RHB Magazine March/April 2024

Balancing

Women's Day 2024

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EDITOR’S NOTES

Federal Budget 2024

By the time you read this issue, the federal government will have released Budget 2024, and all the news outlets and pundits will have discussed it ad infinitum. However, over the last couple of weeks, Prime Minister Justin Trudeau has announced a number of new investments and initiatives to help build more housing faster, boost the rental housing supply, and make housing more affordable. Check out this month’s issue of National Outlook for a summary of all the announcements. There is a lot of money and resources being directed toward rental housing, affecting everyone within the industry.

This issue of RHB Magazine features a summary of the panel discussions at RHB’s International Women’s Day event. Three of the panels involved prominent women in the rental housing industry discussing a wide range of topics, including diversity and inclusion, personal accountability, dealing with roadblocks, whether women support other women, and more. The fourth panel of women, which is the focus of the feature, analyzed the other panelists’ discussions, while also providing guidance and advice for women entering the industry.

The second article discusses the Ontario provincial government’s proposed “use-it-or-lose-it” policy, which would force developers to accelerate construction or face penalties. The article examines what it would mean for developers, why the numbers might not add up, and the reasons against implementing such a policy.

The third article describes the new partnership between RHB and Informa Connect, one of the world’s largest trade show and conference companies.

As previously stated, make sure to read CFAA’s newsletter, National Outlook , as well as the Regional Association Voice. You can also learn how to register for CFAA’s Rental Housing Conference. FRPO provides an update on its “Say Yes” campaign. Yardi Canada wraps up this issue by explaining how to balance ILS, websites, and SEO for apartment marketing.

We enjoy hearing from our readers, and we want to support twoway communication. If you have any comments or questions, send them to david@rentalhousingbusiness.ca. I look forward to your emails.

Publisher

Marc Côté marc@rentalhousingbusiness.ca

Associate Publisher Nishant Rai nishant@rentalhousingbusiness.ca

Editorial

David Gargaro david@rentalhousingbusiness.ca

Creative Director / Designer

Scott Clark

Sales Executive

Justin Kreslin justin@rentalhousingbusiness.ca

Office Manager

Geeta Lokhram

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

P.O. Box 696, Maple, ON L6A 1S7 416-236-7473

Produced in Canada

All contents copyright © RHB Inc. Canadian Publications Mail Product Sales Agreement No. 42652516

David Gargaro Senior Editor

Gain insights and advice from four panels of prominent

PRESIDENT’S CORNER

This issue of National Outlook provides an update on the federal government’s most recent announcements on significant investments in rental housing in the leadup to Federal Budget 2024. It also provides highlights from CMHC’s Housing Supply Report and this year’s CFAA Rental Housing Conference.

Over the last couple of weeks, Prime Minister Justin Trudeau has made a series of announcements on significant investments in rental housing, as part of the pending Federal Budget 2024. These initiatives will help to protect the inventory of rental housing, as well as help to build more homes faster. They include $600 million for measures to build more homes faster, including $50 for a new Homebuilding Technology and Innovation Fund; a new $1.5 billion Canada Rental Protection Fund to protect affordable housing and create thousands of new affordable apartments; a $15 billion increase to the Apartment Construction Loan Program, as well as reforms to the program; a new Canada Builds program to build more rental housing across Canada; $400 million in additional funding for the Housing Accelerator Fund; and a new $6 billion Canada Housing Infrastructure Fund to support the construction and upgrading of critical housing infrastructure. See pages 39-42 to read more about the latest investments in rental housing. On March 27, Trudeau also announced new measures to address tenants’ rights and make it easier for them to become homeowners. These new measures include a new Canadian Renters’ Bill of Rights; a new $15 million Tenant Protection Fund; and amendments to the Canadian Mortgage Charter to include rental payment history in renters’ credit score.

National Outlook also discusses CMHC’s Spring 2024 Housing Supply Report. According to the data, the construction of purpose-built rentals and condominiums in Canada’s six major markets hit the highest levels in 2023. However, demand continues to outstrip supply, as there are record-low vacancy rates across the country.

This demonstrates that more needs to be done to prioritize and incentive purpose-built rental construction to ensure we have an accessible rental market for all. See pages 42-44 to read more about the report.

CFAA’s Rental Housing Conference is just around the corner. There’s still time to register for the event, where you will be able to explore new trends in the industry, learn and network with your peers, and listen to great speakers. See pages 4445 to learn more about conference.

If you are not already a direct member of CFAA, please consider joining CFAA as a Direct Rental Housing

Member, or a Suppliers Council

Attn: Toto Babic

T: 416-626-6289

toto@bradaconstruction.com

In this issue of... NATIONAL OUTLOOK

25 Advance Road Toronto, ON M8Z 2S6

169 City View Drive

39. On April 5, 2024, Prime Minister Justin Trudeau announced a package including more than $600 million to make it easier and cheaper to build more homes, faster.

Toronto, ON M9W 5B1

CFAA

Member Associations

CANMAR CONTRACTING LIMITED

Attn: Mark Lecce

T: 416-674-8791

F: 416-674-7956

Corporation des Propriétaires Immobiliers du Québec (CORPIQ) www.corpiq.com

P: 514-748-1921

Eastern Ontario Landlord Organization (EOLO) www.eolo.ca

P: 613-235-9792

Federation of Rental-housing Providers of Ontario (FRPO) www.frpo.org

P: 416-385-1100, 1-877-688-1960

markl@canmarcontracting.com

Greater Toronto Apartment Association (GTAA) www.gtaaonline.com

P: 416-385-3435

42. The Canada Mortgage and Housing Corporation (CMHC) released its 2023 Housing Supply Report, which examined new housing construction trends in Canada’s six largest CMAs.

100 Sheppard Avenue East, Suite 300 Toronto, ON M2N 6Z1

CMHC ONTARIO BUSINESS CENTRE

Attn: Guy-Anne Duval

T: 613-748-2000

F: 416-250-3204

Hamilton & District Apartment Association (HDAA) www.hamiltonapartmentassociation.ca

P: 905-632-4435

Investment Property Owners Association of Nova Scotia (IPOANS) www.ipoans.ns.ca

P: 902-425-3572

LandlordBC www.landlordbc.ca

P: 1-604-733-9440

Vancouver Office P: 604-733-9440

gduval@cmhc-schl.gc.ca

44. This year's CFAA Rental Housing Conference will feature our inaugural Lifetime Achievement Award, which will be presented at the conference dinner on May 15.

301 Matheson Boulevard West

Mississauga, ON L5R 3G3

Victoria Office P: 250-382-6324

London Property Management Association (LPMA)

www.lpma.ca

P: 519-672-6999

COINAMATIC CANADA INC.

Attn: Don Neufeld

C: 403-815-8672

To subscribe to CFAA’s e-Newsletter, please send your email address to communication@cfaa-fcapi.org.

F: 905-755-8885

New Brunswick Apartment Owners Association (NBAOA) www.nbaoa.ca

jbrealsetate@nb.aibn.com

Manufactured Home Park Owners Alliance of British Columbia (MHPOA)

www.mhpo.com

P: 1-877-222-4560

dneufeld@coinamatic.com

The Canadian Federation of Apartment Associations represents the owners and managers of close to 1.5 million residential rental suites in Canada, through 13 apartment associations and direct landlord memberships across Canada.

DIVERSO ENERGY

CFAA is the sole national organization representing the interests of Canada’s $950 billion rental housing industry.

For more information about CFAA itself, see www.cfaa-fcapi.org or telephone 613-235-0101.

366 Westpark Crescent

Waterloo, ON N2T 3A2

Attn: Jon Mesquita

T: 226-751-3790

jon@diversoenergy.com

Professional Property Managers’ Association (of Manitoba) (PPMA) www.ppmamanitoba.com

P: 204-957-1224

Saskatchewan Landlord Association Inc. (SKLA) www.skla.ca

P: 306-653-7149

Waterloo Regional Apartment Management Association (WRAMA)

www.wrama.com

P: 519-748-0703

8200 Concord,

1 Prince Edward Island - 0.8%

2 Nova Scotia - 1.0%

3 British Columbia - 1.3%

4 Quebec - 1.7%

5 Ontario - 1.8%

6 New Brunswick - 1.9%

International Day 2024

By David Gargaro

International Day 2024

Panel 1, held at Maple House in Canary Landing, was moderated by Jessica Green, Director of Communications with Greenwin. The discussion focused on issues related to diversity and inclusion. The panelists included:

Hero Mohtadi, Vice President, Residential Operations and Asset Management, Dream Unlimited

Panel 2, which also took place at Maple House, was moderated by Vanessa Topple, Anchor and Producer of BoldTV. The discussion focused on personal accountability, dealing with roadblocks, self-doubt, and self-sabotage. The panelists included:

Kristin Schulz, Director, Human Resources, Park Property Management Inc.

Ossana Ber, Manager, Community Engagement, Greenwin

Julie Rahier, Director, GH Capital Corporation

Lucy Tao, Executive Vice President and CFO, MetCap Living Management Inc.

Bethany Curtis, Content Marketing & Communications Manager, The Skyline Group of Companies

Shivannie Gornicz, Senior Property Manager, Signet Group

Brandi McIlvenny Clarke, Vice President, Residential and Commercial Leasing, Sifton Properties Limited

Rejeanne Smickle, Corporate Account Manager, Wyse Meter

Kellie Speakman, Vice President, Property and Asset, Valour Group

International Women’s International Women’s

This year, March 8 was International Women’s Day (IWD). And for the fourth year in a row, RHB Inc. has dedicated a full month of events to celebrate IWD. This includes RHBTV hosting a number of panel discussions with women who are leaders in the rental housing industry.

Panel 3, also moderated by Vanessa, took place at Gallery260. The discussion focused on the question of whether women truly support other women. The panelists included:

Laura Holland, Principal, Residential Services, BentallGreenOak

Kris Boyce, CEO, Signet Group

Paula Gasparro, Vice President, Real Estate, CMLS Financial

Anna Kusmider, HDAA Administrator, Hamilton and District Apartment Association

BJ Santavy, Vice President, Skyline Living, The Skyline Group of Companies

Panel 4, moderated by Vanessa, involved an analysis of some of the discussions that occurred during the other three panels, as well as advice and potential solutions. The panelists included:

Michelle Collins, Senior Manager, Sales, HD Supply Canada Inc.

Sarah Yusyp, Director of Human Resources, Skyline Group of Companies

Luwam Tekeste, Creative Producer and Personal Branding Expert, The Digital Panda

Dealing with personal tragedies

Panel 2 began with a discussion on the issue of impostor syndrome, how it affected the women’s lives, and what they did to overcome it. This led to Kellie Speakman recounting how her mother passed away from a terminal illness when she was 19 years old. She saw her mother as her first influencer in life, and her biggest cheerleader. In her own words, “She was the person that built me up and made me feel like there was nothing that I couldn’t accomplish.” Kellie added she was fortunate to have good mentors when she started her career, who were able to provide direction and advice in the absence of her mother.

Vanessa stated that personal tragedy, loss, and sickness affect everyone in the workplace, as we are all human beings. She asked, “How should people address personal tragedy or loss in the workplace, without sharing too many private details, and what resources are available?"

Sarah suggested some things we can do to support ourselves when we face a tragedy:

• Find an individual in your organization that you trust and feel comfortable enough with to disclose personal details. They can help advocate for you and communicate your needs to your greater team. One of the last things we want is having multiple conversations with various people to explain our situation.

