RHB Magazine October 2023

Vol. 16 No. 3 October 2023

Canada’s #1 most widely read publication for Apartment Owners, Managers and Association Executives

The official publication of:

Greenwin:

A multi-generational success story

Connecting your offline and online presence

The future of property management lies in the digital realm.

When in doubt, blame a landlord!

Government policies and fees, not rental property owners, are to blame for soaring rental rates.

Municipal development fees continue to drive up building costs and rents Removing taxes on rental property developments would reduce building costs & rents.

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EDITOR’S NOTES It’s getting scary out there Halloween will have come and gone by the time you read this issue. However, it hasn’t stopped being scary out there. The news is filled with negative stories of out-of-control rent increases, bad landlords, and unending rent strikes. Oh my! But there’s also good news: federal legislation removing the GST from new rental housing developments; more low-cost loans for new housing projects; new funding to address homelessness and build more affordable housing. Believe it or not, there are positive things happening in the rental housing industry, and its members are also doing good things for their tenants. You might not always hear about it, but there is a lot of positive hidden by the negative.

This issue of RHB Magazine features an in-depth look at Greenwin, which has been around since 1948. The multi-generational familyowned and operated company property management firm has been at the forefront of many industry trends that have helped to shape Canada’s rental housing industry. Greenwin has also led the way in charitable endeavours and creating healthy, dynamic communities.

The second article dives into the issue of municipal development fees, which are responsible for increasing building costs and rents across Canada. Government legislation to remove GST on new rental housing developments, as well as elimination of these fees, will help to reduce building costs as well as rents, while also spurring new construction. The third article discusses how the media should stop focusing on bad landlords and start paying attention to bad government policies, which are driving up rents.

Don't forget to read CFAA’s newsletter, National Outlook, as well as the Regional Association Voice. FRPO announces the launch of its Canadian Certified Rental Building program in Saskatchewan, and looks forward to the upcoming MAC Awards. Yardi Canada wraps up this issue by explaining the benefits of connecting your offline and online presence to address tenants’ needs.

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

Subscriptions

One year $49.99 Cdn Two years $79.99 Cdn Single copy sales $9.99 Cdn 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

Enjoy the issue!

David Gargaro Senior Editor

4 | October 2023

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

416 292 2600 admin@neutralgroup.ca Unit 6 -31 Railside Rd, Toronto ON M3A 1B2

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CONTENTS

VOL.16 NO.3 2023

30

When in doubt, blame a landlord!

Government policies and fees, not rental property owners, are to blame for soaring rental rates.

RHB’s forum for rental housing associations to share news, events and industry information

Greenwin: A multigenerational success story

Hot Topics: LPMA introduces Karen's Place London, which provides support and mentoring to disadvantaged women, and provides advice on how to avoid human rights complaints when selecting tenants. pg. 49 EOLO discusses the City's requirements for solid waste collection, the Rental Housing Management By-law, and the differences between rent supplements and housing allowances. pg. 53

The privately owned property management firm has been at the forefront of many industry trends that have shaped Canada’s rental housing industry.

HDAA discusses new and updated bylaws involving short-term rentals , renovictions, safe apartment buildings, and vital services. pg. 57 IPOANS discusses its advocacy efforts involving the rent cap, the Nova Scotia Rental Tenancies Program, the HRM bylaw, and rental housing affordability. pg. 61

The Member Associations

47

Regional Association Voice

64

Final Take Away

RAV features the latest industry news from four member associations.

Municipal development fees continue to drive up building costs and rents Removing taxes on rental property developments would reduce building costs and rents.

6 | October 2023

Connecting your offline and online presence The future of property management lies in the digital realm.

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PRESIDENT’S CORNER This issue of National Outlook provides information about the federal government’s legislation to encourage construction of new multifamily buildings. It’s a positive move that is countering decades of government policies that have held back development of new rental stock.

On September 21, Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced the Affordable Housing and Groceries Act. This legislation would enhance the Goods and Services Tax (GST) Rental Rebate on new rental housing, with the goal of incentivizing the construction of more apartment buildings, student housing, and seniors’ residences. The Act is also intended to increase competition in the grocery sector.

Mortgage and Housing Corporation (CMHC) and the Canada Mortgage Bond program provide mortgage loan insurance and securitization to support low-cost financing of new rental housing.

The $20 billion annual increase in the Canada Mortgage Bond issuance limit will help to fund mortgage loans on multi-unit rental projects.

Projects must have at least five rental units to qualify for the loan. See pages 35 and 37.

If you are not already a direct member of CFAA, please consider joining CFAA as a Direct Rental Housing Provider Member, or a Suppliers Council Member. Visit www.cfaa-fcapi.org or email admin@cfaa-fcapi.org today.

Under the Act, the GST Rental Rebate would increase from 36 per cent to 100 per cent and remove current GST Rental Rebate phase-out thresholds for new rental housing projects.

The rebate would apply to projects that begin construction on or after September 14, 2023, and on or before December 31, 2030, and complete construction by December 31, 2035.

The current economic environment has made it less financially viable to start and complete new purpose-built rental buildings. The federal government’s proposed GST measures will help to address some of the costs associated with building new rental stock. However, there are still many financial challenges facing the rental housing industry. Provincial and municipal governments should also get on board with reducing the costs of building new purposebuilt rental properties. See pages 37-41 to learn more about what some provinces and territories are doing to support the development of new affordable housing.

National Outlook also reports on the Government of Canada’s announcement to increase the annual limit for Canada Mortgage Bonds. The Canada

8 | October 2023

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

In this issue of... NATIONAL OUTLOOK CFAA Member Associations 35. On September 21, Finance Minister Chrystia Freeland announced the Affordable Housing and Groceries Act., which removes the GST on new rental housing construction.

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

Photo credit: The Parliament of Canada

40. C MHC is partnering with BC Housing, municipal housing authorities, and private organizations to fund the development of several purpose-built rental projects across BC.

Greater Toronto Apartment Association (GTAA) www.gtaaonline.com P: 416-385-3435 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 Victoria Office P: 250-382-6324

41. The City of Vaughan will receive $59 million from the Housing Accelerator Fund to build more than 1,700 new housing units, as well as remove barriers to building housing.

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

London Property Management Association (LPMA) www.lpma.ca P: 519-672-6999 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 Professional Property Managers’ Association (of Manitoba) (PPMA) www.ppmamanitoba.com

The Canadian Federation of Apartment Associations represents the owners and managers of

P: 204-957-1224

close to 1.5 million residential rental suites in Canada, through 13 apartment associations and

Saskatchewan Landlord Association Inc. (SKLA) www.skla.ca P: 306-653-7149

direct landlord memberships across Canada.

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.

10 | October 2023

Waterloo Regional Apartment Management Association (WRAMA) www.wrama.com P: 519-748-0703

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Greenwin:

generational s

By David Gargaro

Some family-owned companies manage to survive over time. Others thrive and prosper, growing stronger with each decade.

Greenwin is firmly within this second group. The privately owned property management firm has been around for 75 years. It has been at the forefront of many industry trends that have shaped Canada’s rental housing industry.

Greenwin has extensive experience in building and managing multi-family residential properties, suburban housing developments, and commercial properties. The company has also led the way in charitable endeavours and creating healthy, dynamic communities.

14 | October 2023

: A multisuccess story

rentalhousingbusiness.ca | 15

A brief history of Greenwin Greenwin’s roots date back to 1948, when Lipa Green and Arthur Weinstock founded Greenwin Construction Company. At the time, the small construction firm built single-family homes in Toronto. In the 1950s, they ventured into developing rental properties close to Toronto’s central core, which was considered an unconventional move at the time. However, Greenwin was confident that the move would pay off, and it did.

Greenwin took a big leap in the 1960s and 1970s, building more than 10,000 residential units during this period. The company built singlefamily homes, condos, multi-family residential properties, and affordable housing developments.

Since the late 1970s, Greenwin has been involved in transforming Toronto’s skyline. Some of its most iconic properties include Queen’s Park Place on Bay Street, the Castle Hill townhomes in midtown, and The Ports condos at Yonge and St. Clair. In the 1980s and 1990s, Greenwin was involved in developing many of the city’s leading hospitals, including Mount Sinai Hospital, Princess Margaret Cancer Care Centre, Scarborough Hospital, North York General Hospital, and Wellesley Hospital.

chimneys, will be maintained. A new 14-storey tower with 219 apartments will be built on the 15,000 square foot lot. The new building, which will keep the name Palace Arms, will consist of one-, two-, and three-bedroom units, as well as live/work suites at street level. It will include 37 affordable studios, which will have the same quality and finishes as the market-rent units.

Amenities will include a commercial-quality fitness facility, co-working space, social and multipurpose rooms, yoga studio, automated parcel management system, bicycle lockers, pet wash, and a rooftop patio with barbecues and children's play area.

Today, Greenwin is one of Ontario’s largest privately owned, full-service property management and development firms. It is a leader across the real estate industry, including multifamily housing, non-profit and affordable housing, social housing, and commercial properties. The company manages more than $3.3 billion in real estate assets, including more than 1 million square feet of commercial space and 22,000 residential units. Greenwin employs close to 500 people across the organization, with a portfolio spanning major urban centres in Central Canada.

Greenwin is involved with several other multifamily developments in the Greater Toronto Area, including:

Recent multifamily developments On October 11, Greenwin announced a partnership with Windsor Private Capital and Intentional Capital to redevelop the historic Palace Arms Hotel in downtown Toronto into a purpose-built multifamily building. Built in 1890, the three-storey structure has been used as a rooming house for primarily low income, long-term residents since the 1970s. Greenwin came on board in 2021 to provide its construction and development expertise for the project.

The historic façade, as well as its brick masonry, window openings, roof lines, and masonry

16 | October 2023

“The Palace Arms project is an opportunity to address the critical need for both market and affordable rental housing in the area while celebrating the site’s rich history,” said Jessica Green, Communications Director, Greenwin.

• North York: 228 Wilson Avenue (131 units), 200 Chalkfarm Drive (500 units), 1050 Sheppard Avenue West (198 units) • Scarborough: 1750 Ellesmere Road (150 units) • Downtown Toronto: 185 Balliol Street (TBD), 26 Grenville Street & 27 Grosvenor Street (800 units) “We see the development of new purpose-built rental and affordable housing continuing to be key part of our growth moving forward,” said Jason Green, Director, Acquisitions & Development, Greenwin. “We currently have 15 projects and over 6500 units in our development pipeline throughout the GTA and surrounding markets.

Developing new communities has been an integral part of Greenwin since our inception and we plan to continue to grow this way for generations to come.” continued on page 20

Delivered to you by

City builder’s emergency appeal to support Israel Greenwin has joined other leaders in the construction and real estate industries to call on the public to support the people of Israel.

They invite you to donate to the City Builder’s Emergency Appeal to Support Israel through the UJA Federation of Greater Toronto (UJA).

Your donation will save lives, as UJA’s longtime partners address urgent needs on the ground in Israel. UJA is working directly with The Jewish Agency for Israel, the Joint Distribution Committee, and municipal authorities in their partner communities— Eilat/Eilot and Sderot, two of the hardest hit areas. In Sderot, where hundreds of civilians were murdered, UJA is purchasing helmets and bullet-proof vests for emergency responders, like paramedics, to keep them safe as they continue helping others. Sderot is a war zone right now—and donations will directly save lives here. Meanwhile, 3,000

18 | October 2023

evacuees from the war zone have fled the border of Gaza and are now sheltering in Eilot, a rural region home to just a few thousand people.

Local services are overwhelmed. The population has nearly doubled overnight.

There is enormous need for funds to pay for baby formula, medication for the elderly, food, clothes, and other supplies. Gifts to the Emergency Appeal will help secure these desperately needed items.

