CAM March/April 2022

Apartment CANADIAN

VOLUME 19 / NUMBER 2 / APRIL/MAY 2022

BUILDING MORE OF THE RIGHT HOUSING

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EDITOR’S NOTE>>

HEALTH, WELLNESS & AFFORDABLE HOUSING

/cammediaedge /cdnapartmentmag /mediaedgecam

It’s hard to believe that exactly two years ago this month, our first “COVID-19” issue was released. Although the virus continues to wreak havoc around the world due to highly contagious sub-variants, Canada is back in business, and rental housing is in hot demand.

But things have changed—likely forever. Health and wellness have become a priority unlike ever before. As Built Green Canada put it in their latest newsletter, “COVID-19 and climate change are inextricably linked as they both share our need for improved health.”

Given this, the apartment sector’s trajectory will see increased attention on sustainable living; economical, societal, and ecological factors will all be considered to a greater extent because these can impact our welfare and security. As we navigate the road forward, our collective focus will be on implementing ways to improve our buildings and work towards delivering healthier, more resilient homes. This means considerations beyond energy performance.

Materials, methods, indoor air quality, occupant wellness, waste management, water conservation, and business practices will all be important factors as we upgrade, renovate, build and manage the residential buildings of tomorrow.

In this issue, we hope you find a useful mix of resources and industry news to guide you on your sustainability journey. As Riaz Mamdani, chief executive and founder of Strategic Group put it, “The most sustainable building is the one you never demolish.”

Sincerely, Erin Ruddy @cdnapartmentmag

Apartment CANADIAN

Editor

Erin Ruddy

Art Director

Annette Carlucci

Graphic Designer

Thuy Huynh

Production Manager

Rachel Selbie

Contributing Writers Andy Schwartze National Sales

Bryan Chong Melissa Valentini

Digital Media Director

Steven Chester

Circulation

Rob Osiecki For sales information call (416) 512-8186

Canadian Apartment Magazine is published six times a year by:

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President Kevin Brown Group Publisher Sean Foley Copyright 2022 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1712-140X Circulation 416-516-8186 ext. 234 circulation@mediaedge.ca Subscription Rates: Canada: 1 year, $50*, 2 years, $90*, US $75 International $100, Single Copy Sales: Canada: $12* * Plus applicable taxes Requests for permission to reprint any portion of this magazine should be sent to Erin Ruddy.

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rent trends

The opinions expressed are those of the authors of articles and do not necessarily reflect the views of Canadian Apartment Magazine. This information is general and is not a substitute for legal advice.

TOP BARRIERS IMPACTING RETROFITS

Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Apartment Magazine makes every effort to ensure the accuracy of the information published, we cannot be held liable for any errors or omissions, however caused. Printed in Canada.

For today’s apartment owners, the most common barriers limiting deep energy retrofit uptake include: REGULATORY ISSUES

Feeling unable to proceed due to uncertainty about rules and regulations

RISK AVOIDANCE

Putting off the necessary work until more data is available

INVESTMENT CONCERNS

Fearing an unsatisfactory return on investment, particularly on measures tied to greenhouse gas emission reductions

HIGH COSTS Avoiding the high costs of retrofit design solutions due to a lack of off-the-shelf products

source: CMHC

DIVERSIFIED CONSTRUCTION

24 HOUR EMERGENCY SERVICE ASPHALT PAVING CONCRETE PAVING SITE servicing LANDSCAPE CONSTRUCTION BUILDING RESTORATION WINTER SNOW SERVICES service@forestgroup.ca 416.524.3000 www.forestgroup.ca

Apartment CANADIAN

VOLUME 19 / NUMBER 2 / APRIL/MAY 2022

FEATURES 18 PRIORITIZING PEOPLE AND THE ENVIRONMENT Inside Grosvenor’s ambitious new masterplan for “Brentwood”

26 B UDGET 2022 PUTS FOCUS ON HOUSING The scoop on Canada’s plan to improve affordability

COLUMNS 8 Transactions Rental Demand in Canada 10 CMHC Housing for Low-income Households 30 Newsworthy Industry Hot Topics 32 Ask the Expert Preparing for the EWRB deadline

COVER STORY

DEPARTMENTS

Apartment

20 GROWTH IN THE GREATER GOLDEN HORSESHOE Will Doug Ford’s plan lead to more suburban sprawl or the right mix of housing for all?

by Erin Ruddy

4

BUILDING MORE

CANADIAN

Editor’s Note

ON THE COVER:

VOLUME 19 / NUMBER 2 / APRIL/MAY 2022

A new multi-residential building under construction

OF THE RIGHT HOUSING

36 Smart Ideas plus

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RENTAL DEMAND IN CANADA From the city to the suburbs, demand for rental is robust Rental demand has been relatively stable and positive throughout the first few months of 2022, according to Morguard’s Director of Research, Keith Reading. Many renter families have been unable to access the ownership market, given the sky-high housing prices and limited supply. This has buoyed demand for rental accommodation and supported modest downward pressure on vacancy levels. At the same time, market rents remain at or near record-high levels in many markets thanks to the return of immigration and the easing of COVID measures. Suburban demand is also relatively robust, given increased work-from-home programs implemented by many private sector organizations.

Notable Q1-2022 Transactions Address

City

# of Units

Sale Price (Millions)

Sale Price/ Unit

Purchaser

1.

Plaza Towers, 45 Trayborn Dr

Richmond Hill

62

$24.0

$387,097

Q Residential

2.

Quebec Portfolio

Montreal/Laval/ Cote Saint-Luc, St Hyacinthe

516

$281.0

$544,574

CAPREIT

3.

507 Balmoral Dr

Brampton

55

$21.3

$386,364

Pulis Investments

4.

263-265 Dixon Rd

Toronto

352

$141.0

$400,568

Akelius

5.

265 Hymus Blvd

Montreal

135

$53.8

$398,321

Firm Capital

6.

1570 Lawrence Ave W

Toronto

87

433.8 M

$387,931

Pilus Investments

7.

3440 Saint-Elzear Blvd W (80% interest)

Montreal

139

$41.6

$373,770

RioCan REIT

8.

5 Mallory Gardens

Toronto

60

$27.9

$465,000

Akelius

8 | Canadian Apartment | Part of the REMI Network |

TRANSACTIONS >>

Investment market Multi-suite residential rental properties remain a prime target of various investment groups. Consequently, bidding on product put up for sale has been brisk and aggressive.

“Both newer and older vintage assets have been popular with buyers, including properties with the potential for expansion,”

Reading said. “Investors have been attracted by the asset class’s strong growth outlook and solid historical performance track record.”

Prime markets like Toronto and Montreal are popular, although secondary markets like Hamilton and Kitchener have witnessed increased demand. Suburban properties with typically larger units remain a favourite of investors and renters alike.

Dream Invests in energy upgrades at aging Weston Road apartment

“We’re so pleased to work with Dream and TD to bring more affordable housing to Toronto,” said Romy Bowers, President and CEO of CMHC. “The introduction of MLI Select is another important tool that will help transform existing supply into sustainable and affordable housing across the country.”

