group, said sub-2% long-term mortgage rates, coupled with the working-from-home trend bolstered sales in smaller precincts throughout southern Ontario. “The biggest increase in sales and prices is occurring outside big cities. We’re seeing this to a lesser extent in the U.S.,” he said. “People are moving out of Toronto and to the Greater Golden Horseshoe and beyond. That’s where you’re seeing the biggest price increases, of 20% or more (year to year). It’s a clear trend, with many of the sales shifting away from larger metropolitan regions to suburban and rural regions.” Deputy Chief Economist of CIBC World Markets Benjamin Tal said that part of the increase in home prices in 2020 was due to buyers being more 34
ONTARIO HOME BUILDER WINTER 2021
63%
SELLER’S MARKET
SELLER’S MARKET BALANCED MARKET
active in the low-rise detached sector, and those homes are more expensive, thus driving average prices up. “At this point, that’s linked to the nature of the crisis,” said Tal. “People who initially may have been thinking of a condo are now buying a detached home. The process of people moving away from city is nothing new, though. We’ve seen this trend before, but I think it is accelerating.” Many buyers are millennials, who have or are about to start families and need more space. The cost of a three-bedroom condo in Toronto is beyond their means, so they look to the suburbs. And because of COVID and technology facilitating working from home, people are willing to pay more for homes since they are spending less on transit and restaurants, explains Canada Mortgage
and Housing Deputy Chief Economist Aled ab Iorwerth. Iorwerth, however, is not convinced there is strong evidence of people leaving downtown Toronto in droves. “There are some anecdotes of people buying more property in the suburbs, but the immediate perspective is on the weakness in the rental market.”
A DOWNTURN FOR HIGH-RISES The other economists agree that the downtown Toronto rental and condo markets are at risk. “On the condo side, it’s more of a downtown Toronto story,” said Hogue. “When you get out of downtown and into the suburbs, and in places like Ottawa, condos are pretty strong.” “There are multiple things going on,” Iorwerth noted. “The people unfortunately affected by the economics of COVID are low-wage earners and that’s affected rents. With restrictions on immigration and restriction on travel, interprovincial migration dropped, and students stayed home (rather than renting close to post-secondary campuses), causing quite a lot of weakness in the rental market.” Tal says clearly while immigration into Canada from other countries is down, it is somewhat mitigated by people who are opting to stay in Canada rather than move to the U.S., as well as Canadian citizens who are returning to Canada from Hong Kong and the U.S. The main impact of the current pause on immigration is on the rental market, since for the first few years in Canada, immigrants rent rather than buy, says Tal. The rental market is also down since international students have not been able to come to Canada to pursue postsecondary education. “However, I believe the immigration story is a temporary one, and the government has increased the (immigration) target to compensate. So I believe the quota will come back.” According to Hogue, downtown Toronto condo resales are still up yearafter-year and are softening, but not collapsing. There was a “huge wave” of listings in late fall 2020 and he said many of those are likely investor-owned units. Some of those listings are likely due to new City of Toronto rules for short-term rentals, while some are partly ohba.ca
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THE TOP BUYER’S AND SELLER’S MARKETS ACROSS ONTARIO CITIES OUTSIDE THE GTA
“WHEN YOU GET OUT OF DOWNTOWN AND INTO THE SUBURBS, AND IN PLACES LIKE OTTAWA, CONDOS ARE PRETTY STRONG.”
AVERAGE HOME PRICE OCT 2020
ANNUAL PRICE CHANGE
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OCT 2020
OCT 2019
1. GUELPH
$741,746
+17%
94%
SELLER’S MARKET
2. WATERLOO
$695,928
+18%
82%
SELLER’S MARKET
67%
SELLER’S MARKET
3. HAMILTON
$662,511
+21%
88%
SELLER’S MARKET
72%
SELLER’S MARKET
4. BARRIE
$604,475
+20%
95%
SELLER’S MARKET
68%
SELLER’S MARKET
5. KITCHENER
$585,185
+25%
97%
SELLER’S MARKET
97%
SELLER’S MARKET
6. PETERBOROUGH
$571,956
+24%
93%
SELLER’S MARKET
68%
SELLER’S MARKET
7. OTTAWA
$551,866
+24%
80%
SELLER’S MARKET
91%
SELLER’S MARKET
8. LONDON
$531,057
+28%
93%
SELLER’S MARKET
82%
SELLER’S MARKET
9. KINGSTON
$482,294
+25%
87%
SELLER’S MARKET
68%
SELLER’S MARKET
10. ST. CATHARINES*
$478,600
+18%
112%
SELLER’S MARKET
93%
SELLER’S MARKET
11. NIAGARA FALLS*
$463,300
+18%
105%
SELLER’S MARKET
75%
SELLER’S MARKET
12. NORTH BAY
$430,654
+29%
94%
SELLER’S MARKET
95%
SELLER’S MARKET
13. W INDSORESSEX
$422,723
+25%
89%
SELLER’S MARKET
74%
SELLER’S MARKET
14. SUDBURY
$321,514
+14%
100%
SELLER’S MARKET
100%
SELLER’S MARKET
15. THUNDER BAY
$285,958
+20%
108%
SELLER’S MARKET
82%
SELLER’S MARKET
16. S AULT STE. MARIE
$218,456
+21%
94%
SELLER’S MARKET
81%
SELLER’S MARKET
80%
SELLER’S MARKET
Sources: Statistics this page and opposite courtesy Zoocasa. The sales-to-new-listings ratio is calculated as the number of sales divided by new listings. Home prices, sales and new listings were sourced from the Toronto Regional Real Estate Board, London/St. Thomas Association of Realtors, Barrie & District Association of Realtors, Kitchener Waterloo Association of Realtors, Realtors Association of Hamilton-Burlington, Niagara Association of Realtors and the Canadian Real Estate Association. *All prices are average prices, except for St. Catharines and Niagara Falls, where benchmark prices were used.
