GTAAonline Magazine May/June 2022

Vol. 1 No. 5 May/June 2022

Chair’s Lunch

Mississauga IZ

Deep Retrofit Challenge

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PRESIDENT’S Message At the risk of sounding optimistic, I think we’ve turned the page and are coming out of the pandemic. It feels that most are ready to make the gigantic leap back into their former lives.

There was some early trepidation – should I take off my mask? Then some baby steps – handshakes replacing elbow bumps and first pumps. And alas, bring it in and give me a hug!

Take the plunge, it’s a very short trip and the splash is refreshingly familiar and much needed after a prolonged absence.

Our Chair’s Lunch was our last large in-person event before things ground to a halt. Held in early February 2020, I don’t I recall any real concern at that time. But a month later everyone was on edge then ordered home. Coincidence or karma, our return to group gatherings was our Chair’s Lunch in support of our Charitable Foundation.

We delayed this until we felt confident that participants would be comfortable. To make the transition smoother, we found a very large space and capped the attendance size. It was a fabulous first big step back to normal. Thank you to everyone who rallied the courage to resume life … and especially those who gave me a hug.

While some things were on pause or slowed down a bit, government matters have been chugging along steadily. Following on the heels of Toronto’s Inclusionary Zoning requirements, the City of Mississauga released their proposed framework. Will it help? Probably not – it’s more of a feel-good exercise for politicians. Theoretical ‘results’ on paper only that look good as headlines, but won’t transcribe broadly as the magic bullet solution. A predictable failure.

For ownership development the IZ requirements will be 4%, 3%, and 3% respectively in Areas 1, 2 and 3A/3B … these will increase to 10%, 7% and 5% respectively in two years.

At least they listened to us and exempted purpose-built rental developments. Facts show that there’s been negligible rental construction in Mississauga for several decades, and this would discourage the precious few that have recently been proposed. Had requirements been applied to rental, the results would have been a handful of units, at the risk of killing whole projects.

Over in Oshawa we recommended a surgical approach rather than use of a blunt instrument. A review of Toronto’s building scores reveals that City Inspectors spend most days looking at great buildings.

Probably a pleasant way to consume a day, but a complete dilution of what they were supposed to do – identify poorly run buildings and get them to comply. Sounds a bit too logical for government.

Weather is nice, and people are out and gathering. I hope to see you in-person really soon!

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GTA48_AnnualDinner_HPHad_v2_Layout 1 2022-06-09 12:43 PM Page 1

AT T E N D & S P O N S O R

GTAA’s Annual Dinner October 26, 2022

PRECEDED BY OUR ANNUAL GENERAL MEETING AND RECEPTION

PAR KV I E W M A N O R | 55 B A R B E R GR EE N R O A D, N O RT H Y O R K

MILLENNIUM Members

4 | May/June 2022

VOL.1 NO.5 2022

In this ISSUE

8 Chair’s Lunch Inclusionary 10 Mississauga Zoning Framework

18 22

Oshawa Residential Rental Housing License

Publisher Nishant Rai

Account Executive Justin Kreslin

Editorial

Daryl Chong

Creative Director / Designer

Deep Retrofit Challenge

Noah Goldentuler

Office Manager

CreateTO Performance 28 Report How to Make Buildings 32 Sustainable on Every Budget The Main Political Risk to 34 Rental Housing Providers Invests $19M to 36 Ontario Help Tackle Housing Crisis

38 Scholarships OPEN Membership Renewal 39 GTAA 2022-2023

6 | May/June 2022

Geeta Lokhram

Published By:

GTAAOnline is published monthly by RHB Inc. on behalf of the Greater Toronto Apartment Association (GTAA) and is distributed online through controlled circulation to the GTAA membership.

Please contact the Publisher for advertising dates and rates. Opinions expressed are those of the authors and do not necessarily reflect the views and opinions of the GTAA Board or management. GTAA accepts no liability for information contained herein.

Opinions expressed in articles are those of the authors and do not necessarily reflect the views and opinions of the GTAA Board or management.

GTAA and RHB Inc. accept no liability for information contained herein. All rights reserved. Contents may not be reproduced without the written permission from the publisher.

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Chair’s Lunch GTAA

’s last large in-person gathering was on February 4, 2020 – it was our Chair’s Luncheon. It was fitting that our first in-person event, after two plus years without meeting, was our 2022 Chair’s Luncheon in support of our Charitable Foundation.

GTAA Chair Laura Holland hosted our annual luncheon in support of our Charitable Foundation on Thursday April 28th, 2022.

Another spectacular turnout of about 70 guests.

This sold out event took place in the newly opened Village Lofts at Bayview Village. We started with a cocktail reception then a seated multi-course meal. The room was bright and airy, the food was delicious and the crowd was delightful. Best lunch ever!

A heartfelt “Thank-you” to everyone who donated to our Foundation! Your ongoing support helps many in need, and the recipient organizations routinely send notes of appreciation.

We wish to thank all of our Charitable Foundation’s Major Sponsors. Most have been generously contributing every year for many years.

8 | May/June 2022

This past year our Charitable Foundation donated $156K ($132K to charities; $24K is our scholarships to grade 12 apartment residents).