• Take the time you need to grieve. We all grieve differently and in different timelines. Pay attention to your emotions and body, and communicate what you need to your employer. The sooner you do that, the sooner they can provide resources and help plan for your absence so it’s one less thing to worry about.

• Use the resources at your disposal. If you’re seeking support through counselling or need financial assistance, most employers offer an employee assistance plan or leave of absence benefits. Don’t be afraid to ask.

• Take advantage of the option to ease back into work. Don’t jump right back in if you are not ready. Work modified hours or days, or ask for temporary relief in your workload. Take the time you need before going back to work.

Luwam commented on how sharing our personal stories, including our tragedies, can have a significant impact on others. By sharing her story, Kellie demonstrated how losing her mother helped to form her development. She sought out female authority figures to help guide her career, shaping the trajectory for the rest of her life. Luwam believed Kellie’s story provides a roadmap that can help other women to overcome challenges.

Vanessa added, “It’s okay to be vulnerable. We don’t have to hold everything inside. Being able to talk about it (personal tragedy) is healing.”

left to right, Kellie Speakman, Rejeanne Smickle, Brandi McIlvenny Clarke, Shivannie Gornicz, Bethany Curtis and Vanessa Topple

Delivered to you by

Q&A

RHB: How have the IWD panels evolved throughout the years?

Vanessa: This was my first year moderating these panels, but looking back, I have seen them grow and evolve tremendously. They have gotten bigger (this year we doubled them) and the subjects got much deeper this year as well. We also brought in a panel of experts this year, which was brand new, and together we analyzed the other three panels to really give everyone a series of strategies and advice you could walk away with at the end. It was very exciting.

RHB: What was different about this year’s panels?

Vanessa: We looked at some deeper issues never discussed before on these panels. Taking on the question “Do women REALLY support other women”? was a topic I knew everyone would have an opinion on, but no one openly discusses publicly. Every woman out there has a story of a fellow female not being “supportive” to them or downright awful to them. Bringing this subject to light, the reasons it happens and encouraging us all to be a little kinder to one another is just one small way we help change this behaviour. We also wanted to make this year’s panels have an action plan attached to it, which is why we also added a panel of experts to really break down some topics into helpful strategies and takeaways that would make a real difference to those listening.

RHB: What were the big takeaways from this year’s panelists?

Vanessa: The biggest takeaway this year was to see the amazing bravery and humility of all these incredible women. We had some absolute powerhouses on this year’s panel, and their willingness to be vulnerable and tell their successes AND failures was inspiring. It was also interesting to see that most still battle with

feelings of unworthiness or imposter syndrome. I was so grateful for our panels of experts for tackling that subject with some excellent takeaways to really help beat the fear and thrive! This year’s panellists were honestly some of the best we have ever had. They really speak to the incredible strength and tenacity women possess.

Jessica: After surveying the panelists on these questions, we all have a common thread through our journeys and career paths. At times, it feels like we are on our island, and the struggles and challenges we go through are isolated to us. When participating and hearing everyone’s story, it validates our own and confirms that we are not alone. So many others have experienced similar experiences and we are here together to tell the story. We must continue to raise awareness of the topics discussed. Only together can we help advance the workforce toward gender parity, diversity, and inclusivity.

RHB: What was your goal as moderator, and did you achieve that goal?

Vanessa: As moderator, my goal was to make my panel feel at ease, like we were all just sitting in our living room, sipping coffee, and chatting with our friends. I wanted everyone to feel comfortable having vulnerable and authentic conversations together. There was no script so they could say anything freely and just be themselves. I feel like that was achieved.

Jessica: Being in front of cameras, a production crew, and lights is a completely unique, and often overwhelming, experience. Every year, our panelists express some level of anxiety about stepping out of their comfort zones, so my goal is to always make them feel as comfortable with being uncomfortable as possible. As we make our way through the questions, those guards slowly come down and you get this candour and

Jessica Green Director of Communications, Greenwin

excitement, which ultimately leads to powerful dialogue. By the end, there’s always a palpable feeling of collective accomplishment among the women.

RHB: What impressed you the most about the panelists?

Vanessa: Their willingness to be open on camera and be vulnerable. It’s difficult to talk about personal things, especially when the camera is on, but these incredible ladies did just that and it made for a true connection with everyone watching. I was also impressed by the connections all the women made to each other. Some knew each other previously, but many did not and all of them bonded so quickly it was heartwarming to see.

Jessica: What never ceases to amaze me is just how much our female leaders are doing to drive positive change within the housing industry, regardless of their roles. I’m also continually moved by the genuine care they have for their residents and teams. It’s that care that moves the needle when it comes to pioneering innovative operational procedures, community engagement programs, and hiring practices that we’re seeing so much more of now.

RHB: What would you like to see in a future panel?

Vanessa: I would love to see the setting be even less formal and maybe have a sip and chat together with coffee or wine. Really make it about being a woman, not just a woman in business. There are so many women out there with inspiring tales outside of their profession, and I would love to share those to help build up other women.

Jessica: Diversity and seek out new and emerging talent. We would all love to see more women in entry-level and middle-management

positions joining our panels. Even women who have joined the housing industry from other environments like tech and hospitality. I think we stand to gain an immense amount of fresh insights.

RHB: What topics would you like to tackle with future panels?

Vanessa: It’s always a scary one but sexual harassment, not just against women but men in the workplace. It happens more than you might think.

Jessica: DEIB in the C-suite. What are companies doing to get their senior executives involved in this discussion?

RHB: How could you improve the experience?

Vanessa: By opening topics and submissions to the audience. This year, after each panel, we encouraged the panelists to email us with what they would like to hear on future panels. Keeping the conversations going even when March and International Women’s Day is long gone and building excitement and comradery among all the women in the industry to take part.

RHB: What was your favourite thing about this year’s panels?

Vanessa: Meeting all those incredible women. Their stories were so inspiring and getting to know them on a personal level makes being around all of them such a privilege. Women are truly remarkable and when we are all together, it really lifts you up!

Visit https://boldtv.ca/ exclusives#iwd-2024 to watch the videos of the IWD panels and learn more from the incredible women in the real estate industry.

Vaness Topple Anchor and Producer, BoldTV/RHBTV

continued from page 16

Feeling intimidated

During Panel 1, Lucy Tao talked about starting out in the industry. During a board meeting, she realized she was the only woman and only minority in the room. She felt isolated and left out as the other board members spoke to each other, and not her. She felt a need to speak up and have her voice and opinion heard.

Vanessa reiterated that feeling intimidated was a common reaction from all the women on the panels. Some women even rejected the invitation to join a panel because they felt they were not good enough. There was also the fear of both success and failure. She asked, “What advice would you give women who are feeling this and what can they do to overcome it?”

Luwam said she was happy to see how far the real estate industry has come since Lucy began. The senior management team is now 50 per cent women. Luwam felt the same anxieties as the other women. She advised the following:

• If you feel anxious or intimidated, show up anyway. Don’t let the inner critic hold you back.

• Women have been conditioned to “play it small.” There will be power dynamics and situations that create struggles. To overcome these challenges, you must confront them head on. Build the confidence to show up every time. Sarah added that women must face the fact many of them face impostor syndrome. To combat this feeling, women must actively put plans in place to help shift their perspective from “I can’t…” to

“I can…” and from “I’m not ready” to “I will be ready.” In her own career, Sarah has sought out strong female mentors who will help support her career goals. She has also worked on changing her mindset, following the example of Mel Robbins’ Five Second Rule. In a nutshell, you combat indecision by developing the instinct to just act (rather than overthinking), and developing good habits to help you overcome.

Vanessa added we don’t have to be perfect all the time. Following Brandi McIlvenny Clark’s “Ready, Fire, Aim” strategy is effective, and failure could teach you more than what you learn in school.

Being overlooked for promotion

In Panel 2, Kris Boyce talked about missing out on a promotion early in her career, even though she had more experience than the person who got the job. When she asked for feedback on why she was overlooked for the role, she was told the hiring committee thought she was “too nice.”

Sarah felt the hiring person did a poor job of explaining why Kris did not get the promotion. The choice of feedback in these situations can be misleading. Sarah gave the example of someone providing poorly articulated feedback, such as describing the other person as “too aggressive.” The feedback should be clearer and more useful (e.g., “You have a tendency to dominate conversations, which can leave others around you uncomfortable speaking up”).

left to right, Julie Rahier, Lucy Tao

left to right, Paula Gasparro, Kris Boyce, and Laura Holland

left to right, BJ Santavy, Anna Kusmider, Michelle Collins, Paula Gasparro, Kris Boyce and Laura Holland

Sarah suggested asking the employer or individual for clarification if they have never heard the feedback before, they don’t understand the comment or they feel that it misrepresents them. One way to get clarification is to ask, “Can you provide some examples that demonstrate the behaviour you described?”

Sarah added that when hiring for leadership positions, employers often look for specific skill sets (e.g., the ability to build strong business relationships, cultivate trust, motivate others). These are people skills rather than technical skills. Keep these skills in mind when applying for promotions. Ask the employer to describe the skills that matter to them and the position.

Luwam emphasized the importance of getting constructive feedback in the workplace. She found it could be discouraging when feedback is not constructive (i.e., it comes off more as a putdown), especially when it comes from the employer or a senior person. Women tend to internalize negative feedback, as it can be shame and guilt inducing. The best way to react is to respond in real time and challenge what the person said. Ask for clarification and examples of when you displayed these negative attributes.

Vanessa said, “We must be true to ourselves, and not take feedback personally.” She added that criticism is just as important as praise, as it provides a learning opportunity. It enables you to analyze how you might be affecting others around, as well as the opportunities for growth and advancement. It’s also important to evaluate the feedback based on who is providing it, as some are worthwhile while others are not.

Social media and women supporting women

In Panel 3, Anna Kusmider discussed the impact of social media on women. She stated that, based on the data, social media has contributed to higher incidences of anxiety, depression, and other mental health disorders. Even before social media, the narrative has been that women attain value through how they are seen in the community. Seeing other people who seem to be more successful and attaining that success more easily can create feelings of negativity. Social media also provides opportunities for finding support from peers and others in similar situations.

Vanessa acknowledged the importance of social media in women’s personal and professional lives. She asked, “What advice should we be mindful of when using social media?”

left to right, Luwam Tekeste, Sarah Yusyp and Vanessa Topple

Kris Boyce at 260 Gallery

Luwam supported Anna’s views on social media, adding that women are often the targets of online criticism and harassment. This could prevent women from using social media to its full advantage, even though it is a powerful communication and engagement tool. She added the following tips:

• Creating, sharing, and posting content is not a passive activity. You are creating a personal brand for yourself, which can be daunting, as some people think branding is only for influencers, celebrities, and companies. It is an expression of who you are, what you care about, what you value, and what you can offer.

• Cultivating a personal brand requires pre-work. Know your values, and then align what you create and share with your values.

• Know which platforms align with your values, and that is appropriate for the type of content you want to post.

• Know your audience to determine what will speak to them. Understand the type of audience you want to build to support your growth.

• Focus on quality over quantity. There is a tendency to overshare. Identify your boundaries, and consider your privacy and safety first.

• Be sensitive to different perspectives. You can post opinions and take on controversial issues, but be aware that it’s out there for the world to see. Be positive and do your research.