We invite you to make your donation here: jewishtoronto.com/city-builders-emergencyappeal-to-support-israel. If you intend to make a donation over $10,000, please reach out to Jennifer Apple, a UJA professional who will help facilitate your donation (japple@ujafed.org).

continued from page 16

Current leadership Kevin is the son of Harold Green, and has been involved in the real estate industry for 45 years. He graduated from Florida State University, where he attended as a scholarship athlete, with a Bachelor of Science degree. Prior to joining Greenwin, he worked as a real estate broker, however, Kevin knew he would eventually join the family business and carry on the legacy his father and uncle built.

“It was an exciting opportunity and I wanted to be part of continuing the family vision and shaping the future,” said Kevin Green, President & CEO, Greenwin.

Kevin became President and CEO of Greenwin in 1995, with a vision of creating exceptional, inclusive residential and commercial communities.

In this role, he was instrumental in growing the development arm of the company, which has helped to spur its growth over the last 25 years.

He is also committed to making a positive impact in the communities Greenwin serves through tailor-made social programs and philanthropy.

His mission is to create exceptional homes while simultaneously fostering social change and community development.

“I understand the profound role that housing plays in people's lives and recognize the immense responsibility Greenwin has to create sustainable change,” said Kevin. “This philosophy centres on the belief that every building constructed and every property managed is an opportunity to uplift lives and create stronger, more vibrant communities.”

Kevin is motivated to create success for Greenwin’s stakeholders and have a positive impact on their communities. He believes in using his resources and expertise to contribute to social betterment by leading projects that address specific community needs. He also takes a long-term perspective to running the company.

Kevin recognizes that sustainable and socially responsible projects can contribute to the overall success of their communities and the well-being of their residents. As a result of this perspective, he is motivated to prioritize long-term benefits over short-term gains.

“More than anything, Greenwin wants to be remembered for its positive contributions to the social fabric of Toronto and surrounding areas,”

20 | October 2023

said Kevin. “We understand that our reputation and the impact of our projects extend beyond financial success, and we strive to make positive change in our industry and communities. I also derive satisfaction from knowing that we have contributed to improving the quality of life of others.”

Overcoming real estate industry challenges Over its 75-year history, Greenwin has had to address and overcome many different challenges, such as inflation, changing government regulations, COVID-19, economic uncertainty, and more. Real estate can be a volatile market, sometimes unpredictable and subject to fluctuations due to both expected and unexpected factors. Throughout it all, Greenwin has managed to navigate these uncertainties and adapt its strategies accordingly to mitigate risks and seize opportunities.

“We have worked hard to differentiate ourselves by offering unique value propositions, building strong networks, and staying ahead of market trends to remain competitive,” said Kevin.

“Economic downturns can impact demand, financing options, and property values, which requires us to make strategic decisions to weather economic cycles successfully.”

One issue that keeps coming up is regulatory and legal compliance. These include zoning and land use regulations, environmental considerations, building codes, fair housing laws, and tax regulations. Throughout all these challenges, Greenwin’s management has learned to be adept at navigating complex regulatory frameworks to comply with these laws and regulations.

There has also been a growing emphasis on sustainability and environmental responsibility in the real estate industry. Some of these demands come from government regulations, while others are customer driven. Greenwin is consistently mindful and focused on energy efficiency, green building practices, and sustainable development to align with changing societal values and regulatory requirements.

“Consumer demands and preferences can change rapidly,” said Kevin. “We’re attuned to shifting demographics, lifestyle trends, and technological advancements to meet the evolving needs and expectations of our audiences. This may include incorporating sustainable features, smart home technology, or flexible workspaces into our projects.”

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Greenwin Cares Greenwin launched Greenwin Cares in 1999 to give back to the people who have kept their properties thriving and to ensure that no one is left behind. Through ongoing mentorship initiatives, tutoring, mental health support, food and nutrition education, physical fitness, sports programming, and other organized activities, Greenwin Cares focuses on nurturing the positive and deterring the negative.

“Our grandfather, Harold Green, believed in the Hebrew phrase tikkun olam, which means ‘heal the world',” said Jenn Green, Director, Affordable Housing & Corporate Social Responsibility, Greenwin. “Healing the world by improving the lives of individuals who call a Greenwin building home is our mission through Greenwin Cares.

We work with the communities to see what they need and then develop programming and execute.

Depending on the neighbourhood, this can include anything from breakfast clubs, homework clinics, and programs that support women and seniors to vaccine clinics and skills development training.”

• Make Your Future is a career fair geared toward youth aged 12 to 18 years old. Its goal is to provide inspiration and information about different career opportunities and paths that are available to youth.

• In 2011, Greenwin Cares began its partnership with The Believe to Achieve Organization (BTA), a registered charity founded by Spider Jones with a mission to inspire at-risk children.

The program’s youth centre runs out of 160 Chalkfarm Drive, which Greenwin owns and manages but rents to the charity for $1 a year.

Greenwin Cares handles the centre’s day-to-day operations and runs several annual fundraising initiatives to support BTA programming “I have spent the past 45 years of my life continuing to build on my family’s vision and helping to further the future of real estate,” said Kevin. “I also believe contributing time, resources, and expertise to philanthropic causes brings a sense of purpose and fulfillment.”

Conclusion Over the past 20 years, Greenwin Cares has helped raise more than $6 million for various programs and initiatives. They have also spearheaded a number of their own programs, including: • Laptops for Learning (a partnership with Toronto Police Services 31 Division) helps bridge the digital divide by donating laptops to students who have inadequate access to technology. The goal is to break down technological barriers and support children on their path to success.

• Skilled Trades Development Program aims to support justice-involved individuals with finding meaningful careers to ensure successful re-entry into the community. This Employment Ontario project is funded in part by the Government of Canada and the Government of Ontario.

22 | October 2023

With another generation of Greens helping the company to grow and move forward, Greenwin will keep leading the way in the rental housing industry. They continue to build and manage multifamily properties that are transforming neighbourhoods and redefining rental living. And if this next generation of leaders is any indication, Greenwin will continue providing safe and affordable housing, as well as creating healthy, dynamic communities where everyone has the opportunity to thrive.

“As the fourth generation in a family-owned and operated business, we have a unique opportunity and responsibility to uphold our family’s deepseated values,” said Jessica. “In my nearly 15 years of working alongside family, I have seen firsthand the Greenwin ethos of prioritizing people by creating a culture of trust and belonging.

We rely on this principle to guide our ability to innovate, challenge norms, and ensure longlasting partnerships with both our clients and residents.”

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Municipal development fees continue to drive up building costs and rents

By David Gargaro

Many municipalities charge fees as part of the development approval process for multiunit residential properties. These funds are supposed to finance the development of community amenities and infrastructure upgrades. However, they often get deposited in municipal reserve funds, which don’t get applied to specific projects. In the meantime, developers must increase rental rates to recoup these costs. This has contributed to the chronic underbuilding of purpose-built rental housing over recent decades and worsened the housing availability and affordability crisis.

Development fees continue to rise According to a Canadian Home Builders’ Association (CHBA) report, Vancouver has the highest fees for approving new high-rise residential building construction in Canada (compared to major municipalities).

The city’s average accumulated fees total $125,542 per unit, or $157 per square foot. Eight of the top ten cities are in Ontario, with Markham second ($110,892/unit, $139/sq. ft.) and Toronto third ($99,894/ unit, $125/sq. ft.). These figures are much higher than the national average ($41,353/unit, $52/sq. ft.). See Table 1 for the top 10 municipalities in Canada.

Table 1: Municipal development fees for high-rise buildings Municipality

Charges per unit ($/unit)

Charges per square foot ($/sq. ft.)

Vancouver

125,542

157

Markham

110,892

139

City of Toronto

99,894

125

Brampton

79,645

100

Oakville

74,636

93

Pickering

64,076

80

Bradford West Gwillimbury

53,845

67

Surrey

48,654

61

Hamilton

41,690

52

Ottawa

35,079

44

Source: Municipal Charges per Unit, High-Rise Scenario, Study Municipalities, 2022. (Altus Group Economic Consulting)

Municipal development fees are also increasing faster than the rate of inflation. Vancouver’s fees have increased by 25 per cent in three years ($100,679 per unit in 2020). Burnaby and Surrey,

24 | October 2023

have had the highest increases in Canada, at 54 and 37 per cent, respectively, since 2020. Toronto has seen a 31 per cent increase in development fees in three years.

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Zev Mandelbaum of Altree Developments compared two different projects on the “Toronto Under Construction” podcast. The government fees on a development in New Jersey are $12,000 per unit, while the fees are $300,000 per unit for a project in Toronto.

“The government tries to blame developers for high prices, but wants to capture more from a project than the developers do, without assuming any risk at all,” said Ben Myers, President, Bullpen Research & Consulting Inc. “It is a perverse system, where Ben Myers the results are playing out in front of us, as affordability even for the upper middle class is getting very bad.”

Development fees are accelerating the costs of building high-rise residential properties. Some builders are having difficulty making payments.

For example, Anthem Properties requested deferral of $10.44 million in community amenity contributions to the City of Vancouver for rezoning approval of a high-end condo project. They asked to delay payment due to rising construction costs, higher interest rates, and lower market demand for multi-family strata residential properties.

Where are development fees going?

Every municipality imposes different fees (e.g., community amenity contributions (CACs), development cost levies (DCLs)) to approve new property developments. The fees go into municipal reserves to fund various projects, such as building community centres, upgrading infrastructure, or replacing garbage trucks.

However, these funds do not get allocated right away. For example, according to a CBC News report, the City of Burnaby has accumulated more than $1 billion in reserve funding. These funds have accrued through years of investments, land sales, and fees from developers in exchange for building higher density properties.

Burnaby’s mayor, Derek Corrigan, stated the funds have been designated to fund future facilities and infrastructure projects over the next five to ten years, as well as more immediate needs. Some people want the funds to be used to address the city’s lack of affordable housing or reduce property taxes. Others are advocating for a reduction in taxes and fees.

Municipal development fees can languish in reserve funds for years. Vancouver is building its first new public community and recreation centre in almost 15 years. Meanwhile, the salaries of staff members in Vancouver’s municipal government have grown, accounting for 36 per cent of its 2022 operating budget (a 7.2 per cent year over year increase).

26 | October 2023

Fees trickle down to renters Developers are not absorbing the rising costs.

They are passing them on to property buyers and renters. This is on top of the impact of inflation on materials, human resources, and interest rates.

A recent study by Ryan ULC, involving Vancouver, Kelowna, and Saanich, found that government costs make up 29 per cent of an apartment purchase price and 33 per cent of average rent.

For a $1.1 million condo unit, government fees, charges, and taxes make up $327,565 of the cost, which has increased by 49 per cent in five years. A tenant in a 675 square foot apartment in Vancouver, where monthly rent is $2,698, would pay $882.70 in government fees that were applied during the building and development phases.

Homebuyers also face government-imposed financial challenges. According to a CMHC report, more than 20 per cent of the cost of building a home in major Canadian cities comes from government charges. A 2023 CD Howe report found that in Vancouver, government fees, charges, and regulatory costs make up 63 per cent of the final sale, or $1.3 million for a $2 million home. The Canadian Center for Economic Analysis determined that 31 per cent of the cost of a new home in Ontario is tied to government charges.

Toronto’s municipal fees have soared over the last 20 years. In 2001, a 400-unit condo would have paid $8,900 per unit, or $10.50 per square foot, in development approvals and municipal fees. In 2023, that property would pay $82,800 per unit, or $125 per square foot. Adding in the rise in HST ($9,600 in 2001 to $102,500 in 2023), that amounts to a 1,160 per cent increase in government fees on new housing over 20 years.

Municipal governments claim fees are tied to the value of growing land for public benefits, and are required to cover operating and capital costs.

However, rising fees affect homebuyers and tenants, as builders pass the costs to consumers.

According to the CHBA report, “Higher municipal charges… increase the price ‘floor’ that units need to be sold at to be feasible to the developing landowner and home builder.”

