CAM July/August 2023

CANADIAN Apartment VOLUME 20 / NUMBER 4 / JULY/AUGUST 2023

CITY OF CHANGE

WHY DEVELOPMENT IN HAMILTON IS SURGING

PART OF THE

plus RENTAL MARKET NEWS

BECOMING EV-READY

/cammediaedge /cdnapartmentmag /mediaedgecam

SUMMER IN THE CITY

There’s no doubt that amenities like swimming pools and fitness centres bring extra value to a rental property. Amenities have long been considered one of the primary reasons residents will sign and renew their leases. Like prospective condo owners, residents will typically seek out apartment buildings with the best amenities and access to outdoor spaces.

But how do you know which amenities are worth the investment? In this issue, we take a look at what’s on the current “must-have” list for today’s young professionals as well as some key considerations for managing resident safety—including the risks of owning and operating a swimming pool.

In our cover story, we delve into the revitalization of Hamilton and why so many new rental buildings are rising in the mid-sized city once known as a manufacturing town. One property in particular is explored. Located on Upper Wellington Street, the six-storey sustainable building celebrated its ground-breaking in late-June and should be operational by 2026, bringing some much-needed rental units to market.

As always, we also touch on the latest industry news, trends, regulations, and market data to help you better manage your business. If you have any future story ideas, or any comments on the stories in this issue, please reach out to me via Twitter or the REMI Network. I’d love to hear from you. In the meantime, wishing you an enjoyable remainder of summer, and we’ll see you again in the fall.

Sincerely,

Erin Ruddy @cdnapartmentmag

rent trends

WHAT RENTERS WANT:

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Editor Erin Ruddy

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KEYLESS LOCKS IN-SUITE LAUNDRY

OUTDOOR GREEN SPACES

PET-FRIENDLY PARTY ROOMS

GYMS & YOGA ROOMS

ONLINE RENT PAYMENT & MAINTENANCE REQUESTS

EV CHARGING STATIONS

Tips

by Erin Ruddy

Is

by Leon Wasser

Q3 Rental Market Report A “healthy and stable” outlook as we head into fall

The Canadian multi-suite residential rental market has been largely healthy and stable during the third quarter thus far, with demand for rental accommodation outdistancing supply. The prohibitively high cost of owning a home in most regions of the country, in part due to high interest rates and record high international in-migration, bolstered demand for purpose-built rental units.

According to Keith Reading, Director of Research at Morguard, many landlords were able to command higher rents when units were vacated, driving the national average rent to a record high level.

“Landlords were also able to push rents higher still for existing renters, in accordance with provincial guidelines,” he said. “Newly built rental buildings were generally leased up relatively quickly.

Rental market conditions have improved, having been stable and healthy over the past several quarters, and more than recouping the pandemic-influenced losses.”

Investment market

Multi-suite residential rental properties remain a prime target of various

New & Notable Transactions

Source: Morguard

investment groups; however, activity levels have been muted throughout the third quarter. A modest uptick in activity levels was reported over the summer months, although some buyers remained on the sidelines due to the high cost of debt capital.

As Reading put it, “Investors continue to exhibit interest in acquiring stabilized properties, given the sector’s healthy longterm outlook.”

But he does point out that few large-scale portfolios have been brought to the market recently, adding that investment activity levels will remain muted over the near term given the relatively high cost of debt capital and an uncertain economic backdrop.

Canada’s average asking rents hit record high in June

Average asking rents for all property types in Canada hit a record high of $2,042 in June, surpassing the previous record set in November 2022 by 0.9 per cent. The 1.4 per cent increase from May represents the largest month-over-month rise this year, while annually average rents increased 7.5 per cent.

“Rent inflation reaccelerated in June as the Canadian rental market entered into the busy summer season, with each of the country’s largest cities positing doubledigit annual increases,” said Shaun Hildebrand, president of Urbanation. “It’s no coincidence that cities with the fastest population growth are at the top of the list for rent increases. Expect further upward pressure on rents in the near-term as the market moves through its peak period of the year and demand continues to strongly outstrip new supply.”

For the first time in the National Rent Report’s history, Toronto finished third on the list of 35 cities for average monthly rents in June, having been bumped out of the second spot by Burnaby, BC. Year over year, average monthly rent in June for a one-bedroom in Toronto was up 14.1 per cent and up 8.8 per cent for a two-bedroom.

Meanwhile, Calgary’s average rents surpassed $2,000 for the first time for purposebuilt and condominium apartments in June, reaching $2,008 and rising 18.4 per cent year over year. Calgary has now overtaken Montreal as the fourth most expensive city for renters in Canada, while Vancouver still holds top spot with average asking rents of $3,301 and annual rent increases of 15.4 per cent.

ARE YOU CONTEMPLATING THE SALE OF YOUR APARTMENT PORTFOLIO/PROPERTY?

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Multi-Residential Housing Starts in Canada

June sees largest surge in ten-year period

The declining trend in housing starts observed over the last several months have reversed slightly due to a significant increase in housing starts in June. According to newly released data from CMHC, the standalone monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada increased 41 per cent in June (281,373 units) compared to May (200,018 units), representing the largest month to month SAAR change in the last 10 years. This is mostly due to multi-unit starts, which accounted for approximately 82 per cent of total housing starts.

In Canada, a housing start is defined as the beginning of construction work on the building where the dwelling unit will be located. This can be described as the stage when the concrete has been poured for the entire footing around the structure; or an equivalent stage where a basement will not be part of the structure. Housing starts are an economic indicator that reflect the number of residential housing projects that have been started over a specific length of time. The data from CMHC is divided into three types: single-family houses, townhouses or small condos and apartment buildings with five or more units.