Sarah spoke about the professional benefits of social media. For example, LinkedIn is an effective platform for making connections and networking. It allows you to provide prospective employers with insight into your interests, views of industry trends, and other aspects of your professional makeup. Focus on platforms that will help to promote your brand and advance your career goals.

Vanessa added, “Social media allows you to show your personal side, including your vulnerabilities, which enables others to grasp who you truly are.”

RHB thanks the moderators, panel participants, viewers, and everyone who helped to make IWD 2024 such a great experience.

left to right, Ossana Ber, Lucy Tao, Hero Mohtadi, Jessica Green (host), Kristin Schulz, and Julie Rahier

Jessica Green (host)

Vanessa Topple (host)

THE RESTOREX COMMITMENT

Will “use-it-orlose-it” policy speed up housing development?

By David Gargaro

All levels of government have implemented policies, regulations, and incentives to address Canada’s housing shortage. Ontario’s provincial government has also employed different strategies to help with meeting its goal of adding 1.5 million new homes to the housing supply by 2031. For example, the Ford government is currently considering implementation of a “use-it-or-lose-it” policy to force developers to accelerate construction once all the required permits have been issued. However, this approach might not support the goal of increasing housing inventory, and may actually add to the bureaucracy that hinders property development in Canada.

What is a “use-it-or-lose-it” policy?

On December 13, 2023, the Ontario Ministry of Municipal Affairs and Housing announced, following feedback from municipal and community partners, it would be taking steps to help meet its goal of building at least 1.5 million new homes in the province by 2031. One of these steps includes reviewing existing ministerial zoning orders (MZOs) made under the Planning Act, and proposing revocations and amendments to support a new “use-it-or-lose-it” (UILI) approach to the MZOs. The goals of this new policy are to increase transparency, support improved municipal planning and resourcing, and hold builders to account for not meeting development deadlines.

To determine whether to revoke or amend an MZO, the provincial government will evaluate whether a project passes the “substantial progress” test. The developer must have made substantial progress on all or part of the lands under the MZO with respect to both:

• Additional downstream approvals needed for project development and implementation

• Addressing water and wastewater servicing within a reasonable timeframe

To date, of the more than 100 MZOs issued, 22 project sites have been deemed as not having made significant progress. Fourteen housingrelated projects that are subject to MZOs have been deemed as making limited progress, and will be monitored over the next 18 months to determine whether they make significant progress. Under the UILI policy, the provincial government may forfeit the developer’s entitlements, make amendments to the MZOs or add an expiry date in the future. There is also the possibility of imposing financial penalties, such as an ongoing tax or one-time charge.

The UILI approach excludes certain MZOs, including those that were:

• Requested by provincial government ministries to deliver on provincial priorities (e.g., transitoriented communities, long-term care facilities, hospitals)

• Made to fulfill contractual obligations

• Made since December 1, 2022 (due to time constraints)

The province is also engaging in consultations to develop a go-forward framework for dealing with

future MZO requests. The goal is to make the new process more open and transparent, while also maintaining the tool to reduce delays due to red tape and help to shorten the timeline to getting shovels in the ground.

The numbers don’t add up

As usual, there are at least two sides to any story. And people can use data to tell their own version of a story. For example, the Regional Planning Commission of Ontario (RPCO) estimates that there are 1.25 million approved and proposed units/lots in the approval pipeline. This would mean the provincial government should be on track to reach its goal of building 1.5 million new homes in Ontario by 2031. Implementing a UILI policy might help to push developers to build more quickly.

However, Keleher Planning & Economic Consulting (KPEC) conducted a study that determined that only 331,600 of these units (about 26 per cent) are ready for construction. The rest of the units or lots are in different stages of the development process, do not meet the standards for immediate development or do not have adequate servicing. Many of the remaining units are being appealed by the Ontario Land Tribunal or have been rejected by municipal councils.

“Ten years ago, we planned for a one per cent population growth rate in my region, but we’re currently increasing at a three to four per cent growth rate,” said Phil Masschelein, Senior Vice President, Neighbourhood Developments, Sifton Properties Limited. “This is another reason the approvals process needs to be done quicker. We won’t be able to do things as we have in the past when the population is increasing this fast. Millions of new Canadian’s immigrating to Canada are here now. That decision has been made. Stakeholders in the local approval process need to

be focused on measurable results here and now. A development cycle that can takes, 5, 10 or even 15 years won’t help the current situation.”

This significant difference between municipalities’ and planners’ estimates of the number of units ready for construction demonstrates the sizable gap in how these groups track data and evaluate stages of development. Also, overestimating the number of approved units for building can cause other issues. For example, it distracts the government and other stakeholders from addressing more pressing concerns, such as the availability of land, the construction approval process, and infrastructure limitations.

Some experts on the side of imposing UILI guidelines claim that developers are lagging behind in the construction of new housing, which is contributing to the housing shortage. However, the construction and development industry is operating at a rate not seen in more than three decades. According to a study jointly commissioned by the Building and Land Development Association (BILD) and the Ontario Home Builders’ Association (OHBA), homes are being built at the highest rate in 33 years. There are more than 160,000 new homes currently under construction in Ontario, and it is difficult to see how developers can build any faster than they already are.

“I’m working on 100 different projects, with more than 10,000 homes in our pipeline from now until 2031,” said Masschelein. “This is more than I’ve ever planned for in my 25-year career in the development industry. We are planning much larger than ever before, so the concept of us holding back inventory just isn’t true. I’ve been working on some projects for 15 years that are still not being built today. Project and consumer financing is also harder to obtain today than for at least a generation. House starts should directly improve once interest rates start to drop and that confidence returns. Once these two issues are resolved, there would be no reason for developers to maintain inventory.”

Reasons against UILI policy

One key argument in favour of the UILI policy is that it will discourage the practice of land banking. This means developers purchase and hold land approved for development until the price of the land increases or zoning changes in their favour. Examples of land banking including purchasing undeveloped land near a city’s boundary before it is designated for uses other than agriculture or buying a number of lots on one block to support a larger infill project.

Some proponents of the UILI policy claim land banking is making the housing supply shortage worse. The land, and the approvals to develop

Phil Masschelein, Senior Vice President, Neighbourhood Developments, Sifton Properties Limited

residential properties, is inventoried until a future date. Since it would take too long to reach the development stage, land banking weakens the province’s ability to increase the housing supply. The UILI policy would penalize developers who bank lands, thus encouraging them to either sell the lands or start building the approved developments within a timely manner.

However, land banking is a common practice. Governments regularly bank parcels of land to support development of future infrastructure and public amenities (e.g., rail and transit corridors, parks, community centres). Governments also purchase land at relatively low prices (and then bank the land) before an area is developed to protect against higher land prices that follow growth.

Developers earn income from banked land in the form of rental income (e.g., agricultural land leases in rural areas, rent from current residential and commercial tenants). They must account for this potential lost income when deciding whether to move forward with a development. If the development costs are too high, or there is insufficient income from future rents, then it does not make financial sense to proceed with a development until the economics change.

Several studies question the effectiveness of the UILI approach. A report from the United Kingdom’s Competition and Markets Authority (CMA) found land banking has not contributed to Britain’s shortage of housing. Land banking is a symptom of the problem with the country’s complicated planning system and the amount of speculation by private developers. A separate report by Altus Group supported this conclusion, stating land banking enables developers to hedge against planning risk that can arise due to the complicated planning approvals system.

Developers need a steady stream of projects in their system to maintain operations and ensure profitability. Delays in building approvals, changes in the economic environment, and other factors can slow down or stop development. If operations cease, then companies must let employees go. And when factors change to make development more profitable, developers will have to move quickly to submit building plans for approval, which can get stuck in municipal planning departments. Land banking enables developers to build consistently, and provides a hedge against these types of circumstances.

“The challenge is this is an approval milestone, not an actual construction milestone,” said Masschelein. “Permits and approval are needed from many different regulatory bodies and government institutions in order to issue a building permit today. Just because a Municipal Council has approved a project, with conditions, doesn’t allow that project to build immediately. Clearance of these conditions can take many years to satisfy. This is why it’s important that the milestone is maintained at the construction level, rather than an approval with conditions milestone.”

As evidenced by many other examples of government redundancy, some municipalities already have UILI policies in place with respect to servicing allocation. The Ontario Planning Act provides municipalities with similar powers as they relate to development and new housing. Therefore, not only are these new provincial powers unnecessary in some cases, improper targeting in the policy’s scope and application could negatively impact the province’s future housing supply.

“A number of municipalities in the GTA already have UILI as it applies to servicing water and wastewater allocation,” said Justin Sherwood, Senior Vice-President, Communications and Stakeholder Relations, BILD. “The inventory of approved lots in Ontario does not support the new policy. Any new or expanded UILI policy should be approached with caution and could actually undermine future housing supply.”

Justin Sherwood, Senior Vice-President, Communications and Stakeholder Relations, BILD

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Building Construction Price Index, Residential Buildings, Ontario,Q1 2017 to Q4 2023, Toronto CMA and Ottawa-Gatineau CMA

Source: Altus Economic Consulting based on Statistic Canada Table 18-10-0276-01

The UILI policy does not consider the impact of external factors on the speed of development. A number of issues can delay development projects, such as poor or delayed communications between multiple parties, delays in permit approvals, and postponements in the construction of infrastructure. Penalizing developers for these types of delays may create ill will between the respective parties. Imposing UILI penalties could also spur developers to engage in litigation within and outside the planning development process should either party fail to find a solution within existing mechanisms (e.g., Ontario Land Tribunal). This would lengthen the time required to develop these properties, thereby worsening the housing shortage even more.

Figure 5 shows the labour productivity for residential building construction as expressed in dollar per hours worked, chained at 2012 dollars for Ontario between 1997 to 2022. Overall productivity remains generally flat, which is a major issue for the industry in its ability to scale construction levels. Without improvements in long‐term productivity, the cost for housing construction will continue to rise, especially under conditions of labour shortages.

UILI policies could have a negative financial impact on municipalities as well. There could be decreases in parkland dedication cash in lieu and related financial contributions, as they are calculated by extracting part of the total land value close to the building permit stage. Municipalities and developers could engage in court disputes over how to include UILI penalties into valuations, which would affect these contributions and slow down construction.

Labour Productivity, Residential Building Construction, Ontario,1997

to 2022

“(Penalizing developers or removing permits) could actually undermine future housing supply by lengthening the approval process or requiring re-approval if a UILI policy is applied to projects that are simply delayed or progressing a little slower due to market conditions,” said Sherwood.

Adding new UILI legislation could conflict with existing provincial and municipal policies. For example, there might be minimum designated land requirements that would need to be addressed during planning. New zoning by-laws might be adopted to satisfy the municipality’s newly instituted official plan. This would require landowners and developers to ensure their site conforms via site-specific rezoning requirements. Under these circumstances, the province would have to provide clarity on how zoning would revert to conforming with official plans or provincial policy.

Note: Chained 2012 Dollars Per Hour

Property tax assessment also depend on land assessment, as well as the valuation of development permissions. The Municipal Property Assessment Corporation (MPAC), which assess land values for property tax purposes, would have to track and incorporate entitlement losses into their valuations. Since it would be difficult to properly track penalties and update assessments, there could be an increase in taxation disputes, which would negatively affect municipalities financial planning.