“Apartment complexes like Residence at Weston require a meaningful approach to ensure they are healthy and resilient homes for generations to come,” added Michael Cooper, President and Chief Responsible Officer at Dream. “Our work serves as an example that retrofits are a critical piece of our housing stock and can preserve much-needed affordable and accessible housing while addressing climate change. The most sustainable building is one that already exists, and it’s incumbent on us all to find new ways of working with what we have and bring them up to a high level of performance.”

On April 6th, Dream announced it had successfully secured a $153-million loan under CMHC’s new MLI Select insurance product to finance affordable units and energy retrofits at the “Residence at Weston” apartment complex in Toronto.

The new MLI Select multi-unit insurance product, released earlier this year, uses a points-based system to incentivize a borrower’s commitments to social and climate-related outcomes. Designed with support from Dream, the product will assist building owners as they set out to transform their aging buildings into resilient, affordable, and accessible homes working with their approved lenders.

According to Dream, it has already begun converting 137 units at the Residence at Weston into affordable units and retrofitting the building to achieve its decarbonization targets. Work includes implementing new boilers, mechanical and plumbing systems; enhancing balcony insulation; and, installing high-performing doors and windows.

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This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved.

| www.REMInetwork.com | April/May 2022 | 9

HOUSING FOR LOW-INCOME HOUSEHOLDS New data underscores continued need for affordable housing

As springtime in Canada approaches, all signs indicate the rental market is bouncing back thanks to improvements in economic conditions, increased migration, and the easing of strict pandemic containment measures. But what’s welcome news for apartment owners is worrisome for lower-income renters.

A

ccording to CMHC’s 2022 Rental Market Report, released in February, affordable housing supply continues to fall short of demand in most Canadian cities. The majority of markets surveyed in 2021 cited a relative lack of affordable units 10 | Canadian Apartment | Part of the REMI Network |

for households in the lowest income quintiles, while some reported significant declines.

“Our data indicates that rent growth has exceeded wage growth in most centres between October 2020 and October 2021,” said Gustavo Durango, Senior Economist at

CMHC. “In real terms, the decline in wages over the course of the year exceeded the decline in rents, which further deteriorated affordability conditions.”

While the national vacancy rate for purposebuilt rental apartments hovered at 3.1 per

CMHC REPORT >>

“Throughout the pandemic, lowerincome households faced significant challenges finding affordable units; even with B.C.’s rent freeze temporarily easing pressure for existing tenants, rents increased in 2021 by roughly 2.1 per cent at unit turnover.

cent—down slightly from 3.2 per cent in 2020 —vacancies declined more sharply in 21 of the 39 census metropolitan areas surveyed. Vancouver, and most cities in Alberta, Saskatchewan, and the Atlantic region, all experienced low vacancies akin to 2019 levels.

Toronto, Winnipeg, and AbbotsfordMission were the only markets in Canada that saw a rise in vacancy rates, while 13 city centres held steady—including, notably, Montréal which accounts for roughly 30 per cent of Canada’s rental market universe.

“The vacancy rate in the Montréal remained stable at 3 per cent in 2021,” commented Francis Cortellino, Economist. “The gradual resumption of international migration and the return to in-person classes decreased the vacancy rate in the downtown area, but it remained at a higher level than before the pandemic.” | www.REMInetwork.com | April/May 2022 | 11

CMHC REPORT >>

In Vancouver, however, the apartment vacancy rate dropped from 2.6 per cent in 2020 to 1.2 per cent in 2021.

The return of students and increased migration led to tightening conditions that have since intensified the existing imbalances in the rental market.

Throughout the pandemic, lowerincome households faced significant challenges finding affordable units; even with B.C.’s rent freeze temporarily easing pressure for existing tenants, rents increased in 2021 by roughly 2.1 per cent at unit turnover.

“With the return of economic growth, rental demand increased faster than supply in 2021,” commented Eric Bond, Senior Specialist, CMHC. “The Vancouver rental market again faces many of the same imbalances it did in 2019.”

The good news for Vancouverites is that more rental housing seems to be coming.

CMHC’s data indicates rental starts during the first three quarters of 2021 increased 31 per cent year-over-year, signalling that new construction will soon be bringing muchneeded supply to the west coast market.

But will there be enough affordable units to address the growing need?

Unlikely, given new rental buildings tend to garner higher rents. That said, CMHC research shows some relief is typically seen at the regional level when demand is eased for existing housing.

GTA market: slower to recover In Toronto, it continues to be a slightly different story. Throughout 2021, the lingering effects of the pandemic impacted the purpose-built rental sector negatively, leading to a second consecutive annual increase in the average vacancy rate.

Ontario faced more stringent COVIDvirus containment measures compared to other provinces, and restrictions were often implemented for longer periods of time given case counts were higher in the dense Toronto neighbourhoods. As 2021 unfolded, those measures continued to disproportionately impact service-sector industries that were more reliant on inperson interactions, delaying the economic recovery for segments of the population that were more likely to rent. Although

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CMHC REPORT >> the vacancy rate for purpose-built rental apartments in Toronto rose to 4.4 per cent, the number of affordable units geared to lower-income renters declined.

“The stock of row and apartment units affordable at 30 per cent of monthly income, to low- and middle-income renter households decreased from the previous year, down 0.6 per cent and 0.4 per cent for the second- and third-income quintiles, respectively,” the report states. “Our data indicates that removals in 2021 due to demolition, condominium conversion, or for the owners’ own use, were concentrated mainly in the City of Toronto.”

Meanwhile, the average monthly rent for condominium apartments in Toronto was 45 per cent higher than the average rent for purpose-built rental units, and vacancies were significantly lower at 1.6 per cent.

CMHC accredits this discrepancy to the fact that higher income earners were less impacted by the pandemic, and therefore more able to afford the higher rents.

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Other key markets: In Ottawa, rental demand in 2021 increased sufficiently to offset the addition of a considerable number of units that were added to the rental stock. The vacancy rate remained stable at 3.4 per cent, the highest its been in the last 25 years. Yet, according to the data, options were still limited for lower-income households.

In Edmonton, the average vacancy rate was 7.3 per cent, statistically unchanged from October 2020. Rental demand kept pace with supply increases, and was backed by improved labour market conditions, the return of students and improvement in international migration.

Though less of a challenge than in other Canadian centres, the supply of affordable purpose-built rental options remained on the low side compared to the need.

In Halifax, the vacancy rate declined to just 1 per cent in 2021, with rental supply unable to keep up with the higher demand. Canadians fleeing COVID-19 restrictions, crowded the city resulting in record interprovincial migration trends. Lower vacancy rates and higher rents likely challenged lower-income households, young adults, fixed-income seniors and new immigrants searching for affordable rental apartments.