Removing the tax on rental developments Reducing municipal development fees would decrease building costs. This would reduce rates, encourage new rental stock, and provide more affordable housing.

Under current legislation, developers who build rental properties are treated as if they have sold and then repurchased those rental units.

Depending on where the properties are located, builders must collect the GST or HST and remit these amounts to the CRA. On September 21, Minister of Finance Chrystia Freeland tabled Bill C-56, the Affordable Housing and Groceries Act, which (among other measures) removes the GST on new rental housing construction. Its goal is to “create economic conditions to help with the construction of more rental housing.” While all details have yet to be released, eliminating the GST will affect buildings with at least four private apartment units or residences with at least ten private rooms.

Also, 90 per cent of residential units must be categorized as long-term rentals. The GST rebate also applies to developments that convert existing buildings into new rental units.

“The new rebate would reduce costs on a rental project by approximately four to five per cent,” said Ben Rossetto, CIO, DBS Developments. Municipal governments can further incentivize new rental housing by waiving or Ben Rosetto substantially reducing development charges on purpose-built rental projects, as well as reducing property taxes on these projects and expediting the approval process for new rental development applications.”

During the Saskatchewan Landlord Association Conference, Tony Irwin, Interim President of the CFAA, congratulated the federal government for taking action that supports purpose-built rental housing. CFAA had advocated for the GST to be Tony Irwin removed from new purposebuilt rental housing construction for many years.

Until now, this goal seemed to be out of reach.

“Combined with the removal of provincial tax on new rental construction where it is currently charged, this will help many projects move forward,” said Irwin. “It is an important step, but this cannot be a one-and-done strategy. If we are going to tackle the current availability and

28 | October 2023

affordability crisis, we need to say yes to more purpose-built rental housing.”

This legislation seems to be paying dividends.

Dream Unlimited Corp., a Toronto-based real estate firm, is planning to build 5,000 new rental units across Canada in response to the removal of GST charges on rental developments. This includes construction of more than 1,000 rental units in Ottawa, where one development involves a partnership with the Multifaith Housing Initiative, a local non-profit affordable housing organization.

“The legislation to remove the federal sales tax on construction of rental housing will allow developers to increase rental supply and build more affordable housing,” said Hero Mohtadi, Vice President, Residential Hero Mohtadi Operations & Asset Management, Dream Unlimited. “This change will shift the focus of development from condos to rentals, which is beneficial as new supply will specifically be built for renters.”

High interest rates, government fees, and hard construction costs have delayed the development of many rental housing projects. Developers cannot pass the sales tax on to renters, so they must absorb this cost. Removing the GST from rental developments will make projects more financially viable. However, more needs to be done to decrease project costs.

“Municipalities have options without steep hikes to fees like DCCs,” said David Hutniak, CEO, LandlordBC. “They can pursue a combination of long-term debt, contributions from the operating budget, utility and user fees, reserves, external David Hutniak contributions such as from the federal and provincial governments, and increased property taxes.”

Conclusion Municipal development fees are driving up the cost of building multi-unit residential properties.

When combined with rising interest rates and inflationary building expenses, it’s becoming less financially viable for companies to develop rental properties. Municipal fees also increase costs for buyers and renters. Rather than collecting fees to stock municipal coffers, governments should reduce fees and taxes to make it more palatable to build rental properties.

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When in doubt, blame a landlord!

By David Gargaro

Did you hear about the Toronto landlord who nearly tripled his tenants’ rent? Two sisters had been living in a two-bedroom unit for three years.

The landlord had increased the rent to $3,500 per month. When the tenants complained, he raised the rent to $9,500 per month to force them out.

Fortunately, this landlord is in the minority. But one bad apple ruins it for everyone else. The media tends to focus on landlords who mistreat tenants, making it seem like they’re responsible for rising rental rates. These types of stories put pressure on the government to act and can trigger kneejerk rent control policies.

“While this rental is exempt from Ontario’s rent control guideline, the actions of this foolish landlord are what will eventually cause the total elimination of this exemption,” said Harry Fine, Owner, Ontario Landlord Training.

Government policies, not landlords, are the problem Rental property owners are on the same side as tenants with respect to wanting a fair rental housing market. Recently, Robert Gentile, president of the Quinte Region Landlords Association (QRLA), attended a tenants’ rally in the Quinte West council chambers. Tenants were upset about being unfairly evicted by their landlord, Bedford Properties. Gentile expressed his concern for how Bedford handled the situation, even though the landlord had followed government policy. He also showed empathy for the tenants, explained how government policies created a difficult housing situation, and offered to work with tenant groups to help find housing for those affected.

Government policies have driven up rental rates, reducing the supply of affordable housing.

Inflation drives up the cost of everything, including building supplies, fuel, food, clothing, and insurance rates. Interest rates have jumped, increasing mortgage rates and borrowing costs for construction loans. Government fees and taxes add to the cost of living, as well as rental rates.

Government policies (like rent control) make it

30 | October 2023

financially challenging to run a rental property business and develop purpose-built rentals.

Even Brian Lewis, former Chief Economist for Ontario, declared that “rental housing is a poor investment.”

Rental property owners charge rents to maintain their rental properties. Rental rates must keep pace with inflation. However, rent control (where it applies) limits what property owners can earn, which means losing money when rental rates are restricted.

Canada’s annual inflation rate rose to 4 per cent in August 2023, up from 3.3 per cent in July. Energy prices increased by 5.2 per cent over the first half of the year. Ontario set its 2024 rent increase guideline to 2.5 per cent, while BC’s is set at 3.5 per cent. As a result, rental property owners in Canada’s two largest markets are losing money on rents set at last year’s rates.

Government policies impede rental property owners’ ability to run their businesses. In BC, the maximum allowable rental housing increase used to be based on the 12-month average percentage change in the province’s Consumer Price Index (CPI) as of the previous July. From 2003 to 2019, the formula was CPI + 2 per cent. Using this formula, the 2023 rate increase should have been 5.4 per cent – the actual rate was 2.0 per cent. The 2024 rate increase should have been about 5.6 per cent; at 3.5 per cent, it’s higher than last year but well below where it should be.

There are good landlords too Rental property owners provide safe, affordable housing. In return, they depend on tenants to provide a living. It’s good business to keep tenants in their units. They also try to help tenants who need financial assistance to pay their rent.

For example, Skyline Living’s R.I.S.E. Program provides support, access to community resources, and financial assistance to tenants facing challenges. This can mean job loss, a change in household status (e.g., death), a life-altering event (e.g., accident) or a temporary change in income.

Skyline’s team works with tenants to identify appropriate supports.

food and nutrition education. For example, the Laptops for Learning program, developed in collaboration with Toronto Police Services 31 Division, helps children in vulnerable communities to access technology, enabling them to learn on a level playing field.

Hollyburn Properties has partnered with Covenant House (a non-profit organization that supports youths experiencing homelessness) for more than 20 years. The Hollyburn Properties Youth Housing Program helps local street-involved youth to transition to independent living. Through the program, the company provides Covenant House with six furnished, subsidized rental apartments (split between Vancouver and Toronto) to help youths “gain a sense of self-worth, selfconfidence, and dignity.”

Conclusion

Greenwin Cares, launched in 1999, is geared toward breaking the cycle of poverty to ensure “no one is left behind.” It has provided mentorship initiatives, tutoring, mental health support, physical fitness and sports programming, and

Most rental property owners care about providing safe and affordable housing while making a living. There are some bad landlords, but there are also bad tenants. The media will repeatedly publish stories about the bad landlords to make the situation seem worse than it is. Meanwhile, they won’t give the same attention to bad tenants.

Those kinds of stories don’t drive clicks or views, making it seem like rental property owners (and not government policies) are to blame for rising rental rates.

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Government of Canada introduces legislation to build more rental homes

By Tony Irwin, Interim President, CFAA

On September 21, Chrystia Freeland, Deputy Prime Minister and Minister of Finance, led off the fall parliamentary sitting by announcing Bill C-56, the Affordable Housing and Groceries Act. This legislation is of interest to rental housing developers because it remove the GST on new rental housing construction. The Act would also increase competition in the grocery sector.

“By removing the GST from new apartment construction, we are going to create more units at prices Canadians can afford across Canada,” said Sean Fraser, Minister of Housing, Infrastructure and Communities. “This is going to get builders to build projects that otherwise weren’t going to go ahead.”

The Affordable Housing and Groceries Act would enhance the Goods and Services Tax (GST) Rental Rebate on new rental housing to incentivize the construction of more apartment buildings, student housing, and seniors’ residences. The GST Rental Rebate would increase from 36 per cent to 100 per cent and remove current GST Rental Rebate phase-out thresholds for new rental housing projects.

A two-bedroom rental unit valued at $500,000 would see $25,000 in tax relief. The enhanced GST Rental Rebate would apply to projects that begin construction on or after September 14, 2023, and on or before December 31, 2030, and complete construction by December 31, 2035.

“In today’s economic environment, the prospect of starting and completing a new purpose-built rental building is less economically viable than it has been in recent decades,” said Krish Vadivale, CFAA Board Chair and VP Finance, Skyline Group of Companies. “While it may not address all the economic headwinds currently challenging the rental housing industry, the federal government’s proposed GST relief measures certainly are a step in the right direction.”

Government of Canada increasing annual limit for Canada Mortgage Bonds by $20 billion On September 23, Freeland announced the federal government was increasing the annual limit for Canada Mortgage Bonds from $40 billion to up to $60 billion. This measure will unlock low-cost financing for multi-unit rental construction, with the goal of helping to build up to 30,000 more rental apartments per year.

The Canada Mortgage and Housing Corporation (CMHC) and the Canada Mortgage Bond program providing mortgage loan insurance and securitization to support low-cost financing of new rental housing. Following the announcement of the Affordable Housing and Groceries Act, there is expected to be more demand for low-cost financing to fund the development of new multi-unit rental apartments.

The $20 billion annual increase in the Canada Mortgage Bond issuance limit is designated for funding mortgage loans on multi-unit rental projects insured by CMHC. To qualify for mortgage loans, projects must have at least five rental units.

Developments can include apartment buildings, student housing, and seniors’ residences.

“If you are a home builder, we want you to build,” said Sean Fraser, Minister of Housing, Infrastructure and Communities. “We are going to help by changing the financial equation. Given the cost pressures home builders are facing, this will ensure projects go ahead that otherwise would have sat on the shelf. Today’s announcement is a signal to the market. If you’re in the business of building homes, it’s time to get shovels in the ground.”

rentalhousingbusiness.ca | 35

NATIONAL OUTLOOK To support the construction, purchase, and refinancing of residential properties, CMHC Multi-Unit Mortgage Loan Insurance protects lenders against loss from mortgage default, which helps to give builders access to capital and reduce their borrowing costs. Builders can access inexpensive and reliable access to funding through CMHC securitization programs, which enables them to pay more competitive rates. CMHC plans to engage in consultations with the housing financing sector to identify other rental housing supply solutions, such as how to increase the supply of housing, improve efficiency and competition in the housing finance market, and stabilize the financial system.

Government of Saskatchewan announces new approach to homelessness On October 6, the Saskatchewan provincial government announced $40.2 million in new funding over the next two years to address homelessness. The funds will go toward creating 155 new supportive housing spaces, 120 new permanent emergency shelter spaces, and 30 new complex needs emergency shelter spaces to enhance community safety and outreach responses. The ministries of Social Services, Health, and Corrections, Policing and Public Safety (CPPS) will take an integrated approach to provide a continuum of services with targeted supports aligned with individuals’ needs in the appropriate settings.

The provincial government’s investment is broken down as follows: • $7.16 million will go toward developing 155 new supportive housing units in Regina and Saskatoon.

Supportive housing provides on-site and visiting support, and connects individuals to wrap-around services to provide stability.

• $14.1 million will be used to create up to 120 new permanent emergency shelter spaces in Regina, Saskatoon, Prince Albert, Moose Jaw, and other communities depending on need. Approximately 500 permanent emergency shelter spaces will be available this winter.