Conclusion

Source: Altus Economic Consulting based on Statistic Canada Table 36-10-0480-01

Building developers and home buyers welcome government strategies and policies that will help to increase the housing supply. More housing is good for the economy and will help to address the housing shortage. However, implementing policies that force developers to stop land banking or to build more quickly than is economically feasible will not solve the housing shortage – in fact, it could make the situation worse. Increasing the supply of land, shortening approval timelines, removing infrastructure constraints, and reducing development costs will help the provincial government to meet its housing targets.

Hourly Output

Ottawa-Gatineau CMA Toronto CMA

Figure 5

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RHB announces new partnership with Informa Connect

By David Gargaro

During a recent broadcast of RHBTV News, Vanessa Topple, Anchor and Producer of RHBTV and BoldTV, announced a new partnership between RHB and Informa Connect (a division of Informa), one of the world’s largest trade show and conference companies. Informa is a leading international events, digital services, and academic knowledge group, which connects hundreds of brands, and a wide range of products and services, to businesses and professionals in different industries across North America and around the world. RHB Inc. and its various media platforms (RHBTV, BoldTV, CREBTV, RHB Magazine, the ANNUAL) will be covering many of Informa Connect’s realestate-focused trade shows and events, recording and broadcasting on site, conducting interviews, and more.

Glen Reynolds, Event Director with Informa Connect, encountered Vanessa and RHBTV while “in action” at the FRPO MAC Awards. He was impressed by the creativity of the on-air broadcast, as well as the quality of the footage shared on LinkedIn. Reynolds decided to reach out to RHB to discuss the opportunity to work together. And the rest, as they say, is now history.

“RHBTV is going to be a massive assist in helping us make people aware of all of the content that we have,” said Reynolds. “With the twenty-something events in Canada, there is a lot that we offer. And we can’t always highlight a lot of the content that we’d like to. So I think this partnership benefits both of us and your viewers are going to get way more insight into what’s going on at our events in advance so they can show up and actually gain that knowledge and insight.”

Informa Connect hosts more than 20 different shows in Canada, including the following events involving the real estate industry.

PM Springfest

This year’s PM Springfest, which takes place on May 9 at the Metro Toronto Convention Centre, will be the first event at which RHBTV will be working with Informa Connect. Held exclusively for property managers, PM Springfest provides property management professionals with opportunities to connect with leading suppliers, explore new innovations, and learn from industry experts. Seminars will include information on the latest regulatory, health, and life safety changes, efficient energy management strategies, retrofitting aging buildings, essential capital planning details, and more.

“Springfest is a time-efficient way for the building owners, land developer or property manager to come out and network, see a bunch of business services and products that are going to be relatable to what they are doing, and get education on upcoming legal issues going on in the industry so they can be ready for the next

year,” said Reynolds. “Some of the seminars are accredited through BOMI, so attendees will be able to meet their accreditation needs as well.”

RHBTV viewers will be able to use a special promo code (RHBTV15) to purchase a trade show pass at a discounted price.

The Buildings Show

The Buildings Show, which takes place from December 4 to 6 at the Metro Toronto Convention Centre, is the largest property management show in North America. It features expert-led seminars, informative panels, thought-provoking roundtables, and a large trade show. The Buildings Show runs in conjunction with Construct Canada, PM Expo (where RHBTV will be providing coverage), Homebuilder and Renovator Expo, and the World of Concrete Toronto Pavilion.

Other events

Informa Connect hosts a number of events involving the Canadian real estate industry, including:

• Land and Development, which takes place on May 28, 2024 at the Metro Toronto Convention Centre, is Canada’s largest commercial real estate event focused on land and development.

• RealREIT, which takes place on September 10, 2024 at the Metro Toronto Convention Centre, is Canada’s only conference focused on real estate investment trusts.

• Canadian Apartment Investment Conference, which takes place on September 11, 2024 at the Metro Toronto Convention Centre, is the largest multi-residential real estate conference in Canada.

• BUILDEX has events in Alberta (October 23 to 24, 2024 at BMO Centre in Stampede Park) and Vancouver (February 26 to 27, 2025 at Vancouver Convention Centre West), and includes business-to-business forums that connect the whole building industry.

• RealCAPITAL, which takes places on February 25, 2025 at the Metro Toronto Convention Centre, is the largest event focused on public and private capital for Canadian commercial real estate markets.

“I’m excited about the future,” added Reynolds. “This is just the tip of the iceberg. There will be a lot more content coming out, so make sure you stay tuned to RHBTV for updates on other Informa events that will be happening during the year. We will be working hand in hand with RHB to provide content for your audience.”

With Vanessa Topple Vanessa Topple

Federal government announces significant investments in rental housing in leadup to Budget 2024

By Tony Irwin, Interim President, CFAA

Over the last week, Prime Minister Justin Trudeau has made a number of announcements leading up to the Federal Budget 2024 with respect to making housing more affordable and building more homes faster.

Building homes cheaper, faster

On April 5, 2024, Trudeau announced a package including more than $600 million to make it easier and cheaper to build more homes, faster. The upcoming Federal Budget 2024 will include:

• A new $50 million Homebuilding Technology and Innovation Fund (led by Next Generation Manufacturing Canada), which will leverage another $150 million from the private sector and other government sectors to support the scale-up, commercialization, and adoption of innovative housing technologies and materials

• $50 million to modernize and speed up home building through regional development agencies, building upon existing innovative projects (e.g., modernizing building practices through modular housing, mass timber construction, robotics, 3D printing, automation)

• $500 million to support new rental housing projects, with low-cost financing through the Apartment Construction Loan Program, using innovative construction techniques from prefabricated and modular housing manufacturers and other homebuilders

• $11.6 million for a modernized Housing Design Catalogue to standardize up to 50 efficient, cost-effective, and liveable home blueprints, including frames for modular homes, row housing, and fourplexes to simplify and accelerate housing approvals and construction timelines

Canada Rental Protection Fund

On April 4, 2024, Trudeau announced the launch of a new $1.5 billion Canada Rental Protection Fund to protect affordable housing and create thousands of new affordable apartments. It will provide $1 billion in loans and $470 million in contributions to non-profit organizations and other partners, which will enable them to acquire units and preserve rent prices in the long term. The Canada Rental Protection Fund, co-led and co-funded by the federal government and other partners, will mobilize investments and financing from the charitable sector and the private sector to protect and grow affordable housing in Canada.

NATIONAL OUTLOOK

The Canadian Housing & Renewal Association, along with the Co-operative Housing Federation of Canada and the Rental Protection Fund, founded the Canadian Housing Acquisition Fund, a pan-Canadian federally incorporated non-profit organization. This initiative has long been supported by CFAA, FRPO, and other groups. The goal of the fund is to move rental homes into community ownership through non-profits and co-operatives to protect their affordability. It also builds on the success of the Rental Protection Fund, a $500 million fund that effectively works with investors and grantees to secure acquisition deals in BC.

The Canadian Housing Acquisition Fund was established to:

• Receive and underwrite low-cost debt – and grant dollars in a centralized manner

• Build a robust pipeline of qualified, eligible community housing providers across Canada to acquire more housing stock

• Build a professional intermediary network to assist individual non-profits, co-ops and Indigenous-led housing providers to successfully acquire and preserve low and moderate-rent properties

• Attract private and social impact investment, enabling investment at scale into a professionally managed fund, extending the scale and impact of public investment

For more information on supporting the Canadian Housing Acquisition Fund, visit https://www. acquisitionfund.ca.

Changes to the Apartment Construction Loan Program

On April 3, Trudeau announced the federal government will add $15 billion to the Apartment Construction Loan Program to build a minimum of 30,000 new apartments. This new amount of financing will help to build more than 131,000 new apartments within the next 10 years.

The federal government will also reform the Apartment Construction Loan Program to make it easier to access. These reforms include:

• Extending loan terms

• Extending access to financing for student and seniors housing

• Introducing a portfolio approach to eligibility requirements, enabling builders to move forward on multiple sites at once

• Providing additional flexibility on affordability, energy efficiency, and accessibility requirements

• Launching a new frequent builder stream to fast-track the application process for proven home builders

New Canada Builds program

Also announced on April 3, the federal government will be partnering with provinces and territories to build more rental housing across the country through a new Canada Builds program. Similar to the BC Builds initiative, provinces and territories must meet certain benchmarks to access federal financing for building new homes. They must also meet certain actions, which include:

• Complementing federal funds with provincial or territorial investments into housing

• Building on government, non-profit, community-owned, and vacant lands

• Streamlining the process to cut development approval timelines to up to 12 to 18 months

• Meeting criteria set out in the Apartment Construction Loan Program, including affordability requirements

Topping up the Housing Accelerator Fund

On April 2, Trudeau announced that the government will add $400 million to the Housing Accelerator Fund to help municipalities cut red tape, fast-track home construction, and invest in affordable housing. Since its launch last year, the federal government has signed 179 agreements across Canada to fast-track more than 750,000 homes over the next 10 years. The additional funding will help to fast-track 12,000 new homes in the next three years.

New Canada Housing Infrastructure Fund

Also announced on April 2, the federal government declared it would be launching a new $6 billion Canada Housing Infrastructure Fund to accelerate the construction and upgrading of critical housing infrastructure, including water, wastewater, stormwater, and solid waste infrastructure, to support construction of more homes. This funding includes:

• $1 billion for municipalities to support urgent infrastructure needs to directly create more housing

• $5 billion for agreements with provinces and territories to support long-term priorities

MARCH/APRIL 2024

Provinces and territories can only access the $5 billion in funding if they commit to increase housing supply by:

• Requiring municipalities to broadly adopt four units as-of-right and allow more “missing middle” homes (e.g., duplexes, triplexes, townhouses)

• Implementing a three-year freeze on increasing development charges from April 2, 2024 levels for municipalities with more than 300,000 residents

• Adopting changes to the National Building Code to support more accessible, affordable, and climatefriendly housing options

• Requiring as-of-right construction for the government’s upcoming Housing Design Catalogue

• Implementing measures from the Home Buyers’ Bill of Rights and Renters’ Bill of Rights

Provinces have until January 1, 2025 to secure an agreement; territories have until April 1, 2025. If they do not secure an agreement by the stated deadline, the federal government will transfer their funding allocation to the municipal stream. The federal government will work with territorial governments to ensure the actions in their agreements are suitable to their distinct needs.

Future public transit fund

The federal government will be announcing a forthcoming public transit fund. To access this long-term, predictable funding for building and operating public transit, municipalities must take action that will directly unlock housing supply. This includes:

• Eliminating mandatory minimum parking requirements within 800 m of a high-frequency transit line

• Allowing high-density housing within 800 m of a high-frequency transit line

• Allowing high-density housing within 800 m of post-secondary institutions

• Completing a Housing Needs Assessment for all communities with more than 30,000 residents

CMHC Housing Supply Report

Last month, the Canada Mortgage and Housing Corporation (CMHC) released its 2023 Housing Supply Report. This edition examined new housing construction trends in Canada’s six largest census metropolitan areas (CMAs): Vancouver, Calgary, Edmonton, Toronto, Ottawa, and Montreal. The report also analyzed trends within and across these markets, including housing starts by housing type, government programs designed to increase rental supply, and the relationship between delays in construction timelines and supply-related challenges.

Highlights from the 2023 Housing Supply Report include:

• Combined housing starts in the six CMAs remained stable in 2023. There was a 7 per cent surge in apartment (purpose-built and condominium) construction, which was offset by a 20 per cent decrease in single-detached starts.