For the complete report, visit www.cmhcschl.gc.ca

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FREE BUILDING ENERGY WITH AI There’s free energy to be harnessed from every building. The trick is taking advantage of thermodynamics through artificial intelligence (AI).

It may sound like science fiction at first, but the idea has been around for decades. Since the 1970s, academic researchers have been fine-tuning the process of using a building’s natural thermal mass to influence internal temperatures. And today, one company out of Halifax is bringing the benefits of that research to help building operators achieve more efficient, eco-friendly, and cost-effective HVAC operations in the form of an AI solution.

That company is EcoPilot Canada | USA, a proud “carbon crusader” that uses AI-driven software of the same name to optimize HVAC systems in real-time to deliver the greatest energy efficiency possible.

“Think of it as a brain that can be added to any building automation system to unlock this free energy that’s always been there,” says Jennie King, Commercial Director with the Halifax-based company.

HERE’S HOW IT WORKS Ecopilot®’s program constantly monitors a building’s static (e.g., thermal mass) and fluid elements, the latter

of which include internal heat sources (e.g., people, computers, and lighting) or external weather (e.g., temperatures, wind speed, humidity, solar incident radiation, etc.). Every two minutes, the AI then analyzes these factors along with predictive data (e.g., weather forecasts) to calculate the variable balance point temperature of a building.

Pinpointing that specific balance point temperature is step one. Next, Ecopilot® shares that number with the building’s existing BMS system, where it is used to align prescribed HVAC set points so that they react with the real-time balance point temperature. Doing so reduces HVAC fluctuations and eliminates unnecessary system overlaps, such as heating and cooling an environment in the same day or at the same time.

“Essentially, Ecopilot® uses all this real-time data to continuously re-commission the HVAC system every two minutes,” explains King. “The result is that these systems start running far more efficiently, use less energy, and reduce their carbon emissions – all while keeping people a lot more comfortable.”

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Implementing AI into MINTO’s BAS seemed like a leap at first, she adds, but the outcomes have alleviated any doubt: “As we move towards low-carbon technology and attempting to minimize greenhouse gas emissions, it becomes more important to operate the equipment as efficiently as possible. Smart building technologies bridge the gap between design and actual operating efficiency.”

Success stories like MINTO’s are adding up. Over its 13plus years, Ecopilot® has seen its system installed in over 1,200 buildings worldwide, improving building efficiencies by up to 40% annually with a three-year ROI.

PROVEN IN THE FIELD Ecopilot® has spent over a decade bringing its AI tech to property stakeholders across Canada and the world. And while King admits there can be some upfront hesitation to bringing AI into building operations, those that make the upgrade are quick to reap the rewards.

In June 2018, for example, Crombie REIT’s Cogswell Tower, a 50-year-old concrete office building in Halifax implemented Ecopilot® to help save energy across its 14-storey, 200,000 sq. ft. asset. Doing so reduced energy costs by 26.5%, generating a return on their investment under two years. Moreover, Pat Poirier, Manager of Engineering and Sustainability, reported they had reduced energy consumption by over one million kWh, exceeding their expectations for their entire campus of buildings.

More recently, MINTO PROPERTIES implemented the tech at a multi-unit residential property at 150 Roehampton Ave in Toronto. Speaking to early reservations, Joanna Jackson, Director of Sustainability & Innovation at MINTO PROPERTIES, recalls: “We were concerned about not achieving the expected energy savings. However, Ecopilot®’s minimum savings guarantee ensures that the project will be successful from a financial perspective.”

Fast forward to now, and Jackson reports that the Ecopilot® system has succeeded in optimizing the building’s operations and reducing its electricity and natural gas consumption, noting, “The system also identifies if the equipment is not operating properly. That allows us to react faster to maintenance issues and improve residence satisfaction by minimizing system down-times.”

UNLOCKING THE ENERGY WITHIN AI and smart machines are recoding virtually every facet of property management. Ecopilot® is among the innovations merging established building science with cutting-edge tech to create future-ready assets.

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PRIORITIZING PEOPLE AND THE ENVIRONMENT Inside Grosvenor’s ambitious new masterplan for “Brentwood” This March, international property developer Grosvenor unveiled plans for what will eventually become its largest mixed-use development in North America. Located in the town centre of Burnaby’s thriving Brentwood neighbourhood, the future pedestrian-only development will include the tallest rental tower in Western Canada, a new community centre, and 200,000 square feet of commercial space.

“W

e are really excited about what this will mean for residents and the general public for meeting the housing and sustainability challenges facing our fast-growing region,” said Marc Josephson, senior vice president, development with Grosvenor. “These sorts of projects are usually exclusively for residents, 18 | Canadian Apartment | Part of the REMI Network |

but we’ve maintained from the beginning that it has to be for the entire community.”

If all goes as planned, the 60-storey rental tower will include 2,000 market and 450 below-market rental units, meeting the goals of the City of Burnaby’s non-market housing policy with rents set at 20 per cent below CMHC median rental rates. The tower

will be ideally situated one block from the Brentwood SkyTrain station, making it a model for large-scale, pedestrian-focused, transit-oriented communities.

“This is a truly unprecedented development with more than half of the site dedicated to open space including landscaped plazas and courtyards,” added Ryan Bragg, principal,

FEATURE >>

“Typically, in this type of development there would be streets and space to support vehicles, but here there will be no cars, just trails and green space. It’s a complete paradigm shift for the region.”

Perkins & Will. “Typically, in this type of development there would be streets and space to support vehicles, but here there will be no cars, just trails and green space. It’s a complete paradigm shift for the region.”

With a plan that exceeds the City of Burnaby’s sustainability requirements for carbon and energy, Brentwood will also adhere to Grosvenor’s commitment of achieving net-zero carbon emissions across all its buildings by 2030. Significantly, it will be one of the first projects of this scale to be entirely pedestrian, with all cars forced to access the underground from the site’s

periphery. The development will offer an abundance of green space for both residents and the general public, including landscaped trails for pedestrians and meandering bike paths for cyclists.

“As an active owner and developer in the U.S. and Canada for over 70 years, our focus has been on vibrant, urban locations,” Josephson said. “In 2019, we were one of the first North American signatories to the World Green Building Council’s Net Zero Carbon Buildings Commitment and have been publicly reporting our annual consumption and reduction values for 10-plus years.”

Among other priorities, Grosvenor’s ESG business principles include achieving a 50 per cent emissions reduction from all its business operations by 2030 and supporting the creation and retention of both market and non-market rental housing. Grosvenor’s portfolio-wide sustainability commitments are to: • Actively manage utility consumption and conducting re-certifications, including

EnergyStar, LEED O+M, and Fitwell; • Execute green leases with new and rolling tenants to share utility data from tenant spaces; • Prepare asset-level retrofit plans based on ROI duration and establishing annual Net Zero Retrofit Fund; • Incorporate net zero requirements and resiliency-planning into acquisition and disposition decision-making; • Follow standards to define how development teams and consultants can address design and construction decisions with net zero considerations in mind.