In terms of total urban starts (centres 10,000 population and over), construction activity for all three types increased 46 per cent, with 262,815 units recorded for the month of June.

Doubling the rate of Housing Construction HAF application portal now open

On July 4, CMHC officially opened the Housing Accelerator Fund’s (HAF) application portal, and municipalities are strongly encouraged to submit their action plans for funding to help build more homes, faster.

Given the numerous challenges and obstacles interfering with rapid housing development, change is needed to get more housing built across the country—hence why in May 2023, the Prime Minister, Justin Trudeau, and Minister Hussen launched the HAF, a $4 billion initiative that will provide funding to cities, towns, and Indigenous governments to develop innovative measures to unlock new housing supply and fast-track the creation of 100,000 new homes across Canada.

“Local governments are encouraged to think big and be innovative in their action plans,” the backgrounder states. “This could include reducing red tape, accelerating project approvals, incentivizing affordable housing units, or introducing zoning reforms to build more density. The Fund will provide upfront funding to support implementation, as well as additional funds upon delivering results.”

The government believes the HAF is a significant step towards doubling the rate of housing construction over the next decade and making housing more affordable for Canadians.

“Every level of government has a part to play in building the housing Canadians need,” said the Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion. “That’s why, the Government of Canada is working with municipalities to cut red tape and speed up housing approvals at the local level to fast track the creation of 100,000 additional homes across the country. The Housing Accelerator Fund will help local governments make lasting changes to our housing system so that we can improve and increase housing supply for years to come. Through innovation and partnerships with local governments we can build the homes we need in our cities and towns, creating affordable, inclusive, and diverse communities. We will continue to work to make life more affordable and create stronger, more prosperous communities from coast to coast to coast.”

Quick facts about HAF:

• The HAF is part of a larger toolbox of federal measures to support the creation of housing supply through Canada’s National Housing Strategy (NHS), an ambitious 10-year plan that will invest more than $82 billion to give more Canadians a place to call home. Progress on programs and initiatives under the NHS is updated quarterly at www.placetocallhome.ca.

• On August 18th, 2023, local goverments are encouraged to visit the HAF web page to access pre-application resources, including a step-by-step application guide. A CMHC representative will also be available for any assistance they need with the application process.

• The Government of Canada will continue negotiating an agreement with Quebec to ensure municipalities in the province can access the program while respecting the province’s laws.

Multi-unit urban starts led the way, increasing 5 9 per cent to 219,914 units, while single-detached urban starts increased 3 per cent to 42,901 units.

The Vancouver and Toronto CMAs recorded significant increases in total SAAR housing starts, with Vancouver up 71 per cent and Toronto up 100 per cent.

NEW SHOWROOM NEW SHOWROOM

Toronto and Vancouver’s total housing starts combined accounted for 47 per cent of total housing starts in Canada’s urban centres in June. Meanwhile, Montreal CMA also recorded an increase in total SAAR housing starts, however, it was less pronounced at 8 per cent. All three recorded increases in both single-detached and multi-unit starts.

“We observed a large increase in the SAAR of housing starts in June, which pushed the trend of housing starts upward after consecutive monthly declines since November 2022,” said Bob Dugan, CMHC’s Chief Economist. “Despite this, total yearto-date housing starts for the first half of the year were 8% lower than they were over the same period in 2022 as the high interest rate environment continues to challenge housing starts through increasing borrowing costs.”

Housing starts are an economic indicator that reflect the number of residential housing projects that have been started over a specific length of time. The data is divided into three types: single-family houses, townhouses or small condos and apartment buildings with five or more units.

KEY HIGHLIGHTS

• The standalone monthly SAAR of total housing starts for all areas in Canada in June was 281,373 units, an increase of 41% from May, which is the largest month-to-month SAAR change in the last 10 years.

• The increase is mostly due to multi-unit starts, which accounted for about 82% of total starts.

• The SAAR of total urban starts increased by 46% in June to 262,815 units.

• Multi-unit urban starts increased by 59% to 219,914 units in June.

• Single-detached urban starts increased by 3% to 42,901 units.

• Rural starts were estimated at a seasonally adjusted annual rate of 18,558 units.

“We observed a large increase in the SAAR of housing starts in June, which pushed the trend of housing starts upward after consecutive monthly declines since November 2022.”

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Swimming pool safety and liability

As summer ramps up, so does the risk of poolside accidents

by Erin Ruddy

In the hot, hazy days of summer, swimming pools are a great source of fun and relaxation, but they also bring a host of risks and responsibilities for property owners. While rental developments with swimming pools are known to attract more tenants, building owners may be held liable for any injuries or deaths that occur in the vicinity of a pool. As such, building owners are advised to keep up with their jurisdiction’s pool-related by-laws and remain vigilant about safety.

Matthew Rynen, personal injury and litigation lawyer at Cohen Highley LLP, warns that if an injury can be linked to a lack of security around a swimming pool, failure to comply with local by-laws and regulations, or a failure by management to supervise and maintain the swimming area, a liability suit is likely to follow.

“While municipal by-laws have their own rules about fencing and enclosures, the primary source for safety and signage requirements for multi-residential pools are found in provincial legislation and regulations,” he says. “In either case, a failure to comply with these ordinances puts the building owner and the tenants at risk.”