• There was significant variation in housing trends across the CMAs. For example, Toronto, Vancouver, and Calgary had record-high apartment construction, while Montreal faced an eight-year low in apartment starts.

• Purpose-built rental construction hit record levels, which was matched by unprecedented demand for rental housing. Supply has not kept up with demand, as Canada is experiencing record-low vacancy rates (1.5 per cent) as well as record-high average rent growth (8.0 per cent).

• Condominium apartment starts also hit record levels, due to strong pre-sale activity and affordable borrowing rates set prior to 2023.

• The significant decline in single-detached starts is a result of weaker demand for higher-priced homes due to increasing mortgage rates.

• Increasing costs, larger project sizes, and shortages of skilled labour have increased construction timelines. Different levels of government have launched or announced new programs to help stimulate new rental housing supply.

"There were a large number of housing starts in 2023, particularly in the rental segment, which is good progress, but not enough to improve affordability,” said Aled ab Iorwerth, Deputy Chief Economist, CMHC.

“The concern now shifts to whether construction of apartments will hold at these high levels in 2024. Clearly the demand for housing exists, particularly in rental, but financing costs could become too heavy for homebuilders to begin construction on large multi-family projects at the same pace seen in 2023."

NATIONAL OUTLOOK

According to the Housing Supply Report, apartments were the only dwelling type to see an increase in starts. Housing starts have stabilized at around 140,000 units, with a small decline (0.5 per cent) from 2022.

Rental apartment construction in the six largest CMAs increased to 41,460 units in 2023. The increase in rental construction is due to many factors, including the rapidly growing population and tightening market conditions (low vacancy rates plus growth in rent rates).

However, many rental construction projects began when interest rates were low. Increases in financing rates and construction costs might negatively affect rental construction growth in the near future.

Construction times have also been increasing, due to rising costs, larger project sizes, and labour shortages. For apartment projects, the average construction time was 22.7 months in 2023 (33.3 months in Toronto, 26.4 months in Vancouver). This is an increase from the 10-year average of 21.2 months.

The CMHC Housing Supply Report stated, “…supply-side challenges are increasingly weighing on developers. Most respondents indicated that purpose-built rental projects are no longer feasible with conventional debt financing. Rental developers, lacking pre-construction sales, will struggle more than condominium developers to secure construction financing… small developers with more debt are likely to pause or reduce future projects.”

According to the CMHC’s baseline projection, as published in the Housing Supply Report, “Canada will require an additional 3.5 million units (on top of what is currently projected to be built) by 2030 to restore affordability to levels seen around 2004. Under our high-population-growth scenario, which assumes current immigration trends continue until 2030, the need for additional units would increase to 4 million.”

Figure 1: Total housing starts, Canada’s 6 largest CMAs

*Inclusive of all housing tenures (i.e., freehold, condominium, rental and co-op).

Source: CMHC

Table 1: Housing starts by dwelling type, 2023, with percentage change from previous year

Table 1: Housing starts by dwelling type, 2023 and percentage change from previous year, select CMAs*

*The numbers appearing in this table are inclusive of all housing tenures (i.e., freehold, condominium, rental and co-op). Source: CMHC

We used a measure that adjusts for population size to increase the depth of cross-market comparisons. Although

the highest, at 11.7 units per 1,000 population (Figure 2). In Toronto, where the absolute number of starts was the

Housing Supply Report | Spring 2024

MARCH/APRIL 2024

While there have been significant shifts in the types of dwellings being built, the changes in tenure were equally important. Purpose-built rental construction in the 6 CMAs combined hit record levels in 2023, significantly boosting overall starts. Montréal and Edmonton experienced declines. Nonetheless, rental construction in Edmonton remained historically high in 2023.

In recent years, purpose-built rentals have constituted a larger share of apartments breaking ground, averaging 42% in 2023. In Edmonton, the share at 80% (Table 3), was the highest among the 6 CMAs, significantly exceeding the past 10-year average. In Toronto, where condominium apartments still dominate, the rental share increased to over a quarter.

Table 2: Rentals’ share of apartment starts in the last 10 years

Table 3: Rentals’ share of apartment starts in the last 10 years, select CMAs

Source: CMHC

CFAA Rental Housing Conference 2024 in Toronto

The CFAA Rental Housing Conference is scheduled for May 14 to 16 at the Hyatt Regency in downtown Toronto. Register at www.cfaa-rhc.ca, and book a hotel room now before they run out!

CFAA-RHC 2024 – Schedule in brief

Tuesday, May 14

Wednesday, May 15

Thursday, May 16

Building Innovations Tour

Welcome Reception

Wyse After-Party

Breakfast

Chair Yoga sponsored by Skyline Living Educational Sessions

Supplier Showcase

Conference Reception & Dinner

Rentals.ca After-Party

Breakfast

Educational Sessions

Mentoring Meet-ups

Go Back to Table of Contents

CFAA and its partners are excited to return to Toronto. Explore new trends and discuss new ideas with peers from leading organizations in Canada’s rental housing industry. CFAA-RHC 2024 will include many timely sessions on issues that matter. Sessions will address rental development, rental operations, operational and investment risks and opportunities, human resources, EDI, and technology. This year’s keynote speaker is Michael “Pinball” Clemons. As a former all-star running back, Grey Cup winning coach, President and CEO of the Toronto Argonauts, and founder of the Pinball Clemons Foundation. Clemons is a man of unquestionable character and spirit. He is equally renowned for his achievements on the football field as he is for his impact as a motivational speaker. Besides Benjamin Tal’s Economic Update, education sessions will include:

• Executive Insights Panel

• Driving Business Impact – How ESG Initiatives are Transforming Rental Housing

• Safe and Sound: Strategies for Ensuring Staff and Resident Safety

• Leveraging Technology to Turn Prospects into Leases Faster Than Ever Before

WANT TO STAY UP TO DATE WITH NATIONAL OUTLOOK?

Sign-up for CFAA’s National Outlook e-newsletter to receive up-to-date news on what is happening across Canada, as well as industry insights and insider information on CFAA happenings. Email communication@cfaa-fcapi.org to start receiving CFAA’s e-Newsletter today!

NATIONAL OUTLOOK

• Unlocking Opportunities: Navigating Financing for Rental Housing Properties

• Partnering for a Better Future

• The Crystal Ball of AI

• Leading the Way: The Next Gen

• RENTAL ROCKSTARS: Marketing & Leasing Session

• Redefining Work Culture and Meaningful Connection

A few topics might vary as CFAA organizes speakers, and the speakers provide more input on the most critical current issues facing rental housing today.

Lifetime Achievement Award

CFAA is thrilled to announce that our inaugural Lifetime Achievement Award will be presented at this year's conference dinner on May 15. This prestigious accolade honours an individual's leadership and contributions to Canada's multifamily industry. We're delighted to announce Peter Altobelli, Vice President and General Manager at Yardi Canada Ltd., as the deserving recipient. Peter has been an ambassador for the industry and provided invaluable support for association networks. Join us in congratulating Peter!

Conclusion

Embark on a journey of learning with our outstanding lineup of educational sessions and speakers, designed to inspire and empower you. From valuable industry insights to practical tips, this conference guarantees an exceptional experience. Whether you are a rental housing owner, executive or manager, a hands-on owner or a rental industry supplier, there will be great information, ideas and contacts for you at CFAA Rental Housing Conference 2024. Come meet with other engaged individuals in the rental housing industry, exchange ideas. See how we benefit from working together. For more information, or to register for CFAA-RHC 2024, please visit www.CFAA-RHC.ca. Act now to ensure your registration and hotel room.! Reserve your spot today!

President’s message

As we progress through 2024, the Federation of Rental-housing Providers of Ontario (FRPO) is more dedicated than ever to championing the needs of our sector and the communities we support. This year is particularly significant as we deepen our government relations efforts, focusing on pivotal policy issues that impact rental housing in Ontario and across the federal landscape.

Our dialogue with government bodies continues to be robust and productive. A highlight of these engagements was a Luncheon hosted by the Empire Club of Canada with special guest Federal Minister of Housing, Infrastructure, and Communities Sean Fraser. CFAA was a sponsor of the event and FRPO was pleased to have many board members attend. This gathering underscored our role as a bridge between the industry and policymakers at all levels, facilitating critical discussions on housing strategies and solutions.

Additionally, the recently released Altus Group-FRPO report on the proposed “Use It or Lose It” policy in Ontario is a cornerstone of our advocacy this year. This comprehensive analysis offers a deep dive into the potential implications of such a policy, guiding our conversations with stakeholders and reinforcing our commitment to informed, data-driven advocacy.

Looking ahead, we are keenly focused on the upcoming provincial and federal budgets, hopeful for measures that will further empower the rental housing supply. Additionally, the introduction of the new Housing Supply bill in Ontario, aiming to stimulate the building of 1.5 million homes over the next decade, marks a watershed moment for our sector. We hope this legislation represents a step forward in our collective quest to address Ontario’s housing needs.

As we navigate these opportunities and challenges, our mission remains clear: to advocate for and support the development of rental housing that is not only accessible and affordable but also a cornerstone of vibrant communities across Ontario. We are committed to working alongside government partners, stakeholders, and our members to turn these policy ambitions into reality.

The road ahead is filled with promise. With every policy discussion, every report, and every legislative development, we move closer to our vision of a future where every Ontarian has access to a home that supports their well-being and aspirations. Together,

we will continue to drive forward, ensuring that our industry not only meets the challenges of today but also the demands of tomorrow.

If you’d like to refresh your knowledge on matters related to rental housing, or have some ideas for future seminars, don’t hesitate to reach out. We look forward to hearing from you.

Tony Irwin, President and CEO, FRPO, and Interim President, CFAA

Say Yes to More Housing Campaign Update

As we continue our commitment to fostering a brighter future for Ontario’s rental housing landscape, the “Say Yes” campaign has been a beacon of advocacy and action. With the support and passion of our community, we’ve achieved remarkable milestones that not only highlight the campaign’s resonance but also its profound impact on promoting more rental housing supply.

Remarkable reach and engagement: To date, the “Say Yes” campaign has successfully reached over 28,000 individuals, garnering more than 4,700 clicks. This remarkable level of engagement underscores the importance of our mission and the collective desire for change.

Growing supporter base: The campaign’s message has resonated widely, bringing over 400 new supporters into our fold. Each new member strengthens our voice, amplifying our call for action across Ontario.

Influential advocacy in action: Almost 1,000 emails have been delivered directly to mayors and councillors throughout the province, thanks to our dedicated supporters. These messages are a powerful testament to the collective will for policy changes that support the growth of rental housing supply.

Expanding our online presence: In our ongoing efforts to engage and inform, we’re diversifying our content strategy to include more dynamic and varied content. Videos featuring Tony Irwin, our President and CEO, have played a crucial role in personalizing our message and enhancing our online image.

Boosting our message across media platforms: We’re leveraging both social and traditional media to amplify our campaign. The spotlight on the FRPO-Altus Group Policy Discussion Report on the “Use It or Lose It” policy in Ontario has been instrumental in drawing attention to the critical need for carefully targeted legislative changes to support rental housing development.

As we forge ahead, the “Say Yes” campaign is more than just a call to action—it’s a movement. With every supporter, click, and email, we move closer to our goal of ensuring that everyone in Ontario has access to affordable and suitable rental housing. Let’s continue to stand together, advocate for change, and say ‘Yes’ to more housing.

