GTA March/April 2022

F O R B U I L D I N G O W N E R S , A S S E T A N D P R O P E R T Y M A N AG E R S

VOL. 29 NO. 1 • APRIL 2022

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TABLE OF CONTENTS

CONTENTS 14

18

COVER STORY

04

THRUST FOR STRATEGIC SITES

14

A SQUEEZE ON SPRAWL

New focus on government property, service delivery and procurement

IN THIS ISSUE

08 16

Growth strategies grapple with housing needs

SURPLUS BASELOAD BARGAIN Ontario contemplates deep discount for overnight electricity use

ACCESSIBILITY STANDARDS New recognition speeds way for adoption into regulations

10

WATCHDOG EYES ELECTRICITY SUBSIDIES

18

FROM FLUX TO FLEX

Ontario Electricity Rebate accounts for largest portion of spending

COVID reconstitutes office demand

“THE U.S. HAS HAD A SWEETHEART DEAL FOR YEARS FOR THE SURPLUS POWER THAT IS SOLD OUT-OF-PROVINCE AT A NEGATIVE PRICE.” – SCOTT ROUSE, MANAGING PARTNER, ENERGY@WORK

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REGULAR MANAGEMENT REPORTING Accurate and timely financial statements.

DETAILED OPERATIONAL UPDATES Regular maintenance, reporting, marketing and developing each property to its best potential.

THRUST FOR STRATEGIC SITES New focus on government property, service delivery and procurement

T

he Ontario government is forging a new centralized agency to identify provincially owned sites with redevelopment potential, placing a priority on new uses that align with infrastructure initiatives. The agency, which was first promised in the government’s fall 2021 fiscal update, was enabled through recently

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adopted omnibus legislation that introduced two new Acts and amended nine others.

That includes the new Building Ontario Businesses Initiative Act to compel provincial departments, agencies and broader public sector entities to give preference to Ontario-based suppliers when procuring products and services, and an amendment

to the Fiscal Sustainability, Transparency and Accountability Act so that the government can postpone the mandated date for delivering the 2022-23 budget to as late as April 30.

“With this legislation, we want to create a business-ready environment for investment, put money back in people’s pockets and

REGULATORY UPDATE

make Ontario the number one choice in North America to raise a family and operate a business,” Nina Tangri, the Associate Minister of Small Business and Red Tape Reduction, asserted as she introduced the omnibus Bill 84 in the Ontario legislature in February.

“Cutting red tape and modernizing our regulatory system remains a top priority for this government,” affirmed Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade.

Among other measures announced in conjunction with the legislation, regulatory changes are promised to allow for third-party ownership of rooftop solar installations, giving building owners options to avoid upfront capital outlay and ongoing maintenance costs for renewable electricity generation.

“Clarifying the eligibility of third-party ownership arrangements such as leasing, financing and power purchase agreements, the [regulatory] amendments would broaden access to net metering for Ontario families, farmers and businesses,” the government’s accompanying backgrounder document states.

However, steps to do so are not actually included in the new legislation since the authority to set or amend regulations rests with the Minister, and legislative approval is not required. Neither does it address the announced plan for a pilot program to allow select auto dealerships to register new vehicles online and issue permits and plates to purchasers.

IMPLICATIONS FOR REAL ESTATE The proposed new Centre of Realty Excellence (CORE) was introduced through an amendment to the Ministry of Infrastructure Act, allowing for centralized oversight of government property. The resulting agency will be tasked with implementing a “coordinated and consistent approach” for achieving more productivity and value from obsolete or under-used government property, or for disposing of sites that are determined to no longer fulfill government or broader public sector needs.

The 2021 fall fiscal update described the envisioned agency as a “holistic sight line across the public sector” to designate surplus properties that could be quickly repurposed for long-term care homes or other initiatives deemed to be a priority.

