September/October 2016 | HomeBuilder Magazine Canada

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September 2016

THE MAGAZINE OF THE CANADIAN HOME BUILDERS’ ASSOCIATION

ANNUAL RENOVATION ISSUE

Biting the Dust Seniors Mean Business Common Electrical Hazards in Older Homes Big to Small: Tool Talk Has It All Market Report: Alberta Understanding the Impact of CSA P.9-11 on Combination System Design

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contents

CHBA Report 26 27

14

President’s Message CEO’s Update

COMMON CENTS CONSTRUCTION: Would You Know a Suspicious Transaction if You Saw One?

Columns 9 Economics 10 Building Science 12 Customer Satisfaction 14 Common Cents Construction 15 Expert Opinion 28 Tool Talk

16

Departments

SENIORS MEAN BUSINESS

6

News 8 Association 30 Renovation 31 Calendar 31 Advertisers Index 31 Industry News

Does this growing demographic represent an opportunity for your company? CHBA research says the answer is a resounding “yes.”

9

ECONOMICS: 2016 A Strong Housing Starts Year Despite the Economy

COVER Shakespeare Homes & Renovations Inc. 2016 CHBA National Awards finalists, Renovation - any room.

Home BUILDER Magazine is published by Work-4 Projects Ltd. six times a year.

Editorial/Advertising: 4819 St. Charles Boulevard, Pierrefonds, Quebec, Canada, H9H 3C7. Tel.: 514-620-2200, E-mail: homebuilder@work4.ca.

Entire contents copyright September 2016 by Work-4 Projects Ltd. Reprints only by written permission. Opinions expressed are those of the authors or persons quoted and not necessarily those of the publisher or any other organization. The occasional appearance of photographs depicting safety violation does not represent an endorsement of the practice by the publisher or any other organization.

Subscription rates in Canada: $36* a year, $60* for two years, $80* for three years. U.S. and foreign subscriptions payable in U.S. funds only.

ISSN No. 0840-4348. Legal deposit — The National Library of Canada and Bibliothèque et Archives Nationales du Québec, 2007. Canada Post Permit #0295647. *Plus applicable taxes. GST/HST registration #R105741383 • Date of mailing: September 2016

In red-hot housing markets, where housing prices have increased by up to 30% within the last year, it can often be difficult to spot the difference between legitimate home purchases and illegal money looking for a place to hide.

22

BITING THE DUST Construction sites are known to be dusty and dust itself is not only bothersome, it can be deadly, dangerous or even explosive. Any renovator working in an occupied house knows that dust is his number one customer relations’ issue.

But what can or is being done about it?

At the outset of 2016 there was a broad range of expectations for housing starts.

However, well through the year, and the pace of new housing construction continues strong.

12

CUSTOMER SATISFACTION: Customers: Know Them to Delight Them Today’s customer experience begins long before a home shopper walks through the doors of a model home, and that experience continues long after a home buyer takes possession of a new home.

31

TOOL TALK: From the Biggest to the Smallest of New Tools Another stellar line-up of new products from our resident tool guru Jon Eakes.

20

MARKET REPORT: Alberta Forecasts, snapshots and a fond farewell to CHBA – Alberta CEO Jim Rivait.

Next Issue: November/December

The News, The Facts The Stories...

Industry Leaders Speak / Technology & Trends A selection of the latest opinions and advice to our readers— direct from top builders, contractors, renovators, designers, manufacturers, retailers, and industry professionals.

Integrating technology and communications into home design and decor, plus energy efficient trends, programs and solutions.

To book your premium ad space, call homeBUILDERcanada.com 514-620-2200 or e-mail sales@work4.ca

Home BUILDER September/October 2016 5

NEWS

CHBA: 2015 Economic Impacts of Residential Construction OTTAWA — The Canadian Home Builders’ Association (CHBA) has released its report on the 2015 Economic Impacts of Residential Con-

produced by the industry in 2015 exceeded $128 billion, based on Statistics Canada Building Permits data.

struction. The new estimates show that, in 2015, the industry supported

At the national level, construction of new homes represented 46%

over one million jobs in new home construction, renovation and repair,

of total residential investment, while renovation and repair of existing homes accounted for 54%.

Each year, CHBA produces detailed economic impact data for the residential construction industry, drawing on data compiled by Canada Mortgage and Housing Corporation and Statistics Canada. Analysis is conducted by Will Dunning Economic Research for the CHBA. Data are available at the national, provincial and territorial levels, and for 106 different regions and communities across the country. The full set of reports can be accessed at www.chba.ca.

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The Province: GVHBA CEO De Wit Estimates Job Loss in B.C.’s Residential Construction Industry In a recent interview with The Province, Bob

de

Wit, CEO of the

Greater Vancouver Home Builders Association, said job losses could be and continues to be one of the largest employers in Canada. One of every

as high as 5,000 positions by the end of the year if construction levels

18 workers in Canada is employed, directly or indirectly, in residential

decline in keeping with the reports he’s hearing from members.

construction. Total wages paid in 2015 were $58.5 billion.

The investment value of new homes, renovations and repairs

“It’s pretty straightforward,” said de Wit. “It’s buyers who will now have to pay this higher tax, so they don’t have personal resources to put into home improvements.”

CMHC: Atlantic Canada at Demographic Turning Point The Atlantic Provinces have a set of characteristics that make them

De Wit said that, to the extent that the tax pressure bites into presales and affects financing new projects, he doesn’t think it is a stretch to estimate a decline in housing starts that would put a 10% dent in Metro Vancouver’s 55,000-member workforce in residential construction.

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unique. This is evident in both their demographic trends and in how housing demand has evolved.

In the four Atlantic Provinces, the young adult population aged 25 – 34

BMO: Reducing Debt a Top Priority

has been dwindling while the population 75 and over continues to grow

CHICAGO — BMO Wealth Management (U.S.) has released a report,

rapidly. Fewer young adults means fewer household formations and a

Your Personal Net Worth Statement, which examines how Americans bal-

smaller and delayed pool of first-time home buyers. An aging population

ance their decisions between saving, investing, borrowing and spending

base, however, means a greater demand for rental accommodations. As

as they navigate different life stages and plan for their financial goals.

the population continues to age more rapidly, the availability of seniors’

The report showed that for almost a third of American respondents

housing and the ability to help others to age in place will be critical. C

(31%), the single most important financial priority is to reduce or eliminate debt.

The BMO report depicts

The Magazine of the Canadian Home Builders’ Association Vol. 29 No. 5 September/October 2016

the following financial priorities for Americans: Saving more (26%) Investing effectively and

Publisher Nachmi Artzy pub@work4.ca

A W O R K - 4 P R O J E C T S LT D . P U B L I C AT I O N

Contributors: Tim Bailey Tim Birnie Jon Eakes Jennifer Fiddian-Green Brian Jackson Peter Norman Gary Sharp

Production Manager Kelvin Chan production@ homebuildercanada.com Sales Coordinator Polly Ma coordinator@work4.ca Accounting Patricia Fleurent accounting@work4.ca Circulation Manager mail@work4.ca

Editor Judy Penz Sheluk editor@work4.ca

tax efficiently (21%) Budgeting (14%)

Published by Work-4 Projects Ltd.

Spending on personal

Advertising/Editorial: 4819 St. Charles Blvd.

Pierrefonds, Quebec Canada, H9H 3C7 Phone: 514-620-2200 www.homebuildercanada.com

of respondents. Millennials (aged 18-34) are focused on saving to meet

needs or goals (4%) The report also showed that priorities change depending on the age shorter term goals such as a downpayment to buy a home (30%). Meanwhile, the most important financial priority for Boomers (aged 52-70) is to reduce or eliminate debt (35%).

6

Home BUILDER September/October 2016

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SIZE MATTERS.

BILD Builds for Habitat for Humanity

TORONTO — Sixteen BILD members braved the scorching August heat and volunteered at Habitat for Humanity GTA’s Birchmount Road

When price is dictated by time and time is dictated by speed...SIZE MATTERS.

site building homes for low-income families.

The group of volunteers rolled up their sleeves and spent an entire day framing, putting in insulation, placing vapour barriers and installing casement windows.

At NUDURA, size does matter. NUDURA standard forms feature DURAMAX Technology™, the largest standard ICF block in the industry, allowing the placement of 12 square feet of wall area in one building step. Our DURAMAX Technology™ results in faster installation

When completed, the site’s eight two-storey semi-detached homes and one single-detached house will be home to nine families.

Submitted by Andrei Zaretski, BILD.

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First Five Homes Qualify for CHBA’s Net Zero Energy Label OTTAWA — On July 25, CHBA qualified five Net Zero Energy (NZE)

times, less waste and a reduced amount of seams.

homes built by Reid’s Heritage Homes, and the first Net Zero Energy ready

Building Has Evolved™ at NUDURA, allowing builders &

Energy Labelling Program Pilot. These are the first homes to qualify for

contractors to save time on labour, which is money, with the biggest block on the market.