As our main fundraising events were again cancelled for the second year, we relied heavily on our Major Sponsors. GTAA Members know the importance of helping those in need, so we did what we could and figured out ways to continue giving.GTAA Members know the importance of helping those in need, so we did what we could and figured out ways to continue giving.

All the proceeds from the lunch go directly to our Charitable Foundation. The GTAA picks up the tab for the food, and the bar tab! This allows for a charitable donation tax receipt for 100% of your contribution. Keep this in mind for next year’s lunch.

On behalf of the GTAA Chair and the GTAA Charitable Foundation, “THANK YOU” for attending our annual lunch, and for your support. Please join us in thanking all of donors for their continued support!

We look forward to lunching with you next year.

gtaaonline.com | 9

Mississauga Inclusionary Zoning Framework GTAA’s ongoing pursuit of incentives (financial and other) and lower fees and opposition to anything that adds costs or takes more time is fact-based and goal oriented. In the past year, we met with Council, Committee, and with senior staff more than a dozen times showing the data and extrapolating the results.

10 | May/June 2022

gtaaonline.com | 11

GTAA’s ongoing pursuit of incentives (financial and other) and lower fees and opposition to anything that adds costs or takes more time is fact-based and goal oriented. In the past year, we met with Council, Committee, and with senior staff more than a dozen times showing the data and extrapolating the results.

The following contains excerpts from GTAA’s formal submission in March 2022: Mississauga’s current rental stock (Corporate Report 9.8, Nov 2021) consists of 30,322 units contained in 337 buildings that are 2-storeys or taller, with 6 units or more. This serves a population of more than 766,000 residents (2016).

There is a chronic shortage of new rental. Based on Urbanation reports, only 3 new purposebuilt rental buildings have opened since 2005 (Urbanation started tracking new rental in 2005).

Skyrise by Daniels Gateway at 2550 Eglinton Ave West - 323 units, 25 storeys, 2016 Bridgewood by Timbercreek Communities at 1855 Bloor St. - 80 units, 4 storeys, 2016 The Huron by Starlight / DMS at 2475 Hurontario St - 81 units, 6 storeys, 2020 The net increase in Mississauga’s purpose-built rental stock since 2005 is 484 new units. It is safe

12 | May/June 2022

to assume that in there was negligible (perhaps no) new rental development during the decade prior. Only 484 new units were added to the purpose-built rental inventory during the past 16 years, perhaps past 25 years or more.

Mississauga’s population is 766,000 (2016), was 700,000 in 2006 and only 528,000 in 1995. Rental openings have not kept pace with population growth – substantiating the conclusion that there is a chronic undersupply of purpose-built rental.

There are only 5 rental projects currently under construction that will add 1,180 units by the end of 2024.

The Kay by Killam REIT at 1355 Silver Spear Road - 128 units, 12 storey, was Q1-2022 – now Q4 2022 185 Enfield Place (Phase 1)

by GWL at 185 Enfield Place - 366 units,36 storey, Q2-2023 Rental Residences at Square One District by Oxford/AIMco - 430 units, 37 storey, Q3-2024 Bristol Court by QuadReal at 6570 Glen Erin Drive - 174 units, 12 storey, Q4-2023 2340 Confederation Parkway - 82 units, construction starting Q2-2022, for 2024 opening

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EDMONTON David Young* Executive Vice President dave.young@cbre.com 780. 917. 4625

VANCOUVER Greg Ambrose* Associate Vice President greg.ambrose@cbre.com 604. 662. 5178

EDMONTON Thomas Chibri* Associate Vice President thomas.chibri@cbre.com 780. 424. 5475

VANCOUVER Kevin Murray* Senior Sales Associate kevin.murray4@cbre.com 604. 662. 5171

CALGARY Richie Bhamra* Vice President richie.bhamra@cbre.com 403. 303. 4569

BRITISH COLUMBIA ALBERTA

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TORONTO David Montressor* Vice Chairman david.montressor@cbre.com 416. 815. 2332 TORONTO Tom Schuster* Associate Director tom.schuster@cbre.com 416. 847. 3257 WATERLOO REGION James Craig* Vice President james.craig2@cbre.com 519. 340. 2330 LONDON Kevin MacDougall** Associate Vice President kevin.macdougall@cbre.com 519. 286. 2013

ONTARIO

OTTAWA Nico Zentil* Senior Vice President nico.zentil@cbre.com 613. 788. 2708

NOVA SCOTIA

HALIFAX Robert Mussett* NEWFOUNDLAND Executive Vice President robert.mussett@cbre.com 902. 492. 2065

QUEBEC

MONTREAL Marc Hetu* Senior Vice President marc.hetu@cbre.com 514. 906. 0891

HALIFAX Chris Carter* Vice President chris.carter@cbre.com 902. 492. 2085

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How much new rental is required? Mississauga’s rental requirement is not quantified.

The Mississauga Real Estate Board reported in February 2022 that the home ownership benchmark is now $1,356,600 in Mississauga.