“Taking a government-wide approach will help drive leaner processes and greater

BUSINESSES COULD QUALIFY FOR UP TO A FULL REIMBURSEMENT OF THEIR FEES IF A PROVINCIAL MINISTRY OR PRESCRIBED PROVINCIAL ENTITY FAILS TO COMPLY WITH PRESCRIBED SERVICE STANDARDS. efficiencies and allow the government to realize greater value nimbly and efficiently from government real estate, maximizing the value for Ontario taxpayers,” the fiscal update stated.

An online repository of real estate data is also promised for tracking the status of provincially owned and broader public sector properties, including municipal, school, university/college and health care sites.

CORPORATE OFFICERS TO ASSUME MORE LIABILITY Ontario employers and corporate officers could be in line for significantly steeper fines for violating the Occupational Health and Safety Act. Newly adopted amendments allow for a fivefold increase in the maximum fine levied to individuals, taking it up to $500,000, along with the inclusion of corporate officers on the list of those designated to hold corporate liability and potentially face fines of up to $1.5 million.

The move is part of a package of legislation in the omnibus Working for Workers Act, adopted this winter. It will impose new obligations on employers and professional/trades regulatory bodies through amendments to the Occupational Health and Safety Act, the Employment Standards Act and the Fair Access to Regulated Professions and Compulsory Trades Act. It also enacts the new Digital Platform Workers’ Rights Act to address minimum wage and working conditions for contractors to app-based service delivery channels such as Uber and Door Dash.

Of note for the property and facilities management sectors, the legislation aims to ease the transition for licensed trades and professions moving to Ontario from another province or territory within Canada. Amendment to the Fair Access to Regulated Professions and Compulsory Trades Act establishes a maximum period of 30 business days for regulatory bodies to process applications from qualified domestic labour mobility candidates, and to either grant credentials entitling applicants to work in their new jurisdictions or give reasons for refusal. As well, applications will have to be formally acknowledged within 10 days.

“We want more skilled professionals and tradespeople to come here,” says Monte McNaughton, Ontario’s Minister of Labour, Training and Skills Development.

“It’s never been more important that we attract more workers to fill in-demand jobs,” concurs Premier Doug Ford. “To do so, we’re cutting red tape to make it easier for skilled professionals from across Canada to get the papers they need to work in Ontario, faster.”

Other amendments to the Occupational Health and Safety Act would require employers to include naloxone in their emergency and first aid supplies if there is a reasonable risk of opioid abuse in the workplace, and to ensure that staff is appropriately trained to recognize the signs of an overdose and administer the antidote.

Also among the amendments, a list of 11 “aggravating factors” would be explicitly stated in the Act to provide context for determining penalties. These pertain to: the seriousness of harm to workers; defendants’ recklessness or lack of remorse; previous incidents of non-compliance or convictions under the Act; the influence of profit-seeking or cost-cutting motives in workplace conditions; and attempts to conceal the commission of a violation or failure to cooperate with investigating authorities.

An amendment under the Employment Standards Act requires employers to state policies and reveal intended practices for electronically monitoring employee activity in all workplaces with at least 25 employees. www.REMInetwork.com

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REGULATORY UPDATE

The Ministry of Government and Consumer Services will administer the information, which is to be open to the public.

“The portal could be used by both the public and government to identify potential synergies and strategic projects, and to provide more comprehensive options for government realty decisions. Although the portal is not included as part of the proposed legislative amendments to the Ministry of

Infrastructure Act, its implementation would help support the objectives of CORE,” the government’s accompanying backgrounder advises.

There are some direct implications for real estate owners/mangers or developers in changes to the Liquor Licence and Control Act, which will give the police broader powers to enter and inspect licensed establishments without a search warrant if

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they have a reasonable belief that the Act has been contravened.

For a much smaller number of mineral explorers, proposed changes to the Mining Act will allow owners or lessees of mining properties to claim the cost of consultation with aboriginal communities as an eligible component of retained proceeds from the sale of minerals that have been extracted for testing purposes. (Under the legislation, after designated exploration cost exemptions are subtracted, the balance of proceeds must be submitted to the Province.)