COVID-related. The longer-term rental market also softened significantly and as a result, investors who purchased preconstruction units and had not yet taken delivery are trying to get out of deals; thus there are a number of assignment sale listings. “I suspect this is because the numbers don’t work anymore,” said Hogue. “If a unit is predicated on strong rent, that becomes a challenge.” And what about the risk to Toronto’s office market as more people work from home? Tal said the office model isn’t dead and he predicts in 2022-2023, it will make a comeback. However, the office concept will be more flexible. “Who says everyone has to go to the office at 9 a.m. or if you have to go out to work when it’s -20C? Offices will still be there, but people may be working there two, three ohba.ca
SALES-TO-NEW-LISTINGS RATIO
or four days a week. Working from home will be more acceptable.” Tal expects the office market will still be about 80% of what it was pre-pandemic, which is why he expects the trend to move outside Toronto won’t continue. The PwC/Urban Land Institute Emerging Housing Trends 2021 forecast for U.S. and Canada also expects the appeal of big cities to rebound. South of the border, many of the largest cities have been hard hit by COVID, affecting tourism, office space use, transit ridership and live entertainment. The report predicts while large cities will likely feel the impact of that for three to five years, the pandemic pause likely isn’t permanent. Larger metropolises will eventually regain their lustre due to the education, finance, technology and entertainment opportunities they provide. ONTARIO HOME BUILDER WINTER 2021
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“COVID HAS PEOPLE CONSIDERING MOVING WHERE THEY WOULDN'T HAVE OTHERWISE.” WHERE MARKETS ARE HOT Tal said in the GTA people are “trying to live the dream” and because they can’t find affordable homes in Toronto’s closest suburbs, they are moving to places such as Barrie, Kitchener, Guelph and Oshawa. Pre-COVID, Ottawa was the hottest market in Ontario and arguably in Canada, said Hogue, with double-digit price increases early in 2020, and as of late 2020, prices were still escalating— attributable to low interest rates, the large number of public servants who still have good-paying jobs and because it’s still more affordable than Toronto. Iorwerth noted that the Ottawa market was so hot prior to the pandemic that CMHC actually flagged it for risk due to rapid price growth. People were moving to Ottawa from Toronto already in search of less expensive homes and will continue to do so. “Smaller markets across the board in southern Ontario are super strong on a year-to-year basis,” said Hogue, citing places such as Kitchener-Waterloo, London, Guelph, Barrie, Collingwood and southern Georgian Bay. He said that while some people are buying secondary homes in what were considered vacation destinations, skyrocketing school registrations indicate some families are making a permanent move. October statistics released by the Canadian Real Estate Association in October 2020 show the largest yearover-year gains nationally were recorded in Quinte and District and WoodstockIngersoll at 25%+, as well as in Ottawa, London and St. Thomas, Tillsonburg 36
ONTARIO HOME BUILDER WINTER 2021
district and some Ontario cottage country areas. Price gains of 15-20% were seen in Barrie, Hamilton, Niagara, Guelph, Bancroft and area, Brantford, Cambridge, Huron Perth, KitchenerWaterloo, North Bay, Peterborough and the Kawarthas, Simcoe and District; outside of Ontario, Montreal and Greater Moncton saw similar gains. Prices were up in the 10-15% range compared to October 2019 in the GTA, Oakville-Milton, Mississauga and Northumberland Hills. The Emerging Housing Trends 2021 report predicts secondary cities such as Vancouver and Montreal have the potential to be ‘18-hour cities,’ where a range of amenities and urban features provide good prospects for accelerated growth, pandemic or no pandemic. In Ontario, these include KitchenerWaterloo, London and Ottawa, which, according to Statistics Canada, were the fastest-growing census metropolitan areas in 2018–2019. The trend is expected to be Canada-wide, spreading to cities such as Halifax, Victoria and Quebec City. The report indicates that even with people able to work remotely, suburban areas where denser, transit-oriented development is creating walkable mixed communities will prove most attractive to those looking to move outside the 416.
THE U.S. ELECTION AND SOFTWOOD LUMBER With Joe Biden’s presidency in the United States, Iorwerth expects more stability in trade relations; that in turn may give businesses more confidence to invest
and promote job growth, particularly in manufacturing provinces such as Ontario and Quebec. That, in turn, should boost people’s ability to buy homes. But whether the ongoing softwood lumber issue and the dispute over U.S. duties will be resolved is up in the air. “It’s my hope that the politics of this works out,” said Iorwerth. Hogue believes the stability in trade relations and a more predictable administration under Biden will be welcome. While Biden’s opposition to the Keystone Pipeline is not good news for Alberta, “for Ontario, anything that can stabilize trade relations is a good thing.”
THE MARKET IN 2021 “I think pent-up demand has been exhausted, but there is still a greater demand for more single detached living space,” said Iorwerth. “It’s a trend that, combined with low interest rates, is likely to remain.” That’s if the economy recovers, he cautioned. What he sees at continued risk is the rental market and the potential to spill into homeownership. However, if the government programs assisting workers and businesses impacted by COVID continue, there is no immediate risk. “The current level of activity in the housing market is not sustainable,” agreed Hogue. “There is going to be a step-down from what we saw in summer and early fall of 2020. There was a lot of pent-up demand that has been completely exhausted. But COVID has people considering moving where they wouldn’t have otherwise, as they now can due to remote working. That will ohba.ca
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contribute to supply and demand, and the continued low mortgage rates will support relatively strong market activity in the near term. I would be hard-pressed to think the heat we saw in summer of 2020 can be sustained, but the market is still robust.” Guatieri also felt the rates of growth in sales and prices was unsustainable, but forecasts the 2021 market to hold firm. “I’m not expecting a price correction,” he says, “but significant moderation in growth in terms of prices and most of that softness will be in metropolitan regions. The broader suburban and rural regions will remain affordable, and the rest of Canada is very affordable.” The slowdown will be a healthy one, Guatieri expects, led by softer condo sales. As for Tal, he looks for the economy to slow down, with economic growth of near zero over six months. “You can’t have zero growth and a booming real estate market,” he pointed out. The PwC/ULI report cited the singlefamily residential recovery as uncertain and that it is too early to determine whether the potential slowdown in urbanization will be long-term. If many homeowners are able to work from home permanently, they may continue to look outside large cities. Though the interest in properties outside of Toronto has extended to places such as Niagara and Peterborough, it may not be a lasting trend. The Central Bank of Canada predicts that Toronto’s economy will rebound by 6.2% in 2021, leading to strong preconstruction sales in the city. When immigration activity resumes, the PwC/ ULI report expects there will be pent-up demand to help rescue rental units. In aggregate, Hogue does not expect prices to decline, but price increases will certainly slow down. The decline in downtown Toronto prices seen in late2020 will continue, he says, but it won’t overwhelm the price increases of the low-rise market. “Condo prices will decline 5-10% in some pockets, maybe more, especially those heavily geared to short-term rentals,” Hogue prognosticates. “It’s going to be more of a nuanced picture. It will be an uneven market, as opposed to past booms when the tide was raising all boats.” OHB
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COVID CASE FILES The pandemic has thrust a handful of legal issues to the fore BY J O N AT H A N O K E
Time is of the essence when it comes to building a new home,
or taking possession of it, or repairing it. But in a pandemic-afflicted world, time has slowed. Safety protocols, shutdowns and supply line interruptions have made builders less efficient than they were preCOVID. But the clock hasn’t stopped on many deadlines. And that has kept lawyers busy in addressing multiple legal issues plaguing builders and homeowners alike. Five lawyers weigh in on the issues that have become most prevalent.
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ONTARIO HOME BUILDER WINTER 2021
39
Christine Kellowan, Associate, Goldman Sloan Nash and Haber LLP TH E ISSU E : STATE OF R E PAI R “A lot of the concerns I’m fielding are related to builder repair periods and dealing with potentially unwarranted claims. There’s a lot of confusion as to whether the homeowner submitted a Tarion warranty claim form in time— confusion because Tarion extended the time frame for people to submit. And second, there’s the question of chargeability of conciliations. Normally, Tarion would make a decision about workability at the conciliation inspection, and then, if it’s warranted and there’s not any exception to apply, the builder would get dinged and receive a chargeable conciliation on their record. So Tarion created this extension period where, rather than making the call on chargeable conciliation at the time of the initial conciliation, that decision is now instead being made at the claims inspection. Because there’s confusion, I have a lot of clients trying to resolve outstanding warranty claims, but they’re not sure if they have time to perform the repairs and, second, enter into some sort of resolution with the homeowners.