• $19 million will be invested in enhancing community safety and outreach responses. Two complex needs emergency shelters will be set up in Regina and Saskatoon. They will provide a secure and medically supervised place to individuals who are intoxicated and exhibiting potentially dangerous behaviours for up to 24 hours.

The Saskatchewan government will help municipalities to mitigate community safety issues around emergency shelters. They will also support the expanded delivery of homelessness outreach services.

“Public safety is a critical part of addressing the needs of people experiencing homelessness and mental health and addictions issues,” said Paul Merriman, Corrections, Policing and Public Safety Minister. “By working together across government and within communities, we will build supports that protect our communities and help people overcome the challenges they may be facing.”

The Saskatchewan government’s investment in addressing homelessness should also get support from the rental housing industry, as it will encourage cooperation between the public and private sector. It will help to facilitate partnerships between community-based organizations and private sector partners on mixed-market developments where there is a mix of supportive housing units and market-rate rentals.

FRPO updates its 10-point Ontario rental housing strategy With the appointment of the Hon. Paul Calandra as the new Minister of Municipal Affairs & Housing in Ontario, FRPO sent a revised set of recommendations that focus on specific measures to incent more purpose-built rental housing, while also improving the operating climate for purpose-built rental housing providers.

Specific recommendations include: • The creation of an “as-of-right” zoning framework to fast-track infill development on existing purposebuilt rental sites that can accommodate additional buildings • A density and height bonus to help purpose-built rental compete with more lucrative condominium projects for land • A separate queue with dedicated resources to fast-track appeals of purpose-built rental proposals at the Ontario Land Tribunal • Rebates for development charges (DCs), community benefit charges (CBCs), and parkland levies (PLs) aimed at unlocking more mid-market rental projects

rentalhousingbusiness.ca | 37

OCTOBER 2023 • Zero-rating of GST and PST to greenlight even more purpose-built rental projects • Removal pf prohibitive regulations to incentivize the development of more low- to mid-rise apartments by addressing issues such as double egress, parking minimums, setbacks, floor space index, and other prohibitive requirements FRPO also urges the Minister to consider how operating conditions impact the decision to build or not build purpose-built rental in this province. To this effect, we asked the Minister to: • Ensure the rent increase guideline for pre-2018 units is aligned with the Ontario CPI • Maintain the current rental policy regime that governs above-guideline increases, vacancy decontrol, and the post-2018 exemption • Ensure the Landlord and Tenant Board meets its own service standards FRPO will continue to ensure rental housing providers have a strong voice with the Ontario government and look forward to meeting with the new Housing Minister soon.

CBC Radio’s The Current: A discussion on Canada’s housing crisis On September 27, Tony Irwin joined Matt Galloway, host of The Current on CBC Radio, in a discussion on Canada’s housing crisis. The episode focused on soaring housing costs in Weston, a “middle-class” neighbourhood in Toronto that was once known for being an affordable place to live. Galloway invited several locals to talk about rising housing costs and how their community has changed, as well as potential solutions that could be applied across Canada.

Part 1 of the program involved an interview with people who live in Weston. They discussed how the high cost of living prevented them from looking for more appropriate accommodations for their families. Some apartments are housing more people than they are designed for (e.g., six people in a two-bedroom unit) because they cannot afford to move into a larger home. Everyone also agreed the rising cost of food was contributing to the difficulties with being able to afford rent.

Kristen Vittraino, a mortgage broker, spoke about how customers are having difficulty with being able to afford a down payment on a home. Many people are also worried about making their mortgage payments due to rising interest rates. She believed the system must change so people can afford to live in the communities they want to be in.

Part 2 of the program included Bryan Douthwright, advocacy manager at the Weston King Neighbourhood Centre; Sharlene Henry, co-chair of the Weston Tenants Union; and Mohammed Mohammed, executive director of Jane’s Alliance Neighbourhood Services. They discussed the difficulties involved in finding an affordable apartment in the area, and the increase in the number of people using food banks and getting social assistance. Henry spoke about her tenant group’s rent strike, as they are protesting an above guideline rent increase that followed a series of renovations in their buildings.

In a one-on-one interview with Matt Galloway, Tony Irwin began by acknowledging that many people are struggling, and that rental property owners are also facing serious challenges due to the rising costs of operating their buildings. He stated that the lack of rental housing supply is a major factor in the rising costs of rents across Canada.

“We have had an under-building of purpose-built rental housing in Canada for decades,” said Irwin. “We need far more of it and we need more housing of all types. That’s pretty clear. But rental housing is the most affordable housing option there is, and we need a lot more of it.”

When asked if financialization of rental housing is the cause of rising rents, Irwin explained that most rental properties in Ontario are rent controlled, as 90 per cent of the rental stock was built before 1980. He conceded that units built more recently are rent control exempt, but that without the exemption, rental rates would still need to go up due to inflation and other rising costs. Irwin also talked about creative partnerships between all levels of government, the private sector, and non-profits that have provided affordable housing in Toronto and Vancouver and need to be replicated elsewhere.

Returning to financialization, Irwin talked about the positive role REITs play by allowing ordinary Canadians to invest in rental housing, and contribute significantly to their retirement plans. He also offered that REITs are able to attract the necessary capital to build more housing, and to invest in housing.

38 | October 2023

NATIONAL OUTLOOK “That is, of course, how the private market functions,” said Irwin. “So companies that are doing that and who are revitalizing old stock, that needs major money to do that.”

Irwin discussed why rental property companies would need to apply for above guideline increases in rents (e.g., replacing HVAC equipment, repairing balconies, making major investments in older buildings). He encouraged his members to maintain communications with tenants when discussing rents when they are tied to building repairs and upgrades. He also discussed how increasing supply would help to bring down costs, and how the private markets used to be more competitive when there was more supply of rental stock.

“More supply does mean there are more options and it will impact prices,” said Irwin. “We still need to look at how we can make units affordable for long periods of time, but I think more supply definitely helps.”

The interview closed by Matt Galloway asking Tony Irwin what he wanted to say to people who feel like they’re being priced out. Irwin said he feels for people who have shared their stories about their daily challenges and for people who feel like they have nowhere to go and feel like they are being forced out.

“No one wants to feel that way,” said Irwin. “No one wants to feel insecure in their housing. I would like us to be on the same side, to say, we all want to get to the same place. We may not always agree on how to get there, but we all want to get to the same outcome. How can we do that together?”

Part 3 of the program involved a discussion with Jeff Brenner, Partner at Castlepoint Numa; Heather Tremain, CEO of Options for Homes; and Ene Underwood, CEO of Habitat for Humanity GTA. They discussed the barriers to building more housing, as well as more affordable housing. Some of those challenges included rising construction costs, the shortage of available land, the time required to get projects approved, rising interest rates, and government fees for approving developments.

Underwood stated that it takes three to four times longer to get building permits in Canada than it does in Finland or Norway. Projects can spread over years to get approved and construction costs go up in the meantime. They also have to deal with community members protesting developments due to NIMBYism, which is wasting both time and money. Underwood added that the government often makes the problem worse by trying to make it better.

Brenner said that affordable housing and market housing are tied together, as housing is a supply and demand issue. There’s also a growing shortage of skilled trades, which affects the ability to increase the supply of housing. He believes that investing in skilled trades will help to address this part of the problem.

Tremain discussed different financial options for people who need help to get into home ownership. She explained that some groups have fewer ways to access funding than others (e.g., they don’t have families to lend them money, they don’t qualify for certain mortgages). Helping people to get into rentals or affordable housing ends up helping others as well, as it opens up more affordable living options.

Halifax to receive over $79.3 from Housing Accelerator Fund for new homes On October 12, the Halifax Regional Municipality (HRM) announced an agreement with the Government of Canada to fast track 2,600 housing units over the next three years, resulting in the construction of over 8,866 homes over the next decade. HRM will receive more than $79.3 million through the Housing Accelerator Fund (HAF) for construction of the new homes.

To help support the development of new homes, the City of Halifax will improve permitting processes, reduce their upfront costs, and incentivize the use of pre-approved building plans. It will also create incentive programs to promote the conversion of commercial properties for residential use and the development of small-scale residential properties.

HRM plans to expand its Affordable Housing Grant program, update the City’s heritage preservation policy, and set up a program to identify surplus land that will be used to build affordable housing. Other housing initiatives include allowing the construction of four residential units on one lot and increasing density near colleges and universities by allowing student rentals within walking distance. HRM will use HAF funding to address zoning changes to increase density, such as allowing greater building heights (e.g., Established Residential 3 Zones, Higher Order Residential and Corridor Zones), reducing minimum parking requirements, and increasing as-of-right development approvals.

rentalhousingbusiness.ca | 39

OCTOBER 2023 The Nova Scotia government also announced more funding for supportive housing and shelter options in the HRM. In partnership with municipalities and shelter providers across Nova Scotia, the provincial government will invest $7.5 million in Pallet shelters. This includes 200 units for temporary housing across Nova Scotia, with 100 located in the HRM. The City of Halifax will provide land, land servicing, preparation support, and operational oversight of the 100 units.

RCFi loans to support new rental housing developments in BC The Rental Construction Financing Initiative (RCFi) provides fully repayable low-interest loans to encourage the construction of purpose-built rental housing. It is part of the Government of Canada’s National Housing Strategy (NHS), a 10-year plan to invest more than $82 billion in building more housing.

The federal government, through the Canada Mortgage and Housing Corporation (CMHC), is partnering with BC Housing, municipal housing authorities, and private organizations to fund the development of several purpose-built rental projects across BC. Some of those projects include: • 238 purpose-built rental homes across four projects in Whistler, Squamish, and Bowen Island ($90 million in RCFi) • 104 purpose-built rental homes in Vancouver ($48.5 million in RCFi) • 693 purpose-built rental homes across two projects in Coquitlam and one in Port Coquitlam ($267 million in RCFi) “We know that people are struggling to find affordable housing, which is forcing them to commute from further and further away,” said David Eby, Attorney General and Minister Responsible for Housing. “These new rental homes will help give people working in Whistler the ability to live where they work. Through partnerships like this, we are building the homes that people need to stay in their community.”

Rapid Housing Initiative supports new affordable housing development in Yellowknife On October 12, Prime Minister Justin Trudeau joined Caroline Cochrane, Premier of the Northwest Territories, to announce the construction of a new affordable rental housing building in downtown Yellowknife. The low-rise, energy-efficient apartment building will incorporate sustainable technologies in heating, ventilation, and air filtration, and will consist of 25 one-bedroom and 25 two-bedroom units.

The 50-unit development will be built under a cooperative initiative between the federal and territorial governments, with the municipal government providing the land. The federal government will provide $20 million in funding through the Rapid Housing Initiative, a $4 billion fund geared to serving people experiencing, or at risk of, homelessness and other vulnerable people. Additional funding is provided by the Government of the Northwest Territories. The building will include territorial and municipal housing resources (Housing NWT and Yellowknife Housing), as it will support Indigenous Peoples, seniors, women and children, people living with disabilities, and people experiencing homelessness.

RHI supporting development of over 1,000 new affordable homes in Peterborough On October 11, CMHC announced a partnership between the federal government, Ontario government, and City of Peterborough to fund to the construction and repair of more than 1,000 affordable homes in Peterborough. The federal government is providing more than $42 million through RHI and the National Housing Co-Investment Fund (NHCF). The federal and provincial governments are jointly investing over $1.8 million through the Ontario Priorities Housing Initiative (OPHI) and over $2.4 million through the Canada–Ontario Community Housing Initiative (COCHI), an initiative of the Canada-Ontario Bilateral Agreement under the National Housing Strategy. The City of Peterborough is providing over $5 million in funding for these projects.