FEE REIMBURSEMENT Meanwhile, the two new Acts introduced through the omnibus legislation could resonate with commercial real estate operators and/or their service providers.

Under the new At Your Service Act, both types of businesses could qualify for up to a full reimbursement of their fees if a provincial Ministry or prescribed provincial entity fails to comply with prescribed service standards such as a required timelines for responding to applications for approvals, permits or licences.

Records of Ministries’ and other entities’ performance and required payouts are to be made publicly available online. Similar to the real estate database to support CORE, the government has also announced plans for a one-window portal for prospective new businesses to “access authoritative information and services they need to get up and running”, but those details are not found within the proposed Act. Under the Building Ontario Businesses Initiative Act, it’s intended that Ontario-based suppliers will be given priority in government and broader public sector procurement for purchases up to a prescribed threshold amount. Further details will be provided in the regulations.

In an associated pledge, the government is also committing to convert its vehicle fleet to made-in-Ontario electric or low-emission vehicles.

“Ontario businesses are critical in ensuring the future health of our provincial supply chain,” the government’s backgrounder maintains. “In the COVID-19 recovery phase, we are focused on protecting the progress that has been made and building up Ontario businesses to get our economy back on track.” ■

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ENERGY MANAGEMENT

SURPLUS BASELOAD

BARGAIN Ontario contemplates deep discount for overnight electricity use

A

proposed discount interval for Ontario’s time-of-use electricity rates could introduce ultra-low pricing for power consumption during overnight hours with a corresponding added premium during the on-peak periods of the day.

Energy Minister Todd Smith has instructed the Ontario Energy Board (OEB) to assess the logistical requirements and financial implications of this envisioned voluntary timeof-use option and report back this spring.

The proposal was also posted on Ontario’s Environmental Registry for public comment until March 29.

As outlined, three objectives underpin the initiative: • Providing more choice for residential, small business and farm customers subject to Ontario’s regulated price plan (RPP); • Increasing the efficiency of the electricity system if loads can be shifted to off-peak hours and reducing requirements for new infrastructure to meet peak demand; and • Supporting decarbonization through reduced demand for the natural gas-fired generation that typically goes online during peak demand periods.

A 2015 OEB pilot program, which offered select residential customers the option for ultra-low overnight prices in tandem with a higher on-peak price, is identified as a guiding model. Both Smith’s instructions to the OEB and the Environmental Registry also cite a 2020 meta-analysis of the regulated price plan, which concluded that revised overnight electricity rates could help encourage emissions-reducing behaviour.

“Over the coming years, electrification of emissions-intensive sectors is expected to provide opportunities to reduce provincewide emissions. This trend will also put

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pressure on the electricity grid. There is an opportunity to consider new rate designs that could anticipate increased electrification and support the decarbonization of the economy,” Smith states.

PROMPT FOR ENERGY STORAGE Supporters of the proposal maintain it would give Ontario residents a de facto “right of first refusal” on the surplus baseload generation that has long been exported at a loss to the United States during the hours when supply outstrips provincial demand. An overnight electricity discount could also improve the economics of charging electric vehicles (EVs) and/or large batteries used for energy storage, while associated higher on-peak rates could strengthen the case for solar generation.

“I think it is a step in the right direction. It is better to let Ontarians have the electricity at a deep discount during this time than to pay the U.S. to take it,” says Bala Gnanam, Vice President, Sustainability, Advocacy and Stakeholder Relations with the Building Owners and Managers Association (BOMA) of Canada and a member of the Independent Electricity System Operator’s (IESO) stakeholder advisory committee. “Beyond EVs, I am hopeful that this would spur adoption of residential energy storage technologies.”