In Ontario, pool operators must adhere to their local municipal fence and enclosure by-laws and ensure the Ontario Building Code requirements are met; they should also consult the Ontario Public Pools regulation for signage and safety measures, which applies to multi-res complexes with six or more units. In B.C., pool operators can refer

to the B.C. Guidelines for Pool Operations for a cohesive representation of the generally accepted standards of safe pool practices in that province.

“But overall, it’s best to ensure the pool area complies with the maintenance, safety, equipment and operation requirements of any provincial regulations,” Rynen says.

Slip & fall accidents

It goes without saying that wet, slippery surfaces increase the risk of slip and fall accidents and should be approached with caution — still, according to Canada’s Public Health agency, these account for thousands of hospital-visits each year. A leading cause of head trauma, broken bones, and soft tissue tears, most slip and fall pool-related accidents are linked to “a hazard being present” such as wet pavement, objects in the way, or cracked cement or tiles. If an injury arises due to a slip and fall accident, the injured party must establish that either the pool owner was negligent or that they somehow failed to keep pool-goers reasonably safe.

“Having an appropriate system in place for pool area maintenance, as well as appropriate safety check systems, such as someone to come and visually inspect the pool area periodically for any slip and fall hazards, will help prevent injuries,” says Rynen. “This can include having anti-slip surfaces around the pool area as well as clear signage alerting pool-users to hazards, like shallow water. It’s also a good idea to have a set of safety rules posted in the pool area, and a system in place to communicate and enforce those rules.”

Rynen adds that under Ontario’s Occupier’s Liability Act, the owner of a pool has an obligation to ensure that anyone on the premises is reasonably safe. This means ensuring the area has adequate lighting, is clear of trip hazards, and has properly installed and functioning equipment. And slip and fall injuries are just the tip of the iceberg. In Canada, 918 drownings reportedly occurred between 2011 and 2021 — more than half of which (55 per cent) were in swimming pools. Sadly, 53 per cent of those tragedies involved young children under the age of four, likely due to a lack of safeguards and/or inadequate supervision.

“No matter the size or location of a pool, the courts have established that there must be appropriate safety and maintenance check systems in place,” he says. “Multi-res management must also ensure employees

and maintenance staff are adequately trained on utilizing those systems.”

For those looking to reduce the risk of litigation, Rynen recommends keeping detailed records of the staff’s ongoing efforts to maintain the pool area. Being hyper-vigilant about safety rule enforcement and documenting any steps the staff has taken to resolve issues or address a poolside hazard could serve as evidence, if needed, in the future.

The layered approach to safety

All pool operators in Canada have a responsibility to protect public safety, and according to the Pool and Hot Tub Council of Canada, “the layered approach” is the best way to maximize efforts. In “A Model bylaw for Canadian Municipalities“, the group recommends putting multiple safeguards in place to prevent injuries and drownings, while also maintaining the pool area to ensure an effective level of protection.

Recommended safeguards include:

• Requiring responsible adult supervision within the pool enclosure;

• Having the required physical barriers in place, such as fencing, automatic safety covers, doors, and window latches;

• Investing in warning systems, such as access alarms, wave detectors and immersion alarms installed;

• Ensuring there is supplemental safety equipment within easy access (i.e., shepherd’s hook, ring buoys and other lifelines);

• Having posted signs, rules, and painted notices (e.g., ‘No Diving’ or ‘No Running’) in clear sight;

• Having a telephone installed poolside with emergency numbers listed.

If you are considering adding a swimming pool to your multi-residential property, be sure to familiarize yourself with your jurisdiction’s by-laws and guidelines in addition to provincial safety regulations.

For legal advice in Ontario, please visit www.cohenhighley.com

Perks for Young Professionals

Lee Galka, Director of Business Development at Accora Village in Ottawa, shares which features and amenities will make your rental community stand out

Competitive markets, rising prices, and a limited inventory have driven many Canadians away from prospective homeownership in the past year. Young professionals in particular have already accepted the possibility of renting for life and enlisting roommates to help lower living costs.

As such, many rental communities are upping the perks and amenities to stand out to this growing cohort looking for long-term places to live. Here, Lee

Galka, Director of Business

Development at Accora Village, shares seven ways to make your rental community shine:

Pet-friendly features

Young people living alone often enlist a furry friend as a roommate and companion—which means their living space and surrounding area must be pet-friendly. Creating a rental community that embraces pets is more than just allowing them to live there. Instead, help your residents by sharing information for nearby parks, and have waste receptacles available on the grounds to make it easier for busy pet owners to clean up after their pets on the go. Whether your property has an abundance of green space or not, green turf carpets can be used to transform any outdoor space.

Fitness amenities

Many young professionals embrace fitness as a lifestyle rather than a trend; therefore, having access to an on-site fitness centre with flexible hours is an amenity they won’t do without. Young professionals are constantly multitasking, whether working in an office or from home. Access to a fitness facility just steps from their front door means they can pop in for a quick workout on their lunch break or after work. In contrast, paying the extra expense of a gym membership while also having to account for travel time is becoming less desirable for many.

On-site parking

For busy working professionals, the timing and convenience of their commute are essential factors to consider when looking for a rental. Having on-site parking is a make-orbreak amenity for many who commute daily and often travel for work. Having included or available parking options will increase the rental community’s value and make it much more convenient for young professionals to keep up with their busy lifestyles. Of course, parking stalls equipped with EV charging stations is even better.

In-suite laundry

In-suite laundry is a perk for anyone

living in a rental community, especially those constantly on the go. While most older apartment buildings offer coin laundry in a common area or will advertise a nearby laundry facility, in-suite laundry is highly preferred for its ease and convenience and offering it will dramatically increase the desirability and the value of the property.