“Increasing the stock of affordable housing has been a priority for the Government of the Northwest Territories over the last four years, and I’m thrilled to see this project proceed thanks to Canada’s Rapid Housing Initiative,” said Cochrane. “The construction of a 50-unit apartment building in Yellowknife’s downtown core is going to change many lives for the better.”

The funding is going toward three groups of projects: • A new six-storey building will include 53 units (37 one-bedroom, 11 two-bedroom, and 5 three-bedroom units) with amenity space and utilities on the ground floor. The project, to be completed by summer

40 | October 2023

NATIONAL OUTLOOK 2024, will be home to vulnerable populations in Peterborough, including Black Canadians, people with disabilities, Indigenous Peoples, homeless people or those at risk of homelessness.

• The second portfolio of projects will include the repair of 945 affordable homes owned and operated by the Peterborough Housing Corporation. More than 30 per cent of the units are allocated to women and children, and at least 20 per cent of units will be accessible. Repairs will achieve a minimum reduction of 25 per cent in energy consumption and greenhouse gas emissions. Repairs are expected to be completed by December 2025.

• A six-storey building will include 85 units (one- and two-bedroom units) for people experiencing homelessness.

Vaughan to get 1,700 new housing units through Housing Accelerator Fund On October 5, Prime Minister Justin Trudeau and Vaughan Mayor Steven Del Duca announced that the City of Vaughan will receive $59 million from the Housing Accelerator Fund to build more than 1,700 new housing units. The funds will go toward removing barriers to building housing, and will incentivize the construction of thousands of new homes over the next three years.

The Housing Accelerator Fund is a $4 billion federal initiative that is designed to help cities, towns, and Indigenous governments to unlock new housing supply through innovative approaches. The funding will allow high-density developments to be built near public transit, including GO train and subway stations, prioritize the construction of apartments and affordable housing, and address outdated permitting systems to reduce time to development. The City of Vaughan will also change its zoning by-laws to allow construction of up to four residential units on one lot.

“Vaughan has always been a destination of choice that people dream of calling home and where future generations wish to raise their families, start businesses, and enjoy an unrivalled quality of life,” said Del Duca. “Working with my fellow Members of Vaughan Council, we were pleased to work with the federal government to ensure Vaughan secured this critical city-building investment.”

UTILE Announces Two New Appointments Laurent Levesque, Co-Founder and CEO of Unité de travail pour l’implantation de logement étudiant (UTILE), is proud to announce the appointment of Isabelle Thérien as Director of Investment and Major Partnerships. Isabelle brings with her considerable experience in financing and developing large-scale real estate portfolios, gained from her previous positions at the Office Municipal d’Habitation de Montréal (OMHM) and the Canada Mortgage and Housing Corporation (CMHC).

UTILE also announced the appointment of Stanislas Malecki as Vice-President of Real Estate and Operations. As an executive with over 30 years of experience in companies with extensive operations across Canada, Stanislas has been using his vast expertise in real estate to support UTILE’s growth and development since joining the enterprise in 2022.

These appointments are being made as UTILE works to expand its non-profit student housing model across Quebec.

L'Unité de travail pour l'implantation de logement étudiant (UTILE) is the only social economy enterprise that specializes in student housing across Quebec.

utile.org · info@utile.org

rentalhousingbusiness.ca | 41

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President’s message On September 27, I spoke with Matt Galloway, host of The Current on CBC Radio, about Canada’s housing crisis. I acknowledged that many people – both tenants and rental property owners – are struggling with rising costs.

One of the main drivers of rising rents is the lack of rental housing supply, which has led to the lack of affordable housing. Rental property owners also have to keep up with inflation and maintain their buildings, which sometimes necessitates above guideline rent increases. Again, increasing the supply would make the housing marketing more competitive and help to bring down costs. I believe that creative partnerships between all levels of government, the private sector and non-profits, which has succeeded in providing affordable housing in Toronto and Vancouver, can be expanded to work elsewhere.

Ontario needs to build more purpose-built rental housing. Recent legislation is a step in the right direction and will help to accomplish this goal. On September 21, the federal government announced the Affordable Housing and Groceries Act, which will remove the GST on new rental housing construction. This legislation should incentivize the construction of more apartment buildings. On September 23, the federal government also increased the annual limit on Canada Mortgage Bonds, which will unlock more low-cost financing for multi-unit rental construction. And on October 5, Prime Minister Justin Trudeau joined Vaughan Mayor Steven Del Duca to announce $59 in new funding (through the Housing Accelerator Fund) to build over 1,700 new housing units, as well as remove barriers to developing new housing.

FRPO continues to support the provincial government’s efforts to build more homes through its Housing Supply Action Plan. These efforts have begun thanks to the Ontario government’s More Homes Built Faster Act and Helping Homebuyers and Protecting Tenants Act. Prioritizing purpose-built rentals will help to ensure new projects come online. The federal and provincial governments recently announced a new partnership with the City of Peterborough to fund the construction and repair of over 1,000 affordable homes in the city. rentalhousingbusiness.ca | 43

Toronto’s municipal government can find new ways to add density and remove barriers to allow the construction of new homes. In particular, we would like them to approve the building of purpose-built rentals. Allowing the construction of multiplexes on single residential lots will help to advance the number of rental units in cities across Ontario.

FRPO will continue to encourage all levels of government to prioritize and incentivize the construction of purpose-built rental housing by speeding up approvals, cutting red tape, and addressing government fees and charges to level the playing field. We’ve made a number of updates to our 10-point Ontario rental housing strategy to support these types of developments. Some recommendations include creating an “as-of-right” zoning framework to fast-track infill developments, removing prohibitive regulations to incentivize development of more low- to mid-rise apartments, and providing rebates for development charges and related fees.

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

Certified Rental Building Program launches in Saskatchewan On September 27, FRPO joined the Saskatchewan Landlord Association (SKLA) at its second annual conference to announce the expansion of the Canadian Certified Rental Building Program (CRBP) into Saskatchewan. Melchior Management and the M Group of Companies became the first CRBP-certified property management organization in the province with four buildings earning certification. Melchior Management also earned the Living Green Together certification for environmental excellence.

Melchior Management and the M Group of Companies have already participated in the CRBP, as they run over 1,600 units in CRBP certified properties throughout central Ontario. Melchior Management has also received the Certified Rental Building Member of the Year Award and Property Manager of the Year Award by FRPO and the CRBP. They are the first property management company in Barrie to meet the property management requirements of the CRBP. “Melchior is proud to be the first rental housing provider to provide CRBP-certified homes to the renters of Saskatoon and Martensville,” said Dino Melchior, President & CEO, Melchior Management and the M Group of Companies. “Our four certified local properties join a growing network of CRBPcertified properties across Canada. At Melchior, we are committed to the fundamental principles of quality and sustainability in all our properties, and we look forward to continuing to expand our network in Saskatchewan and beyond.”

44 | October 2023

FRPO launched the CRBP in Ontario in 2008 as a quality assurance program focused on promoting the “best of the best” in apartment living. It provides tenants with a quality assurance commitment when selecting their rental apartment home. The program has expanded to BC, Alberta, and now Saskatchewan.

“The expansion of CRBP to Saskatchewan shows the appetite of rental housing providers and operators across the country to adhere to and demonstrate the ultimate commitment to providing quality, sustainable homes, and excellent service to our residents,” said Tony Irwin, President & CEO, FRPO. “We are delighted to bring this program to Saskatchewan and look forward to growing the ranks of certified providers across the province in the coming months.”

The CRBP is North America’s leading rental housing quality assurance and sustainability certification program. Certified properties must meet and implement over 55 industry-leading standards of practice, including 10 environmental standards and over 250 specific requirements.

All CRBP and Living Green Together approved properties are independently audited to ensure these standards and requirements are being met.

The check mark provides a recognizable way for rental housing residents, as well as property and asset managers, to clearly differentiate quality, professionalism, and sustainability in rental housing.

“Having good quality housing for everyone is fundamental for a healthy community,” said Mayor Charlie Clark of Saskatoon. “I welcome this new Rental Certification Program to Saskatoon, to provide a framework for housing providers to demonstrate quality assurance for people renting homes in our city.”

SKLA’s second annual conference took place from September 27 to 28 at the Saskatoon Inn and Conference Centre in Saskatoon. The event had about 180 attendees from across the rental housing industry. The conference offered a number of informative sessions (e.g., rental housing tax, property insurance, psychology of sales), and included networking, tradeshow, and rental housing awards.

Upcoming events FRPO MAC Awards Thursday, November 30 The MAC Awards Gala will take place on Thursday, November 30, alongside the Building Show. It is the premier annual event for FRPO’s members, attracting 1,200 attendees that include everyone from owners/managers to third-party managers and REITs. This gathering allows attendees to celebrate excellence in the residential rental housing industry and further the high standards championed by FRPO. We invite all types of member organizations to participate in the MAC Awards and encourage you to showcase your leadership in the rental housing industry.

PM Expo at The Buildings Show November 29 - December 1, 2023 Supported by TCA, BOMA, BILD, Concrete Ontario and CABA, The Buildings Show, comprised of Construct Canada, PM Expo, HomeBuilder & Renovator Expo and World of Concrete Toronto

Pavilion, is back in-person from Nov. 29 - Dec. 1, 2023. The Buildings Show has provided a unique platform for the industry to see first-hand a complete overview of the built environment.

This is not a FRPO event; all inquiries should be directed to events@informacanada.com.

Past events The Power of One webinar On September 29, FRPO held the Power of One webinar, where we explored the powerful impact that one person, one decision, and one interaction can have on our ability to make connections, build community, and advance inclusion. This well-attended session was presented by Renée Charles as part of FRPO’s ongoing Diversity, Equity, and Inclusion educational series. Attendees learned about the power of a personal brand, the differences between connection builders and connection blockers, and practical strategies to help you to aim higher with your efforts to create inclusion.

2023 Women in Rental Housing Luncheon On August 25, the Women in Rental Housing Luncheon had an impressive turnout, with nearly 300 FRPO members and guests in attendance, the largest gathering to date. This significant occasion served as a vital platform for women in the multifamily rental industry to connect, exchange insights, and learn together. We were very appreciative of Wyse Meter Solutions for their generous sponsorship!

The event commenced with a screening of Interval House’s 50th anniversary short film, followed by remarks from Lesley Ackrill, Co-Executive Director at Interval House. In the latter part of the luncheon, we had the privilege of hosting Luwam Tekeste, who delivered an engaging presentation on the significance of personal branding.

Ontario’s leading advocate for quality 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 20 Upjohn Road, Suite 105 Toronto M3B 2V9 416-385-1100 x 22 lmichal@frpo.org www.frpo.org

rentalhousingbusiness.ca | 45

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RHB’s forum for rental housing associations to share news, events and industry information

Hot Topics: LPMA introduces Karen's Place London, which offers support and mentoring to disadvantaged women, and provides advice on how to avoid human rights complaints when selecting tenants. pg. 49 EOLO discusses the City's requirements for solid waste collection, the Rental Housing Management By-law, and the differences between rent supplements and housing allowances. pg. 53 HDAA discusses new and updated bylaws involving short-term rentals, renovictions, safe apartment buildings, and vital services. pg. 57 IPOANS discusses its advocacy efforts involving the rent cap, the Nova Scotia Rental Tenancies Program, the HRM bylaw, and rental housing affordability. pg. 61

The Member Associations

Affordable Housing Multi-Residential Program

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Is your building eligible?

This program is for: • Eligible market rate multiresidential buildings† • Shelters and co-ops • Social and municipal housing providers

Incentives for building upgrades and more: • Boilers • Building automation controls • Ventilation technologies

• Variable frequency drives • Water heaters • Energy assessments * HST is not applicable and will not be added to incentive payments.

Incentive offers are subject to change based on budget availability.

Offer available to qualified participants only. Contact your Energy Solutions Advisor to confirm eligibility. Terms and conditions apply.