To add your voice, visit our website at https://www.sayyes.letsbuildontario.ca/. Use it or lose it

FRPO engaged Altus Group Economic Consulting to conduct a comprehensive analysis regarding the potential ramifications of implementing a Use It or Lose It (UIOLI) policy on Ontario’s housing supply. This initiative was spurred by the expressed intentions of the Minister of Municipal Affairs and Housing (MMAH) to include a UIOLI policy in the upcoming 2024 Housing Supply Action Plan (HSAP), aimed at enhancing housing supply by maximizing the utilization of existing development approvals. The study delves into various alternative policy approaches to UILI and emphasizes the importance of mitigating any unintended or adverse outcomes associated with its implementation.

Read more about the UIOLI policy in this month’s issue of RHB Magazine and FE Magazine. To read the full report, visit frpo.org and look for the link to FE Magazine.

Upcoming events

RTA Webinars

Part 1: April 4, 10 or 18, 2024; Part 2: April 22, 2024 9:30 am - 11:50 am

Join us for these important legal sessions designed to equip rental housing providers with the knowledge and strategies needed to navigate the intricate landscape of the RTA with confidence. This event will take place in two webinars, login details will be sent 24 hours prior to each session.

RTA Seminar

April 25, 2024 8:00 am – 12:00 pm

Join us for these important legal sessions designed to equip rental housing providers with the knowledge and strategies needed to navigate the intricate landscape of the RTA with confidence. This event will take place in-person at the Old Mill Inn in Toronto.

Stay ahead of the curve as we delve into topics such as extraordinary municipal property tax increases and recovery through Above Guideline Increases (AGIs), procedural updates including the latest changes at the LTB Portal, as well as insights into the current process and timelines for a hearing. We’ll also discuss best practices to manage assignments, sublets, and avoid ‘unauthorized occupancies’ as this continues to be on the rise due to affordability issues.

Our experts will also explore the impact of municipal encroachment on the Residential Tenancies Act and Landlord Tenant Board and what that means for rental housing providers. We’ll conclude our session with a case law update including recent decisions at the Landlord and Tenant Board and Divisional Court.

FRPO Annual General Meeting (Virtual)

May 6, 2024 2:00 pm – 3:00 pm

FRPO will hold this year’s Annual General Meeting on May 6 at 2:00 pm. This meeting will take place in a virtual format and will include an overview of the past year, updates from our Chair of the Board and President, approval of the financials, appointment of auditors, and election of Directors. We encourage all members in good standing to participate in this important event. Registration details will be provided to the membership closer to the event. Save the date!

PM Springfest

May 9, 2024 9:00 am – 2:30 pm EXCLUSIVELY FOR PROPERTY MANAGEMENT PROFESSIONALS

Equip yourself with new information and technologies to better position and optimize your buildings as well as expand your professional network. PM Springfest brings together property management professionals to connect with leading suppliers, explore new innovations, and learn from industry experts about the latest regulatory, health, and life safety changes; efficient energy management strategies; retrofitting aging buildings; essential capital planning details; and much more. Find out more here

Past events

March 5, 2024 – CMHC Rental Market Survey Breakfast

This event took place in-person at Parkview Manor and was open to FRPO and GTAA members. CMHC shared key findings from its October 2023 Rental Market Survey for the Greater Toronto Area. Trends in other major Ontario centres were also discussed. The presentation concluded with an outlook of where rental markets are headed in 2024 and beyond.

Ontario’s leading advocate for strong and stable rental housing.

FRPO is the largest association in Ontario representing those who own, manage, build and finance residential rental properties.

For membership inquiries please contact Lynzi Michal, Director, Membership & Marketing

Federation of Rental-housing Providers of Ontario 801-67 Yonge Street, Toronto, Ontario M5E 1J8 416-309-8744

lmichal@frpo.org

www.frpo.org

Yes, we can !

Since MetCap Living established itself as a leader in property management, we have routinely been asked one, simple question; “Can you help us run our property more e ectively?” And, for well over thirty years, the answer has remained — Yes, we can! Our managers are seasoned professionals, experienced in every detail of the day to day operations and maintenance of multi-unit rental properties. From marketing, leasing, nance and accounting, to actual physical, on-site management, we oversee everything.

We concentrate on revenue growth, controlling expenses, and strategic capital investment in your property to maximize your pro tability over the long term — when you’re ready to discuss a better option; we’ll be there. You can count on it.

Kazi Shahnewaz Director, Business Development

O ce: 416.340.1600 x504

C. 647.887.5676

k.m.shahnewaz@metcap.com

www.metcap.com

Hot Topics:

HDAA discusses the Vacant Home Tax in Hamilton, provides an update on the renovictions bylaw, and summarizes the learnings from its most recent dinner meetings. pg. 53

LPMA provides a checklist to help landlords prepare for spring, and gives an update on the issues affecting landlords at the LTB despite decreases in wait times. pg. 57

EOLO discusses the City of Ottawa's multi-residential waste diversion strategy, and outlines the details of the new multiresidential collection contract. pg. 61

The Member Associations

PRESIDENT’S MESSAGE

Spring is now in full swing and the HDAA has been busy preparing for our upcoming events. We will have our Annual Golf Tournament on June 4 and are excited to see all our members out for what should be a great day of networking and golf. As mentioned in our last update, the City of Hamilton has been busy with various bylaws aimed at the rental housing industry. We are continuing our efforts to fight against these bylaws but the new council has been determined to push through what they can. As many have already heard, the City of Hamilton was hit with a cyberattack, which affected communication with residents and other services. We suspect it may take another few weeks before things are up and running fully again but once they are we are sure the City will continue with the proposals for the many rental housing bylaws on the agenda.

- Daniel Chin, President, HDAA

Vacant Home Tax

The Vacant Home Tax in Hamilton was set to start this year but it was struck down late last year in a tied vote. Those opposed said they were concerned residents would be wrongly taxed and it wouldn’t generate as much revenue as staff were estimating with one councilor likening the idea to negative billing. It has unfortunately been resurrected since with a 9-6 vote to continue to a final procedural vote needed to bring it into effect. If it is voted into effect, residents who own a home that is vacant in 2024 will pay one per cent more on their property tax bill in 2025. The main advocate of the tax, Councilllor Nrinder Nann, was the driving force of getting the tax resurrected, saying the merits of the tax is to ensure empty homes become occupied by residents. As mentioned in a previous staff report, the tax is designed to crack down on investors who buy homes and let them sit empty instead of renting them. The main issue with this mentality is a speculative mindset is no longer driving people to purchase homes and keep them empty. The City had estimated over 1,000 property owners will be taxed, generating over $4 million in revenue in the program’s first year with any profits used for other housing programs. With speculation no longer being a driving force for purchasing or keeping property, it would not be surprising if the number of vacant homes is much lower than estimated. This would mean no extra money for programs, loss in revenue, and wasted taxpayer funds. The HDAA has been actively working to stop the vacant tax going forward and has been reaching

out to councillors and compiling information to present to council prior to the vote. We encourage every housing provider to reach out to their MPs and speak out against the vacant home tax and the wasted resources that could be used for better supports, such as housing subsidies. If you would like to be involved with stopping the vacant home tax in Hamilton, please reach out to us.

Update on renovictions bylaw

The City of Hamilton voted in January to proceed with the Renovation Licence and Relocation Listing bylaw, which would be the first of its kind in Ontario. The bylaw is designed to deter landlords from using major renovations as an excuse for bad-faith evictions and better protect tenants living in affordable units. Landlords looking to evict tenants to complete renovations would have to get a licence from the City, which would cost $715 per unit, providing proof from a professional engineer that the renovations are so extensive tenants must leave their units for the work to be done. Landlords will also either have to provide alternative accommodation in another unit, or financial compensation to the tenant for the duration of the renovation. The bylaw, which is now being looked at by other municipalities for implementation in their own jurisdictions, will come into effect in 2025.

The HDAA will be fighting against the implementation of this bylaw. Not only should this be in the hands of the provincial government, but the provincial government has already put in

Daniel Chin, President

place ample protections against bad faith evictions that are positive for tenants. It is imperative that every housing provider do their part to make their voices heard and their concerns acknowledged. The HDAA will continue to do our public relations work and political advocacy but we need the support of our members and other housing providers to ensure we have a strong voice that can create change in the industry.

Past events

January 10, 2024 – Dinner meeting

The HDAA had a great first dinner meeting of the year. We were excited to be joined by Tony Irwin, President of FRPO and Interim President of CFAA, who spoke on provincial and federal updates.

FRPO continues to advocate on behalf of landlords at Queen’s Park and are focused on maintaining a positive relationship with government. They also continue to work on ensuring more funding is provided to the LTB to be allocated toward hiring more adjudicators and hopefully easing the backlog. Tony spoke on the positive announcement of the removal of GST on new construction, which they had advocated for many years. FRPO is aware this won’t create new housing as quickly as we would like but it is a positive step. They will continue to advocate for more positive initiatives to build more supply and encourage investors to stay in the market. The rent increase guideline amount was a big topic this past year with high inflation rates and they are continuing to fight to have the rent increase guideline be more in line with CPI, as the current cap of 2.5 per cent is not sustainable. Tony also spoke on the conversation of losing vacancy decontrol and how impactful it would be on the industry; FRPO will continue to fight against this. We are seeing more involvement of the federal government in housing issues and it will be important for CFAA to continue to have a voice there. CFAA and FRPO fights back on items the government wishes to push through. We are seeing very big pushback from tenant groups about the “financialization” of housing and the negative rhetoric against landlords. Unfortunately, these types of conversations and ideas are the opposite of what is needed to create a positive impact on rental supply. On a positive front, there seems to be a different tone with more government funds being given to build more housing. We are in a housing crisis and we need more people to be aware and act in a way that alleviates the issues quickly. Things will occur in a housing crisis that we may not see as a positive step but they need to happen in a time of crisis. There is anticipation that government may change both provincially and federally and we need to be prepared.

Fellow member Ron Tomblin, Real Estate Representative with RE/MAX Escarpment Realty Inc., shared his experience in winning a precedentsetting case against the Hamilton Fire Department. Ron is a long-time investor in Hamilton and had rented a home to a group of individuals who had been supported through mental health and addition issues. A problem arose in which the City became convinced he was running a lodging home, at this property and potentially others, and Ron received dozens of bylaw infractions. The City insisted he conduct renovations to the home, such as building fire escapes, adding exit signs, and fireproofing the basement, which would come at a very high cost. Ron decided to fight back and retained legal counsel. At court, the adjudicators took the stance there was technically no definition on what a family unit was and established the residents living in his home were living communally and not in a lodging home. All bylaw requirements were rescinded and a precedent-setting case was won against the Hamilton Fire Department.

March 20, 2024 - Dinner meeting

The HDAA held our second dinner meeting of the year on March 20. We were joined by Peter Altobelli from Yardi who presented the latest Yardi report on rental pricing trends. We were also

joined by Anthony Passarelli from the Canada Mortgage and Housing Corporation (CMHC) who presented the latest CMHC findings. Our President, Daniel Chin, also spoke on the latest bylaw updates in Hamilton.