(NZEr) home built by Lucchetta Homes, under the Associations’ Net Zero this prestigious recognition.

“The CHBA would like to congratulate the teams at Reid’s Heritage Homes and Lucchetta Homes for being the first to achieve this milestone under our new program.” said Sonja Winkelmann, Director, Net Zero Energy Housing. “We would also like to thank the CHBA’s NZE Qualified

Learn more at a NUDURA Training Academy Course

experts that supported the project—the Service Organization EnerQuality and Energy Advisor Andy Oding—for the third party testing and inspections. Together, the builders, their teams, and CHBA have reached a monumental point in Canadian housing.”

CHBA’s national Home Buyer Preference Study recently confirmed that today’s consumers are looking for energy efficient homes. The Net Zero Energy Labelling Program identifies the best of the best in home energy efficiency, and provides Third Party confirmation for both the industry and the consumer.

Visit www.nudura.com/trainingacademy for more information on courses near you.

www.nudura.com | 1-866-468-6299

8

Home BUILDER September/October 2016

Don’t Be Shy! Follow us on:

PRIMARY MEMBER

We know your local HBA is doing all sorts of great things in your community.

To share your story, email Judy Penz Sheluk at editor@work4.ca.

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ECONOMICS

2016 a Strong Housing Starts Year Despite the Economy

By Peter Norman

Budget 2016 announced some $1.4 billion in spending to be administered through the Investment in Affordable Housing (IAH) program.

At the outset of 2016, there was a broad range of

job growth— most recently 3.7%—into very strong in-

expectations for housing starts. Many banks started

migration and housing demand. B.C. is on track for

the year with fairly dour forecasts on the backs of slow

some 44,000 housing starts this year and if so, this will

economic growth and continued disruption in the energy

be a record year for new home construction. The strong

sector—as low as 170,000 units. Meanwhile, escalating

demand has been putting pressure on prices in recent

housing prices in the spring in certain markets raised

months, especially in the Vancouver lower mainland

concerns about a housing bubble, and British Columbia

area, which remains a somewhat supply constrained

new foreign buyer tax has raised uncertainties.

market.

However, well through the year, and the pace of new

In an effort to address price pressures, the B.C. gov-

housing construction continues strong. Total Canada-

ernment introduced a 15% foreign buyer property trans-

wide housing starts came in at 197,400 units season-

fer tax this summer. While there is considerable specu-

ally adjusted at annual rate (SAAR) over the first seven

lation now about the ultimate effect of the tax, it is our

months of 2016, according to CMHC, up 7% from the

opinion that there will likely not be any significant impact

same period last year. Both single-family and apartment

on the pace of new construction, which continues to be

starts are responsible for the surge this year, but most of

predominantly driven by job growth, demand from mil-

the gains are found in Ontario and B.C., largely offset by

lennials and domestic migration.

declines in Alberta, Saskatchewan and Atlantic Canada.

By contrast to the red-hot conditions in B.C. Alber-

The surprisingly strong pace of national starts holds

ta’s recessionary economy means slower conditions for

a couple of lessons about the nature of the current hous-

housing, but still holds some important lessons. Alberta

ing economy:

is now almost two years into its economic downturn

77 Despite seemingly sluggish overall GDP growth—the

brought on by a sharp decline in the price of oil in the

Canadian economy expanded just 1.0% in the year to

middle of 2014. In the past year the Alberta economy has

May 2016—the two-speed nature of growth continues

shed some 50,000 jobs and wildfires in Fort McMurray in

to keep housing demand strong in those regions such

the spring of this year took an even sharper dent out of

as Ontario and B.C., which are growing and attracting

the economy.

migration.

Despite all of this, Alberta’s housing sector is holding

77 Purpose-built rental construction is strongly on the

on. Housing starts through the first seven months of this

upswing. In 2015 there were over 21,000 rental starts

year averaged 24,000 units SAAR, which is down signifi-

in Canada’s 10 largest centres—more than double its

cantly from a 10-year average of about 35,000 starts, but

recent average. And purpose-built rental starts are

otherwise the housing market remains fairly balanced.

up a further 16% in the first half of 2016. The strength

Resale housing prices were up about 2% year-over-year

of this sector has to do with improving economics of

across the province in July and the New House Price Index

rental building investment, alongside increased appe-

has just dipped into negative territory. The steady perfor-

tite for this investment class from major pension funds

mance of the Alberta housing market through significant

and other institutional investors.

economic distress has been encouraging.

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77 Federal money is trickling into affordable housing.

Budget 2016 announced some $1.4 billion in spending to be administered through the Investment in Affordable Housing (IAH) program. While not all of these funds are related to new construction, or have been deployed yet, they are stimulating new construction of affordable units across the country.

77 Home buying intentions remain elevated, even in Alberta. According to the Altus Data Solutions Home Peter Norman is VP & Chief Economist at Altus Group and leads a national team of economic advisors providing policy analysis, feasibility assessment and economic intelligence to the homebuilding and real estate industry. He can be reached at peter.norman@ altusgroup.com.

buying Intentions Index, expectations remain elevated both among all households and current renter households. The areas with the strongest intentions remain Ontario, Atlantic Canada and Alberta (see Chart).

B.C. and Alberta: Contrasting Conditions One of the hotspots for new construction has been B.C., which has parlayed a nation-leading pace of recent

Home BUILDER

September/October 2016

9

BUILDING SCIENCE

Understanding the Impact of CSA P.9-11 on Combination System Design After the introduction of hydronic heating and instan-

By Brian Jackson

mechanical equipment.

taneous water heaters and boilers in the 1980s and early

The CSA P.9-11 standard, applied to ESNH, permits

’90s, there were countless issues that caused grief for

use of the prescriptive method and the BOP optional

builders, homeowners and manufacturers alike. In an

points awarded will be defined in the standard based on

effort to correct this legacy of mistakes, the CSA P.9-11

the type of home and its location. Since the CSA P.9-11

Standard was crafted.

standard applies to ESNH builders using combo systems,

CSA P.9-11 outlines a method to assess whether

it is mandatory to use systems with a certified CSA P.9-

multiple Combo System components from the same or

11 result to be certified to ESNH. The system Thermal

different manufacturers are working together to derive

Performance Factor (TPF) number will define the system

maximum system efficiency and to provide a standard

eligibility and whether optional points are awarded.

metric to compare different system approaches.

The trend toward smaller residences such as attached

Systems designers and builders have the freedom to

housing and multiple-unit buildings, with significantly

match up components as they see fit to make a complete

smaller heating loads, can lead to a mismatch between

Combo System. Any hot water source—instantaneous

the appliance capacity required for domestic water sup-

water heater, boiler, combo unit and tank—can be com-

ply (at 120-200 MBH), and the smaller space heat loads

bined with any fan coil—high or low velocity, multi-zone

of around 25 MBH. These two pieces of equipment work

or single zone. The components can

better when they’re more closely matched in capacity.

come from any manufacturer or mix

A 25 MBH fan coil and matched with a 150 MBH instan-

of manufacturers. This can create

taneous water heater will likely not work optimally and

problems if done without foresight.

may give you a low TPF.

Using this design approach doesn’t guarantee an efficient sys-

announced there were implementation problems:

components are combined. Dif-

The manufacturers of equipment who needed to con-

ferent components have different

duct the P.9 tests on their equipment found that there

characteristics, which makes pre-

were not many labs that could complete the work, and

dicting system performance at varyFor example, a 25,000 BTUH fan

upward of $10,000 per system. Moreover, not all

coil paired with a 120,000 BTUH

builders build to ENERGY STAR and the standard at

condensing

instantaneous

hot

the time applied only to ENERGY STAR builders.

water heating appliance with a 5:1

Natural Resources Canada (NRCan), the federal body

turndown ratio will operate reason-

that publishes the test results and determined the ini-

ably efficiently at 100% heating load

tial efficiency target, gave manufacturers six months

(which occurs approximately 10% of

to comply after releasing the TPF threshold.

the heating season), but very poor-

There was not enough time to meet the initial dead-

ly at most other conditions (which

line, which was, fortunately, extended. At the time of

occurs 90% of the time).

print there are 57 systems a designer can choose from

Such “mismatches” affect ENERGYSTAR for New

Brian Jackson is a professional engineer with 32 years experience in mechanical equipment design and systems application. With respect to CSA P.9-11, he ran the tests for Airmax/Flowmax Technologies, a manufacturing company that has a majority of the P.9-11 rated systems on the NRCan website.

only one in Canada.

For the manufacturers, the tests are expensive—

ing loads near impossible.