“The scale and size of this development will enable us to bring our expertise in urban place-making to the Brentwood community and deliver on our objective to have a meaningful and positive social impact,” he said. “We’re excited to move forward on this project and deliver much-needed rental housing to one of the region’s fastest growing neighbourhoods.”

About the Brentwood development In the coming months, Grosvenor will begin transforming the 7.9 acre, fullblock site in Burnaby’s booming Brentwood Town Centre. The masterplan for the Brentwood project includes six towers and approximately 3,500 homes, including 2,450 rentals and below-market rentals, and 200,000 square feet of commercial space. When complete, this will be Grosvenor’s largest mixed-use development in North America.

| www.REMInetwork.com | April/May 2022 | 19

COVER STORY >>

GROWTH IN TH GOLDEN HORS Will Doug Ford’s plan lead to more suburban sprawl or the right mix of housing for all?

By Erin Ruddy Ontario’s Greater Golden Horseshoe (GGH) is expected to grow substantially by 2051 at a projected rate of one million people every five years. In late March, the provincial government rolled out a transportation plan addressing gridlock issues and infrastructure, an investment that should trigger a boon in housing development particularly in neighbourhoods connected by transit.

But will this intensification include enough affordable housing, and will municipalities say yes to vertical growth?

THE GREATER SESHOE

| www.REMInetwork.com | April/May 2022 | 21

COVER STORY >>

With transit and transportation pushing the vision forward, housing development is sure to follow—because mobility and connectivity are the foundation of any thriving community. In 2019, Ontario’s “A Place To Grow” document painted a picture of vibrant GHG urban centres characterized by “compact development patterns” and buildings that would support climate change mitigation. Future housing supply would be dependant on each market’s geography— built-up, greenfield and rural areas—with zoning determined by the municipality.

Since then, Ontario’s “Vision for Mobility” was released, and some are seeing red where they should be seeing green. Not everyone is in favour of a plan that would take away fertile farmlands, transplant more single-family homes, and cut a massive highway through the Paris Galt Moraine, a 130-kilometre geological feature formed by glaciers some 12,000 years ago. Furthermore, many believe it doesn’t go far enough to address the province’s housing woes. Throughout March, “No Sprawl” groups took to social media to fight Ford’s vision and criticize his lack of regard for both the environment and affordable housing.

“Stop sprawl, create housing that people need – rental housing, supportive housing, well-designed accessible housing in or near our existing cities/transit,” tweeted Friends

of the Greater Golden Horseshoe, a group advocating for good land-use planning, affordable housing, sustainable transportation, and productive farmlands. “Suburban sprawl is bad for the economy. If people can’t afford to live in cities where the economy is most productive, our collective gains are muted.”

Steve Lafleur, Senior Policy Analyst at the Fraser Institute, points to the stress that the rapidly growing population is putting on housing prices. “Not just in Toronto, but throughout the GGH region,” he said. “We can accommodate that demand by building upwards, outwards, or both.

Given that the province is committed to restricting sprawl development in the Greenbelt, that leaves us with primarily building upwards. However, municipal governments don’t appear to be all that open to intensifying existing areas.”

Lafleur referenced a recent report by the Ontario’s Housing Task Force that proposed allowing landowners the right to build up to four units on their residential lot as-of-right to bypass local political opposition. “That would be a major step towards freeing up the housing market to respond to demand,” Lafleur said. “The Minister of Municipal Affairs and Housing announced he will consult with municipalities about building more ‘missing middle’ housing. This

“The GGH is a dynamic and diverse area, and one of the fastest growing regions in North America. By 2051, this area is forecast to grow to, at a minimum, 14.8 million people and 7.0 million jobs.

The magnitude and pace of this growth necessitates a plan for building healthy and balanced communities” - Ontario.ca/growthplanning 22 | Canadian Apartment | Part of the REMI Network |

COVER STORY >>

is a positive sign, but there’s nothing that difficult about building more duplexes and triplexes.”

Other jurisdictions have already introduced similar zoning changes, including Edmonton and Minneapolis, so making the move wouldn’t be unprecedented. “We’re in a housing crisis, therefore some urgency is warranted,” he said. “While steps to speed the approval process are justified, giving people more freedom to build on their own land is a critical part of the solution.”

Inside Ford’s GGH transportation plan Entitled, “Connecting the GGH: A Transportation Plan for the Greater Golden Horseshoe”, the province’s vision for improving mobility throughout Canada’s busiest economic hub includes moving forward with the controversial Highway 413 and the Bradford Bypass and building the largest subway system in Canadian history. Ontario’s Transportation Minister, Caroline Mulroney, prefaces the document with: “A well-functioning transportation system is critical to Ontario’s economic prosperity and the quality of life for the nearly 15 million people who will call the GGH home by 2051.”

It’s hard to argue against improved transportation infrastructure. But the question remains, will the right mix of housing come of it? Recent data shows that many hot markets outside the Greater Toronto Area had been suffering from housing shortages before COVID-19 came along. While the pandemic diminished rental demand in the short term, that demand is back, and suburban markets are hotter than ever thanks to the rise of

home offices and the continued exodus from downtown in seeking of more affordable, spacious dwellings. Although recent Urbanation data reveals there’s a surge of housing development underway, including purpose-built rental construction, it won’t be enough to offset the need.

In the meantime, Premier Ford is focusing on transportation and the prosperity it will bring to the fast-growing Greater Golden Horseshoe region: “Our government is saying ‘yes’ to building the roads, highways and public transit needed to unlock our full economic potential and keep our province moving forward,” he professed in March. “As we attract more skilled workers to Ontario, we need to build more roads and highways to keep up with population growth.

Highway 413 and the Bradford Bypass are a critical part of our plan to build Ontario as we connect communities, reduce gridlock, and get goods to market sooner.”

Wayne Emmerson, Chairman and CEO, The Regional Municipality of York, concurred: “Investments in transportation help support our growing communities and provide residents and travellers with an enhanced transportation network whether walking, cycling, taking transit or driving.

Projects like the Bradford Bypass will make life easier for people by alleviating gridlock that already exists on our roads and highways.” | www.REMInetwork.com | April/May 2022 | 23

FEATURE >>

SKYLINE LIVING OPENS “TWAMLEY MANOR” Listowel, Ontario welcomes its newest residents As more Torontonians make the move to smaller housing markets outside the GTA, Skyline Living intends to be there to welcome them. One such community is Listowel, Ontario, located in the municipality of North Perth. Since opening doors to its first residents in December of 2021, the new Twamley Manor development is proving to be an attractive option.

“W

e aren’t surprised by the farreaching interest in these brandnew rental apartments,” said BJ Santavy, Vice President, Skyline Living. “The location is perfectly situated just far enough away from urban sprawl to capture all the friendly connections and social potential of coveted smaller towns in Ontario, while still offering all the modern-day necessities like groceries, restaurants, parks, and services just minutes from the front door.”