Increased security

Another thing inching up the musthave list of young professionals is the desire for enhanced security, with many tenants seeking the additional safeguards that come from having desk personnel available 24/7. This physical presence in addition to locked doors and limited access to elevators and stairwells can come in handy in other ways too, by keeping residents informed of daily events and helping to foster the community aspect of a rental space. And if a tenant loses a key or has trouble with a lost package, someone is always there to help.

Recreational fun

Many apartment complexes try to advertise themselves as communities without putting in the necessary work to foster a feeling of one among employees and residents. A great way to work toward building a community is to offer recreational classes and events, like cooking or painting classes, board game tournaments or BINGO night. If the property has a common room, add billiards or shuffleboards so that residents can use them at their leisure, with friends or with each other. Even without a central space for functions, equipment rentals can make for great

special occasions. For example, having snowshoes available in the winter will invite tenants to get out and explore nearby trails and perhaps introduce them to a new favourite pastime.

Co-working spaces

It’s official—remote working is not just a fad, but a lifestyle. Some working professionals who entered the workforce during the pandemic have only ever worked remotely. The transition to home offices has brought a myriad of challenges for property managers, but many rental communities have figured out ways to transform common areas into co-working spaces equipped with internet, desks, chairs, coffeemakers, and other office essentials for residents to utilize. For hybrid workers, it’s the perfect happy medium between avoiding long commutes to work while still getting a change of scenery from one’s apartment.

With fewer and fewer young people looking to buy, the rental market is in high demand. Apartment complexes and rental communities can seize this opportunity to cater to young professionals looking for long-term housing solutions. Rentals must implement more amenities and resources to stand out in the competitive market. This includes basic amenities such as insuite laundry, parking, pet-friendly services and security, and lifestyle amenities such as fitness centres, co-working spaces and recreational activities. Nowadays, young professionals seek out the many benefits and conveniences of renting – so ensure your rental is up to par.

Lee Galka is the Director of Business Development at Accora Village in Ottawa. Lee has over 23 years of experience in marketing and sales, and over 15 years of experience in the property management industry. He specializes in strategic marketing/sales planning and execution, revenue generation forecasting and market assessment.

DRIVING REVITALIZATION IN HAMILTON

The rise of 500 Upper Wellington Street

By Erin Ruddy

The Labourers’ International Union of North America (LiUNA), along with partners Ingenuity and Fengate Asset Management, recently celebrated the ground-breaking of a new purpose-built rental development at 500 Upper Wellington Street in Hamilton, Ontario. The future mid-rise building comprising six storeys and 261 rental suites is part of ongoing efforts by both the municipal government and the private sector to drive the city’s revitalization and address the ongoing housing shortage—which, like most Canadian cities, has reached a critical low.

REVITALIZATION

According to CMHC’s latest rental market report, Hamilton’s vacancy rate for purpose-built rental housing dropped to 1.9 per cent in October 2022, the lowest it’s been in a decade and on par with Canada’s national vacancy rate, which also declined to 1.9 per cent last year. Additional strain on Hamilton’s rental market is attributed to a high number of units occupied by student renters, higher full-time employment, and fewer renters transitioning to homeownership.

But relief appears to be in store, as several new housing developments have recently broken ground in the area. For

future residents of 500 Upper Wellington Street, amenities-aplenty await, with multiple benefits also set to stem from the site’s convenient access to downtown Hamilton.

Designed by Core Architects and scheduled for completion in 2026, the project is pursuing LEED designation and is slated to include sustainability-focused features such as a green roof, geothermal heating and cooling, and energy-efficient building systems. Plans also include integrated technology features that will enable residents to manage their homes and access building services remotely.

“LiUNA has an extensive footprint in the city of Hamilton, and we are proud to

continue this momentum and ensure reliable and affordable housing supply extends beyond concept and into reality,” said Joseph Mancinelli, Chair, LiUNA Pension Fund of Central and Eastern Canada, at the ground-breaking event. “Together with LiUNA investments at 75 James Street, King William Residences, 20 Rebecca Street, among many others, 500 Upper Wellington will have a positive impact on our community as we work proactively and collaboratively to meet the future growth of our city. This purpose-built development will deliver indemand housing supply to meet the diverse and evolving demands of our communities while moving our economy and city forward.”

Hamilton by the numbers

It’s safe to say that Hamilton, located roughly 60 kilometres southwest of Toronto, is undergoing a renaissance. Home to 781,000 people (up 0.64 per cent from 2022), the former manufacturing town has recently blossomed into one of Canada’s most diversified economies, with several worldclass universities, colleges, and researchintensive startup companies drawing newcomers from far and wide. For families, the city offers vast urban and suburban areas to set down roots, including hundreds of kilometres of trails and parks to explore,

while according to Hamilton’s Economic Development team, businesses “thrive in this hard-working, high-tech city where the cost of entry is very competitive with other techcentric cities in the region.”

In fact, on June 14, 2023, the City of Hamilton announced it had surpassed $1 billion in construction since January, marking the earliest it has done so and beating the record previously set in 2022 by three days. The milestone represents approximately 2612 building projects within the residential, institutional, commercial, and industrial sectors, with residential projects accounting for the majority at 58.2 per cent.

“Hamilton is a leader among Canadian cities and this new record is a strong indication that others believe in this city as much as I do,” said Mayor Andrea Horwath at the time of the announcement. “This work is a result of collaborative and persistent efforts

Permanent, Supportive Housing

More housing is needed across the spectrum, especially for individuals at risk of homelessness. To bring more supportive housing to the City of Hamilton, the government is investing in the conversion of an office building at 195 Ferguson Avenue North, known as “the Wesley Building”, into permanent, supportive housing units. The conversion project will be delivered through a partnership between Wesley Community Homes and the Good Shepherd.