Visit enbridgegas.com/affordable for details. † To determine if you qualify as a market-rate multi-residential housing provider, please reach out to energyservices@enbridge.com with your rent roll information. Additional terms and conditions may apply. © 2023 Enbridge Gas Inc. All rights reserved. ENB 1601 08/2023

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PRESIDENT’S MESSAGE LPMA members unite for fall events LPMA has started its new calendar year on a positive note. We held our first event—our annual charity golf tournament—on September 11. It was a fantastic day filled with great weather, golf, and an opportunity to meet new and current members. The real winner of the day was our charity, Karen’s Place London, and we raised $11,200. It was great to see our members coming together to support this fantastic initiative.

LPMA’s education committee is preparing for our first members meeting of the fall on Tuesday, October 10. Join us at Highland Country Club, starting at 5:30 Richie Anand pm, for a discussion of legal matters, particularly the recent amendments to the Residential Tenancies Act and processes before the Landlord and Tenant Board.

Our panel of knowledgeable and experienced speakers will guide you through the changes and answer questions.

Mark your calendar for the annual Christmas party. It will be held on December 5 from 5 pm to 8 pm at Museum London.

Sincerely,

- Richie Anand, President, LPMA

KAREN’S PLACE LONDON GIVES DISADVANTAGED WOMEN HOPE FOR A BETTER FUTURE On a tree-lined street in London’s historic Woodfield district stands a three-storey yellow brick home that offers something unexpected: a fresh start in life for older, homeless women.

The home was inspired by London developer and LPMA member Karen Crich, who passed away in 2021. Karen’s Place London gives five women over the age of 50 a safe, stable environment for up to two years.

During that time, volunteers show the women how to clean and deal with household glitches as they arise, says executive director Mona Wuytenburg. The women also learn how to set a budget and participate in cooking classes that help them prepare nutritious, costeffective meals.

A live-in mentor supervises the household during the evening and overnight hours in exchange for a small stipend and free room and board. The

mentor, once homeless herself, is a valuable role model, Wuytenburg says.

“She’s a beacon of light for the five residents.

When they’re having a tough time, they look at her and realize, ‘Yes, I can,’ because she did.”

The women pay deeply discounted amounts for room, board, and groceries as a percentage of their social assistance payments. The long-term aim is to help them develop the skills they need to become model tenants once they move into an apartment or a room in a house.

“That’s where the two years come into play. It gives them the time to slowly build up their skills,” notes Wuytenburg, who plans and implements programs, buys groceries, trains volunteers, and talks to groups about the project.

The Canadian Mental Health Association (CMHA) selects the women from within its group homes. Karen’s Place London has contracted the association to provide the services of a mental health and addictions worker, and its mobile nursing unit and 24-hour crisis unit as needed.

“Regardless of what’s going on, the CMHA has the supports that will be necessary for those tough times,” Wuytenburg says.

Wuytenburg and Crich were lifelong friends who met while attending Medway High School. The

rentalhousingbusiness.ca | 49

idea for the home began when family friends John and Ann Brown approached the Crich family after learning from their church minister how great the need was for supports for older, homeless women in London. Karen’s brother, Jamie, decided to create a memorial project in honour of his sister. The siblings worked together at Auburn Developments where Jamie is president.

“It was very in line with Karen because Karen’s natural inclination was always to help people strive to do better and improve their situation,” Wuytenburg recalls. “It was something we felt that she would be very supportive of and that she would love the idea of a project helping women in this (age) category.”

Wuytenburg’s first task was to visit agencies to gauge the need. She soon realized that no one was specifically helping older women.

“We thought, ‘Let’s tackle this, let’s take this on in honour of Karen.’

With every thought and every idea that we have, I keep Karen in mind.”

Karen’s Place London rents the house from one of Jamie Crich’s companies. Organizers opened the house to the community, talked to groups and individuals about their aspirations and invited them to donate their time, talent, household goods, or cash. As a result, the house was furnished almost entirely through donations and leftover items were donated to other charities.

Karen’s Place London has received grant money from four foundations: Westminster College Foundation, The Miggsie Lawson Foundation, The Richard and Shelley Baker Family Foundation, and The Brian and Heather Semkowski Family Foundation. Wuytenburg says organizers would appreciate businesses, such as electricians and plumbers, coming forward to help maintain the house.

Volunteers are also welcome. The organization can be reached at info@karensplacelondon.ca.

HOW TO AVOID HUMAN RIGHTS COMPLAINTS WHEN SELECTING TENANTS It’s not uncommon for small landlords to use their own criteria when they’re evaluating applications from prospective tenants. However, many don’t realize that steep fines could result from their lack of knowledge of what’s allowed under the Ontario Human Rights Code.

London lawyer Joe Hoffer says discrimination is fairly common among small owners and investors, although the vast majority of professional property managers and landlords are well versed in the Code and its prohibited grounds for discrimination.

“When it comes to small landlords, they buy a rental property thinking that the tenants will pay the mortgage and the operating expenses, and the landlord will have this capital asset that they can realize down the road,” Hoffer notes. “They seldom know the rules and often are in breach of the Human Rights Code and the housing guidelines.”

Landlords often tell applicants on social assistance that they need a minimum income of 30 per cent and wouldn’t be able to afford the rent. That position could be discriminatory on the basis of family status and being in receipt of social assistance if a single mother, for example, was told her application was denied because she didn’t meet the landlord’s income criterion, Hoffer says.

50 | October 2023

“Sometimes the landlord thinks this is a reasonable threshold he’s setting, i.e., a certain percentage of income going to rent when, in fact, it takes them offside of the Human Rights Code.”

Landlords also commonly deny applications from persons under the age of 18 in the belief that the lease will be void. However, Hoffer says 16-yearolds can enter into a binding lease if they have withdrawn from parental authority. Rejecting those applicants, as well as applicants who lack rental history, exposes landlords to a human rights complaint.

If landlords haven’t asked the applicants to obtain a guarantor, they could be contravening the Human Rights Code on the basis of country of origin in the case of immigrants, or age in students or young people living alone.

“The unsophisticated landlords don’t know what the regulations to the Human Rights Code say when assessing, for example, creditworthiness of prospective tenants,” Hoffer says.

Last year in London, a first-year Western University student had her lease cancelled at the last minute because the small landlord who had rented to her said she found the young woman’s tattoos “scary” after meeting her in person. Hoffer says that lack of knowledge informs the decision-making processes of many unsophisticated landlords when it comes to renting, although this particular landlord’s response wasn’t a violation of the Code. Even so, disclosing the reasons for declining an application is inadvisable.

“If they disclose those reasons, and sometimes they do, they’re dead in the water,” Hoffer notes.

Hoffer’s standard advice to landlords is not to inform tenants of their reasons for declining a rental application. In fact, prospective tenants sign a line on the LPMA application acknowledging they understand they won’t be contacted if the landlord has decided not to rent to them. Even if the rationale for disqualifying an application is innocuous, it can get landlords into trouble, Hoffer says. For example, landlords might tell applicants that a building wouldn’t be suitable for them because there aren’t any children there or the rent is high.

“All of those kinds of statements can trigger a Human Rights Code application,” Hoffer says.

Landlords should bear in mind that advertisements can’t state that a unit is best suited to an employed or older person. Building superintendents and rental agents should avoid engaging applicants in conversation so they don’t pose problematic questions, such as who will be living in the unit or where applicants, who have an accent, originate from. Instead, they should restrict the conversation to the unit itself.

As a precaution, Hoffer recommends that landlords assess applications based on risk. If they receive four applications for a vacant unit, they’re entitled to accept the application that poses the least risk.

Even so, they should be careful when explaining why an application might entail risk.

The Human Rights Tribunal can impose fines for special damages, such as whether the individual who was discriminated against ended up in a homeless shelter. It usually costs $3,000 to resolve the problem in mediation; otherwise, fines start at $10,000, Hoffer says. Fines for general damages are set at $10,000 but can go up to $25,000 in egregious cases, such as a landlord blatantly discriminating against a First Nations’ member using prejudicial language.

“It’s really the cost of going through the process, the exposure to financial penalties, and the tribunal can make them post apologies to publicly acknowledge they have discriminated against others, won’t do it again, and have required their staff to go through specialized training,” Hoffer says.

Interestingly, the Divisional Court and the Ontario Human Rights Commission have confirmed that rental applications and occupancy can be restricted to people age 50 and over because they are not an identifiable group that has historically been discriminated against. If landlords restrict occupancy to tenants who receive social assistance, provisions in the Code say that’s fine as a way of improving their ability to be housed, Hoffer notes.

London Property Management Association (LPMA) is a non-profit organization, located in London, Ontario, Canada, that provides information and education to landlords.

LPMA represents the interests of both large and small property owners. The association has more than 400 landlord members representing approximately 35,000 rental units.

Membership is open to landlords and property management professionals who own or manage one or more residential rental units.

Sign up online or call Tina Potter.

Ph: 519-672-6999 Web: www.LPMA.ca

rentalhousingbusiness.ca | 51

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Chair’s message In case you missed the announcement in the last issue, please be aware that I have stepped down as the President of the Canadian Federation of Apartment Associations (CFAA). However, I am continuing as the Chair of EOLO, and look forward to continue representing EOLO members in dealing with the City of Ottawa.

EOLO would welcome membership from more rental housing providers in Ottawa, who provide quality service to tenants and engage with the community as EOLO’s current members do. This issue of EOLO RAV reports on what EOLO addressed at our very well received Education Event, held for members on September 27.

- John Dickie, Chair, Eastern Ontario Landlord Organization

Solid waste While the City Solid Waste staff understand the concerns that rental housing providers have about organic recycling in apartment buildings, City Council has decided that all buildings that use the City’s solid waste collection must offer organic recycling. Over the next three to four years, all buildings will be on-boarded. If a rental housing provider wants to choose the buildings within their portfolio to on-board first, and when in the year to do that, the provider must reach out to the City Solid Waste team proactively to arrange for a solid waste inspector to work with the provider on where best to site green bins and what other changes are needed for those buildings.

Several large EOLO members are providing organic recycling now, and find that they are able to cope with their concerns. See the previous issue and the March/April 2022 issue for more information.

RHPM by-law City By-Law & Regulatory Services staff are pleased with rental housing providers’ demonstrated knowledge of the Rental Housing Property Management By-law, with our level of compliance and with the results of the bylaw. Staff noted only two areas where some rental housing providers could improve their performance.

The first is in maintaining the capital maintenance plan. This requires a listing of the most recent inspection of each major building element and a brief note of the condition of the element. If the element is defective, then a note needs to indicate the date on which repairs are planned.

The second involves some confusion over how quickly repair requests need to be acted on. Under the RHPM By-law, a rental housing provider needs to respond to a tenant report of a defect regarding

a vital service (heat, electricity or water) within 24 hours. However, the Vital Services By-law requires a rental housing provider to act immediately on such a report to begin remedying the problem.

EOLO members are surely doing that already.

City housing programs Paul Lavigne, Director, Housing Services, and Kale Brown, Manager, Homelessness, both with the City of Ottawa, spoke about: • The pressures on housing services • Major program milestones • Housing benefits (including both housing allowances and rent supplements) • Supportive housing • The role of the private rental housing sector The pressures include the: • Inflow of newcomers • Increased rents and decreased availability of affordable housing • Limited availability of hotels, motels, and postsecondary residences • High cost for development of supportive and affordable housing • Increased need for supportive housing Within housing allowances, Kale gave particulars about three established programs and two new pilot programs. The established programs are the Canada Ontario Housing Benefit (COHB), Homes for Good, and Families First. Each program has different rules about direct payment, where clients can move, and whether the financial support for housing comes with social service or mental health supports as well.

The pilot programs are the Large Family Housing Allowance Pilot and the Deeper Housing

rentalhousingbusiness.ca | 53

Allowances program. They both recognize that average rents are higher on turnover units than in the rental market as a whole (as reported by CMHC). Kale also spelled out the differences between housing allowances and rent supplements. See Table 1.