Complete P.9-11 Rated System

Immediately after the Standard adoption was

tem even if two high-efficiency

and more are in the test phase.

Home (ESNH) builders where CSA P.9-11 is a require-

The CSA P.9-11 requirement has now been adopted

ment. Building designers wishing to ensure compliance

into Canada’s National Building Code as a minimum

with ESNH can approach it in one of two ways: prescrip-

requirement with a relatively low TPF. It is being men-

tive or performance. The prescriptive method involves

tioned in some Provincial codes as well.

choosing a Builder Option Package (BOP)—a set of pre-

The rationale behind the CSA P.9-11 standard is

scribed building details that when combined ensure

sound. It defines your chosen system performance and

compliance with the code.

efficiency and gives third party verification that the set

The performance method is used when you do not

of components will perform properly if applied correctly.

or cannot comply with the standard set of details in

Manufacturers are working on the next generation

the prescriptive method. In this application, a builder

of instantaneous water heaters and boilers that can

employs an energy-evaluating firm to model the build-

modulate lower and maintain thermal efficiency at lower

ing envelope to optimize energy efficiency by defining

modulation levels to properly align with the smaller load

the building construction techniques and all construc-

requirements of the fan coil.

tion details like insulation, architectural materials and

10 Home BUILDER September/October 2016

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Customer satisfaction

Customers: Know Them to Delight Them Today’s customers approach home buying from

By Tim Bailey

The 2016 study generated big data on home features

moment they start shopping they expect data, customer

and design preferences. When analyzing the array of

reviews, virtual tours, social media interaction and more.

items that home buyers ranked on a scale from “must

The customer experience begins long before a home

have” to “not important at all,” there are three distinct

shopper walks through the doors of a model home, and

themes that emerge in the study. The first is the impor-

that experience continues long after a home buyer takes

tance of energy-efficiency to today’s home buyers. A

possession of a new home. Designing homes and a home

second is a strong desire for storage spaces. And the

buying experience with an intimate understanding of

third affirms that the kitchen is truly mission-control for

today’s customers is a key element for success.

today’s home buyers.

In 2015, the Canadian Home Builders’ Association

the 2016 study is:

nationwide market preference study for the home build-

1. Walk-in closets 2. Energy-efficient appliances 3. High-efficiency windows 4. Overall energy-efficient home 5. Linen closets 6. Kitchen island 7. Open-concept kitchen 8. 2-car garage 9. Large windows 10. HRV-ERV air exchange system

and expanded, including an even larger sample size of Canadian home buyers. The 2016 study surveyed over 23,400 new home owners across eight provinces in Canada to determine key characteristics of today’s new home buyers.

Acquiring Today’s Home Buyer Data from the 2016 study reveals that 52.8% of customers still rely on visiting model homes and sales centres or driving by the community as their “first” resource

Community Amenities

in searching for a new home. Internet searches and

The cycle time involved in land planning, develop-

builders’ websites combine to be a “first” resource for an

ment and home building makes it crucial to understand

additional 28.5% of home shoppers. The data suggests

the needs of today’s home buyers. Designing homes to

that many home shoppers still drive to locations and visit

meet these needs and preferences is one element, but

models or sales centres to determine where they want to

planning and designing communities with that same

live first, rather than researching builders prior to decid-

focus is equally important.

ing on a location.

In the low-rise market, community preferences indi-

The home search then moves from “discovery” to

cate that today’s home buyers are seeking an active

“research” after home shoppers find desired locations.

lifestyle. The findings reveal that the “Top 3” desired

For the research part of the process, 85.0% rank the

community features are:

Internet as important and 88.1% rank a builder’s website

1. Walking and biking trails 2. Parks and recreation centers 3. Overall community landscaping In the mid-rise and high-rise market, the most desired features include: 1. 24-hour security 2. Wireless Internet throughout the building 3. Health club or gym

as important when asked about the “preferred” resources used for “finding” a builder. An increasing trend is apparent since year one of the study for the importance of social media as a resource for finding a builder, with 55.4% of home buyers ranking social media as important.

Shortlisting prospective home builders is the initial step for home buyers. As the home buying journey continues, builders must be mindful of the key resources buyers rely on to ultimately select a builder in their “final Tim Bailey is Division President of Avid Ratings Canada, a leading provider of customer loyalty research and consulting to the home building industry.

Through the Avid system, industry-leading clients improve referrals, reduce warranty costs, and strengthen their brand. He can be reached at tim.bailey@ avidratings.ca.

The “Top 10 List” across Canada for home features in

and Avid Ratings Canada conducted a first-of-its-kind ing industry. In 2016, this research study was repeated

52.8% of customers still rely on visiting model homes and sales centres or driving by the community as their “first” resource in searching for a new home.

Home Features and Design Preferences

many angles and demand a lot of information. From the

Knowledge Is Power

decision.” Preferred resources used for the final pur-

“The customer experience is the next competitive

chasing decision include pricing, specifications, model

battleground,” according to Jerry Gregoire, former CIO

homes/sales centres and other tools common to the

of Dell and Pepsi. And the best way to deliver a great

home buying process, however, digital information is

customer experience is to deeply know your custom-

increasingly important. A builder’s website again ranks

ers. The CHBA Home Buyer Preference Study contains

high, with 88% of buyers indicating it is an important

important insight on today’s home buyers to help builders

resource in their final purchasing decision. Also in the

better understand today’s home buyers in order to design

digital domain, findings reveal that 85.5% of respon-

products and experiences which yield the highest levels

dents rely on online customer reviews as an important

of customer satisfaction.

resource in their final purchasing decision.

12 Home BUILDER September/October 2016

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COMMON CENTS CONSTRUCTION

Would You Know a Suspicious Transaction If You Saw One? In red-hot housing markets, where housing prices

By Jennifer Fiddian-Green

Historic laxity in suspicious transaction reporting—

often be difficult to spot the difference between legiti-

combined with the complex forms today that real estate

mate home purchases and illegal money looking for a

based money laundering can take—makes it difficult to

place to hide. That’s why the Canada Revenue Agency

identify when it is happening and to understand your

(CRA), along with the Financial Transactions and Reports

business’ inherent risk. That said, watch for the follow-

Analysis Centre of Canada (FINTRAC)—Canada’s anti-

ing red flags:

money laundering (AML) regulator—has launched an

uu Cash payments

investigation into the prevalence of tax evasion, money

uu Purchases by straw buyers or in the name of family

laundering and terrorist financing in Metro Vancouver.

According to leaked government documents, the

Historic laxity in suspicious transaction reporting— combined with the complex forms real estatebased money laundering— makes it difficult to define typical risks.

members uu Property seemingly beyond a buyer’s means

purpose of the investigation is to “increase visibility”

uu Quick property turnaround

in the real estate market and “lead to more tax compli-

uu Quick property liquidation

ance.” The CRA will be auditing individuals who seem

uu Complex ownership by corporate entities

to be living beyond their means, as well as exploring

uu Properties purchased, then left vacant

possible instances of house flipping, identifying builders

Look for evidence that funding sources are being mis-

who don’t comply with filing regulations and measuring

represented. This can be difficult as money laundering is

compliance with non-resident filing requirements. These

rarely cut and dry, and many not relate to cash.

issues, combined with generally low levels of “suspicious transaction” reporting by real estate agents, are making

Putting Proper AML Measures In Place

the real estate industry vulnerable to money laundering.

To protect your business and demonstrate AML com-

Even if you’re not based in a large city centre, you

pliance, make sure you know the parties you are dealing

would be wise to review Canada’s Proceeds of Crime

with and have an understanding of the source of their

(Money Laundering) and Terrorist Financing Act (PCMLT-

funds. Ensure you have thorough, well-documented

FA), along with relevant guidelines set out by FINTRAC,

records, including how you’ve ascertained buyer identi-

to ensure you have the proper compliance measures in

ties and looked into pos­sible third-party representation.

place.

You must also record:

Know Your Responsibilities Under PCMLTFA, most real estate developers, brokers and sales representatives should have a sound compli-

uu Large cash transactions and receipts, uu Client information, uu Copies of official corporate records (binding provisions),

ance program in place to assess the risks associated with

uu Copies of suspicious transaction reports,

money laundering and terrorist financing—and should

uu The purpose and intended nature of your business

regularly monitor high-risk areas. Your program should comprise: uu The appointment of a compliance officer, uu The development and application of written compliance policies and procedures, uu The assessment and documentation of risks of money laundering and terrorist financing, and measures to mitigate high risk, uu Implementation and documentation of an ongoing compliance training program, and

Jennifer Fiddian-Green is a partner with Grant Thornton LLP and leads the firm’s national Forensic and Dispute Resolution practice as well as the Anti-Money Laundering Services practice. Jennifer is a qualified investigation and forensic accountant, as well as, an anti-money laundering (AML) specialist.