Funding for this project includes $2.25 million from the federal government through the Rapid Housing Initiative (RHI) Cities Stream under the National Housing Strategy (NHS); $750,000 from the provincial and the federal governments through the Ontario Priorities Housing Initiative (OPHI), an initiative of the Canada – Ontario Bilateral Agreement under the NHS; and $259,121 from the City of Hamilton.

“Through the Rapid Housing Initiative, we’re creating thousands of affordable homes for those most in need in communities across the country, including right here in Hamilton,” said the Hon. Ahmed Hussen, Minister of Housing and Diversity and Inclusion at the press conference in July. “These new homes aren’t just a roof over the heads of individuals and families experiencing homelessness, they’re hope for a brighter future.”

towards housing affordability. I have heard from Hamiltonians loud and clear; Hamilton needs more housing. This is a step in the right direction to achieve that.”

In Q1-2021, a total of 246 residential building permits were issued by the City of Hamilton, of which 33.3 per cent were for multi-residential projects. Municipal programs and financial incentives have helped entice investors, including the Commercial District Housing Opportunities (CDHO) Program, which provides financial assistance in the form of lowinterest loans and grants. As per the website, CDHO aims to promote the improvement or development of dwelling units, whether it’s through converting existing non-residential spaces into livable homes, undertaking renovations, creating new dwelling units via building additions, or bringing new units to market through the development of vacant land. The maximum loan amount offered through CDHO is $20,000 per dwelling unit, up to a maximum of $600,000 per property. Interested parties should check out the City of Hamilton’s many programs for property owners and developers to help offset the costs of improvements and conversions of brownfields, heritage properties, core area properties, and buildings and LEED-certified buildings.

But for LiUNA and Fengate, the roots in Hamilton already run deep. Construction began at 75 James Street South in the fall of 2021, bringing 600 residential suites to market by 2026. LiUNA also launched several studentgeared residences in the area, including the King William Residence at King and Hughston streets and the William Thomas student housing complex at Rebecca and James.

As September looms and the rental market experiences another surge in demand, it’s nice to know the future looks promising, and housing (we hope), will no longer be the bane of growing cities like Hamilton.

“In Q1-2021, a total of 246 residential building permits were issued by the City of Hamilton, of which 33.3 per cent were for multi-residential projects.”

The Changing Canadian Vehicle Market

Is your building EV-ready?

by Leon Wasser, MBA, P.Eng.

The Canadian vehicle market is changing. While most cars on the road are still gasoline-powered, the projected sales for electric vehicles (EVs) are forecast to rise dramatically to align with Canada’s goal of reaching 60 per cent zero emission light-duty vehicle sales by 2030. Currently, 8.2 per cent of new vehicles sold in Canada are plug-in electric vehicles, but this number varies from region to region.

In British Columbia, EVs account for 16.3 per cent of light-duty car sales, while in Quebec, it’s 12.3 per cent, and in the large Ontario market, only 6.5 per cent of vehicles sold are plug-in. But not for long, and as the proportion of EV sales begins to grow at an accelerating rate, multiresidential property owners are advised to prepare.

Charging infrastructure

A typical EV requires around 80kWh of power to charge up depending on the vehicle. Charging stations come in three standard types categorized by the power level they supply. Level 3 chargers deliver power at 480 volts, providing the fastest vehicle charging available today. These chargers can take a battery from nearly

empty to 80 per cent capacity sometimes in under 10 minutes. Meanwhile, level 2 chargers deliver power at 208/240 volts for a charge time in the range of 7 hours, and Level 1 chargers supply power at j120 volts using the rated capacity of a typical wall outlet.

In some Canadian jurisdictions, the requirements for EV infrastructure in apart-

ment buildings are starting to change. For instance, under the City of Toronto’s Toronto Green Standard Version 4, developers of new mid to high-rise multi-unit residential buildings (four storeys or higher) are directed to provide an energized outlet capable of providing Level 2 charging or higher EVCS for at least 25 per cent of the parking spaces. While there appears to be no mandated requirement for retrofitting existing apartments with EV chargers in parking stalls yet, this is likely to change as tenants begin to demand it.

Engineering challenges

Installing a single or small number of EV charging stations in a typical apartment garage can be accomplished easily given the power required is a tiny fraction of the power used in the building. Installing several EV charging stations is another story. Un less mandated by government, the building owner must determine how many stations and which types of chargers to install, pref erably with guidance from a qualified con sulting engineer.

The next challenge is to determine where to put the stations and who gets access to this vital service. Since each charging sta tion needs to be individually wired back for its power supply, and in some cases for EV

system control communication, there is a need for an experienced designer to map out and coordinate the installation of both the charging stations and the EV infrastructure. This infrastructure will include dedicated panels, transformers, and the distribution network to serve the new EVCS.

The last challenge involves overcoming the electrical capacity restriction for buildings. Apartment buildings are supplied by their utility with a transformer designed for a specified amount of power demand. Exceeding that number to accommodate many charging stations will likely require a system up -

grade. The amount of power required for the EVCS can be mitigated using sophisticated EVCS management systems that can schedule the network of charging stations so that the power demand is distributed in a more balanced way over the course of a day or night.