“The U.S. has had a sweetheart deal for years for the surplus power that is sold outof-province at a negative price,” concurs Scott Rouse, Managing Partner with the consulting firm, Energy@Work. “This could be an investment in energy efficiency that delivers cheaper electricity and sustained environmental improvements.”

As part of its work, the OEB will be consulting stakeholders on specific proposed rate structures. The public consultation through the Environmental Registry sought

general input on: measures that can influence load shifting; how proposed higher on-peak and ultra-low overnight prices could help integrate looming electricity demand from EVs and other technologies into the distribution system; and how to balance optimum rate signals with cost recovery requirements.

CUSTOMERS NEED CERTAINTY “There is a huge need to re-evaluate the offpeak pricing, as it has always been way too high and provided little motivation to shift to offpeak use,” submits Andrew Pride, an engineer and consultant specializing in energy management and conservation strategies.

“The unpredictable nature of price signals is also a challenge for homeowners and businesses. The government has been changing the price signals throughout the past three years so there needs to be confidence that an ultra-low overnight rate will continue.”

He also urges the provincial government to include consumer protection mechanisms with its intended regulatory changes to allow for third-party ownership of solar rooftop installations (see story, page 4).

“While encouraging the renewable marketplace is a great idea, they have to be careful not to open up opportunities for scurrilous marketers of roof-top leases to take advantage of homeowners’ naivety,” Pride cautions. “That would be moving us back to the door-to-door marketing situations that have been fraught with challenges.”

Under Ontario’s three-interval time-of-use rates, RPP customers pay off-peak prices — currently set at 8.2 cents per kilowatt-hour — during the 12 hours from 7 p.m. to 7 a.m.

The provincial government intends to have the new time-of-use rate scheme available by April 2023. ■

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ENERGY MANAGEMENT

WATCHDOG EYES

ELECTRICITY SUBSIDIES Ontario Electricity Rebate accounts for largest portion of spending

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ntario’s spending watchdog calculates Class B commercial electricity customers will realize an $8.4 billion subsidy over 20 years through the transfer of a major share of renewable generation costs to the provincial tax base. A newly released report from the Financial Accountability Office (FAO) of Ontario pegs the total cost of nine provincial energy subsidy programs at more than $118 billion for the 2020-21 to 2039-40 period, with the largest portion of that ascribed to the Ontario Electricity Rebate (OER) for residential, small business and farm customers.

In 2021-22, the renewable cost shift — which removes approximately 85% of the costs for 33,000 wind, solar or bioenergy generation contracts from the electricity rate base — resulted in a 16% average hydro bill reduction for Class B commercial customers paying the global adjustment on a volumetric per-kilowatt-hour basis, and a 14 % average reduction for Class A customers with the option of participating in the Industrial Conservation Initiative.

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The provincial outlay for subsidies will diminish annually as renewable generation contracts expire, dipping to about 10% over the next 10 years then falling sharply and dissipating entirely over the remainder of the 2030s.

For the purposes of the report, the FAO lumps Class A commercial customers, with an annual average energy demand of 1 megawatt, in with industrial consumers. Together, those groups are projected to receive a $7.2 billion subsidy over the 20-year period of the renewable cost shift.

Small business customers will be eligible for an estimated $24.3 billion via the OER during the same timeframe.

For small business and residential account holders, including the multiresidential rental and condominium sectors, the FAO confirms that future costs will be lower than was envisioned under the previous government’s pricing scheme.

It would have seen electricity rates jumping 6% annually from 2022 to 2028, following a four-year period in which increases were kept on par with the inflation rate. In contrast, the current government has said it intends to hold increases to 2% annually.

Programs to address energy poverty accounted for $694 million in provincial spending or about 10% of the subsidies for 2021-22. This includes the energy portion of the Ontario Energy and Property Tax Credit (OEPTC) and the Ontario Electricity Support Program (OESP), which provides monthly on-bill credits for residential ratepayers with low to moderate incomes.