Identifying Risks

have increased by up to 30% within the last year, it can

relationships, and uu Measures taken to monitor business relationships and information obtained as a result.

This documentation will demonstrate the extent of your AML compliance efforts and the strength of your compliance regime should FINTRAC choose to audit it.

Avoid Penalties A strong compliance regime will help you protect your organization, avoid significant financial sanctions, and

uu A documented review of the effectiveness of policies

mitigate criminal and terrorist infiltration of Canada’s

and procedures, training program and risk assess-

housing markets. FINTRAC has imposed $113,000 of

ment.

fines on the real estate sector, and PCMLTFA penalties—

Importantly, you must also foster a culture of compli-

such as failure to report suspicious transactions—can be

ance—one that is adopted, promoted and supported by management and real estate professionals alike.

This means sitting down as a team to identify areas of money laundering and terrorist financing risks, make sure proper measures are in place, and outline ways to execute those measures.

14 Home BUILDER September/October 2016

up to $1 million and/or jail time.

With these hefty consequences—and the government’s pending investigation—in mind, it’s critical to implement a strong AML compliance regime now.

C

EXPERT OPINION

Common Electrical Hazards in Older Homes There’s a certain charm in owning an older home.

New developments just can’t emulate the distinct architecture, craftsmanship and unique history that are synonymous with living in one.

While these character homes have a unique tale to tell, homeowners are realizing that curb appeal alone won’t protect their wires from today’s electrical demands.

By Tim Birnie

The data gathered from Birnie Electric’s awardwinning Electrical Hazard Detection (EHD), inspections, confirms that 99% of older homes inspected harbour electrical defects; 40% of these residences contain dangerous shock hazards.

According to the Electrical Safety Foundation International (ESFI) electrical fires account for 51,000 fires

Innovative technology, such as speciality infrared scanners, is used to inspect the electrical panel in older homes.

each year in North America. When the electrical hasn’t

According to the EFSI, homes wired with aluminum are 55 times more likely to pose a fire risk than homes wired with copper if not properly maintained.

been upgraded in 50 years, the odds of a fire risk are

rewired. This is performed by bridging a new copper

greatly increased. Most homeowners are unaware of the

pigtail between existing aluminum wire and the electrical

dangers lurking behind their walls.

device; receptacles and switches should also be replaced

That’s why I’m an advocate for electrical safety educa-

with ones that are suited for aluminum wiring. According

tion. Here are the top six electrical hazards encountered

to the EFSI, homes wired with aluminum are 55 times

when renovating the electrical in older homes:

more likely to pose a fire risk than homes wired with copper if not properly maintained.

Overloaded Circuits: An overloaded circuit draws in more current than the circuit can handle. This occurs when there are too many devices plugged in at once. On a 15amp circuit, the Electrical Safety Authority (ESA), says residents should only draw 12 amps or 80% of the circuit’s rating. Overloaded circuits are particularly common in older homes because they lack the electrical infrastructure, and adequate outlets, to safely power appliances.

redistributing power to another area of the home. Some extension cords are built with multiple outlet ports, which may prompt homeowners to take advantage of the added space. We don’t realize that, while the manufacturer has increased the number of outlets, we are not increasing the amperage of the circuit. We’ve visited homes that

Aged Wiring: Over time, the wires behind our walls degrade. It’s this inevitable wear-and-tear and the excessive heat caused by potentially overloaded circuits that compromise the insulation surrounding the electrical wires, which is particularly common with two-wire knob and tube systems. This is dangerous because, without insulation, you are exposing live wires.

Missing or non-functioning GFCIs: GFCI technology was introduced in the 1970s. This system, which pre-

Tim Birnie, P. Eng. Is the President of Birnie Electric, a family owned and operated company, founded in 1967, that provides design/build, electrical contracting and datacomm services. In 2010 Tim Founded, Birnie CurrentSAFE, an Electrical Hazards Detection program, the first of its kind, that detects and prevent electrical hazards hidden behind the walls. Tim can be reached at tbirnie@birnie.com.

Extension Cords: In spite of their rating, extension cords should never be used as a long-term solution for

vents ground faults and shock hazards, is now installed in areas where water may come into contact with electrical devices. The Canadian Electrical Code 26-700 (11) states that receptacles within 1.5m of sinks, bathtubs or shower stalls must be replaced with GFCI receptacles.

had more extension cords than circuits because the homeowner needed to power their electronics in different areas of their house.

Smoke Alarms: About 61% of the homes inspected have inadequate, expired or non-existent smoke alarms. According to the Ontario Association of Fire Chiefs (OAFC), smoke alarms must be installed in every sleeping room, between sleeping rooms, in hallways that serve as sleeping rooms and on every story of the house. Hard-wired smoke detectors must be replaced after 10 years of installation. It’s also recommended that older homes upgrade to battery-operated smoke alarms, because those connected directly to the electrical power supply won’t operate during power outages.

Today, GFCIs come in breaker and receptacle form.

Many older homes have non-existent or non-functioning

Older homes have a certain presence that’s made

GFCIs, because this system didn’t exist when the home

them a hot commodity for millennial couples and

was built, or the homeowner failed to replace the recep-

homeowners who don’t want to part with their beloved

tacle every 10 years.

home. It’s important to understand that, while some of us are drawn to the old-school aesthetic of a character

Aluminum Wiring: Contrary to popular belief, homes with aluminum need to be maintained and not

home, its electrical will warrant a twenty-first century facelift.

C

Home BUILDER

September/October 2016

15

renovation report

Seniors Mean Business

By Gary Sharp

I keep hearing about the seniors market and what an opportunity it presents to both new home builders and to renovators. Is it all just hype?

Nova Scotia, Prince Edward Island and Quebec, respectively. The percentage of seniors is growing over the 2016 to 2036 timeframe making seniors’ business even more important to those provincial economies. So even though

My research says it’s real, and it’s available, but if you don’t understand it and prepare for it,

seniors” years and a smaller Generation X is

Ontario, Quebec, B.C. and Alberta have more

just entering their senior years.

seniors, the Atlantic Provinces and Quebec

you won’t get any of it. This article will take a

Interestingly, the 100+ age group is the fast-

seniors represent a higher proportion of the

close look at the data we have so far. You can

est growing, highlighting our generally longer

population. Note: In Quebec, the total number

judge if this growing demographic represents

life spans. However, even in 2036 the 100+

of seniors is forecast to grow faster than the

an opportunity for you.

age group may only represent a total of 20,000

general population, making the seniors demo-

people across the country.

graphic even more important in that province

Big Picture Data For the purposes of this article “seniors” are everyone over 65 years old.

This year we have almost six million seniors in Canada. The seniors group makes up about 17% of Canada’s total population. Estimates are that by 2036 seniors will make up nearly 24% of Canada’s population, which is forecast to be approximately 43 million people. It should be noted that Canada’s population is growing, but the number of seniors is growing

The majority of seniors are living in Ontar-

in the years ahead.

io, followed by Quebec, British Columbia and

Forecasting the seniors’ market is a tricky

Alberta, respectively. The projections do not

business and governments will play a key role

show this changing with time. These four prov-

in whether the numbers are even close to being

Price will be less of a senior’s concern but quality will be demanded.

at an even faster rate. In rough numbers we

correct. For example, pressures on provincial healthcare systems have the potential to impact Charts 2, 3 & 4. Clearly as the percentage of seniors becomes more of the total population, the demand for health services increases while the number of working residents to pay for those services is decreasing. Chart 5 illustrates physician-to-population ratios. The

have six million seniors now and will likely

inces appear to be the locations of choice

College of Family Physicians Canada reports

have ten million in 2036.

(Chart 2). Note that the growth rate for seniors

that physicians are currently working over 46

(Chart 3) shows that Ontario has the highest,

hours per week, of which approximately 25+

again, followed by Quebec, B.C. and Alberta.

of those hours are actually seeing patients. If

The make-up of the seniors is shown in Chart 1. As one might expect, the highest population of seniors is in the youngest age group

Atlantic Canada tells a different story. Chart

the ratios in Chart 4 rise, seniors may choose

(65-69), declining to the oldest age group,

4 shows the percentage of the seniors’ popu-

to move to a province that can offer better

except in year 2036. By 2036, we are forecast

lation compared with the total population of

service. Alternatively, physicians may move to

to see a declining growth rate of the 65-69 age

each province. The province with the highest

a province where the workload is not as high.

group. This signals that the Baby Boom Gen-

percentage of total population being seniors is

eration will have moved through their “early

Newfoundland, followed by New Brunswick,

16 Home BUILDER September/October 2016

As seniors increasingly face life alone, their needs change. This year we have an imbalance 418

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It’s worth another look.