• • •

Single-family house: Townhouse/Row: Condominium:

$1,619,500 $1,111,800 $ 748,400

Based on the entry cost of ownership, and the continual steep increase to prices, the need for purpose-built rental is significant.

“IZ is anticipated to come into effect in January 2023... The implementation of IZ is estimated to help house a minimum of 100 Mississauga households per year.”

Mississauga has published several studies and reports consistently identifying the need for incentives to encourage the development of purpose-built rental housing for all income levels – market rental, for the workforce, and affordable rental. This is indisputable. Rental project viability is a challenge. This is clearly demonstrated by the absence of rental development over the past decades, even though there is considerable demand.

Recent construction cost increases and interest rate hikes could negatively affect the progress of rental proposals in the development pipeline.

Financial incentives would help ensure project completion, and new rental units. The type (exemption, waiver, discount, deferral, etc) and program that the City can offer (CIP, TIEG, etc) is generally less important than the cumulative amount.

Fast tracking assists with cost certainty and is very valuable.

Collectively these would be helpful to maintain existing proposals through to completion and

14 | May/June 2022

attract new projects. Investment capital is mobile, and may shift to other local cities, further to southern Ontario, across Canada, and to various US markets. Other asset classes are also options.

Financial incentives are required to produce much needed rental housing in Mississauga.

That sums it up. We applied the same facts and data for Inclusionary Zoning, Development Charges, Community Benefits Charges, and Parkland Dedication. Our story remains the same … if it was reasonable profitable, we would be building to meet the market demand.

Mississauga’s Planning and Development Committee approved the Inclusionary Zoning framework on May 30, 2022. The report’s preamble states, “housing continues to be out of reach for many of Mississauga’s households” which is well known. It further notes, “As market rental and ownership housing prices in Mississauga continue to be out of reach for many households, the City and Region need to employ all available tools to facilitate the creation of affordable housing units.”.

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For more information, please contact:

David Montressor * Vice Chairman (416) 815-2332 david.montressor@cbre.com

Tom Schuster * Associate Director (416) 847-3257 tom.schuster@cbre.com

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gtaaonline.com | 15

Mississauga Inclusionary Zoning • • •

Purpose-built rental projects are EXEMPT IZ applies to ownership developments over 50 units or 3,600 m2 of residential area Affordability thresholds target middle income households, and a mix of large and small units will be required (specificity to be determined)

Proposed 2022 Unit Affordability Thresholds Proposed 2022 Unit Affordability Thresholds

•

Proposed set-aside rates and corresponding IZ areas. o Phased up over a 3 year period o

Discount of 50% is proposed for developers providing affordable rental units in condominium projects.

o

The policies provide advance notice to developers to prepare for future IZ requirements.

The rates may be changed through future market analyses and amendments to official plan policies and zoning provisions.

Draft Mississauga Official Plan Map identifying Inclusionary Zoning Areas

16 | May/June 2022

Phase-in Schedule for Minimum Required Percentage of Residential Gross Floor Area in Ownership Projects to be Affordable Housing

• • • • •

•

Off-site unit delivery is permitted No direct financial incentives are offered Phased implementation of IZ Reduction of required parking rates for IZ units Targeting summer 2022 adoption of final OPA and IZ By-law by Council. Statutory exemptions: o A site plan application or building permit application received on or before the date of passing of the IZ By-law; or o A rezoning application along with a plan of subdivision application or plan of condominium application received on or before the date of adoption of the IZ OPA. Provincial regulations require that a minimum affordability period is established. The municipality may cap the unit price / rent and may receive a share of net proceeds of any sale of IZ units, up to 50% of net proceeds. o Rental: For developers providing rental IZ units within a condominium building, the rents would be capped at the affordable rate, subject to allowable increases (e.g. inflation), for a minimum 25 year affordability period. o Ownership: City staff are currently working with the Region on a preferred ownership administration.

IZ is anticipated to come into effect in January 2023, assuming Regional MTSA policies and local MTSA policies have been approved. The implementation of IZ is estimated to help house a minimum of 100 Mississauga households per year.

In June 2022, Mississauga Council will adopt updated Development Charges, Community Benefits Charges and Parkland Dedication Rates. GTAAonline will provide a summary and the relevant highlights.

gtaaonline.com | 17

Oshawa Residential Rental Housing License

Oshawa’s Corporate Services Committee held a special meeting on April 4, 2022 to receive input on extending the Residential Rental Housing Licensing (RRHL) City-wide.

The current RRHL program was established to address the destabilization of the area around Ontario Tech University and Durham College. This stemmed from a rapid increase in the number of rental properties leading to issues such as conversions of single-detached dwellings into multiple units, traffic congestion, numerous vehicles parked illegally, excess garbage, and poorly maintained lawns and house exteriors.

In short order, many nearby single family homes were converted to house multiple students … to the dismay of long-time residents. The municipal reaction was the creation of a licensing regime under the guise of health and safety, but more likely to satisfy NIMBY home owners unappreciative of increased density and new noisy neighbours.

Implemented in 2008, the RRHL licensing regime is currently for residential rental housing in the vicinity of Ontario Tech University and Durham College – a rather small geographic area immediately around the schools – to ensure that rental units comply with various municipal by-laws and provincial acts. Again, these were mostly converted houses.