Mark Weisleder, Senior Partner and Notary Public at Realestatelawyers.ca TH E ISSU E : TH E N E E D TO WOR K WITH HOM E B U YE RS
40
ONTARIO HOME BUILDER WINTER 2021
“The delays caused by the pandemic have definitely created some backlogs. Even yesterday counsel from Tarion contacted me, asking if they could hold off on exchanging materials, which I agreed to. “But even though there’s a backlog, what builders have to appreciate is that just because you’ve submitted your appeal, or told Tarion you’re ready to appeal, that’s not stopping Tarion from having their system auto-generate invoices relating to the subject matter of the appeals. So we’re getting panicked calls from clients saying, ‘I thought I appealed this! Why am I getting this bill or invoice?’ So we’re having to contact Tarion’s collections department to advise them that until the outcome of the appeal, our client is not going to pay these invoices. “I’m going through a backlog of builder arbitration forms appeals, and there’s a recurring issue of documenting changes of instruction or changes relating to the agreement of purchase and sale. You have to document all communications with homeowners, because at the end of the day, Tarion looks to the written documentation as opposed to ‘he said, she said’ about what went down with these warranty claims. Always get your changes in writing. Also, try to see if there’s any exception to chargeability that may apply to you as a builder. I’m coming across builders with these appeals who could have availed themselves of these exceptions but for the fact that they didn’t follow these procedures. I always remind them, ‘The next time you’re denied access, make sure you’re sending
your notices. Put in an offer to settle, in writing, within a certain time frame. And make sure your quotes are based on retail value instead of the cheaper quote you can get because you‘re a builder. “I think the first two quarters of this year there will be a lot of backlogs being resolved, then we’ll get caught up after that. “The issues of increased or unforeseen costs have also become more prevalent. One case we have is for work that was not allowed to proceed (after the initial shutdowns), where the owner hired someone else to come in and complete the contract. Our client, the general contractor, says they have an unpaid account, and the owner is saying they don’t have to pay anything because they had to go out and hire someone else. But performing that construction work at that time should have been illegal. The first contractor was simply complying with the law. It’s a strange situation to have arisen, but I wouldn’t be surprised if that issue was more widespread than this one case. Most are probably more discreet about their non-compliance. When the (essential businesses) list first came out, we were fielding a lot of calls about who makes it on the list, because when you started reading all the provisions, some companies could fall within the permitted work that you didn’t initially assume would. So most people were very concerned about making sure their contract acknowledged that it was permitted under the emergency order. But I haven’t heard of any penalties for anyone acting illegally yet.
“As a result of the pandemic and the uncertainty about occupancy closings and final closing dates, buyers are, in many cases, given a very short window to finalize their mortgage requirements. Some of these buyers have seen their financial situations deteriorate during the pandemic and often need to ask for an extension due to the lack of sufficient notice. Although builders in general will grant a request for an extension, in many instances it involves significant extra charges. “Also, the changes in a buyer’s ability to finance may also result in that buyer
having to assign their agreement to another buyer to avoid forfeiting their entire deposit and facing unwanted legal proceedings. In many cases these buyers are not looking to sell for a profit, just to recover their costs. Yet builders in general will not permit the home to be advertised on any MLS system, making it more difficult for the buyer to sell. “We speak of working together in a pandemic to get deals closed. Builders, lawyers and buyers should be able to do this in an atmosphere that is not adversarial.” ohba.ca
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“I ADVISE MY BUILDERS TO BE VIGILANT AND IDENTIFY ALL THE REASONABLE POTENTIAL PROBLEMS.” — Leor Margulies, Head of Real Estate Group at Robins Appleby Barristers + Solicitors
Leor Margulies, Head of Real Estate Group at Robins Appleby Barristers + Solicitors TH E ISSU E : HOW LONG WI LL YOU R DE L AY B E? “There’s not the burning stuff every five minutes that we had in the spring. But what we’re dealing a lot with now is the back end of Tarion-delayed closings and force majeur issues. “When the vendor has made a determination that the disruptions related to the pandemic (e.g., labour or supply disruptions and/or disruptions to governmental approvals) are likely to or will have an impact upon the construction schedule of the home, then according to the terms of the (Freehold Tentative Closing Date) Addendum, the First Notice should be sent to the purchaser within 20 days thereafter. It’s not 20 days from when the event occurs; it’s 20 days from when the impact is fully ascertained. And that’s the challenge, since you don’t really know how long that delay will be. You may not know for months. Each project is different—lowrise or high-rise, the stage you’re at in your development, how long it will take to remobilize. ohba.ca
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“We have a client with a low-rise project that was impacted in multiple ways. We put together our notice in compliance with the bulletin and the addendum, and said, ‘OK, there’s a pandemic. Here’s the impact on your specific project in terms of things being delayed: permits, labour shortage, etc. etc.’ You’re supposed to, as best you can, tell the purchasers when it’s being moved to. But we couldn’t, because we had no idea. There’s two parts. There’s the direct event. Then, around the end of June when permits were being issued, you could start doing work again. But there were other impacts in terms of labour and lumber shortages. “So you’re supposed to look at the overall impact, now that we’re back to some semblance of normality, and determine how long it will take for remobilization and to get back to being operational. You have 20 days from the date you’ve been able to realistically assess the total impact on your project— to say, ‘OK, your move-in date was Jan. 1, 2021; it’s now been moved seven months based on the following delays.’ The challenge is that it’s not like a strike; it’s an ongoing pandemic and the impacts are so broad. We have a case right now where we sat down with the developer and said, ‘It’s time, you have enough information. You need to put it together.’ Then they ask, ‘What happens if there’s another lockdown?’ The Tarion bulletin doesn’t specifically say, but I think the proper analysis is this: When you went back to work and calculated
everything, you had to plan for something reasonably foreseeable, but you can’t plan for every eventuality. For example, another complete shutdown is not reasonably foreseeable. That’s a new unavoidable delay. You can’t wait until the cows come home, though. “Then you have builders asking, ‘What happens if the prices drop? Everyone will be looking for a way out of the deal and to negotiate a new deal. They’ll come and look at my notice and say I should have sent it out earlier, or that it’s not reasonable.’ But we can only do what we can do. We don’t know if there’s going to be a third wave to the pandemic. And what if the vaccine doesn’t work? “That’s why I advise my builders to be vigilant and identify all the reasonable potential problems. They know their municipality, where their project was and where they are now. If it’s an educated guess, a judge will understand. “But you also can’t use this as an opportunity to correct problems that occurred prior to the pandemic. If you were three months late before it occurred, and lost another six months because of the pandemic, you can’t say, ‘Let’s make it a year and a half to be safe.’ The timing has to look reasonable to a judge. “But you don’t want to push that new date out too far either. You can’t say it’ll be two years, then, after it only takes a year, write to the purchaser and say you want them to close now, because they’ll say, ‘No, I’m happy to wait the extra year and wait for the market to get better.’” ONTARIO HOME BUILDER WINTER 2021
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Sahil Shoor, Partner, Gowling WLG (Waterloo) THE ISSU E : BILL 218 WILL HE LP, BUT… “I’m a dispute resolution lawyer and there are definitely new issues in the construction world, including a lot of delayed claims being advanced by contractors. One of the things that’s sometimes challenging is satisfying the needs of the employees/workers— there’s only so much space you can have between people, and with several trades working on a site at any given time, it’s having a real impact on scheduling. “I have had a few cases with COVID on construction projects, where a contractor’s or subcontractor’s employee brought COVID on to the site and they had to completely shut down that part of the project for 14 days. 42
ONTARIO HOME BUILDER WINTER 2021