Changes in power demand

Over the past decade, apartment owners have been investing heavily in conservation measures to help reduce power consumption at their buildings. From swapping inefficient incandescent lights for compact fluorescent and LEDs, to deeper energy retrofits and HVAC system optimization, all these measures have been beneficial in terms of

lowering utility costs and conserving energy. Today, building owners can also have a hand in increasing their building’s power capacity to accommodate tenants’ needs for electric vehicle infrastructure.

On the other side of the power ledger, some additional demands have been imposed on the power supply of apartments thanks to today’s larger television screens, air purifiers, and power-hungry air conditioning units. Because of this complex web of changes in power demand, apartments have had to deal with a roller coaster of power demand changes. For this reason, it is essential to begin any EVCS project with a hard-nosed assessment of the building’s power consumption and demand trends.

Designing a successful EVCS requires using a systematic, engineered approach to anticipate and address all the issues that are likely to arise during a project. Part of this process will involve a regulatory review to determine the EV requirements that apply to an apartment, if any. Following this, a phased structured approach is required to determine the building’s projected EV charging demand. The power required to meet this demand must be metered to monitor this major new use of electricity in the building. Finally, if necessary, the power supply to the building may even have to be expanded either through microgrid onsite generation, or

“For apartment owners, the path forward may seem complex, particularly as it relates to the power for EVCS and who specifically pays for it.”

through a costly transformer service upgrade from the utility.

Cost implications

Like any major building retrofit, initiating an EVCS project will involve capital costs beginning with the need to assess and engineer the specific system requirements. Building owners should also anticipate costs associated with modifications to the core building’s electrical system. Following this there is the cost for the installation of supporting EVCS infrastructure, as well as the cost of supplying and installing the EV charging stations themselves. It is important to budget for all the elements of a project to avoid an unwelcome surprise and project deferment.

Other key issues

For apartment owners, the path forward may seem complex, particularly as it relates to the power for EVCS and who specifically pays for it. While some systems allow the user to be billed directly—helping building owners recover some of the

capit al, energy, and operation costs, and potentially generating profit—others may require more effort from system operators. Once again, different jurisdictions across Canada have different rules about chargebacks, and as the EV market grows, these rules can be expected to change. The chargeback issue becomes even more complex in areas with differential time-of-day utility rates, whereby typically daytime power is more expensive than overnight rates. Some jurisdictions may even have differential rates over the course of the year, with higher rates during the summer air conditioning season and lower rates in the winter. As jurisdictions shift more energy consumption to power-based systems from alternatives like natural gas, electricity pricing can be expected

to get more complex, and likely more expensive.

Talk to an expert

The key takeaway is that apartment EVCS projects need the steady eye of a professional engineer to ensure all factors are considered to minimize project risk. It is best to contact a consulting engineering company that specializes in EVCS, as they will conduct a comprehensive system feasibility study and identify all technical challenges for the proposed project, and even explore sources of off-setting utility and government funding before generating a realistic budget and schedule. In due time, EV demand and/or regulation will compel apartment owners to supply EVCS in their buildings; therefore, don’t get left behind! Now is the time to plan your path forward.

Leon Wasser, MBA, P.Eng. is a strategic advisor to DashCharger Technologies –Engineered EV Charging Solutions, and Mann Energy Solutions. He is also the Director of the School of Energy of the Resilient World Institute and Vice-Chair of the Ontario Sustainable Energy Association.

Industry Hot Topics

Aalto ll begins leasing at Zibi

Zibi’s newest rental offering, Aalto II, has opened doors to future residents looking to live in the sustainable community on the Gatineau shores of the Ottawa River. Following the success of the original Aalto, the new building brings 148 condo-like rental suites to market.

“We know the national capital region, like all of Canada, is suffering from a severe housing shortage, especially in the rental market,” said Justin Robitaille, Vice President of Development at Dream. “Aalto II is a response to that, and we look forward to unveiling some more innovative housing options at Zibi later this fall.”

The award-winning Zibi is Canada’s first “One Planet Living” community. The property features high transit, walkability and bike scores, and offers a unique interprovincial district energy system that heats and cools all buildings while producing zero carbon emissions.

Alberta to probe regulated electricity rate

Alberta’s regulated electricity rate has been flagged for possible elimination. A list of priority tasks released for the recently swornin Minister of Affordability and Utilities, Nathan Neudorf, has instructed him to explore that option and to promote offset technologies that would allow for continued fossil-fuel-fired power generation.

In outlining Neudorf’s mandate, Alberta Premier Danielle Smith reiterated the envisioned schedule to achieve a carbon-neutral electricity grid by 2050, which was set out in a provincial plan for emissions reductions and energy development released earlier this year. “Pushing back against any federal regulation requiring a net-zero power grid by 2035” is cited first among the nine major responsibilities she identifies.

Other key chores in the Minister’s job jar include ensuring the Alberta Utilities Commission and Alberta Electricity System Operator are

CON ERRA CON ERRA

likewise aligned with the government’s power production philosophy and looking for ways to cut transmission and distribution costs. The hinted phase-out of regulated utility rates is presented in the context of a cost review, which is also to examine how to protect consumers against price spikes and support “a competitive range of provider choices” in the market.

Neudorf is also directed to work with his Cabinet peers to address the costs of housing, food and insurance. That includes collaborating with the Minister of Treasury Board and Finance to produce recommendations related to cost and attainability of automobile and property insurance, and with the Minister of Seniors, Communities and Social Services to develop and implement an affordable home ownership and rental strategy, focusing on “incentivizing the construction of new homes and rental units”.