Built by Hyde Construction, the 118-unit rental complex features two four-storey residential buildings, and a separate amenity space called “the Club House”. Here residents can make use of an on-site gym, billiards room, private dining room, fireside social lounge, wet bar, full kitchen, and outdoor patio and BBQ area.

“Listowel is the ideal place for this new Skyline Living community with its many annual festivals, vibrant downtown, and welcoming people,” said Santavy. “Many of our early tenants mentioned that they are following their children out of the larger cities to a town that boasts more opportunities for growing families. They like that they can age in place in a new property that is geared to a mature rental lifestyle with tubs with tile and grab bars, tenant activities, and amenity spaces built for their needs.”

According to Santavy, Twamley Manor is now home to a significant number of tenants who recently downsized and relocated from the GTA and beyond. Sharon D’Arcey, General Manager of the North Perth Chamber of Commerce concurs, adding that over the past few years, she has seen 24 | Canadian Apartment | Part of the REMI Network |

Living “green” and “clean”

Twamley Manor was built by Hyde Construction, which also created Skyline’s Oxford Haus property. Along with other energy-efficient features, each unit is equipped with WYSE submetering allowing tenants to control their own indoor air temperature and energy consumption. Electric vehicle chargers are available in the parking lot, and wide-open green space abounds.

the town of Listowel grow in all directions.

“Having Skyline Living choose our area for this apartment complex is just what we needed,” she said. “People tell us we are centrally located on the map– just 45 minutes from anything and everything. Out of the city, but close enough to everything else. A small town with enough of the amenities that people are looking for.”

Located at 1000 Twamley Street West, the second Twamley Manor building is

well underway and projected to open this summer. Future tenants are enjoying the new-home experience of selecting their finishes, view, appliance package, and floor plan—options that are seldom offered to renters. Additionally, the development includes several key environmental features such as on-site EV chargers in the parking lot and suites with individual climate control and submetering for conscious energy consumption.

For more information on this new rental development, visit www.twamleymanor.com

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Budget 2022 Puts Focus on Housing Inside Canada’s plan to improve affordability The new federal budget, released April 7th, promises to make housing affordability a priority in 2022 and beyond.

Plans to bolster housing development and increase affordability include launching a new Housing Accelerator Fund, expanding the Rapid Housing Initiative (RHI), and amping up energy-efficient rental construction via the Rental Construction Financing Initiative (RCFI).

“B

udget 2022 is about growing our economy, creating good jobs, and building a Canada where nobody gets left behind,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance. “Our plan is responsible and considered, and it is going to mean more homes and good-paying jobs for Canadians; cleaner air and cleaner 26 | Canadian Apartment | Part of the REMI Network |

water for our children; and a stronger and more resilient economy for years to come.”

Key steps include: Launching a new Housing Accelerator Fund To incentivize cities and towns across Canada to modernize housing and create up to

100,000 new housing units over the next five years, $4 billion will go towards a new Housing Accelerator Fund. The fund delivered through CMHC will be flexible with a single application system and will offer key supports and incentives to ensure a balanced supply of housing is built to meet the needs of all income levels. The new program will also consider

FEATURE >>

“Over the last five years, the National Housing Co-Investment Fund has supported the construction and repair of 108,000 housing units for vulnerable Canadians” With shelters and supportive housing being in high demand, Budget 2022 proposes to advance $2.9 billion in funding under the National Housing Co-Investment Fund to be used by 2025-26. The government promises that improvements will make the fund “more flexible and easier to access” with more generous contributions and faster approvals.

smaller and rural communities that are growing quickly, like those in Atlantic Canada and Northern Ontario.

Rapidly building new affordable housing With affordable housing still urgently needed in most major markets, the government intends to extend the Rapid Housing Initiative for a third round with $1.5 billion over the next two years in allocated funds. Though this initiative, 6,000 new affordable housing units will be created, with 25 per cent of the funds going toward women-focused housing projects.

Speeding up housing construction and repairs Over the last five years, the National Housing Co-Investment Fund has supported the construction and repair of 108,000 housing units for vulnerable Canadians (i.e. those at risk of homelessness or living with disabilities).

Building more affordable and energy efficient rental units The Rental Construction Financing Initiative (RCFI) incentivizes the construction of new rental housing by offering low-interest loans and mortgage insurance to those building more rental housing in areas where it is needed most. Budget 2022 proposes to reform the initiative by strengthening its affordability and energy efficiency requirements. Developers who significantly exceed the requirements and build highly affordable and energy efficient units will be eligible to have a portion of their repayable loans converted to nonrepayable loans.

Additionally, the new RCFI will target a goal of having at least 40 per cent of the units it supports provide rent equal to or lower than 80 per cent of the average market rent in their local community. These new requirements are intended to ensure that the rental units built through this program are more affordable, more efficient, and more aligned with Canada’s climate goals.

Providing more direct support for those in housing need The Canada Housing Benefit was codeveloped in 2020 with provinces and territories providing joint funding of $4 billion over eight years. This benefit gives direct

financial support to Canadians who are experiencing urgent housing need. Budget 2022 proposes to provide $475 million toward a one-time $500 payment to individuals facing housing affordability challenges. The specifics and delivery method will be announced at a later date.

Supporting co-ooperative housing development For generations, co-ops have offered quality, affordable housing using a communityoriented model of shared living spaces. While co-ops are home to approximately a quarter of a million Canadians, the government contends that not enough of these dwellings have been built in recent years. Budget 2022 proposes to reallocate $500 million of funding from the National Housing Co-Investment Fund to launch a new Co-operative Housing Development Program aimed at expanding co-op housing in Canada. It also proposes an additional $1 billion in loans to be reallocated from the Rental Construction Financing Initiative to support co-op housing projects and the construction of an estimated 6,000 new units.

Launching a multigenerational home renovation tax credit To support Canadian families living in multigenerational homes, Budget 2022 proposes to introduce a Multigenerational Home Renovation Tax Credit, which would provide up to $7,500 in support for the construction of a secondary suite for a senior or an adult with a disability. Starting in 2023, this refundable credit would allow families to claim 15 per cent of up to $50,000 in eligible renovation and construction costs associated with these projects.

For a complete summary of Budget 2022’s housing-related policies and initiatives, visit: www.Canada.ca | www.REMInetwork.com | April/May 2022 | 27

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Keeping the Water at Bay Protecting buildings against springtime water damage

With winter making its slow retreat, now is an ideal time to ensure buildings aren’t susceptible to a springtime of water issues.

“Ontario has seen a significant amount of snow over the winter; and with temperatures fluctuating, much of this snow has now thawed and frozen, resulting in ice build up on the roofs and around the base of our buildings,” says Craig Smith, Director of Commercial Business Development with First Onsite Property Restoration.

True, the odd crack or clogged catch basin won’t seem like much at first glance. However, property operators who leave these building deficiencies off the radar for too long risk opening the doors to significant financial and safety risks down the road.

In short, Smith adds, it pays to get ahead of issues before they turn into disasters.