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The Evolution of Insulation

RENOVATION REPORT

of renovations completed is high, making the seniors business an important component of the renovation industry.

single-family homes even if that means living

SOURCE: STATISTICS CANADA

SOURCE: STATISTICS CANADA

The message for new home builders is that many seniors are choosing to continue living in alone. There are indications of competition in some parts of the country for larger homes. The Baby Boomer generation appears to be outbidding younger households with families for

Chart 1

these houses. For example, a recent U.S. sur-

Chart 4

SOURCE: STATISTICS CANADA AND CANADIAN MEDICAL ASSOCIATION

vey on Baby Boomers found that 37% of them have plans to move from their current home, and 46% of these “movers” are looking for nicer homes and more space, not less. Another significant finding from this survey was that SOURCE: STATISTICS CANADA

whether upsizing or downsizing, these “mov-

Chart 2

ers” are looking for single-storey homes and more that 69% of Baby Boomers want a yard or a garden.

The seniors group makes up about 17% of Canada’s total population.

Chart 5

Seniors will have an impact on renovators

Chart 3

graphic too. Our research shows that single

SOURCE: STATISTICS CANADA

SOURCE: STATISTICS CANADA

and how they approach this market demosenior women respond best to other females. If renovators don’t have female sales staff today to service this group, they need to make plans to do so if they want this business. It all starts by sending the right person on the sales call.

To be successful in the seniors market,

Chart 6

164 in the seniors’ population with 560,000 more

builders and renovators will need to educate

make sense to offer additional services—or

women than men. This imbalance is expected

themselves and provide the service desired by

team up with others who can provide grass

to grow by year 2036 to almost 700,000 more

the seniors to assist them in staying in their

cutting, snow plowing, window and house

women than men in the senior demographic.

homes. New homes that meet their changing

cleaning services while your company supplies

Chart 6 shows that the number of these single

needs will also be in demand. Price will be

the home maintenance, repair and renovation.

seniors will rise the fastest in Ontario, growing

less of a senior’s concern but quality will be

The seniors market is real but to get it may

from 224,000 today to 275,000 in 2036.

demanded.

require a re-thinking of how you are doing

Renovators will also need to understand

business now.

C

Adapting for Builders and Renovators

the needs of their market. Look for smaller

So what does this mean for builders and

renovation projects from seniors, but more

renovators? It means that the seniors popu-

projects overall. This will affect how you plan

lation represents a growing market in all of

for jobs, how many staff you need and the types

Canada’s provinces. In Ontario alone, we can

of work they are doing on site. Staff assigned to

expect the number of seniors to grow from 2.3

work with the seniors will need to be carefully

million this year to 4.1 million in 2036. That’s

selected and trained. Understand the sensi-

a 78% increase in Ontario over 20 years. While

tivities of the seniors and ensure that staff is

builder training, new product development as well as

renovations for seniors tend to be a lower

aware of these.

sales and marketing advice to both private industry

dollar value per renovation, the total number

18 Home BUILDER September/October 2016

In both new homes and renovations it may

Gary Sharp became the CHBA’s first Director, Renovator Services in June 2015. Gary is a licensed Professional Engineer in the Province of Ontario. He is responsible for the Canadian Renovators Council and the Builders’ Manual. He has been involved in the construction and renovation industry for over 25 years, providing building services, engineering,

and government.

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Market report

Alberta:

Forecasts, Snapshots and a Fond Farewell It’s no secret Alberta faces challenging times and, even though

Submitted by CHBA – Alberta

CHBA members expect a modest recovery next year, the industry is not expected to approach recent activity levels anytime soon.

For the first seven months of the year, total

communicated. Detailed technical reviews are underway that will lead up to a new MGA being

Fort McMurray Fire

approved this fall with regulations to be drafted

starts in Alberta dropped 40% from the same

The fire that swept through Fort McMurray

and implemented in 2017. Overall, the propos-

2015 period to just 12,592 units. ATB Financial

in early May destroyed 2,400 buildings, includ-

als will be positive for industry and Albertans

forecasts we’ll reach 23,600 starts by year

ing many homes. There is still much to be done

and include expanding the mandate of the

end—down sharply from the 2015 total of

but the first signs of progress are emerging,

Alberta Ombudsman to include oversight of

37,500 new single- and multi-family homes.

with builders signing sales agreements and the

municipalities and encourage accountability.

The province’s two biggest markets—Cal-

municipality issuing the first building permits.

gary and Edmonton—are clearly seeing the

It will likely be several years before the work is

impact of low energy prices.

Big changes are coming to Alberta as the

Calgary is down 33% to 4,951

government rolls out programs to address

Housing market intelligence you can count on

Total Housing Starts

units. Edmonton’s drop of almost 50% to 5,702 units is

Climate Change climate change and reduce greenhouse gas

Alberta - All Areas

units

emissions. The new CHBA – Alberta Climate

steeper in percentage terms in

40,000

Leadership Committee is working to become

part because construction in

35,000

the industry resource for the provincial govern-

the provincial capital contin-

30,000

ued to increase last year even

25,000

while Calgary was posting a

20,000

25% decline.

15,000

environmental impacts. A new agency—Ener-

Alberta’s mid-sized mar-

10,000

gy Efficiency Alberta—has been established

kets are also scaling back pro-

5,000 2011

up to 90% in fire-ravaged Fort McMurray. Grande Prairie,

and will also encourage members to become

2012

2013

2014

2015

2016 Jan. June

leaders in energy efficiency and reduction of source: cmhc

0

duction with declines ranging

ment as it relates to any climate change policy Multi-family Single-family

Source: CMHC

to promote and support energy efficiency and community energy systems for homes, businesses and communities. The agency is expected to invest $645 million over 5 years in

with starts up 26% thanks to a bump up in

completed. CHBA – Alberta supported the pro-

funding generated by a new carbon levy that

multi-family home construction, is the only

vincial government’s move to require builders

takes effect in the new year.

market in the province to see gains.

in Fort McMurray to submit a builder declara-

Fond Farewell

On the positive side, declines in both new

tion through the New Home Buyer Registry

home construction and MLS sales have not trig-

before applying for a building permit. The pro-

CEO Jim Rivait is

gered significant price changes. Across Alber-

vincial government also announced it would

leaving after six suc-

ta, the average residential price of $395,087

introduce builder licensing legislation this fall.

cessful years lead-

is down just 0.6% for the year. Calgary prices have gained 1.1% on the year while Edmonton

New Municipal Government Act

ing CHBA – Alberta.

Rivait has worked

We’ve been through four Premiers and a

under seven Associ-

The resiliency of resale prices has helped

change in governing parties since the Munici-

ation Presidents and

calm concerns about the long-term prospects

pal Government Act review was first launched.

Boards of Directors.

for the housing market. ATB Financial fore-

CHBA – Alberta was closely involved in consul-

Over that period the

casts starts will rise about 17% in each of the

tations over the years, leading up to province-

capacity to advo-

next two years to 32,100 in 2018.

wide town hall sessions to gather input on

cate on behalf of

prices are flat.

Jim Rivait

Of course, the economy isn’t the only thing

proposed changes. Member engagement tool

industry has grown. The Association remains

on the minds of Alberta’s CHBA members these

kits helped ensure key messages about afford-

on a strong financial footing with professional

days. Here are snapshots of other industry

ability of homes and availability of a range of

staff focused on serving its more than 1,600

issues:

housing options were strongly and effectively

members across the province.

20 Home BUILDER September/October 2016

C

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Brandon

DUST control

Over the years, techniques and equipment for controlling dust have developed, largely from the German influence of Bosch, but it is with the legislation regarding silica dust that all manufacturers have been jumping forward the last few years with new and better systems because they knew dust control was going to be severely monitored. Every major tool manufacturer is accelerating their dust control product development, sometimes with accessories that can be used with all tools, often with

By Jon Eakes

specific attachments to marry their own tools.

Biting the Dust HEPA (high-efficiency particulate air) filtered

Construction sites are known to be dusty and dust is not only bothersome, but it can also be deadly, dangerous or even explosive. Asbestos dust proved to be so deadly that the material itself has been banned and any existing clean up requires full HAZMAT protocols.

vacuums are the backbone to most dust collection systems, and some work better than others. If the dust goes through poorly sealed joints around the filter, the fancy filter does no good.

Basically, dust control techniques combine one or more of the following:

Ban It This was done with asbestos and lead in paints.