On the bylaw front, Daniel spoke on a few updates on the licensing pilot project. A license will now be required for rental housing units and buildings or part of buildings with five or less self-contained units. The pilot is expected to conclude at the end of this year, with a staff report provided and a vote made on whether it will be extended. The pilot does seem unsuccessful so far but there is no doubt the City with try to push licensing citywide regardless. The Vacant Home Tax is expected to go to another vote this year after it was squashed at the end of 2023, but we hope to fight against the tax as we believe this matter is important for housing providers and all residents of Hamilton. The renoviction bylaw was passed, making it the first of its kind bylaw with applications opening in about a year’s time. This bylaw will be very detrimental to housing providers in Hamilton, especially since there is a lot of aging stock in the City.

Peter provided the latest report from Yardi, which collects data from approximately 470,000 units coast to coast. Vacancy rates are quite low in most major cities such as Toronto and Vancouver, with rents increasing year over year. Turnover rates are flattening as more people stay in their units longer to avoid higher rents when moving. The highest rent increases occur on turnover but in-place rents are still remaining fairly affordable.

Anthony Passarelli from CMHC provided insights from the latest CHMC Rental Market Report. CMHC data is used to create municipal housing targets so accurate information is important. Vacancy rates were either the same or lower than previous years, which has led to strong rental demand and growth. We are seeing high immigration contributing to strong rental demand as most new immigrants rent for the first few years. We have also had a record number of international

students, which has further fueled rental demand. As it is becoming harder to get into home ownership, more people are turning to renting and staying in their units longer, keeping vacancy rates low. Turnover rates are getting lower over time and was at 2.1 per cent last year. Low turnover rates are a problem as it lessens interest in future development.

As for average rental rents provided in CMHC reports, those include rent-controlled units, which contributes to their somewhat controversial low rent figures. In Hamilton, most of our onebedroom units exist in the downtown core, which is typically more affordable. For future trends, there will be a housing forecast coming out soon. There are predictions mortgage rates will start trending down as early as this year, which would help vacancy rates if more people are able to move into home ownership. General population growth will continue to impact both the rental and housing markets, especially as new purpose-built rental construction is low. In Hamilton, new rental construction is very low, with under 1,000 units being constructed in the downtown core.

Upcoming events

May 8, 2024 – Dinner meeting

The HDAA will hold our next dinner meeting on May 8. Mark your calendars and keep an eye out for emails for more details.

June 4, 2024 – HDAA annual golf tournament

The HDAA is very excited to be hosting our next golf tournament in June! Our golf tournament is one of our more popular networking opportunities and a great way to spend a day out of the office. As in previous years, you can look forward to a great day of golfing, have an opportunity to win some great prizes, and meet other housing providers and suppliers. We will be bringing back our 50/50 draw, as well as our greatly anticipated wine cellar prize. You may find more details and register on our website.

Hamilton & District Apartment Association

Since 1960, the Hamilton & District Apartment Association has grown significantly. Our members manage over 30,000 units throughout Hamilton, Burlington, Brantford, Guelph, Mississauga, Oakville, St. Catharines and into the Niagara Peninsula. The association is a highly respected organization, sought out regularly by government, industry, media and the public.

Interested? Call us or join online!

Ph: 905-616-2058

Web: www.hamiltonapartmentassociation.ca

CFAA RENTAL HOUSING CONFERENCE 2024

TORONTO

The Canadian Federation of Apartment Associations invites you to join us next year in Toronto at CFAA-RHC 2024

May 14, 15 & 16, 2024

For more information visit cfaa-rhc.ca

2023 CFAA COMPENSATION & BENEFITS SURVEY

As we have done every second year for more than a decade, CFAA is producing the one and only Compensation & Benefits Survey focused exclusively on the rental housing industry in Canada For employers in rental housing, the CFAA Report will provide:

Pay averages and ranges for 9 Property positions

Pay averages and ranges for 20 Head Office positions

Health benefits and employment trends

National, regional and City specific information

The property positions include building superintendent (resident manager), cleaner, doorman (concierge), leasing agent, maintenance technician, property administrator, property assistant manager, property manager and security guard

If you are interested in buying the compensation survey for the areas in which you operate, e-mail awai@3rdquartile.com for pricing and an order form. (3rd Quartile is the compensation firm producing the compensation survey.)

PRESIDENT’S MESSAGE

Prioritizing tasks helps landlords prepare for spring

Spring is a hectic season for landlords. It often means a change in tenancy as well as the need to assess properties for winter damage. Here is a short checklist to help landlords prioritize.

1. Inspect property: Conduct a thorough inspection to identify interior and exterior maintenance issues. Document repairs, maintenance, and inspections, and keep thorough records.

2. Exterior maintenance: Clean gutters and downspouts, and inspect roofs for missing shingles and other damage. Trim trees and remove debris.

3. Safety checks: Test smoke detectors, carbon monoxide detectors, and fire extinguishers. Check for issues such as loose handrails or trip hazards.

4. HVAC maintenance: Schedule a professional HVAC inspection and servicing to ensure heating and cooling systems are functioning efficiently. Replace air filters if necessary.

5. Plumbing inspection: Check for leaks, drips, or other plumbing issues. Inspect faucets, toilets, and water heaters for signs of damage or leaks.

For the latest information on upcoming events, visit www.lpma.ca.

Warmest wishes,

- Richie Anand, President, LPMA

LENGTHY DELAYS FOR LANDLORDS PERSIST DESPITE IMPROVED LTB WAIT TIMES

The backlog at the Landlord and Tenant Board (LTB) is having a chilling effect on small landlords’ desire to remain in the business, say landlord advocates. The length of time it takes to secure a hearing date for rent arrears applications is causing many small landlords to sell their properties due to the risk.

London lawyer Joe Hoffer said media stories of tenants who are abusing the system discourage investors from taking advantage of a provincial government policy intended to motivate homeowners to add a second unit, such as a basement suite, to their homes. He believes the backlog is undermining the good the policy is meant to do, which is unfortunate when small landlords provide a “huge amount” of affordable rental housing in Ontario.

“Because of the way the Landlord and Tenant Board processes applications for arrears and conduct issues, it has the opposite effect,” Hoffer said. “Landlords don’t want to get into it because of the risk. I hear it all the time that they’re desperately trying to get rid of the tenant to get out

of the business and market the house as a singlefamily home.”

Cash flow problems

Sean McNally, a small London landlord, agrees. He also blames high interest rates and high mortgage rates for small landlords having to sell their units at a loss and go bankrupt.

“Cash flow for a landlord is horrible and I would challenge anybody to say they make lots of cash,” he said. “It’s either neutral or, I would say, negative and so landlords have to borrow money to make things happen. Now they’re borrowing at a much higher rate, as well.”

McNally said he has filed more L1 and L9 applications (to evict tenants for non-payment of rent and recover the rent they owe) in the last year than previously. Some of his hearings for cases with “huge arrears” were scheduled more than a year after he filed the applications, which makes him question landlords’ access to justice.

Richie Anand

“If they were paid, I would have the funds to much more easily pay bills and expand the budget on what’s being done to the properties to improve them,” he said.

Backlog history

The backlog began in 2018 and lengthened after the provincial government paused residential eviction proceedings for five months in 2020 during the pandemic. Since May 2023, 35 full-time and 27 part-time adjudicators have been appointed to the Board to help reduce the backlog, bringing its total to 70 full-time and 58 part-time adjudicators.

On average, L1 and L9 applications, which comprise more than half of total applications, are scheduled for a hearing within four to five months, according to statistics provided by the Board. That’s compared to eight to 10 months in early 2023. Urgent matters are now being heard, on average, within five to six weeks, compared to eight weeks or more previously. Most orders are now being issued within 30 days of a hearing.

Additional delays

Hoffer said many tenants decide to remain in their units after giving notice to vacate when they realize they can’t find comparably priced housing. After their landlords file an eviction application and receive a hearing date, tenants — many of whom stop paying rent — request an adjournment to delay the proceedings and negotiate a better deal to vacate their unit, which adds another two- to three-month delay, depending on the reason.

Hoffer said he has clients whose tenants owe rent arrears of $60,000 and who remain in their unit not paying rent.

“The maximum judgment that a landlord can get is $35,000. So the Board is allowing tenants to effectively live rent free,” he said.

For example, if tenants owe $35,000 for the judgment and are heading to an eviction hearing, Hoffer said they can file a bankruptcy proposal, which results in the eviction proceeding and arrears application being stayed. That requires the landlord to pursue the tenant for arrears that accrue after the bankruptcy proposal date. Landlords are also left with a $35,000 judgment they can’t collect if the tenant doesn’t have income that can be garnisheed. With tenant bankruptcies on the rise, that scenario is particularly troubling to landlords, Hoffer said.

Tenant problems

Andrew Macallum, a realtor and landlord in Kitchener-Waterloo, said he questioned his commitment to providing rental housing after he filed five applications in nine months in 2023 to evict tenants in three properties. That’s compared to two eviction applications over the previous 20 years.

“It was just a series of very frustrating and exhausting files and applications for me, all handled by a paralegal. The gravity of having those five files kind of shook me up given that I haven’t had that experience over the last 20-some odd years,” he said.

In one situation, Macallum filed an application to evict a couple due to rent arrears and damage the abusive male partner had caused to the unit. Macallum said an employee from an eviction prevention agency contacted him to make changes to the lease in favour of the abused tenant, whose interests the organization was representing. Meanwhile, he is still trying to recover money through the Board for rent arrears and damage caused by the male tenant.

While he is sympathetic to the female tenant and said he believes the vast majority of tenants are good people, he is concerned that tenant services, such as community legal aid and advocacy, heavily favour renters.

“As landlords and property owners, we don’t have the ease and access to those same kinds of support,” he said. “Landlords have to pay out-ofpocket for all of their legal expenses,” in addition to the time and energy it takes to pursue tenants through the Board, he added.

Macallum said he is also concerned about the complexity of the Board’s forms, which require a paralegal to complete them because the risk of making a mistake is so high.

“It’s not a user-friendly system,” he said. Errors on forms

Case law indicates that eviction forms can’t contain a single error or they will be rejected, Hoffer said. However, other non-eviction forms are also being thrown out when mistakes are made in completing them, which can delay an application for months. Hoffer recommends that small landlords hire a paralegal.

“The competent ones (paralegals) know the process very well and they’re very cost effective, especially when you talk about the kinds of dollars that are at stake for small landlords,” he said.

AGI backlog

The backlog is also affecting above-guideline rent increases (AGIs). The Board is making a special effort to process applications from 2020 to 2022,

but the backlog is lengthy and issuing an order can take years, Hoffer said.

If landlords applied to the Board in 2020 for an AGI for capital expenditures to their building or units, they may have sent out a notice of rent increase of four per cent to tenants based on the AGI. However, in 2020, when the guideline was just 1.8 per cent, tenants were obligated to pay only that amount instead of the full four per cent. That is also true of each subsequent year. That means that after two or three years, the tenant would have been paying far less than what was set out in the notice of rent increase.

But once the Board issues the order, the landlord is entitled to collect the unpaid component of the rent resulting from the AGI, Hoffer said. In practice, that’s problematic since many tenants will have moved, which results in the landlord losing the benefit of the AGI for those units. It also imperils the tenants who, in many cases, will not have set aside the money to pay for the AGI when the order is finally issued.

“That’s going to trigger arrears. And, in many cases, it can trigger a loss of housing if they (tenants) haven’t saved that money,” Hoffer cautioned.

Chair’s message

On March 20, 2024, EOLO held our last Education and Networking Event at the Centurion Conference Center. For the Fall 2024 event, we will be moving to a new venue because the City of Ottawa has bought the Centurion to expand the OC Transpo Depot next door to it. Stay tuned for the detail of the new venue and the date.