Plugging the source of water disasters Where water damage appears in a building, costly repairs and safety risks are soon to follow.

And after decades of responding to floods, extreme weather events, and water-related emergencies across the country, Smith and the team with First Onsite have seen how small leaks and breaches turn into oceans of trouble for building owners and residents.

Granted, not all water damage is created equal. According to First Onsite, the three main hazard categories for water include: • Clean water (Category 1): clear water that may come from overflowing sinks, broken water or steam lines, and rainwater which needs to be addressed 24-48 hours after detection to mitigate risks of contamination.

• Grey water (Cat 2): water that comes from more contaminated

water sources and therefore poses slight to severe health risks.

• Black water (Cat 3), highly contaminated (and highly dangerous) water from exterior sources such as sewers, rivers, and other potentially hazardous sources.

No matter the colour, it’s important to catch and mitigate water damage before the situation evolves. According to Smith, a good starting point is to have an inspector conduct a top-to-bottom assessment, explaining: “You want to start at the roof and inspect all the flashing and shingles for openings where water may get in, as well ensure waterproofing is intact. While up there, it’s important to remove large snowdrifts and any snow or ice build-up as this will reduce any stress on the roof structure.”

Most apartment/condominium buildings won’t have a sloped

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roof, he adds, but those that do pose additional risks of falling snow and ice. As such, it’s important that building occupants and visitors are alerted to these risks when walking below.

It’s also important to inspect for water damage at the base of the building. While there, inspectors should ensure that water is being directed to catch basins and that those basins are free from obstructions.

“This is crucial in preventing costly water damage,” says Smith.

“Also, you’ll want to keep an eye out for ice buildup where the foundation or base of the building meets ground level, as ice buildup here can lead to water entering and expanding in even the smallest cracks in the foundation, leading to potential water damage in the interior of the building.”

Building on this, it’s also important to inspect the building’s foundation for any holes or cracks, and to repair these wherever possible as ice and snow begin to melt.

Leave it to the pros Property operators have a lot on their plates at all seasons, meaning water damage prevention and mitigation isn’t always high on their list of things to do. As such, there is an advantage to working with a third-party water damage specialist who knows what to look for and who can step up in the event of a water emergency.

For its part, says Smith, First Onsite believes strongly in helping clients not only spot trouble before it occurs (e.g., mould development, leaks, etc.) and ensure issues are spotted and mitigated quickly and effectively.

“As with any potential water or weather damage issues, First Onsite is here to help, as a trusted partner in not only responding to costly repairs, but in helping our clients with preparation and prevention,” he adds.

FIRST ONSITE is a leader in water damage prevention, disaster remediation, property restoration, and reconstruction services, helping North America restore, rebuild, and rise after catastrophic events of every kind. Learn more at www.firstonsite.ca.

NEWSWORTHY >>

Industry Hot Topics Infrastructure leaders commit to decarbonization retrofits

T

he Canada Infrastructure Bank (CIB) and Johnson Controls (JCI) have signed an agreement that commits more than $125 million to accelerate private sector decarbonization retrofit projects across Canada. CIB will invest up to $100 million toward commercial, industrial, manufacturing, and multi-residential buildings leveraged through Johnson Controls OpenBlue Net Zero Buildings.

The sustainable retrofit projects will simultaneously make facilities smarter, safer, and healthier for occupants, all while preserving capital for investment in core strategic priorities. This offering also provides an important tool to mitigate the increased price of many carbon-based fuels.

Over the next five years, the CIB’s and Johnson Controls’ collaboration is

expected to reduce greenhouse gas emissions by more than 48,000 tonnes per year, resulting in significant decarbonization of retrofitted buildings. In addition, the projects, that Johnson Controls will identify and manage, are expected to create more than 900 jobs in the trade sector.

“We are delighted to partner with Johnson Controls, one of Canada’s largest energy service companies to enable large-scale retrofit projects that will be carried out with no upfront investment from building owners,” said Ehren Cory, CEO, Canada Infrastructure Bank. “This is another CIB investment that fits perfectly with our $2 billion green infrastructure priority sector and will have a long-term material impact on Canadian infrastructure.”

The financing represents 80 per cent of the overall capital cost of projects. An equity investment representing no less than 20 per cent of the capital cost will be provided by Johnson Controls and its affiliate, Johnson Controls Capital Canada Inc.

COVID’s impact on renter behaviours

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new study by Entrata looks at shifting renter behaviours and patterns over the past year, shedding light on the pandemic’s impact on the Canadian rental market. Among the findings, Entrata, a maker of multifamily operating systems, revealed that 29 per cent of its 1,000 respondents moved within the last year, while 51 per cent said they planned to move once their current lease was up. Two-thirds of respondents said that renting “fit with their current lifestyle” versus owning a home.

“The last two years have been life-changing for people, industries and businesses across the globe,” said Chris Harrington, Entrata’s chief revenue officer. “Our survey of Canadian renters shows that many have moved to larger spaces to accommodate work from home needs, moved back to hometowns and some even moved to the city to take advantage of lower rental rates.

We’re seeing a shift in the industry as renters look for more flexible leasing options and think differently about apartment amenities.”

Notably, two-thirds of respondents stated they are currently satisfied with their renting lifestyle and have no plan to pursue homeownership.

Almost half said they will likely stop renting within the next three years in order to buy a home. A whopping 43 per cent said “the need for more 30 | Canadian Apartment | Part of the REMI Network |

space”, possibly to accommodate ongoing work-from-home needs, is what would drive them to seek new accommodations. The main reason cited for renting vs. owning was cost-related — i.e. the inability to afford a down payment and to maintain a home.

With more time at home since COVID-19, many Canadian renters are now placing a higher priority on apartment building amenities.

Nearly 38 per cent said that on-site amenities are “why they love renting.” The most important on-site amenity for today’s renter is high-speed internet with controlled secure building access, followed closely by in-unit laundry facilities.

Nearly all respondents said they care more about on-site amenities now versus before the pandemic, and 13 per cent said building amenities could “make or break” a rental property.

Finally, one-third said they would switch to month-to-month payments, including half of millennial respondents and 39 per cent of Gen Z respondents. All tolled, nearly a quarter said their interest in month-to-month rent payments has increased; with nearly half saying “it’s nice to have more financial flexibility” and 37 per cent saying they “like not having to worry about picking a place they’ll be forced to live in for a year.”

NEWSWORTHY >>

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Ontario’s “More Homes For Everyone” Act

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nnounced in late March, Ontario government’s proposed new bill, “The More Homes for Everyone” Act, aims to increase the province’s housing supply by cracking down on speculators who are driving up the cost of housing, protecting homebuyers from predatory development practices, and creating more housing options for homeowners and renters by accelerating development timelines.

Built on recommendations from the Housing Affordability Task Force and the first-ever Provincial-Municipal Housing Summit, the plan aims to deliver both near-term solutions and long-term commitments to provide more attainable housing options for Ontario families.