During the 20 years from 2020-21 to 2039-40, the FAO projects approximately $13.7 billion will be allocated to the energy portion of the OEPTC, which applies on heating fuel costs as well as electricity. The tax rebate amount, which topped out at $243 for eligible claimants in 2021-22, is indexed to the rate of inflation, underlying the FAO’s projection that it will increase by 2.8% annually.

In contrast, the OESP, which provides direct on-bill credits ranging from $35 to $113 per month for eligible customers, is not indexed to inflation and is projected to represent a smaller portion of total subsidies over time.

In 2021-22 it accounted for 2.5% of Ontario electricity subsidies versus a projected 2% for the entire period to 2040.

“The FAO projects that annual OESP spending will decline by $99 million from $181 million in 2020-21 to $82 million in 2039-40,” the report states. “Changes to the credit amounts and income brackets can be made through regulation, which the Province has done only once (in 2017) since the creation of the program in 2015. Consequently, the FAO has assumed no change to the credit amounts or income brackets over the 20-year review period. If the Province does change the credit amounts or income brackets, then the cost of the OESP will increase.” ■ ____________________________________________________________________ THE COMPLETE TEXT OF ONTARIO'S ENERGY AND ELECTRICITY SUBSIDY PROGRAMS, COST, RECENT CHANGES AND THE IMPACT ON ELECTRICITY BILLS, CAN BE FOUND AT WWW.FAO-ON.ORG/EN/ BLOG/PUBLICATIONS/ENERGY-AND-ELECTRICITY-2022

APRIL 2022

KingNorth_GTA_November_2015.indd 1

2015-11-02 11:31 AM

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SPONSORED CONTENT

Elevator Codes are Changing:

IS YOUR PROPERTY READY? Property Managers are not typically mindful of elevator codes and developments; however, incoming amendments to jurisdictionally adopted elevator codes (related to elevator safety and emergency features) will be affecting capital expenditure planning (CapEx) whether these are initially considered or not.

The Technical Safety Standards Association (TSSA) will be adopting the

ASME A17.1/B44-2019 code standards.

Some major changes include systematic improvements to elevator door protection and emergency communication protocols. Matthew Sayewich, Chief Financial Officer with March Elevator, elaborates: “Every elevator has a sensor that detects if someone is standing in between the doors so they do not close on them.

Typically, these sensors cover the width of the door frame. The new code is calling for 3D door protection, which means wider optical protection for those standing in front of the doors.”

Moving into further detail, Sayewich poses another example: “Think of those automatic doors at a mall; much like they’re programmed to slide open upon approach, building elevators will require this same type of coverage to ensure elevator doors do not close as one advances towards it.”

The second code change pertains to the addition of one-way video, two-way messaging emergency communication technology.

Traditionally, elevators have been equipped with a phone for use by riders in the event of any emergency.

This new protocol will require elevators to better support its passengers with hearing impairments by mandating a

form of one-way visual and two-way messaging communication. Ultimately, the objective is to provide a more comprehensive ADA (Americans with Disabilities Act) compliance.

“This mandate offers well-rounded support to accommodate all; thus including those who may not be able to use an audible phone,” Sayewich explains. “In addition to existing twoway audio, there will be a closed-loop video and screen to display questions from an attendant. This will allow passengers to answer with either buttons or touch screen commands.”

Accommodating this visual communication may require additional considerations to take place.

Supporting video communications, for example, may require buildings to develop an internal communications network that requires additional staff to accommodate technological upgrades. Alternatively, these monitoring requirements could be outsourced to an elevator contractor.

“That is where March Elevator, for example, could be monitoring at the other end of the phone or screen,” says Sayewich. “This would allow direct communication whenever someone requires assistance in one of our elevators, so we can swiftly and

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promptly address the situation.”

These changes bring heightened safety standards and reliability to elevator operations. Similarly, this will require upgrades to existing elevators and further network support to conclude in successful execution.