The current proposed expansion would be across the City and include all rental housing – including apartment buildings.

18 | May/June 2022

Currently, the City conducts semi-annual audits of select apartment buildings that utilize interdepartmental inspection teams from Fire Services and Municipal Law Enforcement. Buildings are chosen based on their history of complaints, noncompliance and with a desire to include some small and some large buildings. Staff inspect for violations under the Fire Code, Property Standards and Lot Maintenance By-laws, among others. Inspections are conducted in common areas, hallways, laundry rooms, parking areas and individual dwelling units when requested by occupant.

From 2017-2019 the City inspected fifteen (15) apartment buildings, that combined, had one hundred and sixteen (116) property standards violations such as inadequate lighting levels, holes in walls and ceilings, graffiti, peeling paint, balcony safety issues, and derelict vehicles.

There were also one hundred and ninety-two (192) Fire Code infractions in those apartment buildings such as damaged fire separations, fire doors not closing or latching properly, damaged equipment (e.g. exit signs, emergency lighting, fire detectors), and missing smoke alarms.

GTAA made a presentation at the Special Meeting on April 4, 2022. It is important to review data and make fact-based decisions that are results oriented.

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CMHC Rental Market Report (2022 Feb) Purpose Built Rental in Oshawa

Oshawa’s primary rental universe includes just under 9,000 units according to CMHC’s February 2022 Rental Housing Market Report (data was collected in October 2021).

GTAA noted that a total of 9,000 units is small. A look into Oshawa’s rental inventory shows one rental complex (Rossland Park) contains more than 900 rental units, thereby accounting for more than 10% of the City’s stock. Further that there were many buildings with 100 or 200 units. In other words, there are probably fewer than 100 apartment buildings across Oshawa.

GTAA cited Oshawa’s CORP-21-32 Report (June 2021) which notes: “renters in apartment buildings may have different concerns than renters in a single-detached dwelling, and therefore, require a licensing system tailored to respond to such unique challenges” (p226) Not many buildings and in June 2021 staff acknowledged and recommended a unique system.

The expansion proposal included several fundamental flaws including the inspection of “a predefined quantity of units will be inspected” then lists the number based on building size.

Resident consent is required to enter their unit, so the logistics of obtaining agreement at a mutually convenient time would be a considerable undertaking in time and effort.

The following were my closing remarks at the meeting:

20 | May/June 2022

The current Residential Rental Housing Licensing program was established in response to student housing around Durham College and Ontario Tech University. It was laser focused to address an issue.

A very purposeful approach.

But an all-encompassing program eliminates the laser focus. An inordinate amount of staff time – both bylaw enforcement and administrative – on checking boxes … visiting some exceptionally wellrun buildings. Maybe contacting and scheduling in-suite visits. Writing staff reports.

This time is better spent on remedying issues at poorly run sites. We don’t make any excuses for poor operators and recommend using all the tools you have available. Use a goal-oriented approach … such as having City selected contractors do the neglected work, then charge the owner back with some mark-up … if required, tack it onto the property tax.

One of the unintended consequences of new fees, is the general increase in rents to cover them.

I would recommend that you continue with the current process of auditing selected apartment buildings using your interdepartmental inspection teams.

This meeting was to gather feedback, but not to make any decisions. Oddly, no members with buildings in Oshawa contacted GTAA regarding this issue. GTAA will continue to monitor and oppose this expansion. If you own or manage rental units in Oshawa, please let us know and we will advise you of upcoming meetings: info@gtaaonline.com

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Deep Retrofit Challenge

The City of Toronto has secured federal funding to support deep energy retrofits resulting in significant emissions reductions in buildings that undergo a deep retrofit. Buildings are the largest source of greenhouse gas emissions in Toronto today.

A new City program, the Deep Retrofit Challenge (the “Challenge”), was developed to enable demonstration projects that will accelerate the deployment of high efficiency retrofits of buildings in Toronto. The program is expected to open for applications in Q2 2022.

Almost all buildings within Toronto will need to undergo deep energy retrofits to achieve the City’s net zero climate target. It is important to note that many newly constructed buildings, even those that meet the Toronto Green Standard (TGS), will need to undergo major retrofits to convert heating systems from fossil fuels to electricity. TGS V4 Tier 3 “Near Zero Emissions” applies in 2028.

The Deep Retrofit Challenge is a competition style program that will support deep energy retrofit projects that deliver significant greenhouse gas emissions reductions in approximately 10 to 16 buildings. Eligible buildings include existing multiunit residential and commercial buildings.

22 | May/June 2022

Participating buildings will serve to demonstrate the deep energy retrofits needed to move buildings towards net zero emissions, with the goal of accelerating market adoption.

The Challenge will serve as a catalyst for early voluntary compliance to accelerate deep energy retrofits in support of the City’s Net Zero Existing Buildings Strategy, which aims to reduce emissions from existing buildings in Toronto to net zero by 2040.

Participating buildings/owners will collaborate and compete to retrofit to the highest performance standards. Grants will be awarded to selected participants to help offset the cost of performing a deep retrofit of their buildings, with portions allocated for design, construction and confirmed emissions performance. The final funding award will be based on measured emissions reductions once the project is complete.