“But if the employer has been acting in good faith, that’s where the Bill 218, Supporting Ontario’s Recovery and Municipal Elections Act, can help. It was passed to provide some comfort to companies, so that if you’re acting in good faith, you have protection as it comes to COVID-related items as they pertain to litigation and dispute resolution. “For claims of force majeure or schedule extension or compensation, the original contracts for some projects didn’t really address the issue. In common law, if those issues are not addressed in your contract and you don’t have a force majeure clause, you have to look at Doctrine of Frustration, which basically says there is a supervening event that has taken place which the parties at the time of the contract never considered—a new event that has changed the course of doing business, meaning the parties can no longer perform the contract. However, the threshold and evidence needed to prove the theory are very high. “But it’s important to note that just because a contract becomes expensive to perform, such as if the price of wood
or steel goes up, you cannot claim frustration. You cannot get out of it just because you’re living in the COVID world. “In terms of lessons learned, for new contracts being entered into, you cannot not say the pandemic is going to have an impact. It’s at the forefront of everybody’s negotiations and how much risk they’re willing to take on. And it’s the underlying contract that the parties have signed that is going to dictate what their legal rights are and what remedies are available to them. For example, if I’m representing a developer, I will advise them to send a notice immediately upon the occurrence of COVID on the site, so that the parties are fully aware of the situation and that you’re trying to mitigate the damage, and here’s the mitigation plan. “Finally, and this is big in the construction world, it’s about relationships. How long have the two parties worked together, and are they able to battle COVID together and deliver the project together? “Unfortunately, though, I think some are using this opportunity to get out of bad deals.” ohba.ca
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“I REFER TO CONDOS AS THE CANARY IN THE COAL MINE. THEY REACT QUICKLY AND ARE VERY SENSITIVE TO THE CHANGING ENVIRONMENT.” — Robert Mullin, Partner, SV Law
Robert Mullin, Partner, SV Law TH E ISSU E : TH E N EW R E ALIT Y OF CON DO AM E N ITI E S “The immediate effect I’ve seen in my practice is with existing condos. I refer to them as the canary in the coal mine. They react quickly and are very sensitive to the changing environment. Some of the big issues I’ve seen pop up have been how to deal with amenities. Amenities that include items like pool, gyms, storage, bike rooms. We’re now seeing pools reaching 30 to 40 years old, with dramatic infrastructure upgrades required. On top of the exceptional maintenance costs, you now layer in the pandemic. So you’ve taken a weakened system and added the extra strain of COVID-19. Many condos ohba.ca
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have shut down those amenities, so many of my clients are now having a conversation about the value of these amenities. It’s become a bit of a white elephant. It was already an extensive piece of infrastructure, and one that left us more exposed as a result of potential virus transmissibility. But I’m getting daily emails from some, asking, ‘What’s your legal opinion about reopening the pool? Or the gym, or the library?’ Needless to say, with increased sanitization costs, hygiene protocols and increased cleaning, those maintenance costs are going to go up. So COVID-19 is putting significant strain on the ability of condos to deliver those amenities to the unit owners in a cost-effective and safe manner. “And that might have a long-term effect with respect to developers. I could see the breadth and depth of amenities dwindling in the future. At the very least, the delivery and planning of amenities will be more ‘surgical’ and perhaps more mindful of the long-term implications of the the costs the condo will eventually bear.
I think developers—and no discredit to them—have had a different yardstick by which they measure a development, measuring marketability and profitability and sales. But I think you’ll see developers put into their calculus, ‘What will be the long-term ramifications of this amenity on the condo’s budget 15 years from now?’ And if you’re a long-term builder in a particular jurisdiction, you want a solid reputation that follows you, where that building is looked upon as an asset to your brand reputation as opposed to a detriment. Some builders have been aligned to this for a generation, but some are just coming to this realization; that just looking at the construction, sales and exit of a condo should probably not be the only calculus in determining how to be a good, vibrant community member for generations to come. “And you’re seeing an increased message from the courts in the past year to developers that this is an enhanced relationship where you have to try harder to make sure that the consumer is protected.” OHB ONTARIO HOME BUILDER WINTER 2021
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SAVE THE DATE! OHBA’S ANNUAL CONFERENCE SEPTEMBER 19–21, 2021 AT BLUE MOUNTAIN RESORT COLLINGWOOD
4 4
ONTARIO HOME BUILDER WINTER 2021
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Why Accidents Happen Numbers are improving, but construction remains a hazardous profession BY MARC HUMINILOW YCZ AND TED M C INT YRE
A
s the opening line from the Government of Ontario’s Health and Safety webpage reads, “All workers have the right to return home each day safe and sound.” But the reality is that some don’t. Demolition, excavation, heavy equipment, roofing, framing, plumbing and electrical, multiple trades…. With so much going on during construction, anything can happen, and it sometimes does. The incidents at projects in London and Toronto last month provided a sad reminder. “These tragic accidents just remind us that we need to continue to make safety on sites a priority every day, to be vigilant, and that we can never take things
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for granted,” says OHBA President Bob Schickedanz. “We want everyone to go home safe every night. It’s tragic, and we extend our condolences to the families and everyone involved.” Despite an increased focus over the years on workplace safety standards and training, construction has remained in the top spot among all industry sectors in Ontario for workplace fatalities since 2009, according to WSIB data. To be fair, in 2019, 55 people lost their lives because of a workplace traumatic fatality, down from 72 in 2018. Construction accounted for 32% of those deaths (23), followed by transportation, manufacturing and services. “While I would love to say that the
incidence of construction injuries and fatalities in Ontario is getting better, fatalities have dropped only slightly over the long term and we haven’t really made a dent in injuries,” says Bruce Bolduc, owner/consultant with Construction Workplace Safety Training Ltd. in Barrie. As its name implies, Bolduc’s company provides training, consulting, policies and procedures, as well as accident investigations for companies. “Sadly, we do too many of the latter,” he says. Bolduc identifies several key factors why injuries and fatalities have not abated more substantially over the years, despite better training, workplace safety standards, protection and equipment. “Getting injured and getting back to ONTARIO HOME BUILDER WINTER 2021
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April 28: Annual National Day of Mourning to remember those who have lost their lives to work-related injury or illness. WSIB TRAUMATIC FATALITIES IN CONSTRUCTION
WSIB-COVERED CLAIMS IN CONSTRUCTION THE PAST 10 YEARS
2011: 20
2011: 291,505
2012: 14
2012: 306,990
2013: 23
2013: 366,062
2014: 24
2014: 382,560
2015: 19
2015: 392,277
2016: 23
2016: 390,040
2017: 20
2017: 423,094
2018: 26
2018: 424,719
2019: 23
2019: 438,431
work is something of a badge of honour for many construction workers,” he notes. “The attitude is, ‘I’m tough enough. Construction is not for the weak of heart.’” Another factor is complacency and shortcuts, Bolduc adds. “Workers say things like, ‘I’m only going out there for a few seconds’ or ‘I’ll do just one last thing.’” Bolduc identifies industry deadlines as another factor. “Let’s face it, the construction industry has and always will be deadline-driven,” he says. “Contractors bid on jobs. When they get them, they’re already two weeks behind schedule and short of trades. I’ve dealt with many projects where tradespeople are brought in from afar or work for cash. And when it 46
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2010: 280,028
comes to workplace safety, the rules seem to change north of Highway 7.” Then there is the age factor. “Older skilled tradespeople are retiring and there are just not enough new trained people to take their place,” Bolduc observes. “For example, the average age of bricklayers is in the 60s. They want to retire, but nobody wants to do their job.” And while many of these same individuals would stretch before a slopitch or recreational hockey game, the same attention is not applied on the jobsite. “In Japan, construction employees do warm-up exercises before getting to work to prevent injuries, but that just
FATAL 4
CAUSES OF CONSTRUCTION ACCIDENT INJURIES
FALLS
CAUGHT IN / BETWEEN
STRUCK BY OBJECT
ELECTROCUTIONS
wouldn’t fly here,” says Bolduc. “But even with all the technology we have and the focus on ergonomics, there are ways to make things better. It just takes a willingness to change.”