Why this matters to property stakeholders Property owners and managers generally do not have the bandwidth to familiarize themselves with new and changing elevator codes. Many entrust their elevator contractors or consulting engineers with the task of staying current. However, it is best practice for property stakeholders to be aware of all incoming changes, as these may alter budgeting plans and forecasts.

“The new code adoption effectively changes the implementation of new equipment. So, if a condo corporation is considering upgrades, these changes could influence the cost,” Sayewich suggests. “For example, if a quote for elevator work is given in 2021, but

property managers have decided to hold off on pursuing the contract for a year, the original quote may not be accurate anymore.”

As such, property owners ought to engage their elevator contractors or consultants presently to understand how these code changes will influence future CapEx planning.

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Adapting to ever-evolving building codes takes time. While new safety standards surrounding 3D door protection and video communications are not currently in effect, there is benefit in presently recognizing how new codes affect project timelines, costs, and the impact on those that may occupy the building.

Ultimately, these changes significantly upgrade elevator safety, however, they will require additional work. Even if property stakeholders are not currently planning any repairs or upgrades, it is in their best interest to keep up-todate with new and evolving changes to elevator codes and plan accordingly.

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A SQUEEZE ON SPRAWL

Growth strategies grapple with housing needs

BY ERIN RUDDY

O

ntario’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 expected to further spur housing development, particularly in neighbourhoods connected by transit.

However, the economics of affordable housing and municipalities’ receptiveness to vertical growth continue to pose challenges.

In 2019, Ontario’s A Place to Grow document painted a picture of vibrant GGH 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 not everyone is in favour of a plan that would take away fertile farmlands, inject more single-family homes and cut a massive highway through the Paris Galt Moraine, a

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130-kilometre geological feature formed by glaciers some 12,000 years ago.

Furthermore, many contend it doesn’t go far enough to address the province’s housing woes. Recently, “No Sprawl” groups have taken to social media to fight Premier Doug Ford’s vision and criticize what they see as his lack of regard for either the environment or 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.”

INTENSIFICATION OPTIONS Steve Lafleur, Senior Policy Analyst at the Fraser Institute, points to the stress that the rapidly growing population is already putting on housing prices.

“Not just in Toronto, but all throughout the GGH region, we can accommodate that demand by building upwards, outwards, or both,” he theorizes. “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 references a recent report by the Ontario 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,” he says. “The Minister of Municipal Affairs and Housing announced he will consult with municipalities about building more ‘missing middle’ housing. This 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.

PLANNING & DEVELOPMENT

“We’re in a housing crisis, therefore some urgency is warranted,” Lafleur maintains. “While steps to speed up the approval process are justified, giving people more freedom to build on their own land is a critical part of the solution.”

TRANSPORTATION TIE-IN Connecting the GGH: A Transportation Plan for the Greater Golden Horseshoe, the provincial government’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 wellfunctioning 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 well before COVID-19. While the pandemic diminished rental demand in the short-term, that demand is back, and some suburban markets are hotter than ever thanks to the rise of home offices and the continued exodus from downtown in pursuit 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 growing need.

In the meantime, Premier Ford is focusing on transportation and the prosperity it will bring to the fast-growing Greater Golden Horseshoe region for years to come.

“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 pronounced 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 of York Region, concurs.

“Investments in transportation help support our growing communities and provide residents and travellers with an enhanced transportation

ONTARIO ANNOUNCES MORE HOMES FOR EVERYONE ACT The Ontario government’s proposed More Homes for Everyone Act, introduced on March 30, is derived from recommendations from the Housing Affordability Task Force and the first-ever Provincial-Municipal Housing Summit.

“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,” asserts Premier Doug Ford.

The provincial government proposes: • Increasing the non-resident speculation tax rate to 20%, 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 homebuyers. This is in response to feedback the province solicited from municipalities regarding projects that are approved by the municipality, but unbuilt by the developer.