Retrofits should aim to reach an 80 per cent emissions reduction or greater over current building emissions, in alignment with the City’s target to reduce emissions to net zero by 2040.

Retrofits must follow a comprehensive wholebuilding approach that considers the building as a single, integrated system and how components of the building work together.

Participants will be required to make details of their deep retrofits publicly available, including utility energy use and costs, designs, and project costs, to help drive uptake of similar retrofits.

Projects will be featured in case studies and recognized for early transformative action.

Challenge participants will receive a grant equal to 25 per cent of their total project costs up to a maximum of up to $500,000 (depending on gross

floor area) to offset the incremental design and construction costs required to achieve maximize emissions reductions.

Participants may also apply to the City’s Energy Retrofit Loan (ERL) and High-Rise Retrofit Improvement Support (Hi-RIS) programs to assist in funding the projects, as well as to other incentive programs.

Participating buildings are expected to take part in the initial cohort of volunteers for the Net Zero Existing Buildings Strategy actions, which include: • • •

Annual emissions (and energy) performance reporting, public disclosure and labelling Greenhouse gas emissions performance targets Performing energy and emissions audits and tune-ups (at regular intervals)

What is a Deep Retrofit?

A deep retrofit is an extensive, holistic overhaul of a building’s systems, utilizing best practices with the goal of significantly reducing of energy consumption and greenhouse gas emissions. A deep retrofit is either a step or a leap towards net zero emissions. To achieve the City’s net zero greenhouse gas emissions climate target almost all buildings in Toronto will be required to undergo deep energy retrofits.

A deep retrofit can deliver significant savings on energy costs as building energy usage is reduced by 50 per cent or more. Core components of a deep retrofit typically include: • • •

Improvements to the building envelope Fuel switching away from fossil fuel natural gas heating systems to electric heat pumps Modification of other parts of the HVAC system, building operations, renewable energy, and more

For example, the holistic upgrade of building systems could include air sealing and extra insulation, high performance triple pane windows, electric heat pumps (ground or air source) for space and water heating, energy recovery (ventilation, drain, or equipment), renewable electricity generation, electric vehicle chargers, building controls and more.

The energy reduction switching building heating systems away from fossil fuels to electric heat pumps alone is enormous; as air-source heat pumps are typically at least three times more efficient than the most efficient gas-fired heating systems. Ontario’s electricity system is relatively

24 | May/June 2022

low-emissions meaning any fuel conversion from fossil fuels to electricity will result in a large emissions reductions.

To achieve the City’s net zero greenhouse gas emission climate target almost all buildings, old and new, will need to switch away from fossil fuels to clean electricity. Most buildings will need envelope upgrades, although some of the newest, highest performance buildings may already have high-performance envelopes and will only require fuel switching (buildings that currently have highperformance envelopes are not the target of the Deep Retrofit Challenge).

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What is a Net Zero Building?

A net zero building is a highly energy-efficient building that does not use fossil fuels under normal operation and is constructed with materials with low embodied carbon. Carbon emissions are either eliminated entirely or are minimal with low-carbon electricity used to meet the building’s energy needs.

Carbon-free and/or renewable electricity is either produced on-site or purchased, with any remaining carbon emissions associated with the building’s operations reduced to net zero through a carbon offset.

Net zero buildings typically: • • • • • •

Have an air-tight, highly insulated roof and walls with high-performance windows Have reduced occupant energy loads as much as possible through measures such as efficient Energy Star-rated appliances and LED lighting Use electric heat pumps for heating and hot water Have heat recovery systems, where suitable Include electric vehicle charging infrastructure Have integrated renewable electricity generation, such as solar or wind, where possible

Eligible building types: • • • • •

Multi-unit residential buildings greater than six units or three storeys.

Residential condominiums with greater than six units or three storeys.

Commercial office buildings.

Mixed use buildings.

Residential over commercial (greater than six units).

26 | May/June 2022

Projects: • • • • • • • • • • • • • • •

• • • • • • • •

• • • • • •

Projects must be deep emissions retrofits aligned with the City of Toronto’s Net Zero Existing Buildings Strategy.

Buildings must be located within the city of Toronto.

Projects must be sufficiently far along to provide preliminary design information during the application process.

Project must be a renovation of an existing building and the building must have been occupied within the 12 months prior to the application.

Priority will be given to buildings constructed prior to 2004.

Projects may include the expansion of an existing building, however the Challenge grant amount will only apply to retrofit costs incurred for the current existing building.

Property owners must agree not to apply for any rent increases above the guideline as identified in the Residential Tenancies Act in connection with any portion of improvements funded through the Program.

Projects must have an achievable project schedule and be able to meet an operational date allowing for IPMVP-compliant Measurement & Verification to be complete and evaluated before March 31, 2026. For most projects, this likely requires an operational date on or before January 1, 2025.

Projects must meet a 20-year payback period or better.

A minimum 50 per cent emissions reduction is required for projects to be eligible for consideration.

All projects must meet a minimum of 50 per cent energy savings to be eligible.