LTB announces form changes

Ontario’s Landlord and Tenant Board (LTB) announced it has made some form changes in an effort to improve the landlordtenant conflict resolution process, which has been long deemed sluggish and unsatisfactory. Specifically, it has replaced the Advance Resolution Request (ARR) form with the following two new forms:

1. Request to Withdraw an Application – Effective Septembers 30th, 2023, this form can be used by applicants seeking to withdraw their applications.

2. Request for a Discontinuance Order Without a Hearing –Where the tenant has paid in full, including all arrears and the application fee, applicants can use this form to request their application be discontinued. An L1/L9 update sheet will no longer be required in support of a request for a discontinuance order. Instead, the applicant will now make a declaration and complete a draft order for the Board to review for issuance.

Moving forward, parties seeking a consent order under section 206 should upload the Payment Agreement Form as a document type in the portal; there is no longer a need to also use the ARR form. The LTB said it will continue to accept the current ARR forms until September 30, 2023, after which, any ARR forms submitted will be returned and the applicant will be directed to complete one of the two forms outlined above.

“Overall, I think these are improvements for the landlord that will lead to faster processing of such matters,” commented Kristin A. Ley, Partner, Cohen Highley LLP Lawyers. “There is a little more work involved in the case of a discontinuance, but my hope is that by asking a party to submit the draft order, faster processing times will be achieved. At the same time, the Board has removed the need to submit an L1/L9 update with the request, so there may be a balancing out of the work involved.”

Ley also pointed out that the ability to submit the Payment Agreement Form on its own will benefit landlords in that it will reduce time spent preparing and submitting the former ARR form.

Other changes implemented by the LTB include updates to the Issues a Tenant Intends to Raise at a Rent Arrears Hearing form, which now requires the inclusion of a L10 application. Additionally, a new Videoconference User Feedback Survey has been added for proceedings held on Zoom. The survey, available in French and English, asks hearing participants for their feedback related to their technical experience using Zoom, appearing as a pop-up message linked to a Tribunals Ontario webpage. All feedback received is anonymous, and the LTB anticipates it will lead to “valuable insight and help improve the videoconference experience for those who come before our tribunal.”

Vancouver launches program to help finance

retrofits

The City of Vancouver has launched the Rental Apartment Retrofit Accelerator (RARA) program to help future-proof existing rental buildings. The pilot program aims to make the city’s aging residential buildings more resilient to the impacts of climate change, while improving energy efficiency, increasing indoor comfort, and decreasing emissions with minimal impacts to tenants.

“Collaborating with other levels of government and partners is key to making housing more resilient to extreme weather events,” said Mayor Ken Sim. “By upgrading our existing rental buildings, we’re prioritizing safety, health and comfort while making Vancouver’s housing stock more energy efficient.”

Funded by the City in partnership with CleanBC and BCHydro, and administered through LandlordBC, the RARA program has $3.5 million in grant funds available for owners of market rental buildings to undertake critical energy retrofit upgrades, including building electrification and fuelswitching using new heat pump technology. Findings from the pilot program will inform future investment in Vancouver’s existing rental stock.

“As the leader in the rental housing sector in BC, LandlordBC is continuing to support both research and practical programs that accelerate building decarbonization and improve the rental housing stock,” said David Hutniak, Chief Executive Officer of LandlordBC. “This program is designed to help us learn how to retrofit apartments to reduce carbon pollution and to provide better, more efficient, and more comfortable homes for residents.”

Anticipated benefits

• Retrofitting and electrifying Vancouver’s existing buildings with air source heat pumps will add cooling and create healthier, more comfortable and safer living spaces during extreme heat and forest fire smoke events.

• Upgrading space heating, water heating and ventilation to low carbon and more energy efficient versions will improve comfort and may reduce operational costs.

• Assisting building owners with the tools to plan for other building retrofits and monitoring ongoing energy consumption will support future upgrades.

• Technical and administrative support along with clear expectations for landlords to effectively retrofit buildings will minimize impacts on residents and maintain stable tenancies.

“Renovating our existing buildings presents a significant opportunity for climate action, along with many health benefits for residents,” said Sean Pander, Green and Resilient Building Manager. “This program not only supports our goal of cutting carbon pollution from Vancouver’s buildings in half by 2030, compared to 2007 levels, it also makes funds available for necessary upgrades to protect residents from extreme weather and smoke events. We see this pilot as a springboard to a program which serves the retrofit needs of typical rental buildings and their occupants.”

Building owners with market rental apartments located in Vancouver are eligible to apply to the pilot program.

Rents for GTA condos rose 12.6% in Q2

Q2-2023 rental market data, released July 19th from Urbanation, reveals that the annual rate of rent growth for vacant GTA condos was 12.6 per cent, pushing rents to a record high average of $2,803. While this was somewhat slower than annual growth rates registered in Q1-2023 (13.6%) and Q4-2022 (16.9%), it represented the seventh straight quarter of double-digit rent inflation. Over the past two years, rents for vacant GTA condos have risen by a total of 31.7 per cent.

Meanwhile, available units in newer purpose-built rental projects completed since 2005 experienced a similar annual rent growth of 13.3 per cent, with average rents rising to $2,944.

“The GTA rental market has been on a tear for two years now, with little relief in sight,” said Shaun Hildebrand, President of Urbanation. “Starting off as a recovery from the pandemic, rents are now being driven to new highs on interest rates hitting their highest level in 22 years, the population increasing by a record pace, near record-low unemployment, and scarce supply.”

Of the 17,542 newly completed condominiums that were registered during the 12 months ending June 2023, a record-high 36.5 per cent share of units were leased through the real estate board, rising from a 31.4 per cent share for the period ending June 2022. This occurred despite the surge in interest rates causing the majority of investors to fall into a negative cash flow position where rents do not cover monthly ownership costs (as reported in the 2023 Condo Investment Report recently released by Urbanation and CIBC Economics).