• 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 decision-making 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.

• 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 its 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 across different types of municipalities.

• Making better use of provincially owned lands for non-profit housing providers.

network whether walking, cycling, taking transit or driving,” he says. “Projects like the Bradford Bypass will make life easier for people by alleviating gridlock that already exists on our roads and highways.”

A PLACE TO GROW Ontario’s “A Place to Grow” plan aims to address the needs of the region’s growing population, diversity, people and priorities, with policies intended to:

• Build communities with a diverse range of housing types • Support a robust economy with many different job opportunities • Provide better transit connections between where people live and work • Support a thriving agricultural sector and community • Protect local water systems, wetlands, woodlands, plants and animals ■

_________________________________________________________________________________________ ERIN RUDDY IS THE EDITOR OF CANADIAN APARTMENT. www.REMInetwork.com

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ACCESSIBILITY STANDARDS New recognition speeds way for adoption into regulations

A

ccessibility Standards Canada is now formally under the umbrella of the Standards Council of Canada (SCC), putting it on a path to develop national standards.

The federal agency was established in 2019 under the mandate of the Accessible Canada Act to develop accessibility standards for federally regulated entities and to promote accessibility and inclusiveness through research and public engagement. It signed an accreditation agreement with SCC late last year, joining 12 other recognized organizations with qualifications to develop standards for industry, government and/or consumers.

“This opens the door to having the accessibility standards we create become part of the National Standards of Canada. It also means that our standards may be adopted into regulation more quickly, meaning they may have a greater impact and reach across Canada,” explains Philip Rizcallah, Chief Executive Officer of Accessibility Standards Canada.

Currently, Accessibility Standards Canada is working with another SCC accredited organization, the CSA Group, to update the circa 2018 CSA standard B651, Accessible Design for Built the Environment, and to develop two new standards: ASC/CSA B652, Accessible Homes; and ASC/CSA B651.2, Accessible Design for Automated Banking Machines and Self-service Interactive Devices.

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Standard B651 is already referenced in the National Building Code and it also underpins Rick Hanson Foundation Accessibility Certification (RHFAC). Updates will address: exterior environment; vertical transportation and moving walkways; indicators for tactile walking surfaces; interior rooms such as washrooms and kitchens; and emergency egress.

Canada Mortgage and Housing Corporation is funding development of the new Accessible Homes standard, which will provide guidance for the design, construction and modification of homes with an emphasis on affordability, adaptability and accessibility.

Rizcallah underscores the “nothing without us” principle at the core of Accessibility Standards Canada’s work, which relies on input and expertise from people with disabilities at every stage of standards development.

“We are thrilled that Accessibility Standards Canada has joined Canada’s standardization network,” says Chantal Guay, Chief Executive Officer of the Standards Council of Canada.

“Their knowledge and extensive experience in the areas of accessibility, social change, human rights and inclusion will greatly benefit Canadians as they develop standards that help eliminate barriers faced by people with disabilities.” ■

ONTARIO TO REVIEW ACCESSIBILITY IN PUBLIC SPACES Julie Sawchuk will chair a new Ontario committee tasked with reviewing accessibility in public spaces.

Sawchuk is an accessibility strategist, educator, professional speaker and one of the first Ontarians to be accredited as a Rick Hansen Foundation Accessibility Certification (RHFAC) designated professional. She will bring that insight and her own experiences of living with a spinal cord injury and mobility impairment to her new role.

“This is an opportunity to bring people together to share what is working and what needs to be done differently in design and construction and to listen to all the voices who are looking for change,” she says. “Creating accessible public spaces in Ontario is not the job of one person, it is the responsibility of all.”

The committee will assess current design standards for both indoor and outdoor venues and consider options for further improving accessibility for all potential users. It is composed of various stakeholder groups including people with disabilities, municipal and business representatives from throughout the province.