Projects must be holistic and not be based on implementing a single measure. A comprehensive whole-building approach should consider the building as a single, integrated system with components working together. For example, retrofits may including components such as building envelope, HVAC system, renewable energy system, building operations, etc.

Examples of measures include but are not limited to: adding insulation, high performance windows, energy recovery (ventilation, drain, or equipment), electric heat pumps (ground or air source) for space and water heating, renewable electricity generation, and building controls.

Calculation of savings will be based on operational energy and emissions. Embodied carbon will not be factored into the performance incentive calculation, however may be used as a criteria for project selection.

Projects are expected to provide an approach that is replicable to similar building types across the City and across similar climates within Canada.

If you wish to be notified when the application process opens, please contact GTAA (info@gtaaonline.com) and we will let you know.

gtaaonline.com | 27

CreateTO Performance Report CreateTO was formed as part of the new City-wide Real Estate Model in 2018, and tasked with managing the City’s expansive real estate portfolio. The intent was to create opportunities to build a better Toronto by continuously looking for new and innovative ways to use the City’s real estate assets, open spaces and underutilized and surplus lands.

Working together with the City’s Corporate Real Estate Management (CREM) division, CreateTO is continually looking for new and better ways to use the real estate assets within the City’s portfolio.

Working collaboratively with City stakeholders, external partners and community members, CreateTO’s strategic city-wide approach is to develop creative solutions that meet the real estate needs of the City’s Divisions, Agencies and Corporations.

In May 2022, CreateTO published their (annual) performance report, “Transforming Toronto’s Real Estate.” A key priority action is Delivering Affordable Housing.

28 | May/June 2022

The HousingTO 2020-2030 Action Plan, adopted

by City Council in 2019, provides a blueprint for a wide range of actions across the full housing spectrum. The Plan is focused on improving the housing, health, and socio-economic outcomes for Toronto residents through a number of key actions including the approval of 40,000 new affordable rental homes by 2030, with 18,000 of those being supportive housing units.

Working with the Housing Secretariat and City Planning, CreateTO is contributing to that goal by advancing the delivery of 10,000 affordable housing units on City-owned land and Housing Now, one of the City’s key initiatives, is a critical component of that work.

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In addition to Housing Now, CreateTO has identified a further 700 units of affordable housing across seven City-owned sites that have been directed by City Council for real estate development, such as 260 Adelaide Street West and several of the ModernTO properties, including 610 Bay Street, 931 Yonge Street and 33 Queen Street East. CreateTO will continue to assess opportunities to advance the delivery of affordable housing on City-owned lands.

Affordable Housing Project Housing Now Phase 1 Bloor-Islington Bloor-Kipling (Six-Points) 770 Don Mills Road 805 Don Mills Road 1250 Eglinton Avenue West 251 Esther Shiner Boulevard 3933 Keele Street 140 Merton Street 777 Victoria Park Avenue 705 Warden Avenue 50 Wilson Heights Boulevard

Housing Now Phase 3 40 Bushby Drive 2700 Eglinton Avenue West 4040 Lawrence Avenue East

Housing Now Phase 2 158 Borough Drive 2444 Eglinton Avenue East 1627 & 1675 Danforth Avenue (Danforth Barns) 1631 Queen Street East 150 Queens Wharf Road 405 Sherbourne Street Block R6 – Bayside

Other Affordable Housing Alexandra Park Co-operative 25 Bellevue Avenue 15 Denison Avenue 1113-1117 Dundas Street West 101 Grangeway Avenue North 101 Grangeway Avenue South 2 Murray Street 130 St. Patrick Street 996 Woodbine Avenue

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Housing Now Future Pipeline Sites Allen East District Block 7 Christie’s Secondary Plan 101 Coxwell Avenue Parkdale Hub 1/20 Shortt Street 5151 Yonge Street

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gtaaonline.com | 31

How to Make Buildings Sustainable on Every Budget

By Jennifer Cittadini, Advisor, Affordable Housing Program Design, Enbridge Gas No matter the size of your budget or the age of your building, there are many options to reduce operating costs and improve sustainability.

The Enbridge Gas Affordable Multi-Family Housing program provides up to $200,000 for energy-efficient upgrades and up to $8,000 per building for a detailed energy assessment completed by a third-party company (up to $40,000 per housing provider).

Eligible buildings include social and municipal housing, shelters, co-ops and eligible private market-rate multi-family buildings with lowincome tenants. Buildings must be four storeys or higher.

Maximize returns on a bigger budget

Your boiler is likely your building’s biggest energy user, so this upgrade makes a lot of sense in terms of reducing operating and maintenance costs, keeping residents comfortable and lowering carbon emissions.

For buildings with a non-condensing boiler, we recommend upgrading to a high-efficiency or condensing boiler to save energy and money. A high-efficiency boiler is 85 to 89 percent efficient and a condensing boiler is at least 90 percent efficient. Incentives vary based on service area: for energy-efficient boilers, the average incentive is $22,000 per unit.

Already completed boiler upgrades? Improving indoor air quality has always been important and condensing make-up air units are a cost-effective upgrade for more efficient ventilation. For makeup air units, incentives are up to $26,000 per unit; for in-suite energy and heat recovery, incentives are up to $250 per unit.