Table 1: Housing allowance vs. rent supplement program

Housing allowance

Rent supplement program

Supports the housing needs of low-income Ottawa residents

Supports the housing needs of low-income Ottawa residents

Monthly benefit payment can be Monthly subsidy payment made directly to the household is made directly to housing or the rental housing provider provider COHB is attached to the household; if a client moves anywhere in Ontario, COHB moves with you

Subsidy is attached to the rental unit; a client must select a community from participating housing providers

Monthly benefit is calculated using the household’s adjusted family net income (AFNI) as reported through the annual Notice of Assessment Line 23600

Monthly rent payable is calculated using 30% of the household’s adjusted family net income (AFNI) or based on rent benefit set by the province for social assistant recipients

Eligibility is reviewed once a year

Eligibility is reviewed once a year and when household income changes

Funding is ongoing until 2028 subject to provincial approvals, unless a client no longer meets the eligibility requirements

Funding is ongoing, unless a client no longer meets the eligibility requirements

You may be eligible to have first and last months’ rent paid

First and last months’ rent are not paid

As compared with the situation ten years ago, the City Housing branch and the province are putting more resources into supportive housing. According to a recent City service announcement, over this term of Council about 40 per cent of the City’s capital investments in housing will go into supportive housing. That is up from 10 to 20 per cent five or ten years ago.

One of the supportive housing investments is the purchase of 1245 Kilborn Place for $21.1 million of City money. That site is to be redeveloped or developed as a supportive housing community hub that will provide housing options for individuals in need. Once online, the facility will help reduce shelter pressure and free up other community spaces that are being used as physical distancing centres. Extensive community consultation will take place to decide on the long-term use of the excess land at the site.

Another $21.2 million in federal and provincial funding will go to Ottawa Salus Corporation to build 54 supportive housing units at 56 Capilano Drive.

At the end of their presentation, the City Housing staff praised the role private rental housing providers play in providing housing to low-income residents and other vulnerable people.

Paul Lavigne Kale Brown

54 | October 2023

EOLO panel

EOLO’s political update

After hearing from the City’s housing staff, attendees heard from a panel of EOLO directors, namely Geoff Younghusband, Christian Szpilfogel, and me (John Dickie) as a participating moderator.

We all agreed with the observations of the City Housing staff: there is a major influx of people into Ottawa, there is a shortage of housing, rents are rising, rental development is costly, and there are real concerns.

The panel was of the view that the current housing situation will likely continue for at least several years because it will take time for housing supply to catch up with demand. Christian said that even if there is a recession, rental demand tends to hold up or increase, since rental demand is somewhat counter-cyclical. In Geoff’s view, the one thing that could result in a fall in rental demand in Ottawa would be a new federal government that slashed public service staffing in Ottawa.

The panel also addressed whether a recession or rising rents would lead to households doubling up, and thus causing more need for more unit refurbishment on turnover. The consensus was that the doubling up was already apparent, and the need for more unit refurbishment on turnover was a small price to pay for the lift in rents now available under vacancy decontrol.

EOLO’s political update addressed the RHPM Bylaw issues noted above, and addressed leading provincial and federal issues. For 25 years, EOLO has strongly supported CFAA and FRPO, and intends to continue doing so.

City Budget 2024 On September 13, Ottawa City Council approved the 2024 budget directions, timeline, and consultation process. The overall property tax increase in the 2024 Budget is to be not more than 2.5 per cent. (Individual tax bills can go up by up to 3.0 per cent because of the effect of appeal decisions on the property tax base. The City’s spending can go up by about 5 per cent because of assessment growth, which funds some additional service provision.)

The draft budget is to be tabled at City Council on Wednesday, November 8. Each Standing Committee will meet in November or early December to consider their portions of the draft budget. Residents, businesses, and community groups will be able to take part as public delegations, and to participate in any Councillorled public budget consultations. Council is to consider and adopt the final budget on Wednesday, December 6.

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PRESIDENT’S MESSAGE After a great summer, the HDAA is now back in full swing for the second half of the year. We will be continuing with our November dinner meeting and slowly setting our sights on our Golf Tournament and Trade Show for next year, which will be coming up very quickly. This year we will also be holding our presidential election as I step down to fully embrace my retirement and provide an opportunity for a fresh voice to guide the association. With things back to normal, we are excited about the future of the HDAA and hope to provide our members with a more engaged association.

-

Arun Pathak, President, HDAA

Short-term rental bylaw Early this year, the City of Hamilton Planning Committee voted to bring in a short-term rental bylaw that will require all short-term rentals to be in the principal residence of the homeowner.

It will allow a homeowner to rent out a laneway residence or secondary dwelling unit and there will be no limitation on how many days a year someone can rent out space. For those wishing to apply for a licence, the cost for an entire dwelling will be $875.81. A licence for a partial dwelling will cost $213.81 and renewals for each will cost less.

The intention of a short-term rental bylaw is to discourage people from buying investment properties for short-term rentals and commodifying the marketplace. Residents have complained about out-of-town absentee investors who scoop up homes to turn them into short-stay hotels and who don’t care about garbage, noise issues, and other property-related issues. There are also hopes that the bylaw would add hundreds of units back onto the long-term rental market at a time when housing is desperately needed.

It is argued that the commercialization and commodification of housing used for short-terms rentals removes long-term housing from the rental market.

Information presented suggested that in November 2022, there were approximately 1,250 listings for short-term rentals in the city. Of the short-term listings identified, about half of them are owned by those trying to supplement their income or mortgage while the other half are

corporations that are argued to commodify the market. The originally proposed bylaw would not have allowed short-term rentals in basement units or other separate units in a resident’s home.

However, after dozens of pleas from residents, the City has decided to allow this. Many residents rely on the additional income from renting out their spaces to supplement their incomes and cover the ever-rising cost of living on a fixed income while having the security of a third party, such as Airbnb, vet prospective short-stay tenants.

This past June, the City decided to hit pause on the bylaw and enforcement of short-term rentals, which was to see its first licences issued in December, due to “a council shift in priorities.”

The bylaw will now be revisited later in the year.

The City advised it is facing a staff resource crunch and needs to “triage” some housing initiatives over others. Those other initiatives are likely the new renovictions and licensing bylaws the City wishes to proceed with.

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Renovictions bylaw, safe apartment buildings bylaw, and changes to the vital services bylaw Hamilton is looking at new rules designed to stop bad-faith renovictions, the first bylaw of its kind in Ontario. Landlords looking to evict tenants to complete renovations would have to first get a licence from the City. To get the licence, a landlord would need to provide proof from a professional engineer that the renovations are so extensive that tenants must leave their units for the work to be done. If the City gives the landlord the green light, the landlord would need to provide the tenants with the opportunity to rent another unit close by and at no more than 15 per cent above their current rate. The decision to move forward with the bylaw is scheduled to be discussed in October, so we hope to have more news soon.

The City has also given final approval for a safe apartment buildings bylaw. Its goal is to encourage landlords to maintain their properties so renovictions aren’t necessary in the long term. Hamilton’s safe apartment buildings bylaw is similar to Toronto’s RentSafe program, which began in 2017. The safe apartment buildings bylaw would require landlords to register their building with the City and have plans in place for pest and waste management, cleaning, repairs, electrical maintenance, and vital service disruption, including power outages and water shutoffs. They’d be subject to regular City inspections and be scored on how well the building is maintained.

Landlords would also need to keep track of all tenant maintenance requests and what actions were taken to address them. If a request involves a security issue or shutdown of vital service such as running water or power, the landlord must respond within 24 hours. It is anticipated this program would not start until September 2025.

Updates to the vital services bylaw have also been made to prevent months-long service utility disruptions. The bylaw now clearly allows the City to quickly hire its own contractors to do extensive repairs to restore vital services, and then peg the expense onto the landlord’s property tax bill.

As can be seen from the above and through other bylaws the City of Hamilton has recently moved to enforce, the City is becoming more unfriendly toward housing providers. As with other levels of government, there seems to be a continuing attack on housing providers, which will ultimately result in a loss of supply, at a time when supply is so desperately needed. It is imperative that each and every housing provider do their part to make their voice heard and their concerns acknowledged. As long as the majority of housing providers sit on the sidelines with regard to political advocacy, the harder the industry will become as a place to operate. The HDAA will continue to do our public relations work and political advocacy but we need the support of members and other housing providers to ensure we have a strong voice that can create change in the industry.

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aspects of the operation and maintenance to one that would see the City handling both.

Several delegates to Hamilton’s Light Rail Transit Subcommittee were unanimous that they would like to see the proposed LRT operated and maintained by City staff, although this model would carry the most financial risk. Nonetheless, staff told councillors that Metrolinx flatly rejected the City being responsible for maintenance of the LRT system, who would have the final say and who would likely contract the maintenance to a company like Siemens.

Hamilton LRT update The LRT, which was cancelled in 2019 due to budget concerns and then revived in 2021 when the provincial and federal governments committed $1.7 billion each toward the project, is proposed to be 14 kilometres long with 17 stops, stretching from McMaster University to Eastgate Shopping Centre. The LRT will be one of the larger projects undertaken by the City of Hamilton and will encompass many changes to infrastructure.

Metrolinx has been feeling out the impacts of industry-wide construction price increases as it continues to plan out the $3.4 billion project and work out a budget. There has been some demolition occurring, mainly at the corner of King and Holton, of a three-storey brick apartment building emptied in 2018. There are also more talks with landowners to purchase land along the LRT corridor, but major construction is not expected before 2024.

The Hamilton Light Rail Subcommittee of Council met recently to consider options for the operation and maintenance agreement that will have to be signed with Metrolinx before the project proceeds.

There are four potential models, ranging from one that would see Metrolinx responsible for all

Some of the delegates pointed to the Ottawa LRT fiasco as justification for the rejection of a PrivatePublic Partnership model to build and operate the Hamilton system. The Ottawa system was forced to shut down completely on several occasions, and an inquiry found that the system was rushed into service without an adequate testing period because of political pressure. Several mentioned the profit motive leading to the cutting of corners on maintenance. A final recommendation will come in December.

Upcoming events November 8, 2023 - Dinner meeting The HDAA will hold our last dinner meeting of the year on November 8. During this dinner meeting, we will also be holding our presidential election.

Current President, Arun Pathak, has been with the HDAA for close to two decades and has been instrumental in shaping the association, as well as being a strong advocate for housing providers.

He is now considering taking full advantage of his retirement and stepping down as president of the association. Make sure to mark your calendars and keep an eye out for our emails for more details on this dinner meeting.

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

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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.)

EXECUTIVE DIRECTOR’S MESSAGE The summer lull offered us a valuable opportunity to reflect on our accomplishments and setbacks of the preceding six months. It also afforded us the time to recalibrate and prepare for an active autumn and winter, focusing on advancing IPOANS’s three pillars: advocacy, education, and membership services.

- Kevin Russell, Executive Director

Advocacy Advocacy remains a significant focus, demanding a substantial portion of our time, especially as government policies adversely affect Nova Scotia’s rental housing industry. We promoted member and non-member participation in provincial riding barbeques, enabling them to share their personal experiences with MLAs and underscore the consequences of these policies on their operations.

Rent cap We have been steadfast in advocating our stance regarding the province’s rent cap, emphasizing its detrimental impact on Nova Scotia’s affordable rental housing supply by exerting financial strain on rental operations. The rent cap has led numerous small rental housing providers, overseeing over 60,000 rental units, to operate with consistent negative cash flow. Consequently, they are deciding to divest their rental portfolios, comprising single-family homes, duplexes, triplexes, townhouses, condominiums, and single-room occupancies, within the next three to five years. A Q1 survey conducted by IPOANS garnered 209 responses, revealing that, in each of the upcoming three years, approximately 1,000 units are slated for sale. These sales will result in new owners occupying the units, displacing current tenants who will contend with a rental market with a vacancy rate of less than 1 per cent.