“Ontario is the best place to live, start a business and raise a family, but we can only build on our success if all hardworking Ontarians and their families are able to find the home they need and want,” said Premier Doug Ford. “As Ontario’s population and our economy continue to grow, building more homes is another way that we’re keeping costs down for families across the province.”

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• Proposed solutions include: • Increasing the non-resident speculation tax rate to 20 per cent, expanding the tax beyond the Greater Golden Horseshoe to apply province-wide- and closing loopholes to fight tax avoidance, effective March 30, 2022. The tax applies to homes purchased anywhere in Ontario by foreign nationals, foreign corporations or taxable trustees.

• Working with municipalities to identify and enhance measures that will crack down on land speculation and protect home buyers. This is in response to feedback the province solicited from municipalities regarding projects that are approved by the municipality, but unbuilt by the developer.

• Strengthening consumer protections for purchasers of new homes by doubling fines and extending building license suspensions to address unethical conduct by developers,

while ensuring penalties for cancelled projects are aligned with the impact on homebuyers. The government is also proposing to enable Tarion to extend warranties on unfinished items in a new home.

Supporting municipalities with resources, tools and standards to provide timely review and adjudication processes by both extending legislated timelines for decisions while focusing the decisionmaking process.

Creating a new tool specifically designed to accelerate planning processes for municipalities. The Community Infrastructure and Housing Accelerator would help municipalities expedite approvals for housing and community infrastructure, like hospitals and community centres, with clear requirements for both consultation and public notice. The tool could not be used in the Greenbelt, maintaining the government’s commitment to protecting this valued area.

Investing more than $19 million to help the Ontario Land Tribunal (OLT) and the Landlord and Tenant Board to reduce their backlogs. This funding will enable the tribunals to appoint new adjudicators, have resources on hand for mediation, and resolve land use planning and tenant and landlord disputes more quickly. This will also allow the OLT to expand their digital offerings to further enhance efficiency and provide more e-services.

Conducting consultation on the concept of a multi-generational community, which will begin the process of implementing “missing middle” housing policies that will work to implement gentle density and multi-generational homes on the ground across different types of municipalities.

Making it easier to build more community housing by making better use of provincially-owned lands for non-profit housing providers. To preserve the existing stock of community housing and modernize the system for those who depend on it, the government has established a new regulatory framework under the Community Housing Renewal Strategy that encourages housing providers to stay in the system and help vulnerable Ontarians get back on their feet. | www.REMInetwork.com | April/May 2022 | 31

FEATURE >>

Air-source heat pumps added to tax break list

Boardwalk REIT acquires two apartment properties

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ir-source heat pumps have been added to the list of clean energy equipment that qualifies for special tax treatment through Canada’s accelerated capital cost allowance (CCA) program. Businesses that acquire qualifying systems for indoor space heating/cooling or water heating between federal budget day on April 7, 2022 and December 31, 2023 will be eligible to deduct the full value in the first year of ownership.

Other clean energy equipment — which is designated in class 43.1 or 43.2 for CCA purposes — already eligible for accelerated deductions includes: groundsource heat pumps, including those used to heat swimming pools; active solar heating equipment; heat recovery equipment; photovoltaic electrical generation equipment; geothermal energy equipment; equipment related to district energy systems; electrical energy storage equipment; and electric vehicle charging equipment.

As announced in the newly released 2022 federal budget, the following components associated with air-source heat pumps can be claimed: refrigerant piping; energy conversion equipment; thermal energy storage equipment; and control equipment and equipment designed to enable the system to interface with other heating and cooling equipment. Purchasers may also be able to be claim feasibility studies, engineering and design costs as allowable Canadian Renewable and Conservation Expenses (CRCE), which could claimed in the 32 | Canadian Apartment | Part of the REMI Network |

year incurred, carried forward or transferred to investors.

“As a means to displace the use of fossil fuels for heating, or of providing a more efficient means of heating with electricity (e.g., compared to electric baseboard heaters), airsource heat pumps can play a role in reducing emissions of greenhouse gases and air pollutants associated with heating buildings in Canada,” the budget document states.

Concurrently, manufacturers of air-source heat pumps will be eligible for new tax credits, which were announced in the 2021 federal budget, but are available to claimants for the first time in 2022. That program provides a 50 per cent reduction in the corporate tax or small business tax rate until 2028 for manufacturers of designated zero-emission technologies, with a continued tax credit at incrementally lower rates in the 2029-2031 period.

The budget document states that adding the new category to the original list of designated manufacturers — including those producing solar, wind, hydroelectric and geothermal equipment, as well as equipment related to ground source heat pumps, electrical storage of renewable energy, and electric vehicle charging systems — will “support job creation and growth in clean technology manufacturing in Canada”.

It’s estimated the Canadian government will forego about $53 million in tax revenue over five years by extending the two measures to air-source heat pumps.

oardwalk REIT announced it has acquired two apartment properties located in Canmore, AB, and Brampton, ON, for a combined purchase price of $117.5 million. According to a recent operational update, the new portfolio strengthens and expands Boardwalk’s presence in two significantly undersupplied housing markets while providing immediate accretion to Unitholders.

The transaction closed on March 30, 2022 and was funded with a combination of existing liquidity and low-cost mortgage financing. The 148-unit property in Canmore, known as Peak Estates, consists of three A-class, four-storey buildings constructed in 2018. Boardwalk REIT currently owns Elk Valley Estates and Mountainview Estates in the nearby town of Banff, bringing its portfolio in the region to over 300 units.

Ardglen Place in Brampton totals 152 townhouse units and offers “significant value-add potential” for the Trust. The property features large unit sizes and offers residents desirable low-density housing in the rapidly growing Peel Region.

According to Boardwalk, it now has a solid operational foothold in the area ahead of the completion of Tower 1 of the Trust’s 45 Railroad development in Brampton, which is expected to come online in Q4 2022.

As part of the operational update, Sam Kolias, Chairman and Chief Executive Officer of Boardwalk commented: “After a slower January and first two weeks of February, we have seen a strong increase in rental traffic in March with higher occupancy and lower availability as we head into the strong spring leasing season.”

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Modernizing payments for Canada’s commercial property industry Canadian property managers have a lot to gain from making payments faster, easier, and more transparent. In a post-pandemic economy, many Canadians are reducing their use of cash as a payment method and are relying instead on digital payments. In fact, a recent Interac survey revealed that two thirds of Canadians believe businesses that fail to adapt in order to allow digital payments will struggle.

The demand for digital payment options from businesses will only increase and property managers will need to accommodate this shift in consumer behaviour. With every dollar counting more than ever before given the challenges faced by businesses during the pandemic, efficient ways of paying and managing finances in ways that improve cash flow is now paramount. Improvements to accounts payable, accounts receivable, and methods of payment cannot be overlooked in this recovery-focused environment.