Limited-time bonus incentives

Install an eligible condensing make-up air unit by Oct. 31, 2022 and get double the incentive. It helps to reduce energy costs by reusing the heat from outgoing air to pre-heat fresh incoming air.

32 | May/June 2022

To qualify for bonus incentives, projects must be booked with an Energy Solutions Advisor by Sept.

30, 2022.

Make the most of your capital budget

Hot water is often the second-largest energy user in a multi-family building after space heating.

Upgrading from a traditional tank to a more efficient tankless or storage unit saves energy, money and greenhouse gas emissions.

They’re also smaller, which can create space for other needs. Enbridge Gas water heater incentives are up to $2,000 per unit.

Another easy and relatively inexpensive project to complete is adding automated control systems to improve building efficiency. A wide range of systems are available at many price points and incentives cover up to 50 percent of project costs.

Also consider boiler pumping: by adding a variable frequency drive (VFD), the pump will only pump when it’s needed, instead of at a constant flow, which uses more natural gas than necessary.

Incentives up to 50 percent are also available for this upgrade.

Free (yes, really!) upgrades

As part of the program, we’ll professionally install free energy-saving upgrades in all eligible units, including low-flow showerheads, aerators and heat reflector panels.

If your building was built before 1980 and is heated by hot water radiators/ convectors, adding heat reflector panels is a quick and easy solution to the significant heat and air conditioning loss that occurs through exterior walls in older buildings. This can reduce space heating and cooling costs and improve resident comfort.

Complimentary one-on-one consulting with our technical experts is also included as part of the program. Our experts provide support to help you identify and prioritize energy efficiency projects, translate opportunities into measurable savings and access incentives.

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Mix and match to suit your needs

Any of the program incentives can be combined to suit your needs—for example, a large budget can leverage the free upgrades, too. No matter which improvements you choose, the maximum incentive is $200,000, to cover up to 50 percent of the incremental project cost.

To confirm your interest in Affordable MultiFamily Housing program offers, contact an Enbridge Gas Energy Solutions Advisor at 1-866-844-9994 or energyservices@enbridgecom.

Visit enbridgegas.com/affordable for program details, testimonials and more.

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gtaaonline.com | 33

The Main Current Political Risk to Rental Housing Providers

By John Dickie, CFAA President Across Ontario, rental housing providers heaved a sigh of relief over the results of the Ontario provincial election held on June 2, in which the Ontario Liberals and NDP were soundly defeated.

In their election platforms, those two parties had promised to tighten rent control, whereas the Progressive Conservatives did not campaign on any changes to rent control.

However, there is still a serious risk at the federal level. The federal Liberal government is reviewing rental housing as an asset class, with a view to considering tax measures to discourage significant rent increases on turnover.

As readers will know, Ontario’s rent control system includes vacancy decontrol/recontrol. Other than for buildings built after November 2018, Ontario’s Residential Tenancies Act strictly limits rent increases for renewing tenants, but allows rents to be re-set at a market rent on turnover, based on the rent agreed between a rental provider and the new tenant. That is called “vacancy decontrol”. Going forward, the new rent is subject to the guideline rent increase while the tenant renews their tenancy (as is their right).

Across Canada, most rental housing providers can increase rents through vacancy de-control, or provisions similar to it.

In its election platform for the September 2021 election, the federal Liberal Party promised to review the tax treatment of large corporate owners of residential properties such as REITs “who are increasingly trying to amass large portfolios of Canadian rental housing, putting upward pressure on rents.” The Liberals also promised to put in place policies “to curb excessive profits in this area”.

In the Prime Minister’s mandate letter to the Minister of Housing in November 2021, the proposed moves became more specific. Working with the provinces and other federal Ministers, the Minister of Housing is to develop a “Fairness in Real Estate Action Plan” that includes: “amendments to the Income Tax Act

34 | May/June 2022

to require landlords to disclose in their tax filings the rent they receive pre- and post-renovation and to pay a proportional surtax if the increase in rent is excessive.”

In April 2022, the federal Budget spoke of a recent

“rise in ‘renovictions’, when a landlord pressures and persuades their tenants to leave, or is formally permitted to evict them to make extensive renovations in order to raise rents.” (We would say renovations are done in order to modernize and upgrade the rental housing stock, thereby providing better housing for renters at rents they are willing to pay for that better housing.)

The 2022 Budget went on to announce “a federal review of housing as an asset class, in order to better understand the role of large corporate players in the market and the impact on Canadian renters and homeowners. … Further details on the review will be released later this year, with potential early actions to be announced before the end of the year.”

This federal review is to take place this Fall. It is now the key concern of the Canadian Federation of Apartment Associations (CFAA), which represents GTAA and GTAA members --- and rental associations and rental housing providers across Ontario and Canada --- on federal issues.

CFAA will be working closely with GTAA, FRPO, other associations and leading rental housing providers, to minimize the proposed negative changes to the federal income tax rules. The provinces may well be helpful allies, because the federal proposal seeks to address provincial issues through the federal tax system.