GOVERNMENT EFFORTS The provincial government continues to mine their data in the attempt to curb incidents of injuries and illness. “Every year, the ministry’s health and safety annual report allows us to review what we’ve achieved, and to look towards the future of the health and safety system,” observes Ron Kelusky, Chief Prevention Officer with the Ontario Ministry of Labour, Training ohba.ca
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10
THE AGE OF INJURY
TOP
HEALTH & SAFETY ISSUES AND VIOLATIONS ALL SECTORS
(Ontario Ministry of Labour, 2018)
CONSTRUCTION SECTOR ONLY
1
1
Workplace violence and harassment (14,000 orders issued)
Fall protection
2 Falls protection (9,500)
3
2 Lack of personal protective equipment
3
Lack of personal protective equipment (8,600)
Improper access and egress
4
4
Administrative (7,700)
Improper use/maintenance of ladders/scaffolding
5 Health & safety representative and joint health & safety committee (7,100)
6 Improper access and egress (7,000)
7
5 Housekeeping and work surfaces
6 Electrical hazards
7
Basic occupational health & safety awareness training (6,600)
Other equipment
8
8
Housekeeping and work surfaces (4,700)
9
Struck by objects or equipment
9
Lack of equipment, material and protective device maintenance (4,600)
Lack of machine/equipment guarding
10
10
Lack of machine/equipment guarding (4,400)
Improper material handling
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WSIB data shows that construction injuries (allowed lost-time claims) were highest among the 20-30 age group, followed closely by workers 30-40—“likely due to a feeling of infallibility/ invincibility,” suggests our WSIB insider.
WSIB TRAUMATIC FATALITIES 2011 TO 2019
Age Group
Construction
15-19
6
20-24
18
25-29
24
30-34
19
35-39
18
40-44
24
45-49
11
50-54
23
55-59
21
60-64
9
65+
16
Not Available
3
TOTAL
192
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2019 TOP 10
2019 TOP 10
HOME BUILDING ONLY
HOME BUILDING ONLY
LOCATIONS
NATURE OF INJURY
Approx. # of claims % of claims
TORONTO
108
10%
SPRAINS, STRAINS, TEARS
397
35%
OTTAWA
95
8%
FRACTURES
189
17%
SIMCOE
70
6%
CUTS, LACERATIONS
120
11%
YORK
63
6%
BRUISES, CONTUSIONS
83
7%
PEEL
58
CONCUSSIONS
41
4%
5%
NIAGARA
52
5%
FOREIGN BODIES (SUPERFICIAL SPLINTERS, CHIPS)
27
2%
MUSKOKA
43
4%
PUNCTURES, EXCEPT BITES
26
2%
WATERLOO
42
4%
SOFT TISSUE INJURY (TRAUMATIC)
23
2%
MIDDLESEX
39
3%
NONSPECIFIC INJURIES AND DISORDERS, UNSPECIFIED
16
1%
ESSEX
36
3%
FRACTURES AND OTHER INJURIES
15
1%
ALL OTHER
520
46%
189
17%
TOTAL
1,126
100%
1,126
100%
and Skills Development. “In 2013, (we) launched Healthy and Safe Ontario Workplaces — A Strategy for Transforming Occupational Health and Safety, which provided a road map for the occupational health and safety system. In 2019, the ministry’s Prevention Office consulted widely with Ontarians on the next five-year strategy. “As we focus on the future, our ministry is committed to ensuring our initiatives are data-driven and measurable,” Kelusky adds. “For example, we want to use data to understand the events and circumstances around workplace incidents to reduce injuries or fatalities. We also want to measure the outcomes of our initiatives to improve them. And we need to effectively translate this data for those who would most benefit from the information. We are working with our partners and Ontarians in various sectors to determine the highest priority risks.” 48
ONTARIO HOME BUILDER WINTER 2021
ALL OTHER TOTAL
There has been little doubt as to the priority over the past nine months. According to the CBC, as of late November, more than 26,000 WSIB claims had been filed by Canadians (7,752 in Ontario) who purport to have contracted COVID-19 at work. In that regard, the new Bill 218, Supporting Ontario’s Recovery Act, enacted on Nov. 20, was welcome news for business owners. Retroactive to March 17, it is designed to protect employers from liability if they have made “good faith” efforts to prevent exposure to the virus. But it’s hard to protect against the mental strain brought on by the pandemic. According to Morneau Shepell, a leading provider of total wellbeing, mental health and digital mental health services, through November, Canadian workers had registered eight consecutive months of significantly lower mental health than prior to the COVID-19 pandemic.
# of allowed lost time claims
Approx. % of claims
“The level of mental health in November (indicated) that the working population is currently as distressed as the most distressed 1% of working Canadians were prior to 2020,” the report observed, “and the psychological health risk score was at its lowest level since the inception of the Index.” Construction was in sixth spot of 22 occupations ranked in the Index, tied with educational services and just behind Health Care & Social Assistance. Those in management positions of companies ranked first overall. Kelusky says that in the construction industry, work-related stress/depression has overtaken musculoskeletal disorders as the most reported workplace health issue. But he echoes Bolduc’s sentiments that the ‘tough guy’ persona of the industry dissuades many from reporting. “We want to ensure that persons working in construction have access to resources that are available—both anonymous and other.” OHB ohba.ca
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1_POLLARD_OHB_Halfpage_Ad_2021Winter_R1.qxp_1 2020-12-15 1:55 PM Page 1
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ONTARIO HOME BUILDER WINTER 2021
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ONTARIO HOME BUILDER WINTER 2021
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Building Buzz NEWS AND MOVES FROM THE INDUSTRY
NATIONAL STRATEGY SHOULD MAKE AN IMPACT ON WOMEN IN TRADES BY T E D M c I N T Y R E
In October, the Canadian Apprenticeship Forum (CAF) released a first-ever, National Strategy for Supporting Women in Trades (SwiT). In 2019, the CAF led a task force of more than 60 skilled trades stakeholders who came together to guide and inform a strategy to create measurable change for women’s representation in skilled trades careers in Canada. The industry-driven strategy is intended to generate awareness, trigger policy change, recognize best practices and create skilled-trade workplace environments where women’s representation increases. “The SWiT national strategy has brought together organizations doing the work to recruit and retain tradeswomen in the construction industry,” says task force member Lindsay Amundsen, Director of Workforce Development at Canada’s Building Trades Unions. “Together, through identifying barriers and developing strategies for success, ohba.ca
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SWiT will help change the face of construction and increase diversity within our industry.” According to Statistics Canada Registered Apprenticeship Information System 2018 data, when apprentice registrations in the construction, manufacturing and transportation sectors were analyzed, women represented just 4.5% of those registrations. The SWiT task force established a national target to increase participation and retention of women in skilled trades careers to 15% by 2030. Another priority of the strategy was to identify tactics to create respectful workplaces. “Under-represented groups, including women, transgender, twospirited, intersexed or gender nonbinary, have a fundamental right to a safe, healthy and equitable workplace, free of harassment, bullying and discrimination,” says France Daviault, CAF executive director. The SwitCanada.ca webpage provides links to tools to assist