Make It Heavier Dust control drywall compound has been around a few years now. When you sand it, the Small fiberglass fibres are an irritant

stone and concrete as was

dust particles cling together and become heavy

to the lungs, but although they are about

done with asbestos. Although it

enough to fall to the floor rather than float all

the same size as asbestos fibres, the lungs

was identified as a health danger in the

over the house.

can actually decompose and clean out

Italian quarries over 300 years ago, it wasn’t

small quantities so a simple dust mask is often

until 1935 that awareness of the problem

sufficient for protection. Fine sawdust is liter-

became a research and educational concern in

Wet sawing ceramic tiles or concrete solves

ally explosive and allowing a shop atmosphere

the United States. Dust control improved, large-

two problems: It cools the blade and traps the

to be full of such dust is against the fire codes,

ly on a voluntary basis and when Occupational

dangerous dust in a water slurry.

requiring dust collection at all machines as

Safety and Health Administration (OSHA) was

Wetting barrels between the tool and the

well as air cleaning devices where needed.

created in 1971 some minimum controls were

vacuum is actually a form of wet entrapment,

Any renovator working in an occupied house

put into place. It took 35 more years, until the

especially useful with drywall dust as the water

knows that dust is his number one customer

spring of 2016, for the US government through

is neither near the water sensitive wall nor

relations issue.

OSHA to establish true worker protection stan-

near the vacuum. The dust is directed down to

Crystalline silica dust from concrete and

dards for crystalline silica dust in the manufac-

the surface of the water where the dust sticks

masonry is a Class I carcinogenic, but it is so

turing and construction environments. Canada

and sinks quickly while the air bounces up and

common that there is no possibility of banning

is certain to follow soon.

moves on towards the vacuum.

22 Home BUILDER September/October 2016

Wet It

424

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[3690-003 ed01EN | 08-2016]

DUST control

224

Concrete and masonry demolition sites are one of the primary focuses of the OSHA

enclose the dust spray and use the air dynamics of both blade and vacuum flow to trap it all.

legislation as this toxic dust floats all over a

There has been quite a development of

neighbourhood. Atomized water spray tech-

shrouds added right onto the tool itself, with a

niques are proving to be very effective on such

long hose off to the vacuum. The concrete or

sites. The company DUST BOSS explains that

stone surface grinder is one of the worst silica

this is not just a spray of water; when atom-

dust makers. If you do not have a vacuum

ized spray control systems produce droplets

shroud for this tool, run to the store to find one.

approximately the same size as airborne par-

Some are brand specific, some are universal

ticles, they deliver a greater attraction between

but most tool manufactures now make them.

droplets and dust. Droplet size, water pressure, airflow and velocity are all critical to achieving efficient silica entrapment.

Contain It

In the field of drilling or boring into con-

Containment can be sealing off a room and

crete, particularly on the wall or overhead,

working with personal masks while cleaning

there is a surge in the development of shrouds

the air to collect it—or it could be simply a

that first use the vacuum power to hold the

containment device right at the point of dust

shroud to the wall or ceiling, while the inflow

production directing dust to a vacuum.

of air is through brushes that surround the bit.

Vacuum It

There is no direct contact between the drilling With the cordless revolution, people also

tool and the dust collection system and the

Understand that many shop-vacs can be

want to eliminate that hose, so small battery-

shroud can be easily moved from one position

destroyed by concrete dust, even by the abra-

operated vacuum and shroud attachments are

to another.

sive action of drywall dust. That is why special

being made to attach directly to the tools,

vacuum techniques are used for fine abrasive

particularly SDS (slotted drive system)

dusts, such as:

hammer drills. Most of these are spe-

uu A motor cooling air stream that is separate

cific to one brand; some are univer-

from the dust path; uu Water entrapment to pull the dust out of the air stream; uu Using HEPA filter systems both to trap and

Extract It

sally applicable. Unfortunately, the totally compact solution is getting

The best example of extrac-

heavier and heavier with two motors

tion has come with the use of epoxy

and two batteries plus a dust compartment.

anchors for bolts and rods. To properly

collect extremely fine dust and at the same

work, the hole needs to be dust free before

time protect the motor.

injecting the epoxy—but getting a dusty hole

Although HEPA are the best, a regular vac

clean is really difficult and often dusty itself

with a paper bag stops far more of the fine dry-

if you use compressed air. Long hollow shaft

wall dust than regular filters. Soon we should

drills that have a vacuum draw through the

be seeing equipment certified for working with

bit just above the cutting head and a vac hose

Silica dust.

connection just before the SDS chuck connec-

A vacuum drawing right near the genera-

tion, reduce friction (by taking away the dust),

tion of the dust can certainly help, but effi-

reduce bit heat by the air flow and leave no dust

ciencies are multiplied when shrouds actually

at all behind. Bits last longer and epoxy can be injected immediately.

Whether we like it or not, cleaning up our act is now part of the job and every tool manufacturer is ramping up their dust control options.

Mid-sized vacuums have been developed into backpacks; giving more vacuum power with the weight on your back and not your arms yet totally cordless and portable.

24 Home BUILDER September/October 2016

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A conference like no other... in a place like nowhere else

www.chba.ca/conference 74th CHBA NATIONAL CONFERENCE ST. JOHN’S, NEWFOUNDLAND AND LABRADOR

CHBA President’s Message

What We’re Telling Government With the summer drawing to a close, I wanted to

Bob Finnegan President, CHBA

Homeownership is at the core of a strong middle class, and ensuring Canadians can continue to become homeowners is critically important.

In part, this situation reflects a general trend in Cana-

been doing over the last few months, as a flurry of fed-

dian cities toward higher density residential develop-

eral consultations in key policy areas of concern to our

ment where less ground-oriented construction is per-

industry moved ahead.

mitted, and where development restrictions and slow

It is becoming increasingly clear that affordability,

approvals processes translate to high land values that, in

market stability and the long-term financial security of

turn, necessitate higher densities to make development

Canadians are major concerns for the government, as

commercially viable.

they are of our industry. This is reassuring.

But it also exposes a growing divergence between

As the International Monetary Fund has observed,

what Canadian home buyers say they want, and what

Canadian housing markets are complex, and fall general-

the residential building industry is allowed to construct.

ly into one of three categories: slow markets that are see-

Today, over 85% of families live in ground-oriented homes

ing falling demand and soft prices, “steady-as-she-goes”

(single-detached, semi-detached, townhomes, stacked

markets seeing more balanced conditions and generally

townhomes, etc.) and the vast majority of those working

stable prices, and two major urban markets— the Greater

to become homeowners want this type of housing.

Toronto Area (GTA) and the Greater Vancouver Region

Yet, in the GTA and GVR, such homes are in increas-

(GVR)—where demand and prices have remained very

ingly short supply. Even on a national basis, just over half

strong for some time.

of all new homes built are ground-oriented.

Given these complexities, the potential risks from

The law of supply and demand still works, and this is

pre-emptive government actions to “cool” demand in

a principle factor in ground-oriented house price escala-

Toronto and Vancouver are very high. With interest rate

tion in both the GTA and GVR. If we don’t address this

hikes essentially “off the table” given Canada’s lacklus-

supply imbalance, it’s hard to see things changing.

ter economic performance, the only levers available at the federal level would involve further tightening of mortgage rules or targeted taxes. This would impact all markets, and disproportionately affect first-time home buyers, who are more reliant on the availability of insured mortgages.

Taxation of New Homes New home prices reflect land, business operation and construction costs, plus taxes.

The effective level of taxation on new homes, comprised of all government-imposed costs, has increased

Homeownership is at the core of a strong middle

dramatically in many communities. These costs are par-

class, and ensuring Canadians can continue to become

ticularly acute in many GTA communities, comprising at

homeowners is critically important, to young people

times more than 20% of the selling price of a new home.

and families working to attain financial security, to our

As CHBA has always made clear, all such taxes,

communities, and to Canada’s long-term economic well

whether termed “development charges,” “lot levies,”

being.

“amenity fees,” or “cash in lieu,” end up in the price con-

CHBA’s message to the federal government has been

CHBA EXECUTIVE Committee

regions.

provide members with an update on what CHBA has

sumers pay for a new home.

very clear: There are many important factors behind

Coupled with restrictive development regimes that

the strong market conditions in the GTA and GVR and

cause land costs to escalate, new home taxes have a

these need to be understood. Actions aimed at address-

considerable impact on affordability. These taxes have

ing just one factor—foreign real estate investment, for

rapidly outpaced the actual cost of building a home in

example—will not address other important issues, and

recent years, and the resulting impacts on affordability

could have very negative effects in other markets, and

are not insignificant.

among those working hard to enter the middle-class.