For more information, on this and other federal rental housing issues, follow CFAA at www.cfaa-fcapi.org or on Twitter @CFAA_FCAPI. Or sign up to receive CFAA’s e-Newsletter by e-mailing admin@cfaa-fcapi.org.

gtaaonline.com | 35

Ontario Invests $19M to Help Tackle Housing Crisis

On April 1, 2022 the Attorney General announced that the Ontario government is investing more than $19 million over three years to help reduce the longstanding backlogs and accelerate decisions at the Ontario Land Tribunal (OLT) and Landlord and Tenant Board (LTB).

The funding is intended help appoint more impartial adjudicators at the OLT and LTB and support additional technology at the land tribunal to resolve cases faster.

In a media release, Attorney General Doug Downey stated, “Ontarians deserve the opportunity to find the right home for them, and government bureaucracy should never stand in the way.”

Investments at the LTB will raise staffing to unprecedented new levels and should allow the Board to more quickly resolve existing backlogs.

For developers of new housing, these investments at the OLT will support faster case resolution by: • • • •

Significantly increasing the number of full-time adjudicators and case processing staff Creating flexibility to address caseload trends by appointing more part-time adjudicators More than doubling the capacity for the use of expert land use planning mediators to help settle disputes earlier and narrow issues for faster adjudication Improving IT platforms to improve access to services online

“We recognize the important role the Ontario Land Tribunal plays in the province’s housing supply, and we remain committed to the principled and timely resolutions of the matters before us,” says Greg Bishop, Alternate Chair for the Ontario Land Tribunal. “This investment will allow the Tribunal to schedule hearing events and issue decisions quicker and more efficiently than before, and we appreciate the support of the Ontario government to allow us to provide an even higher quality of service to Ontarians.”

36 | May/June 2022

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We partner with our clients to understand their goals and interpret their vision, building spaces that are distinctly suited for each environment. With an integrated approach and seamless process, we outpace traditional expectations.

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Scholarships OPEN We proudly offer our 8th Annual Scholarship to recognize the commitment of our young residents to local initiatives that work towards building safe, healthy and enriching communities.

4 Scholarships @ $4,000 This is to help cover tuition fees for the first year of post-secondary education/training at a recognized university, college, trade school or apprenticeship program.

How do GTAA Members participate? It’s really easy: • •

Print the POSTER and display it in your building. The application forms are available on GTAA’s website - this is clearly noted on the poster.

If you send us your corporate logo and we will create a customized poster for you.

How does it work?

• Everything applicants need to know and do is stated in the application form • GTAA receives all the application submissions • GTAA’s Scholarship Program Selection Committee will review the applications and select the winners • GTAA Members with winning applicants will present the scholarship award and cheque with you at your building or head office.

Note that applicants MUST reside in a GTAA Member’s building.

Application packages are available: www.gtaaonline.com Submissions are due JULY 14, 2022 before 3 PM PLEASE let your residents know by displaying the poster.

We wish to recognize our generous sponsors for their direct donations toward this year’s awards of $4,000 each:

38 | May/June 2022

GTAA Membership Renewal 2022-2023 The Greater Toronto Apartment Association continues to work on issues affecting our industry across the region. The pandemic has oscillated back and forth for a second year. Through this, our industry has risen to the operational challenges, keeping residents safe and sound while navigating through a sea of changing regulations.

It definitely needs repeating, “Thank-you” for all you and your teams have been doing, while often exposed to risks, in order to keep everything operating at even higher levels than before.

We recently entered a new phase of optimism with high vaccination and lower hospitalization rates. In the past two months we held two of our annual events, in-person! Our Chair’s Lunch in April, and our annual Golf Tournament in May

were both sold out, and there was a sense that things were (almost) back to normal. Thanks for attending and contributing to our Charitable Foundation.

The re-election of a large PC majority at Queen’s Park is surely welcome news, and easily the bestcase scenario having heard the housing-related promises of the two other main parties. With that decided, all eyes are now on the municipal elections (October 24, 2022). In Toronto, several new faces will emerge where there isn’t an incumbent seeking re-election. Most of the current Council will return. Candidates say what they say, and elected officials do what they do all knowing that voting day is a popularity contest.

We lack the numbers, so we need to stick together so we are heard amongst all the noise.

Our association is fiscally responsible and able to maintain affordable fees which have remained the same for more than a decade, and will continue for 2022-2023 at: • • •

$2 per suite for the first 5,000 suites; and $1 per suite for units 5,001 and above. (Minimum fee is $325).

Reserve Fund contribution remains 15% for owners/managers. This ensures access to funds for special projects, initiatives and possible actions required by the association to protect the members’ interests.

Corporate membership remains the same at $550, and $1,500 for Millennial Members.

Our association has delivered tremendous value and is worthy of your membership renewal. It is important that we all stand together to be heard with one large collective voice on matters of importance, especially as political posturing ramps up.

Our Application to the Superior Court of Ontario to challenge the City’s tenant relocation costs during a major incident was filed and our hearing is scheduled for October 2022.

Thank you for your continued support as we work diligently for the industry!

gtaaonline.com | 39

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