employers, unions, educators and tradeswomen in creating healthy, safe and inclusive workplaces. “The goal is to have best practices from across sectors available in one place,” Daviault says. “There’s no need to recreate the wheel—there are some tried and tested tools out there that organizations are willing to share.” The strategy is a national movement and calls for champions who commit to making a difference through a public pledge. The pledge requires that they share their internal numbers on the percentage of women apprentices and journeypersons they employ in skilled trades work annually. “Those who join the movement as champions by taking the #Champions4Change pledge are truly changemakers and leaders,” notes Daviault. “They understand that numbers matter and aren’t afraid to be part of the discussion. We are beyond rhetoric, as the number hasn’t increased in years.” ONTARIO HOME BUILDER WINTER 2021
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NEW HIRES
FORMER OHBA PRESIDENT TAKES THE REINS AT HEATHWOOD
One decorated OHBA member is assuming a new role while another takes his place as president of Heathwood Homes. Hugh Heron, a BILD Association Lifetime Achievement Award winner and co-founder of Heron Homes, has taken the new role of Chairman, while Bob Finnigan takes Heron’s place as president of Heathwood Homes, a partnership of Herity and Daniels Financial. Finnigan’s portfolio spans the building industry, including serving as past president of each of the Ontario Home Builders’ Association, the Canadian Home Builders’ Association and the Greater Toronto HBA (now the Building Industry and Land Development Association). Finnigan was also an active member of the Board of Tarion Warranty Corp. until this year. As Chief Operating Officer of Herity’s housing division, including Heathwood Homes and Heron Homes, Finnigan worked diligently to ensure that the company’s core values of trust, respect, integrity and professionalism are part of business on a daily basis. “Bob Finnigan has been a vital part of Heathwood Homes for over 30 years,” says Heron, whose essentially horizontal shift makes way for a natural progression for Finnigan atop a company where growing responsibilities are greater than ever. “Bob’s leadership and business acumen has contributed in significant measure to our success throughout the years,” Heron adds. “As president, he 52
ONTARIO HOME BUILDER WINTER 2021
will continue to advance the company’s goals in creating communities of integrity and innovation.” NEW HIRES
V.P. ANNOUNCEMENT A PROMINENT ONE FOR DOUG TARRY LTD
A recent personnel announcement has marked a corporate first for Doug Tarry Limited. The appointment of Jennifer Weatherston to the post of V.P. of Operations signals the first time in the growing company’s history that a non-family member has been hired to an executive-level position. Weatherston brings extensive operational experience on a production scale with single-family, multi-unit, mid-rise and custom homes. Before joining Doug Tarry Limited team, she held several positions with prominent builders in the Ontario home building industry. She has also received several honours from EnerQuality, the No. 1 certifier of energy-efficient housing in Canada, including Leader of the Year and Net Zero Builder of the Year (four times), while also earning the Builder Achievement Award at the most recent EnerQuality Awards. Weatherston was co-host of the 2020 Net Zero Leadership Summit and remains a prominent voice within the Canadian Home Builders’ Association, currently serving as Chair on the CHBA Net Zero Council – Management Committee. “Joining Doug Tarry Limited is an incredible opportunity to align personal values with a family legacy that has embodied building
excellence for decades,” says Weatherston. Doug Tarry, for his part, appreciates the value that someone of Weatherston’s experience adds to the equation. “Having known Jen by reputation and serving with her on various industry panels for several years, I really look forward to continuing our mutual commitment to industry leadership,” says Tarry, President of Doug Tarry Homes. “Her influence will shape our entire team’s daily effectiveness as we move forward into our future.” “As a multi-generational land developer, community and home builder, Doug Tarry Ltd recognizes the opportunity we have in bringing Jen Weatherston onboard,” adds Greg Tarry, Chairman Emeritus, Doug Tarry Ltd. “I look forward to her contributions in the years ahead.” T E C H N O L O GY
NEW APP HELPS BREAK THE CODE Toronto’s AECO Innovation Lab has launched an innovative new product: My Building Code. My Building Code delivers a digital version of the Ontario Building Code (OBC) via a web and mobile application, making regulations accessible anytime, anywhere, on any device. Practitioners in the architecture, engineering and construction (AEC) industries rely heavily on the OBC to perform their day-to-day professional responsibilities. However, the paper version of the document is often difficult to navigate, cumbersome to update and not readily available in the field. My Building Code promises to transform the OBC user experience for AEC professionals with an easy-tonavigate app that is always up-to-date. It includes features such as a search function for quick lookup, linking of referenced regulations and exceptions, and pop-up definitions for clarification when needed. This all adds up to an efficient and easy-to-use tool that enables productivity and saves time. ohba.ca
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TRENDS
A HOT NEW COLOUR TAKES FLIGHT FOR 2021
Weiser OverprotectsTM Fights Bacteria Growth At the Door
At a time when consumers have involuntarily slowed down their lifestyles and are craving comfort and a sense of optimism, the Sico paint brand by PPG suggests taking a cue from nature with its 2021 Colour of the Year: Blue-Winged Warbler. The hot new colour is named after the North American songbird, whose vibrant colours are admired by nature enthusiasts. The increasing need for selfcare, comfort and relaxation were recurring themes at PPG’s recent Global Colour Workshop, and their Colour of the Year fits the bill. Blue-Winged Warbler is a complex combination of blue and green to create a jade aqua tone, which emulates the depth of a pool of water or lush greenery in a dense forest.
Untreated handle without Microban® technology
Weiser handle with Microban® technology
Microorganisms can multiply rapidly on hardware surfaces.
Bacteria cell growth is disrupted and unable to reproduce.
Disclaimer: Simulation for comparative purposes to substantiate stain and odor-causing antimicrobial activity on the treated article for non-public health uses.
T E C H N O L O GY
NEEZO ROLLS OUT VIRTUAL RED CARPET EXPERIENCE At a time when homebuyers are increasingly looking for a more convenient—and safer—means of exploring a potential purchase, Neezo Studios is rolling out the “Red-Carpet.” The Mississauga company’s new Red-Carpet VIP-VR, their latest 3D ohba.ca
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ONTARIO HOME BUILDER WINTER 2021
53
breakthrough creative product, is a virtual duplicate of a builder’s sales centre experience that gets you to the proverbial front of the line—wherever you are. Homebuyers and investors can experience the sales centre 24 hours a day, 365 days a year. The new technology complements the company’s LiveSite interactive sales software, which enables a builder’s sales team to do everything from interactively showcasing a project’s real-time sales inventory to assessing distances to area amenities. “Red-Carpet VIP-VR serves as the perfect prelude to LiveSite,” Neezo founder Marvin Maalouf explains. “Just like any red-carpet event, you need to RSVP to gain access, which is something that is expected for a builder’s pre-launch as well. Now it can be offered virtually too!”