Pre-pandemic, day-to-day financial management

often involved processes that were paper-based, cheque-driven, and manual. These are typically slower and less efficient ways of working and require businesses to spend valuable resources processing and reconciling payments. The pandemic, alongside changing consumer preferences, has naturally reinforced the need for digitization and moved businesses to lessen their reliance on manual processes to boost overall operational efficiency.

Eighty-three per cent of finance professionals surveyed by Interac affirm this notion, saying that applying digital transformation to their function is now a priority .

These needs are fuelling demand for innovative business payment solutions, such as Interac e-Transfer® for Business. As an enhancement of the existing Interac e-Transfer service, new features were built to meet the needs of Canadian businesses through higher transaction limits, fast money transfers with instant confirmation and rich remittance data, allowing businesses to reconcile

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transactions with less paperwork. In other words, it can help streamline accounting processes and accelerate a paperless office strategy.

For a property manager or landlord, this could mean being able to accept or request payments directly from tenants with immediate access to funds, paying contractors and invoices for work specific to the property with greater ease and retaining payment confirmations. Further, property managers and landlords could send a reminder for rent payment via request-to-pay capability and easily reimburse tenants for costs incurred on behalf of the property manager or for payment returns.

Receiving payments instantly in this way can also be a game changer if a manager is largely reliant on cheques, eliminating any uncertainty around when one will arrive in the mail or whether it will clear. With Interac e-Transfer for Business, property managers can receive payment instantly, reducing the number

of cheques and cash they receive, eliminating the risk of late payments, and gain easy visibility into what the payments are for using structured data.

Eight in 10 (80 per cent) business decision makers surveyed agree that moving from traditional payment options to digital ones will be essential to post-pandemic growth . Assessing how a business can revamp its payment processes and financial management to become more efficient and effective with tools like Interac e-Transfer for Business can help to equip the commercial property industry as it embarks upon growth and recovery plans.

Those interested in using the solution are invited to learn more by visiting Interac.ca/business, In The Know and to discuss the offering with their financial institution.

Interac and Interac e-Transfer are registered trademarks of Interac Corp..

(1)Interac commissioned Hill+Knowlton Strategies to conduct a national survey of adult Canadians. A total of 1,000 adult residents of Canada were surveyed online in April 2021. The sample was randomly drawn from a panel of potential survey respondents. An associated margin of error for a probability-based sample of this size would be ±2.5%, 19 times out of 20.

(2)Interac commissioned Phase 5 Consulting to conduct an online survey of 152 financial decision-makers in Canadian midsized businesses with 100-499 employees. Participants were recruited via an online research panel. Fieldwork was conducted in English and French in May 2021.

(3)Interac participated in RFi Group’s online commercial banking and payments syndicated survey of decision makers at 363 commercial enterprises with revenues between $10M and $100M. Fieldwork was conducted in English and French in June 2021.

Note: Finance transformation describes any strategic initiative meant to create new opportunities for the finance function to add value to the business and align with overall company strategy.

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Preparing for the EWRB deadline Water and energy reporting made easy by July 1st Since 2018, most privately-owned large buildings in Ontario have been required to report their water and energy consumption as part of the Ministry of Energy’s Energy and Water Reporting and Benchmarking (EWRB) initiative.

While it may sound like a headache today, the outcome of compliance will be well worth it. Here, Justin Tudor, President, Keller Engineers, shares important tips for making the most of this industry tool that captures meaningful data and enables better decisions about where and how to maximize building efficiencies.

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Who must report their energy and water consumption?

By 2023, annual reporting will be required for any building with a total gross square footage of at least 50,000 including multiresidential high-rises, low-rises, and large townhome complexes.

A good rule of thumb is that if your building has more than 50 units, you will need to report your water and energy consumption on July 1st every year.

How does this benefit the building owners?

Benchmarking allows large building owners to compare their energy and water performance against other similar buildings in their region. With that knowledge, they can make system adjustments accordingly, then monitor whether or not they are making sufficient progress. Ultimately, EWRB facilitates more accurate, measurable results, and help generates best practices that will lead to better, healthier buildings overall.

What are the steps?

While some building owners may choose to self-report their findings by appointing a staff member to the task, others may prefer to outsource the responsibility to an accredited third party.

Either way, the regulations do require independent verification of data by a qualified person in the first year of reporting and every five years thereafter. The key steps include:

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STEP 1 - Data collection Gathering all the information needed to complete the EWRB report. This includes location and ownership, gross floor area, use type, EWRB ID number, and energy and water usage data for the required period. Typically, your EWRB number is provided via written notification through the Ministry of Energy, otherwise it may be obtained by emailing: EWRBSupport@ontario.ca.

STEP 2 - Data verification For the first year (and every five years thereafter), an accredited body or certified professional must verify your building or portfolio’s data. This step should be factored into your plan.

STEP 3 - Data reporting Completed reports must be submitted by the July 1st deadline through your Energy Star Portfolio Manager account.

Help is available!

For those seeking assistance and peace of mind from an outside service provider, professional help is available offering multiple levels of support. Whether it’s the end-to-end management of your data collection and reporting, or simply someone to oversee your first-year verification or to manage your Energy Star reporting tool, you’ll find an array of services available to meet your every need.

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Contact Justin Tudor, President, Keller Engineers, for more info: www.kellerengineering.com | www.REMInetwork.com | April/May 2022 | 37

Smart Ideas

THINK “BIG PICTURE” …when it comes to saving energy It’s no secret that investing in energy efficiency can lead to countless benefits, including increasing your building’s overall value and improving occupant comfort. Yet despite these well-known benefits, uptake in retrofits by Canada’s multi-residential sector has been slow.

“Advancing the building sector toward deep energy retrofits is a process that requires system-wide movement, including expanding information on strategies, costs and benefits, facilitating financing, supporting industry upskilling and supply chain enhancements and exploring how to address any systemic barriers,” said Duncan Hill, CMHC. “Ultimately our goal should be to move market acceptance beyond the early adopters to include the industry majority by demonstrating what’s possible, overcoming the challenges and sharing data, information and knowledge on successful approaches.”

Here are four “big picture” strategies to help engrain energy efficiency into everything you do: 1.

Manage energy usage by creating a culture of efficiency throughout your building and organization. Getting your staff and residents on board with your short- and long-term goals can result in significant energy and monetary savings.

2.

Effective operations and maintenance are cost-effective strategies for ensuring the highest level of building efficiency.

Benchmarking your energy use while adhering to a solid preventative maintenance plan can go a long way toward prolonging your building’s useful life.

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3.

Given most aging commercial buildings waste up to 30 per cent of the energy they consume, retrofitting older assets to reduce waste provides ongoing ways to improve building performance while increasing value and improving occupant comfort. Retrofitting a building can generate energy savings of 5 to 15 per cent and typically pay for itself in less than three years (Source: Natural Resources Canada.)

4.

When embarking on a new construction project, optimize energy efficiency long before the shovel hits the dirt. Pursuing energy efficiency opportunities early in the planning stage will increase the options available in the future, while contributing to your building’s longevity.

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