According to Hildebrand, investors have likely been encouraged to hold their units given the strong upward momentum in the rental market and positive market outlook from record-high population growth occurring.

Notably, as GTA rents continued to escalate to new highs, demand for smaller and less expensive units soared. Condos under 400 square feet experienced the fastest annual rent growth of 15.1 per cent in Q2, with average rents reaching $2,121. The second fastest annual rent increase was for 400-499 square-foot units at 14.0 per cent, with rents rising to an average of $2,309. By comparison, the largest units over 1,000 square saw rents increase 10.2 per cent annually to an average of $3,991.

The vacancy rate in purpose-built rental buildings completed in the GTA since 2005 was 1.9 per cent in Q2-2023, edging up from 1.5 per cent a year ago, but remaining below 2 per cent for the sixth consecutive quarter. Meanwhile, only two purpose-built rental projects started construction in Q2 totaling 798 units, down 49 per cent from Q1 (1,555 starts) and falling 32 per cent below the quarterly average since 2018 (1,174 starts). The total number of rental units under construction in the GTA was 19,263 units in Q2, decreasing from the multi-decade high of 19,686 units in Q1.

and Fire

by Andy

As wildfires continue to blaze, property owners are feeling the heat

Smoke

Schwartze

Smokey the Bear must be having a very tough summer. Since June, out-of-control wildfires have been wreaking havoc across the continent, resulting in the evacuation of hundreds of communities and loss of property for countless individuals. Shortages of fire fighting personnel in Canada, not to mention equipment, resulted in pleas for assistance that brought help from as far away as South Africa. Blazing wildfires in Northern Ontario and Quebec resulted in a gray-yellow haze over cities as far as New York, while “winds aloft” pushed some of our smelly air all the way to northern France.

For climate activists, this is the kind of stuff that becomes a clarion call for immediate action on the part of governments, bureaucracies, and corporations to reduce the impact of harmful human activity on the planet. For the risk management world, the question is to what extent these significant events will impact the risk assessment and insurance underwriting communities. Insurance is generally a bit slow to react, but it never ignores new realities in the long run.

Case in point: about 15 years ago, we began to experience higher levels of rain, which on occasion, led to increased levels of flooding. Though insurance contracts have included flood coverage at a relatively low cost since the 1980s, the uptick in severe incidents (and their associated risks), saw it replace fire as the top new claims problem. This gave insurers a bit of a shock and someone had to “do something.” Pulling the coverage would have sparked outrage, so a better level of underwriting and pricing had to be invented — and indeed that is what happened. A major reinsurer, Swiss Re, decided to invest in the creation of a flood zoning system, which would enable underwriters to better gauge the exposure to risk associated with flooding. Beside a lake, near a river, or in a marshy area, the zoning system was improved upon and has now become a regular part of the underwriting of any property risk. In some cases, the exposure is negligible; in other cases, it is serious enough to warrant higher deductibles, rate surcharges, or even denial to include flood coverage in the insurance proposal.

Wildfires can be compared to flooding in that they can quickly spiral out of control, cover a lot of territory, and become extremely difficult to stop. This means they can trigger a significant level of property losses, not to mention their impact on peoples’ health, well-being, and certainly, their finances. It is not inconceivable that the underwriting world will ultimately use the same strategy that it did with flooding; that is, to map out areas and zones that are more prone to wildfire activity. The mapping system will probably need to be initiated and financed by a large, well heeled reinsurance company, as the merging of research data with useable technology, will be significant. But ultimately some form of differentiated risk assessment system will emerge that will be applied to this specific exposure. It is particularly important with respect to this problem that underwriting becomes more sophisticated as insurance statutes do not allow policies to have specific coverage exclusions for certain types of fires. We can not offer fire insurance coverage and then qualify it by excluding, for example, fire started by the barbeque in your backyard or

started by careless smoking in your home. All fires, no matter how they originate, are insured with the exception of arson.

As this long, hot summer abates, there will certainly be some introspection directed at how wildfire exposures can be mitigated. It is unrealistic to expect that policyholders will be able to initiate “loss prevention” measures. If your building is in a forested area, you are vulnerable. But, as always, in the end whatever system is developed will have a price tag attached to it. The resulting solution never changes. When losses mount, premiums will rise. Insurance costs are a simple reflection of societal problems that need to be paid for through the use of insurance.

For questions regarding multi-residential housing insurance, please visit: www.takecover.ca

WHAT’S TRENDING IN PROPTECH

Future-proofing your building begins with new technology

From Artificial Intelligence (AI) to Blockchain and Data Security, proptech innovation has come a long way. Here are some of the trending tools and technologies driving the sector forward:

• AI isn’t just able to process vast sums of data in real time, it also offers valuable insights and aids in improving structural reliability and minimizing harmful ecological impacts. Property managers are also using AI-based chatbots to stay connected with prospective tenants and address queries faster and more accurately.

• Immersive technology has made property tours a cinch, improving the customer experience and speeding up the leasing process.

• IoT devices for security and automation are making buildings safer for owners and tenants alike. IoT sensors are finding uses in just about all types of systems, from water pressure and electricity monitoring to indoor temperature controls.

• Big data and analytics provide insight into how the building is running, and what can be done to improve efficiencies across multiple portfolios and comparable buildings.

• Building Management Systems (BMS) control various systems within a building including heating, ventilation, and air conditioning (HVAC), to reduce waste and optimize performance.