Nova Scotia continues to demonstrate the characteristics of a rent-controlled market: new tenants subsidizing rent-controlled units, a dramatic decrease in unit turnover with the last two quarters being under 1 per cent, decreased investment, and decrease in maintenance and capital investment. IPOANS has been receiving reports the rent cap has resulted in illegal subletting where current tenants are subletting their unit without the property owner’s permission with the subletting tenant paying double the rent of the leaseholder. Reports have also been received of tenants financing vacations by

subletting their rental at twice the rent they’re being charged. Residential Tenancies displayed indifference when these RTA violations were brought to their attention, forcing rental housing providers to follow an eight- to nine-month process to secure a resolution (maybe).

Residential Tenancies Program Addressing the deficiencies within the Nova Scotia Residential Tenancies Program, a system plagued by inefficiencies and biases, remains a focal point for IPOANS. The current process proves detrimental to rental housing providers and tenants, challenging the government’s notion the system is functioning adequately. When grievances arise from both sides—landlords and tenants alike—it underscores the pressing need for reform.

As IPOANS has reported, waiting times for hearings have increased due to tenants and their legal representatives strategically leveraging the system to extend tenancies without paying rental payments and often causing damage to properties for up to eight to nine months before vacating the unit, knowing there will be no financial consequences. This misuse has led to a surge in appeals to the Small Claims Court, resulting in RTO orders being overturned in favour of rental housing providers.

In meetings, the government made it evident they are not inclined to augment the understaffed Residential Tenancies Officers (RTO) team, currently comprising 10 RTOs grappling with over 5,000 applications annually. This understaffing is contributing to mounting wait times.

In a noteworthy development, a leaked document brought to light an IPOANS recommendation for the establishment of a Compliance and Enforcement division to handle recurrent violators of NSRTA regulations. This recommendation gained traction when a government-contracted consulting firm advocated for a shift toward an Ontario-based compliance and enforcement

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model. While the government has refrained from providing comments, they acknowledged the existence of the report and confirmed its active review.

Halifax Regional Municipality (HRM) bylaws We continued to advocate for nullification of HRM Bylaw R-400, aimed at establishing a mandatory Residential Rental Registry requiring all rental housing providers to register their properties by April 2024 or face fines of up to $10,000. Despite our advocacy, the provincial government, holding the authority to nullify the registry, conveyed their decision not to intervene, solidifying the bylaw’s implementation as a fait accompli. Having no options left, IPOANS engaged once more with senior city staff to reiterate our stance, emphasizing the detrimental effects the registry would have on the industry, especially on small-scale rental housing providers—many of whom are inclined to sell their properties to avoid listing on the registry, seeing it as an intrusion on their right to privacy. This concern arises at a time when HRM’s homelessness crisis has escalated, with tent cities proliferating throughout the city, and yet the government passed a bylaw that will reduce affordable rental housing options.

HRM’s staff, however, agreed to collaborate on an educational initiative, partnering with IPOANS for two webinars scheduled in January 2024.

These sessions will cover all aspects of Bylaw R-400 and Bylaw M-200 Respecting Residential Occupancy Standards, which outlines the minimum requirements for maintaining residential buildings within HRM.

Rental housing affordability The rental housing affordability crisis is coming into sharper focus as new research highlights the government’s reliance on tax revenue generated by the apartment rental industry. This dependency spans from the development phase through postdevelopment property operations, with the government imposing taxes and fees at every stage of the process and into perpetuity, which is driving up rents to record levels, allowing the media and the public to wrongly cast developers and property owners as the primary culprits behind the crisis.

The trend of small rental housing providers selling their properties is expected to accelerate, particularly as mortgages renew at higher rates, rendering financial losses unsustainable. This ongoing divestment of affordable rental units is poised to offset any unit gains resulting from the introduction of new rental supply to the market.

Immigration IPOANS is collaborating with the Department of Municipal Affairs and Housing to facilitate housing arrangements for an anticipated influx of healthcare workers from an international recruitment initiative. The escalation of immigration and the influx of international students are compounding the strain on the rental market. This heightened demand is amplifying the difficulty for newcomers to secure appropriate housing due to the limited availability of rental housing inventory.

Education The IPOANS–Nova Scotia Community College (NSCC) Residential Property Management course is expected to reach full enrollment with 25 students this fall. Successful completion of the course leads to the students earning an NSCC Certificate of Professional Studies in Residential Property Management. Students receive comprehensive training covering various facets of property management, with a strong focus on comprehending the complexities of Nova Scotia’s Residential Tenancies Act. The curriculum encompasses modules on finance, law, maintenance, occupational health & safety, leasing, and marketing.

Membership services The IPOANS weekly newsletter, Multi-Res News, is the primary catalyst for engagement, boasting a subscriber base exceeding 1,200. Its readership has transcended Canadian borders, extending to the U.S., Asia, and Europe.

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Webinars continue to serve an important role in engaging members and bolstering membership.

The webinar calendar is booked until the conclusion of January 2024, with an expected average participation of 100 plus attendees per webinar.

Following a rainout on September 14, the IPOANS Annual Golf Tournament took place at the picturesque Chester Golf Club on October 3.

Thanks in part to the unseasonably warm and sunny weather, the tournament surpassed all expectations, attracting over 170 attendees, with 136 golfers vying for the prestigious IPOANS trophy. This year, the winning team hailed from Kent Building Supplies, a long-time loyal supporter of the association.

The second annual Women In Industry Luncheon is set for Thursday, November 23. We’re honoured to have Faten Alshazly, Co-Founder and Chief Creative Officer of WeUsThem, as the keynote speaker. Faten’s leadership has earned WeUsThem recognition as a Top Innovator by institutions like the Governor General of Canada, the WHO, and the World Bank. She’s also made history as the first female immigrant chair of the Halifax Chamber of Commerce, with numerous accolades to her name, including Canada’s Top 100 Most Powerful Women and Atlantic Canada’s Top 25 Most Powerful Women in Business. We are anticipating another sold-out event.

Looking forward GST rebate The federal government’s announcement regarding the rebate of the federal portion of the GST to boost new rental construction, coupled with the Nova Scotia government’s decision, was received as positive news. Anecdotal evidence suggests a decline in the number of construction cranes throughout HRM, indicating a reduction in new construction. Reports attribute this decrease in construction to increasing mortgage rates, labour costs, and cost of materials. The urgency for addressing the housing crisis in Nova Scotia necessitates a focus on creating new supply.

With the ongoing sale of properties by small rental housing providers, the significance of new construction has been underscored. It is crucial for governments to provide incentives to developers, encouraging the construction of new rental units to offset the reduction in available units caused by these providers exiting the rental market.

Additionally, a program is required to incentivize existing rental housing providers to remain in the industry, which is essential to mitigate the loss of rental inventory.

Fall legislative session Reflecting on past legislative sessions where the government introduced bills safeguarding tenant rights, with unanimous support from opposition parties, IPOANS anticipates a similar dynamic in this session if the government were to introduce tenant rights legislation. We keenly await if the

government will take action regarding IPOANS’ proposed recommendations, specifically the establishment of a Compliance and Enforcement Unit, the recording and release of residential tenancy hearings, public release of RTO orders, and regulations addressing tenants who habitually pay their rent late.

Government and public relations IPOANS’ efforts in government and public relations campaigns have proven effective in countering misinformation campaigns that have cast a negative shadow over the industry. Our proactive approach involves sharing factual information with politicians through informational bulletins and media releases, and refuting anecdotal media reports with evidence-based research. We seize every interview opportunity to articulate our views and clarify misconceptions surrounding our industry.

Our engagement extends to meetings with government ministers, deputy ministers, and their teams, ensuring they are well informed about IPOANS’ stance and the proposed solutions that can benefit stakeholders. Collaboration with various stakeholders and industry associations is a priority, acknowledging how the issue indirectly negatively impacts their industry.

Leveraging social media, we have bolstered our online presence and launched an eight-part podcast series, using the medium to educate audiences about the industry’s nuances and presenting pragmatic solutions to pertinent issues.

These initiatives have broadened IPOANS’ outreach throughout the province and have resulted in an increase in membership, indicating the positive impact of our proactive engagement strategies.

Call to Action Advocacy campaign We are in the midst of our annual Call to Action Advocacy contribution drive, seeking financial backing from members for advocacy endeavours.

The aim of this year’s campaign is to reach a fundraising goal of $100,000, enabling a sustained and impactful advocacy effort against a wellorganized and proficient collective of housing activists. The funds will also go toward external research projects, enabling us to tailor our approach to address the challenges affecting Nova Scotia’s rental market. Recognizing the need to combat misinformation and promote accurate and well-informed discussions on critical issues, we are committed to eliminating information gaps.

Our fund operates with complete transparency, subject to an annual audit conducted by appointed auditors. Every member receives detailed financial information through the annual AGM circular, and members can request a copy at any time, ensuring openness and accessibility of financial records.

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Final Take Away

Brought to you by Yardi Canada Ltd

Connecting your offline and online presence

By Peter Altobelli, Vice President, Yardi Canada Ltd.

With the population of Canada surpassing forty million in June 2023, this significant milestone is set to intensify housing market demand, strengthen the preference for renting, and further elevate renters’ expectations. For instance, social amenities such as coworking offices and event spaces are gaining popularity as Canadians seek more flexible and modern living experiences. By understanding the wants and needs of tenants, property owners can strategically cultivate the next generation of communities and, most importantly, market their competitive edge.

Attracting the next wave of long-term renters Gen Z renters will affect property management in a big way. This group was raised in the digital era and, like Millennials, they expect digital options to engage with the world. Within real estate, the basics include online payment methods and electronic means of communication with property managers. Additionally, mobile app features for easy energy management or concierge services are also in line with what renters want from their property according to a recent study by simplydbs.

Before making an investment decision, it is best practice to use data from industry reports and survey your existing communities. After determining high priority amenities and which technology provider offers a seamless customer experience, it is important to communicate these upgrades on your property and corporate websites. Renters of all ages use Google to research their next rental unit. This further emphasizes the need for websites that are mobilefriendly, have structured data, and embrace local keywords to optimize search engine results.

Converting more leads through your websites Today’s websites have plenty of bells and whistles, but how do you know which are working to convert renters? A recent Yardi study of 3,130 property websites found what features outperform the rest. Here are some you can quickly implement: • Offer agent-guided video tours to allow prospects to experience your apartments from the comfort of their current location. Providing a personalized and convenient experience can significantly influence their leasing decisions.

The study found that live video tours delivered an impressive 36.03% conversion rate.

• Incorporate nudge marketing to encourage site visitors to take the next step confidently by pointing them in the right direction with timed

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messages and offers. From scheduling a tour or applying for a lease, these subtle nudges can lead to tangible results. The study revealed nudge marketing had a 15.64% conversion rate.

• Prospects who are ready to rent have already refined their search and know what they want.

Help them find the right unit for them with virtual floor plans. If the unit they want is not currently available, leverage a website that lets visitors sign up for floor plan availability notifications. The study showed these features delivered conversion rates above 11%.

• Automate and streamline the lead-to-lease cycle to positively impact conversion rates.

Delivering a great leasing experience is easily achievable when you integrate marketing, leasing, and operations into one solution.

Getting positive online property reviews All reviews can impact your business and it is up to you to request reviews. Keep in mind that positive reviews are often brief but stand out if they are the majority. By monitoring online review sites and responding appropriately to all reviews, whether positive or negative, you can earn and maintain a healthy online reputation. People deserve to know you work hard to provide great customer service.

Navigating the rental market confidently The future of property management lies in the digital realm and requires the industry to prioritize modern amenities and experiences to appeal to prospective renters. Before a business can scale, you will need a solid tech strategy. This means investing in an online platform designed to run your business, from marketing and leasing to accounting, operations, and reporting, will give you greater flexibility to grow. To understand your technology options, visit Yardibreeze.ca.

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