ACCESSIBILITY

Academic curriculum developers are exploring how to embed universal design standards into the programs and guiding principles of 12 Canadian architecture schools.

University of Waterloo has initiated the effort with support from newly announced grants from the Ontario government’s EnAbling Change Program.

The project proponents will take a twopronged approach, examining both course content and the schools’ own educational spaces. The latter will serve as a living lab for mitigating and removing barriers and applying innovative approaches to design, with the lessons learned then cycled back into students’ training.

Looking to the broader post-secondary sector, University of Waterloo has also received funding to develop a guiding framework for the design and development of new buildings and/or assessment and retrofit of existing campus facilities. It’s intended to broaden general understanding of how design decisions affect people with disabilities and to promote possibilities for inclusive spaces.

Together the two grants total nearly $225,000 and are part of an announcement of 14 new projects, collectively receiving about $1.3 million in funding, aimed at building awareness and improving accessibility. The EnAbling Change program supports shared-cost endeavours led by notfor-profit corporations, industry organizations or professional associations.

This year, the Ontario government had three priority objectives in its choice of grant recipients: • projects aligned with the economic bounce-back from COVID-19; • projects focused on online support for people with disabilities, seniors and/or marginalized communities; and • development of best practices that can be scaled up for broader use throughout the province or country.

Also of interest to the commercial real estate sector, the Retail Council of Canada has been awarded $120,000 to develop a webinar series and guidebook, which will provide information on preventing and removing barriers for both customers and employees within retail venues.

This will also focus on mental health and accessible online services.

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17

POST-PANDEMIC OUTLOOK

FROM FLUX

TO FLEX COVID reconstitutes office demand

I

nvestors have shown more confidence in suburban office properties than downtown buildings over the course of the COVID-19 pandemic. Reviewing the numbers during the release of the Canada Property Index 2021 results, Simon Fairchild, Executive Director with index producer, MSCI, noted the stronger recovery of suburban buildings following a year when office investments in general suffered a decline in value.

For 2021, office properties across the index delivered a 2.8% total return, rebounding from a negative 1.5% total return in 2020. Suburban properties were the greater contributor to

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that number, with an average total return of 4.3% versus a 2.4% total return for downtown office. (In 2020, the suburban office return was negative 0.9%, while downtown properties slipped further, to negative 1.7%.)

“What’s interesting, in terms of the fundamental performance that we see in these two categories: vacancies are creeping up in both suburban and downtown locations; rents and incomes are weakening in both,” Fairchild reported. “So the differentiation between the two is really cap rate driven. It could be investor demand rather than the fundamentals right now.”

Looking to those fundamentals, analysts generally conclude that most companies adjusted to different occupancy patterns over the past two years and few will be returning to the pre-pandemic norm of full staff complements in offices. As well, a sizable amount of new office supply is still under construction in Toronto and Vancouver markets, bringing yet more space to those markets in the coming months.

However, the initial economic drivers of that new construction are still very much in play. Speaking online, in conjunction with the recent release of his firm’s annual Market Outlook report, Paul Morassutti, Vice Chair, Valuation & Advisory Services with CBRE Canada, chronicled the trends.

“Without question, as tech goes, so too goes office,” he maintained. “In 2010, tech workers accounted for one in seven office workers. Today they account for one in four. We believe this expansion of our knowledge-based economy, which is still in its early stages, will continue to drive office demand. Toronto led every market in North America for tech job growth between 2019 and 2022; Vancouver was third. And, not surprisingly, leasing activity is currently strongest in these two markets.”

Meanwhile, CBRE is among the spate of global brokerages — also including Colliers, Cushman Wakefield and Newmark — that have moved to become suppliers of flex space to the office market. Morassutti affirmed that’s responding to tenants’ changing leasing strategies, in which they’re opting for a combination of long-term and short-term space within a building.

“The long-term lease is not dead, but today there is just a lot more options a company can have in the lifecycle of their organization,” he said. ■

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