Both the supply problem and high new home taxes

President: Bob Finnigan, Toronto, ON Past President: Jane Morgan, St. John’s, NL First Vice-President: Eric DenOuden, Belleville, ON Second Vice-Presidents: Nathan Stone, Langley, BC Stefanie Coleman-Dias, St. Thomas, ON Treasurer: Blake Hudema, Burnaby, BC Presidential Appointee: Errol Fisher, Saskatoon, SK Chief Executive Officer: Kevin Lee, Ottawa, ON

CHBA’s view is that a shortfall in ground-oriented

result from government policies and decisions. We don’t

housing supply and high new home taxes fuel affordabil-

need to look to “off-shore buyers” to understand that

ity problems in the GTA and GVR, and to varying degrees,

these policies are impacting the price of homes. What we

in many other urban area across Canada.

need is governments to address these problems, which

CHBA Contact: David Foster National Office, Ottawa, ON

this segment of the market in both the GTA and GVR,

Supply and Demand Imbalances For some time, CHBA has been alarmed that many Canadian urban markets, and especially the GTA and GRV, are experiencing a chronic undersupply of familyfriendly, ground-oriented homes.

This is a prime factor in ongoing price escalation in and is also contributing to higher prices in many other

26 Home BUILDER September/October 2016

could go a long way to ensuring affordability for the next generation of home buyers.

CHBA CEO’s Update

Moving Ahead As I noted in my last member update, the summer of

We’ve also made some great progress on a number

2016 was anything but “typical” in Ottawa, and at CHBA.

other key projects, including the launch of CHBA’s new

I want to touch on a couple of areas where we’ve been

website—a key communications vehicle for issues such

particularly active.

as the above, plus a new offering in terms of member

As President Bob Finnigan noted in his report, we’ve

Kevin Lee CEO, CHBA

benefits.

been heavily engaged in a number of federal consulta-

The website serves as a milestone in CHBA’s ongo-

tions, on a host of issues that will directly and indirectly

ing “digitization” process, which is aimed at delivering

impact our industry and your customers in the months

more and better services to members, and ensuring your

and years ahead.

Association is the go-to source of housing information

There is considerable “overlap” in a number of these federal initiatives, with housing taking centre stage in

for home buyers and those planning a home renovation.

The new website is fully integrated with CHBA’s membership system, allowing the delivery of a host of new

many cases.

Of particular note are the development of a “National

Member-only features and services.

Housing Strategy,” a separate initiative by the Finance

Over the next year, we’ll be focused on rolling-out

Minister to work with provincial and municipal leaders

additional features and services, and we’ll keep members

to address high home prices in Toronto and Vancouver;

informed as this happens.

and the government’s concurrent directive to CMHC to

will allow include:

off” in these two cities.

Providing more and better information to consumers

CHBA has been providing the fed-

looking for a home builder, renovator, trade contrac-

eral government with data and insight

tor or other housing service provider who is a CHBA

relevant to all three of these initiatives.

member. Historically, the largest portion of our web

Our message, as Bob says, is to caution

traffic is made up of consumers looking for a CHBA

federal policy-makers against assum-

member firm, and we will be providing members with

ing that protecting affordability can be

tools to better promote what they offer.

achieved through simplistic actions

Giving members expanded and easier access to criti-

aimed at making it harder for young

cal information and business intelligence, to help

Canadians and families to own a home.

you run your companies effectively. This will include

High home prices in Toronto and Van-

online publications and webinars on key business

couver reflect a perfect “storm” resulting

New CHBA home page

A few of the enhancements this new digital platform

develop specific options to “cool things

topics, all free to members.

from tight ground-oriented home sup-

More frequent information on the work of your Asso-

ply, high new home taxes, restrictive

ciation, and what we’re accomplishing at all three

development and approvals policies,

levels across the country.

lack of infrastructure (particularly tran-

Over the summer, CHBA sent member login infor-

sit), and high levels of in-migration to

mation to all member companies, based on the contact

these economically dynamic cities.

information supplied by local HBAs. If you have not

Low interest rates and foreign buyers also play a role,

received this, let us know so we can add you to our

but largely exacerbate a problem that is already very

member database. Simply send your company name,

significant.

your name and your email address to communications@

A thorough and thoughtful analysis of the many fac-

chba.ca.

tors fueling demand and prices in Toronto and Vancouver

Also let us know about any other staff in your com-

has some potential to move governments to address the

pany who would also benefit from members-only web-

broader underlying issues that are hampering affordabil-

site access. Whether they are involved in sales and mar-

ity right across the country.

keting, financial management, design or construction,

CHBA is committed to providing governments with

CHBA produces specialize business information that can

the information needed for just this sort of analysis, and

help them keep up-to-date on the latest developments.

doing so has pre-occupied the national office staff over

And it’s all free to member firms and their entire staff.

the last number of months.

I am very pleased to say that we’ve seen the federal

Just send their name and email addresses, plus your company name, to communications@chba.ca.

government assume a more cautious tone in relation to housing market interventions—a welcome indication that CHBA’s concerns about the risks to market stability from further mortgage tightening, or other measures, are being heard and taken seriously. We’ll be continuing this important work going forward.

Home BUILDER

September/October 2016

27

TOOLTalk

lighter and less expensive than the heavy duty tools from DeWalt and Milwaukee. It doesn’t have instant nailing as you get with Milwaukee or pneumatic tools, but the windup to strike is quick and the balance allows for far easier precision of nail placement. For the renovator who only uses a brad nailer occasionally, this is an excellent and solid tool.

Saw Coatings to Increase Battery Run Time All cordless power tool companies are working to improve their cutting accessories and augment battery run-time by cutting more efficiently. It is really difficult to compare new blades between companies because they all claim such magnificent improvement, mostly with cutting thinner kerfs or keeping the teeth sharp longer by using new metals and new cutting angles. But as the kerfs get thinner, there is more friction with the body of the blades.

From the Biggest to the Smallest of New Tools

Milwaukee’s new Hole Dozer hole saws have a unique baked-on paint that will resist friction longer than most other paints. New tooth design and tougher metal allow them to offer the first hole saw that has a no-question replacement guarantee if you manage to break

When you get more power, sometimes you

coming in at just 3.3 lbs, including the 2.0

need to stop it faster. Right angle grinders can

Ah battery. This barrel grip saw is specifically

bite and bind so when DeWalt claims three

designed for dexterity with its 9.4-inch length

times the power of an 18volt tool with their

while maintaining a 2-inch cut capacity in

new 60v FlexVolt grinder, the new E-Clutch

wood. The no-mar plastic overshoe and coun-

with a two-second stopping action is going to

terbalanced low-vibration plunge mechanism

be appreciated.

make it ideal for finish carpenters, cabinetmak-

Bosch is known for their muscle, but they

a tooth.

ers and kitchen installers.

are the ones who have built the lightest cord-

Porter-Cable is finding its niche with their

less professional duty jig saw, the JS120 – 12v—

new professional duty 18 GA Brad Nailer that is

Freud markets their red Perma-SHIELD coating that not only avoids residue build-up and friction but, unlike most paints that trap heat, the Perma-SHIELD coating can help the metal distribute and carry heat away from the teeth.

28 Home BUILDER September/October 2016

Typical of the field is this DeWalt large area light, which can be run on batteries or corded power and incorporates a battery charger. It is dimmable, programmable and remotely controlled by your smart phone. Giving off up to 7,000 lumens, the physical design allows for stacking lights on top of each other for storage.

This is truly part of the strategy to “own the jobsite by battery platforms.”

Even The Water Pump Has Gone Cordless Whether emptying a hot water tank or a toilet, the Milwaukee M18 cordless self-priming

The Self-Cleaning Tape What could possibly be really new in long

450-gallons-per-hour transfer pump can be

floor plans with direct site measurements. The

useful. Eliminating the extension cord with

“GLM Transfer Software” for the 100 model

standard Milwaukee M18 tool batteries can

also connects to a computer via a USB con-

be critical around water. The closed battery

nector for even expanded project management

tapes? Nylon tapes stretch a lot but are much

interfacing.

more convenient than steel tapes. How about

Start with all the basic types of measure-

actually mixing nylon and steel—giving a tape

ment that any good electronic measuring

with 50% less stretch but the flexibility of nylon!

device takes today: lengths, heights, maxi-

And to make it even better, the Milwaukee

mum, minimum, surfaces, volumes, angles,

48-22-5230 even saves your gloves as they

hidden lengths and incremental steps. Blue-

built the industry’s first debris wiper into the

tooth connect the device to your phone or

foot, wiping the tape clean as you reel it back in.

tablet.

Tool Companies Are Now Lighting Companies

your phone or tablet can remotely operate the

For difficult or one-man measurements, GLM, letting you stand at the target, not the

All the tool companies have gotten into

source. Start from a floor plan, a photo of a floor

job site LED lighting products, most running

plan or a site photo and then draw measure-

on their proprietary battery packs. From flash-

ment lines; the GLM will label them with real

lights to floodlights to bucket lights—some

direct measurements. The floor plan app will

with Bluetooth connections—allowing pro-

compartment is water resistant, although not

adjust your drawing to the real dimensions. A

gramming and control from your smart phone.

submersible. An auto-off after the pump runs

complete measurement list is created and each

dry for one minute allows you to set it up and

measurement can be labeled. The photos and

go do something else without wasting the bat-

measurements instantly become a pdf docu-

tery or doing damage to the pump. It is made

ment or share just the dimensioned photos.

with standard garden hose connections as on

Lists can be exported spreadsheet-compatible.

the drain spout of hot water tanks.