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“Helping Builders Finance Their Dreams since 1974” Project Financing: Land Land Servicing Mezz Financing
300 John St. Suite 328, Thornhill ON L3T 5W4 B: 905-731-111 x 229 C: 647-838-5061 rena@cyrfunding.com www.cyrfunding.com 54
ONTARIO HOME BUILDER WINTER 2021
Custom Homes Subdivisions Apartment Buildings Inventory Units Condo Management
Financing Commercial / Industrial Special Purposes
Neezo has embedded an appointment calendar for customers who wanted to schedule some one-on-one time at the sales centre—in-person or virtually. The sales centre rendering will emulate the builder’s actual sales centre floorplan/design. But Neezo can also create a virtual sales centre, if the builder chooses not to build a physical structure. For those not visiting the sales centre in-person, Neezo implemented a series of interactive touchpoints that enable users to download, listen to or view photorealistic 3D elements of the entire sales centre. Beyond the 3D tour, though, there’s an enhanced conventional VR walk-through with a myriad of interactive components, including a video-hostess who points out what you can see/do at every interactive touchpoint of the sales centre and 3D renderings of features like various kitchen combinations. OHB ohba.ca
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1.800.265.2290 VISIT ONE OF OUR SHOWROOMS AT: 888 GUELPH ST., KITCHENER, ON | 519.579.3810 309 EXETER RD., LONDON, ON | 519.652.1677 1112 MARCH RD., KANATA, ON | 613.592.9111
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On behalf of the staff and members at the Carpenters’ District Council of Ontario we would like wish everyone a safe and Happy New Year!
2021 222 Rowntree Dairy Road Woodbridge, ON L4L 9T2 T: 905-652-4140 www.thecarpentersunion.ca @CarpentersONT
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A Home Builder’s Best Friend
16783 Thorndale Rd. Thorndale, Ontario, N0M 2P0 Tel: 519-461-1180 Toll free: 1-800-265-7086 Fax: 519-461-0903 www.trscomponents.ca Since 1974, TRS has offered builders a single source supply network of wall panels, roof trusses, floor panels. Our supply and install expertise will make your next job faster, easier and more efficient.
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ONTARIO HOME BUILDER WINTER 2021
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Product Focus I DE A S FOR B U I L DE R S & R E N OVAT OR S
EARTHLY D FRIEN G COR NIN OW ENSEILS NGX V UN P. 58
At a time when people are hyper-conscious about a healthy environment, Panasonic’s nanoeX technology takes air purification to another level.
SAFE ZONES
From cleaner air and leak prevention to improved efficiency, the heating and cooling world takes a healthy step forward BY TED McINTYRE
TECHNOLOGY IS relentless in
the heating, ventilation and air conditioning market. According to the HVAC Equipment Market 2020: Global Industry Analysis, released in November, “mobile-friendly technology and virtual reality (VR) training are bringing about a change in the HVAC equipment market.” Hence, “contractors are developing HVAC scheduling software so that maintenance and other services are easy to book and pay for. These kinds of software help to understand the work order of contractors and eliminate any misconceptions surrounding the delay in services. Tech-savvy customer services are being highly preferred by individuals who demand assistance ohba.ca
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from tech-savvy technicians.” This trend has pushed VR training for HVAC technicians. Cutting-edge trends include movement-activated and thermaldriven AC. But the simple concept of home comfort is where strides have been most dynamic, and Panasonic is front and centre with its nanoeX air purification technology for the North American market. Technically speaking, the science uses fine particle ions generated from moisture in the air—even deep into fabrics—to form tiny particles from electrically charged water molecules. Filled with 4.8 trillion OH radicals, these water capsules inhibit the growth of certain pollutants such as
allergens, bacteria, viruses, moulds, odours and certain hazardous substances by breaking them down and reducing or eliminating their unpleasant effects. Texcell, a leading global viral testing organization, recently verified the inhibitory effect of nanoeX on COVID-19. Panasonic is now including nanoeX generators in a range of products, including its PACi and VRF ranges of air conditioners, as well as its ClimaPure XE ductless heat pump system. “The ClimaPure XE is the only heat pump in the world that heats, cools and does air purification,” says Sonny Pirrotta, National Sales Manager for HVAC Solutions at Panasonic Canada. ONTARIO HOME BUILDER WINTER 2021
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Product Focus The space-saving, quiet-operating Fujitsu Infinite Comfort Series is new from Air Solutions in Cambridge.
Napoleon’s safe and efficient heat management is showcased in its new Altitude X gas fireplace.
The product includes outdoor units and indoor wall-mount units, ranging from 9,000 all the way to 24,000 BTUs. Panasonic’s Comfort Cloud, meanwhile, takes advantage of built-in wifi to allow users to control heating and cooling from their smart device. And this month, Panasonic is adding multi-zone capability to the product in 9,000, 12,000 and 15,000 BTU options. The company also has big news on the ventilation side. With a current working name of Air EX, nanoeX tech will be included in a self-generating fan expected to launch in August. Fitting flush into a ceiling roughly the size of a pot light, a single unit can cover 200-250 square feet. “It’s a game changer,” Pirrotta says. “You put a hole in the ceiling, run two wires to some power, and now you have a device on 24-7, purifying the room non-stop. And the nanoeX technology is maintenance-free, guaranteed for life. “You can truly feel when you walk into a room,” Pirrotta adds. “The first thing you notice, though, is how quickly it reduces odours. We’ve 58
ONTARIO HOME BUILDER WINTER 2021
done demos with chili sauce and it’s incredible how fast it works.” With more people spending more time at home than ever, “indoor air quality is front of people’s minds right now, and it’s not going to go away, even after the pandemic,” Pirrotta says. Consequently, the nanoeX technology is drawing a lot of attention from single-family builders. “Some want to build with it so they can market it as a safe, healthy home, but others want the opportunity through a builder program we’re putting together to use it as an upgrade,” Pirrotta says. “But we think there’s huge potential in the multi-family residential market,” he says—“designing it into the plan, using air-source heat pump technology to heat and cool your units and an ERV to exchange the air. We’re even working on a smart ducting system to tie it all together.”
IF THE WALLS COULD TALK
Caring for its home occupants on the other side of the wall is a brand new product from Owens Corning,
Foamular NGX. Short for “Next Generation Extruded,” this new line of extruded polystyrene foam products features a proprietary blowing agent that delivers a 90% reduction in global warming potential (GWP) versus the previous Foamular blowing agent, without sacrificing product performance. This latest addition to the company’s insulation portfolio is Underwriters Laboratory (UL)-listed and Factory Mutual (FM)-approved, with a low GWP that ensures compliance with regulations that have come into place in Canada this month. Its environmental benefits will be reflected in a new Environmental Product Declaration (EPD), delivering independent and registered verification of the material’s environmental impact across its entire lifecycle. Complete with Foamular’s industry-leading limited lifetime warranty that guarantees a minimum 90% R-value for the life of the product, Foamular NGX features excellent energy efficiency in the form of a high R5 per inch, with extremely low water absorption ohba.ca
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Product Focus
Owens Corning’s new Foamular NGX features a 90% reduction in global warming potential from the previous Foamular blowing agent.
than 10 HSPF) equal big utility rebates. Napoleon is also showing off some savvy air movement, while keeping heat away from where it’s not wanted. “We pride ourselves on innovation and creating a comfortable environment for the room you live in by getting the most enjoyment possible out of that room,” says Steve Schroeter, Co-Chief Executive Officer with Napoleon. “That means creating heat management solutions—the ability to move the heat from your fireplace to exactly where it’s needed, which isn’t necessarily directly in front of the fireplace. “Heat management easily allows you to install your television, art and electronics closer to your fireplace; as well as even moving the heat to another room—or even outside!” Schroeter explains. Napoleon’s heat management also reduces clearance to combustibles and allows for the easier installation of mantels. It also means cooler glass, increasing fireplace safety for families, as well as cooler walls near the fireplace. Napoleon has a variety of heat management solutions, depending on the fireplace selected, Schroeter notes. “Our Altitude X gas fireplace is a great example of being able to silently move the heat away from the surface of the fireplace so you can direct the heat within the room more effectively.”