This report addresses two practical issues at the City, which EOLO has been involved with from the time the issues came to Ottawa: solid waste and organic recycling in multi-residential buildings, and the solid waste collection contract. The new contract is to be negotiated in Q3 and Q4 of 2024.

Multi-residential waste diversion strategy

In 2022, it became clear the Province of Ontario would soon ban organics from landfills. There has been considerable pressure from Ottawa City Councillors and environmental advocates to require multi-residential property owners to make organic recycling available to renters at all buildings that receive solid waste collection services from the City.

The EOLO Board decided that EOLO could not stop mandatory organic recycling. Instead, we have sought:

• A new requirement that results in the least additional trouble and expense for rental owners, managers, and tenants

• Maximum help from the City to overcome tenant reluctance to recycle organics

• Communication to EOLO members about how to proceed with the least trouble and expense, and the most success

The City’s Solid Waste staff realizes many of the barriers to effective organic recycling in multi-res buildings, including:

• Barriers faced by residents

• Barriers in buildings

• Barriers due to tenant behaviour

• Difficulties in property staffing

Many solutions have been uncovered at properties that owners and managers voluntarily onboarded over the last five years or more. Those managers include three prominent EOLO members, as well as numerous social housing providers, including Ottawa Community Housing (OCH) and Centretown Citizens of Ottawa Corporation (CCOC).

According to a schedule that is likely to be adopted by City Council in or around May 2024, all multi-residential properties which make use of the City-organized solid waste collection will be required to provide organic recycling (green bins) according to the timelines shown in Table 1.

- John Dickie, Chair, Eastern Ontario Landlord Organization

Table 1: Timelines for mandatory green bins

When work begins on each “tier”, the City’s Solid Waste staff will contact property management companies in alphabetical order. Property managers will assign the order for their properties to be onboarded within each tier. EOLO sought flexibility for owners and managers, and achieved some.

The main contact will be a letter or email from the City arranging for a City Solid Waste inspector to meet on site with a property manager or other responsible person. For tiers 1, 2, and 3, the inspector will make suggestions for the placement of green bins, both for use and for storage, and for other potential minor renovations to make access convenient for tenants, and to make the waste storage and removal work.

(For tier 4, we expect a more fulsome conversation, after what may well be more work by EOLO.)

Subject to their resource constraints, the City will provide Environmental Education Assistants (EEAs) to work with property managers and their residents to provide on-site outreach, onboarding, and education about organic recycling.

While there have been some minor scheduling hiccups with the EAAs, EOLO members have generally found their work to be valuable. When the EAAs reach out to tenants, it is clear that the call to separate organic waste is coming from the City, rather than as a new demand initiated by the landlord. The EAAs are bringing language capabilities, videos in multiple languages, and printed material with clear visuals, minimizing the language issues faced especially in rental housing.

EOLO is pleased with the work of the EAAs and supports more City staffing to expand that work. In the expansion of the green bin program, we have to remember the implementation is not “once and done.” Success for the program requires work at implementation, and then follow-up work to remind tenants what they need to do, and to educate new tenants.

If rental providers are interested in hosting a green bin outreach session for the tenants at their property, they can email the City at multires@ottawa.ca.

For Ferguslea’s successful approach to implementation, please see the article on pages 50-51 in the March/April 2022 issue of RHB Magazine at https://www.rentalhousingbusiness.ca/archive/.

If there is sufficient interest among members, EOLO will organize one or more tours of buildings with green bin set-ups, and/or special EOLO education session on options and best practices. If you would attend a half-day tour or education session, please email events@ eolo.ca to indicate your interest, who would like to attend, and what timing can work for you. Please give us a number of choices to accommodate numerous people at a reasonable number of sessions.

The new multi-residential collection contract

The City of Ottawa is divided into five zones for curbside solid waste collection, with each zone being served under a separate contract. However, there is one contract for multi-residential collection (including condominiums) for the whole City. That contract is let every seven years.

The base cost of the residual solid waste collection is allocated on a per unit basis among all the properties that use the City’s services. There are separate additional charges for winching bins that are not readily accessible for pick-up, and for additional pick-ups beyond the allocated pick-ups (based on the number of units).

Recycling collection is currently paid through the tax bills based on the assessments of all properties in all property classes. As of January 2026, Individual Producer Responsibility (IPR) will see the blue box program taken over by a provincial body, which will be funded by businesses that use packaging. They will have to organize the pick-up of the packaging, and pay for the pick-up and disposal of the packaging. In each municipality, producers are organized into a collective body to do that efficiently. Any changes to how the black and blue

box systems operate will be announced they take effect. For now, those City systems are being rolled over to the new producer waste handling bodies.

The current multi-res solid waste collection contract runs from June 2020 to May 2025, and will be extended for one year to May 2026. The new multi-res solid waste collection contract will run from June 2026 to May 2033, organized as a five-year contract, with two one-year extension options.

Described below are the changes the City staff are contemplating making in the new multi-res solid waste collection contract. All the changes are subject to input from our sector (including EOLO), the condo sector, the decisions of City Council, and negotiations with the potential solid waste contractors.

Currently, about half of all garbage containers are owned by the property owner; about half are rented by the property owner. Property owners or managers who currently rent garbage bins will need to buy them. Containers currently in place will be available for purchase by property owners (at standardized prices worked out in advance). The City will continue to supply green bins at multi-res properties, both where currently supplied, and where those bins are supplied for the first time.

Today, the allocation of solid waste collection amounts is determined based on the number of rental units in each building regardless of the size of the units. Buildings with larger units often have to arrange and pay for additional collection. (Unlimited amounts of recycling can be collected with no separate charges since that collection is funded through the tax bills that apply to all properties—in all property classes—based on their assessments.)

The City raised the idea of limiting the amount of additional residual solid waste collection that can be arranged to “encourage” recycling. EOLO raised the concern that prohibiting additional residual solid waste collection would create undue

pressure to promote waste diversion, especially for owners of buildings with large units. The City has given up the idea of limiting additional residual waste collection at this time. Instead, the City will focus on getting the organic recycling working well, along with the transition to IPR.

As of now, the City’s plan is to eliminate multi-res waste collection on statutory holidays to reduce the probable inflationary increase in collection costs, and to eliminate the City’s costs of receiving the waste at the Trail Road Land Fill on those days. Instead, waste collection will be pushed one day later all week, just as it is now for curbside collection. Except for Christmas and New Year’s Day, collection is now provided to multi-residential properties on statutory holidays because of bin and storage capacity restrictions being negatively affected by eight-day lags rather than seven-day lags.

Many rental providers manage the eight-day lag after Christmas by ordering (and paying for) some extra collection in the week before Christmas. Presumably, rental providers will be able to manage the eight-day lags for other holidays by ordering (and paying for) some extra collection in the week before them. Many providers may find the relief provided by organic recycling means they do not need any extra collection, or as much extra collection.

Because of the frequent extra pick-ups or winching requirements, and responsibility and liability issues, an agreement is made between the contractor and each property owner. Currently, as that agreement is updated, it is kept by the contractor. As of now, the plan is for the City to take over the job of keeping the agreements. Agreements and revisions would still need to be authorized by the property owner (or manager) and the collection contractor.

What’s next?

Ove the next few months, EOLO will be working with the City Solid Waste staff and with City Council to achieve the most workable solid waste plan for the city and the rental housing industry.

BECOME AN EOLO MEMBER NOW!

EOLO invites Ottawa area landlords to join the organization. Have your interests and concerns heard, and benefit from EOLO’s support. As an EOLO member, you will be able to:

• Receive prompt emails of relevant City rule changes

• Attend two networking receptions a year

• Attend two free education events a year

• Receive all 6 annual issues of RHB Magazine with current developments, City and provincial funding programs, and landlord-tenant laws.

To apply for membership, go to www.eolo.ca, download the membership application form and send it to us at the contact info on that website.

Final Take Away Final Take Away

to you by Yardi Canada Ltd

Balancing ILS, websites, and SEO for apartment marketing

By Peter Altobelli, Vice President, Yardi Canada Ltd.

The Canadian multifamily market remains strong, with vacancy rates hitting a historically low 2.7% according to the Q4 2023 Yardi multifamily report, creating fierce competition among renters. When searching for their future rental, 80% of Canadian renters are searching online, as stated by simplydbs. In today’s dynamic rental market, a comprehensive and integrated marketing strategy is essential for attracting and converting quality renters. This article explores three key digital strategies—internet listing services (ILS), property websites, and search engine optimization (SEO)—and how to leverage their strengths for optimal results.

ILS: Raising awareness & visibility

Internet listing services (ILS) are online platforms that aggregate and publish apartment listings. While their lead conversion rates (CRs) might be lower than SEO, they are crucial for early-stage visibility. Listing on popular ILS platforms lets you reach a wider audience of renters actively searching for apartments, expanding your tenant pool. A recent Yardi study revealed a few features you can use to enhance your ILS listings, including:

• Compelling visuals: Include high-quality photos and virtual tours that highlight the best aspects of your property and amenities. Listings with more than 20 photos see a ninefold increase in CR.

• Detailed descriptions: Provide accurate and informative descriptions that highlight the unique selling points of your apartments, such as pet-friendly policies, on-site amenities, and nearby attractions.

• Tour scheduling: Enable direct scheduling within your ILS listing to make it easier for prospects to visit your property and double your CR.

Property websites: Converting visits into leases

Your property website serves as your online presence and should be designed to turn quality visitors into leads and leases. A recent Yardi study showing website features that boost CR include:

• Live video tours: Live video tours allow your prospects to experience customized tours from the comfort of their own home and achieve a 36.03% CR.

• Nudge marketing: Use subtle prompts and offers, such as scheduling a viewing or applying for a lease, to encourage visitors to take the next step. Nudge marketing has proven to yield a 15.64% CR.

• Floor plan assistant: Streamline the search process by allowing users to filter based on their desired features, such as the number of bedrooms, number of bathrooms, and square footage.

• Floor plan availability notifications: Alert potential renters when their desired unit

becomes available. These notifications exceed 11% CR.

• Digital leasing: Simplify the application process by offering virtual leasing and secure online screening options.

SEO: Building a long-term foundation

SEO focuses on improving your website's ranking in search engine results pages (SERPs) for relevant keywords. This involves optimizing both the content and structure of your website, as well as building backlinks from reputable websites. While SEO requires consistent effort and takes time to show results, it offers a sustainable source of low-cost leads in the long term. To optimize your website for SEO:

• Keyword research: Update your website content to include page titles, headings, and keywords renters often use when searching for apartments in your area.

• Mobile-friendly design: Ensure your website is mobile-friendly as many potential renters use their smartphones to search for apartments.

• Online reviews: Leverage positive reviews from your residents to significantly boost your local SEO ranking and build trust with potential renters.

Strategy for success

Each approach offers distinct advantages:

• ILS: Reaches potential renters early in their search and boosts awareness

• Website: Converts visitors into leads and fosters stronger brand engagement

• SEO: Generates consistent traffic and leads over time

By strategically combining ILS, your website, and SEO, you can create a powerful marketing force that generates consistent leads, increases brand awareness, and ultimately drives successful leases. Continuously monitor and adapt your strategy based on your target audience and market dynamics to ensure you stay ahead of the curve.

To learn more about your technology options, visit Yardibreeze.ca.

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