It is not designed to handle either water with debris in it or any liquid fuels.

Marrying Laser Measurement and Information Transfer

This is a good measuring device that connects with your existing technology to record

L TOOK TA L L TOOK TA L

and share site information without delays or extra costs.

Bosch has moved a step ahead of the crowd with their Bluetooth GLM 50 C (50 meter range) and GLM 100 C (100 meter range) professional

Montreal-based TV broadcaster, author, home renovation and tool expert Jon Eakes provides a tool feature in each edition of Home BUILDER. www.JonEakes.com

laser measurement tools when you connect them with three free apps and free instant sharing via e-mail and Dropbox directly. Via Bluetooth on your smart phone or tablet, the “GLM Measure & Document” app records measurements and annotates photos while the “GLM Floor Plan” app creates dynamic

Home BUILDER

September/October 2016

29

renovation

Albertans Boost Renovation Spending to $3.1 Billion EDMONTON — Despite lingering

The figures show Albertans continue

weakness in the Alberta economy, spend-

to see spending on home improvements

ing on residential renovations continues

as a good investment. Increased renova-

to improve in 2016.

tion spending also helps support Alberta’s

According to Statistics Canada’s

economy and create jobs at a time when

residential investment data, renovation

many other sectors are struggling.

spending in the second quarter of 2016

Spending on energy efficiency upgrades

increased year-over-year by 4.7% to $1.56

for Alberta’s aging housing stock may get

billion. This was in contrast to a 17.4%

a boost in 2017 when new carbon taxes

decrease in the total value of investment

take effect. Almost two-thirds of Alberta

in residential construction in Alberta dur-

private dwelling are more than 20 years.

ing the second quarter.

The Alberta government has pledged $645

So far this year, investment on residen-

million for Energy Efficiency Alberta, a

tial renovation has increased by 3.8% over the first six months of 2015

new provincial agency that will support energy efficiency programs and

to $3.1 billion. During 2015, total spending on residential renovations

services for homes and businesses.

increased by just over 1% compared with all of 2014 to almost $6 billion.

Submitted by Richard Goatcher, Economic Analyst, CHBA – Alberta.

TD: More than Half of Canadians Considering Renovating

DeVrye Renovations Selects Home BUILDER Online

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1

TORONTO — A recent survey by TD found that 56% of Canadian

DeVrye Renovations found the 7 best online magazines for home

homeowners and those thinking of buying their first home say they have

improvement inspiration.

1 We’re pleased to report that HomeBuilder

considered, or would consider, renovating their current home or fixer-

Canada.com made the list! Find it and other interesting lists on the blog

upper, rather than buying a move-in ready home.

tab at www.devrye.com.

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30 Home BUILDER September/October 2016

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IndustryNews

Canada Green Building Council Launches Energy Benchmarking Training

CBSA Initiates Anti-Dumping Investigation into Imported Gypsum Board

OTTAWA — This September, the Canada Green Building Council

OTTAWA — The Canada Border Services Agency (CBSA) has initi-

(CaGBC) is launching new training on energy benchmarking strategies

ated an anti-dumping investigation into gypsum board originating in or

and regulation for both private and public sector stakeholders.

exported from the United States into Canada. The complaint was filed by

Titled Introduction to Energy Benchmarking, and Understanding

CertainTeed Gypsum Canada Inc. (GCI) of Mississauga, Ont., alleging

Ontario’s Mandatory Energy Benchmarking for Large Buildings, these

that gypsum board was being sold at unfair prices into the provinces of

courses will introduce the general processes for accurate data collec-

British Columbia, Alberta, Saskatchewan, and Manitoba, as well as the

tion, show participants how to create a building profile and successfully

Yukon and Northwest Territories.

use ENERGY STAR Portfolio Manager, and discuss Ontario’s upcoming

A form of international price discrimination, dumping occurs when

Energy and Water Reporting and Benchmarking (EWRB) regulation.

the price of the product sold in the importing country is less than the price

They were developed in consultation with the Illinois Chapter of the U.S.

for the same product in the exporting country’s market.

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Green Building Council (USGBC), and were modeled after the successful training they implemented in support of the City of Chicago’s Energy Benchmarking Ordinance.

To find out more or register, visit www.cagbc.org/ebcourses.

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How Would You Change Housing in Canada?

NKBA Study: Millennials Outspend Others on Kitchen and Bath Remodels HACKETTSTOWN — Millennials outspend other age groups when remodelling their kitchens and bathrooms, according to new research from the National Kitchen & Bath Association (NKBA). The research

OTTAWA — It’s an exciting time for the National Housing Strat-

found that millennials spend an average of 17.7% more than the $19,155

egy consultations. The Canada Mortgage and Housing/Government of

typically invested in a kitchen remodel, and 42.3% more than the $11,364

Canada initiative has just launched a collaboration tool on Let’s Talk

normally allocated to remodel a bathroom.

Housing that lets you share your ideas and collaborate with others on

The NKBA research study, Understanding Millennial Kitchen &

the future of housing in Canada. If you’ve been sitting on the next great

Bath Consumers, compares the

housing idea, now’s the time to act. Make your voice heard by sharing

behaviour and attitudes of those

your ideas, taking this brief survey or submitting your views in writing before October 21, 2016. Your ideas will help shape the future of housing in Canada. Sign up at letstalkhousing.ca.

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CALENDAR Do you have an event you want posted on our new Online Calendar?

E-mail your listing to editor@work4.ca

September 22-25

A d v e r t ise rs in Th is Issue Advertiser

Page

Phone

Web site

Interior Design Show (IDS) West Vancouver, BC www.idswest.com

September 29-October 2

CertainTeed Gypsum Canada, Inc. . . . . . . 3 . . . 800-233-8990 . . . www.certainTeed.com/Gypsum

Fall Home Show BILD/Renomark Toronto, ON www.fallhomeshow.com

CHBA - 2017 Conference . . . . . . . . . . . .25 . . . 613-230-3060 . . . www.chba.ca

September 29-October 2

Benjamin Moore . . . . . . . . . . . . . . . . . . . . 4 . . . 416-766-1173 . . . www.insl-x.ca Canadian Western Bank . . . . . . . . . . . . . 30 . . . 604-443-5118 . . . www.theworkingbank.ca

Icynene Inc. . . . . . . . . . . . . . . . . . . . . . . . 17 . . . 800-363-4040 . . . www.icynene.com

Ottawa Fall Home Show Greater Ottawa HBA Ottawa, ON www.ottawafallhomeshow.com

IKO Industries Ltd. . . . . . . . . . . . . . . . . . . . 2 . . . 855-456-7663 . . . www.roofingelevated.com

October 1

Federated Insurance . . . . . . . . . . . . . . . . 23 . . . 844-628-6800 . . . chba.federated.ca Fortis BC Energ . . . . . . . . . . . . . . . . . . . . 19 . . . 866-884-8833 . . . www.fortisbc.com

JELD-WEN of Canada . . . . . . . . . . . . . . . BC . . . 204-510-4745 . . . www.jeld-wen.ca LP CanExel . . . . . . . . . . . . . . . . . . . . . . . 19 . . . 888-820-0325 . . . www.canexel.ca Nudura Corporation . . . . . . . . . . . . . . . . . .8 . . . 866-468-6299 . . . www.nudura.com Owens Corning Canada LP . . . . . . . . 11, 30 . . . 800-438-7465 . . . www.owenscorning.ca Robinson Lighting & Bath Centre . . . . . . 21 . . . 604-879-6847 . . . www.robinsonlightingandbath.com Simpson Strong-Tie Canada . . . . . . . . . . . 7 . . . 800-999-5099 . . . www.strongtie.com/timberhex-hdg Superior Walls of America Ltd. . . . . . . . . 13 . . . 800-452-9255 . . . www.SuperiorWalls.ca

ages 18-37 to other generations when planning kitchen and bath remodelling projects. The study, conducted by The Farnsworth Group, also found that more than half of the millennial generation has purchased a home in the last five years.

Other findings include: When purchasing kitchen and bathroom products, younger generations value Internet searches and information from friends and family members more than other age groups.

Customer reviews are more

Parade of Homes CHBA Northern BC Prince George, BC www.chbanorthernbc.ca

important to millennials when

October 2

ets. In the bathroom, the cost

Reno Tour 2016 Greater Ottawa HBA Ottawa, ON www.gohba.ca

selecting kitchen products compared to other age brackof a product is paramount for millennial buyers when compared to other generational groups.

Home BUILDER

September/October 2016

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