GETTING INTO HOT WATER Rheem calls its Professional Prestige ProTerra Hybrid Electric with LeakGuard the most efficient water heater available.
potential. It is offered in a wide range of compressive strengths, up to 100 psi, to handle heavy loads.
AIR APPARENTS
Comfort is also the key word for Air Solutions in Cambridge, which has introduced a product with the name right in it: the Infinite Comfort Series, an ultra-efficient, multi-position air handling unit from Fujitsu General. ohba.ca
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The revolutionary line of side-discharge, outdoor condensing units saves space, allowing for multiple installation options, with units ranging in size from 24,000 to 48,000 BTU/H. Featuring an adaptive fan motor speed control to assure optimum comfort, their quiet operation is also very easy on the ears—as low as 25dBA indoors 53dBa outdoors. And excellent energy ratings (19 SEER and better
When it comes to comfort, Rheem’s built-in EcoNet wireless technology allows users to monitor and remotely control its new Professional Prestige ProTerra Hybrid Electric with LeakGuard water heater, from monitoring energy usage and changing water temperature to even checking whether there’s enough hot water before jumping into the shower. Rheem calls the new model “the most efficient water heater available— over 400% more efficient compared to any standard electric tank-type water heater in market and more ecofriendly than ever at up to 4.0 UEF.” Multiple settings include Energy ONTARIO HOME BUILDER WINTER 2021
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Product Focus
Rinnai’s popular Sensei RU160i tankless water heater with the new Control-R Wireless Module.
Saver, Heat Pump, High Demand, Electric, Vacation/Away, with customizable scheduling that allows you to schedule around peak electricity rates. As high-tech integration goes, there’s an LED Screen and built-in water sensor alert with audible alarm, while the unit performs systematic health checks on itself. But it’s the degree of leak monitoring that really separates it from the competition. This is the only heat pump water heater with integrated leak detection and auto water shut-off, says Rheem, limiting leaks—internal or external—to no more than 20 ounces of water. In terms of maintenance, the Professional Prestige ProTerra Hybrid Electric is easily installed, with easyaccess side connections and quick access to its electrical junction box. In fact, all serviceable components are located on the front of the unit, saving 60
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plumbers valuable time. Plumbers can also access detailed system diagnostics through Rheem’s contractor app, which shortens service visits and improves performance in the field. Rinnai, for its part, continues to make a pitch for going tankless in the water heater world. And its Sensei model is making waves. “We came out with it in 2018, but gained more movement this past year with builders,” says Leah Chamberlain, Market Development Specialist with the Ottawa office of Rinnai America Corporation. Apart from the many merits of the product itself, Rinnai’s move last March to a factory-direct approach instead of an agency representing the product has added momentum, Chamberlain says. “Rinnai hired staff across Canada in 2020; there are 14 of us now. The advantages for the builder are quicker responses and more
focused product training.” And while COVID-19 wreaked havoc on the North American economy, it has done wonders for Rinnai, Chamberlain notes. “It really increased our sales. People are at home most of the day using our equipment, and many who had a tank that needed to be replaced were eager to switch to tankless. It not only takes up less space, it’s more efficient—the life expectancy is 20 years versus eight to an average of approximately 10 with a standard tank.” The majority of Rinnai’s demand “has been from Re & Re (remove and replace),” Chamberlain says. “Typically our Sensei SE+ Series RU160 (160,000 BTUs) is the most popular for home applications. And we’re getting high requests for our RUR tankless units featuring ThermaCirc360 technology, which can offer faster hot water without the expense of adding an additional line. This technology allows for the simple installation of a thermal bypass valve at the fixture farthest away from your water heater. Once installed, the unit temporarily uses your cold water line for recirculation. So now you don’t need a dedicated return line, which was a big problem in the past since you’d have to replumb the home with a third line, and you can have hot water faster when you need it.” While the RUR is thus far been more of a custom home product, the Sensei Tankless is increasingly popular among production homes as well, Chamberlain says, as more builders and homeowners become comfortable with the product. Adding to the appeal is the introduction of the Control-R Wireless Module and mobile app for Rinnai tankless water heaters. “We’re taking control and flexibility to a new level with the Control-R,” Chamberlain says. “With wifi connectivity, new and existing Rinnai residential and commercial tankless water heaters (2006 and newer) can be remotely monitored and controlled via smart devices.” In a world that’s been running hot and cold of late, it would appear Rinnai is among the companies mastering the art of temperature control. OHB ohba.ca
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Date: Feb 03, 2020 Filename_ Version#
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Frame of Mind
INTIMATE DESIGN The pandemic should give us pause—and a place—for reflection THE PANDEMIC HAS offered us an unexpected opportunity to inadvertently peer into other people’s homes. In Zoom meetings with students, friends and colleagues and during TV interviews with excerpts using remote communications, my eyes survey the domestic settings behind the participant. The room selected for the communication, its furniture arrangement, books on shelves and art on the wall all tell much about the occupants’ taste, decor habits and, to some degree, personality. It can also offer home builders an idea of what people want in contemporary homes, especially during these unsettling times. In recent decades, with the increased use of computers and visual communication like Skype and FaceTime, the public sphere has gradually encroached into our private domain. Even within their homes some people feel that they no longer have a quiet space; an area where they can sit when things get out of hand and reflect at day’s end about what’s dear to their lives. The transformation took place when, in the name of style, convenience or space-saving, we fused functions after we fell in love with the open-plan concept. The living room was merged 62
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with the dining room; the family room became part of the kitchen. In many homes, the study that could have been a private enclave instead occupies a corner in another room and is usually dominated by a digital appliance. The space that has seen the greatest decline in intimacy is the bedroom. Many bedrooms in Canadian homes now sport the ‘indispensable’ TV set. Quiet reading or conversation time that could have been part of the ritual of changing gears and the end of a hectic day is now filled with even more electronic appliances. Where does design for intimacy and reflection begin? It begins by understanding that people occasionally need a different kind of space conducive to conversation with another family member—a space with the physical features to make such a moment memorable, including light, texture, sound, proportions and decor. It means having the architect and builder examining spaces when design of the home is still on the drawing board, and determining where the opportunities to create such a place can occur. Intimate space can be created anywhere, but it will be more successful in a small, confined area. A bay window overlooking a landscaped yard with a seating arrangement at its footing
and dimmed lights above can make a good place for reflection. An alcove with walls of books or a painting, a soft couch and tall floor lamp nearby can become a quiet place to read and think. A bathroom with a spacious bathtub, proper lighting and a place for a candle allows for de-stressing. And then there are reflection spaces for the entire family. A wellproportioned dining room can become a space to recall the day’s events. A small table will let household members be physically close. A soft couch in a family room with no TV set will be a place where intimacy and quality time between a parent and a child can be fostered. The outdoors in summertime is another place where reflection can happen. Sitting under a tree in a backyard or resting on a hammock are other places to consider. COVID-19 handed builders an opportunity to re-evaluate the use of space in homes and better respond to people’s everyday personal needs, given the newly established set of priorities that the pandemic imposed. Let’s not miss it. OHB AVI FRIEDMAN IS AN ARCHITECT, PROFESSOR, AUTHOR AND SOCIAL OBSERVER. AVI.FRIEDMAN@MCGILL.CA
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