FE Magazine - Summer 2023

FRPO APPOINTS NEW CHAIR

WHAT'S THE PLAN? COMING OUT ON TOP OF CARBON TRANSITION

2023 CFAA RENTAL HOUSING AWARDS

THE VOICE OF THE FEDERATION OF RENTAL-HOUSING PROVIDERS OF ONTARIO

President's Message

Summer is finally here, and with it comes good weather and renewed energy to work toward solving tomorrow’s challenges. At FRPO, we have continued our efforts to promote a better rental hosing market for our members and residents, and I am pleased to provide an update on the work we have been doing.

We’ve had a busy spring at FRPO. In April, Minister of Municipal Affairs & Housing Steve Clark announced Bill 97, the new Helping Homebuyers, Protecting Tenants Act. This latest housing supply action plan legislation included new protections for residents, increased penalties for those abusing the system, and $6.5 million in new funding for the Landlord and Tenant Board to reduce backlogs and speed up applications. We are encouraged to see the government continue to take steps forward in realizing Ontario’s Housing Supply Action Plan. As the voice of Ontario’s professional rental housing providers, FRPO was fully involved in the discussions around the Act, and we support it.

TONY IRWIN President & CEO FRPO

However, our work to promote equitable solutions to the housing crisis in Ontario was not limited to advocacy on Bill 97. In April, we were pleased to sponsor the Ontario Chamber of Commerce’s final roundtable on regional housing affordability. The roundtable brought together stakeholders and industry leaders from across the GTHA to discuss solutions to the housing crisis in our province. At FRPO, we take pride in supporting and participating in these events, knowing that the current crisis will require a full response from a diverse set of stakeholders.

Meanwhile, as the Toronto election campaign kicked off, FRPO was involved in the discussion. In May, along with our partners at RESCON, BILD, Habitat for Humanity GTA, TRREB, George Brown College, and others, we co-sponsored a debate on housing and housing affordability with the leading candidates vying to become Toronto’s next mayor. With half of Torontonians being renters, rental housing solutions must play a big role in solving the city’s and province’s affordability challenges. We stand ready to work with Mayor-elect Olivia Chow to build the housing supply we need in the city.

As we move into summer, we are excited for the possibilities ahead. We are in a better place than where we were one year ago, and we think things can only get better if we keep working together. As the province continues to build on Ontario’s Housing Supply Action Plan, FRPO will continue to represent our members and ensure we have a strong voice at Queen’s Park.

I hope you all have a great summer and take some well-deserved rest in the weeks and months ahead. We hope to see many of you at FRPO’s upcoming charity golf tournament on July 18 at Lionhead. It’s a great day in support of Interval House so be sure to say hello.

2023 FRPO CHARITY GOLF CLASSICSOLD OUT

Date and Time:

July 18, 2023

9:00 am - 5:30 pm

We are pleased to open registration for the 2023 FRPO Charity Golf Classic in support of Interval House. This event will take place on Tuesday, July 18 at an exciting new location: Lionhead Golf Club. We hope that you can join us for a fun-filled day of golf and networking. We expect this event to sell out quickly, so we advise you to register at your earliest convenience to avoid disappointment.

7:30 am Registration

9:00 am Shotgun Start

Cocktail Reception and Dinner to Follow Location

Lionhead Golf Club

8525 Mississauga Road, Brampton

Registration Fees and Information

Each registration includes one strip of raffle tickets per player. Should you wish to purchase additional tickets, please add that option to your registration. All raffle sales will benefit Interval House.

CANADIAN APARTMENT INVESTMENT CONFERENCE

Date and Time:

September 13, 2023

10:00 am - 2:30 pm

Why attend? How has the multi-residential market performed since March 2020? Have multi-residential properties returned to being in high demand as it has outperformed many expectations? Uncover this and more at the largest forum of its kind in Canada. Gain deeper insights into the trends, risks, strategies, and opportunities emerging in today’s apartment market. 2023 registration will open soon, please check back for more information.

Please

PM EXPO AT THE BUILDINGS SHOW

Date and Time:

November 29, 2023 to December 1, 2023

8:00 am - 4:00 pm

Supported by TCA, BOMA, BILD, Concrete Ontario, and CABA, The Buildings Show, comprised of Construct Canada, PM Expo, HomeBuilder & Renovator Expo, and World of Concrete Toronto Pavilion, is back in-person from Nov. 29 - Dec. 1, 2023. For over 30 years, The Buildings Show has provided a unique platform for the industry to see first-hand a complete overview of the built environment.

MORE INFORMATION

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

2023 FRPO MAC AWARDS

Date and Time:

November 30, 2023

5:00 pm - 9:00 pm

The MAC Awards is the most important annual event for our members and recognizes the leaders in Ontario’s vibrant rental housing industry. We are so excited to celebrate this year’s MAC Awards in person and invite you to be part of it! This is a must-attend event for real estate and property management firms, large and small alike. The 2023 MAC Awards will be held on Thursday, November 30 in conjunction with the Buildings Show and PM Expo. We hope you will join us for the industry event of the year!

Find out more about these awards by visiting www.frpomacawards.com

Yes, we can!

Since MetCap Living established itself as a leader in property management, we have routinely been asked one, simple question; “Can you help us run our property more effectively?” And, for well over thirty years, the answer has remained — Yes, we can! Our managers are seasoned professionals, experienced in every detail of the day to day operations and maintenance of multi-unit rental properties. From marketing, leasing, finance and accounting, to actual physical, on-site management, we oversee everything.

Guaranteed vacancy reduction, revenue growth and net profitability — when you’re ready to discuss a better option; we’ll be there. You can count on it.

Kazi Shahnewaz Director, Business Development

Office: 416.340.1600 x504

C. 647.887.5676

k.m.shahnewaz@metcap.com

www.metcap.com

GOVERNMENT RELATIONS UPDATE

By Tony Irwin, President & CEO, Federation of Rental-Housing Providers of Ontario

The focus of FRPO’s government relations efforts over the past weeks and months was on the introduction and subsequent passing of Bill 97, Helping Homebuyers, Protecting Tenants Act. The Act contains a lot of good provisions, including clarifying rules around evictions to protect tenants, stipulating clear rules about the air conditioning of units during the summer, and increasing fines and penalties on bad actors. The announcement of the Act came with news of $6.5 million in new funding for the Landlord and Tenant Board to hire 40 more adjudicators to reduce the backlog and improve processing times. This is a measure FRPO specifically advocated for, and we commend Attorney General Doug Downey for his support.

During Bill 97’s legislative process, FRPO was invited to speak before the Committee on Heritage, Infrastructure, and Cultural Policy, where we reiterated our support for the provisions of the Act and explained why we think it will help create a better rental housing market in Ontario for both providers and residents. We reinforced that support by launching an advertising campaign in Ontario to show how the Act would help Ontarians during the housing crisis. While Ontario’s Housing Supply Action Plan is off to a good start, we still have work to do to reach the government’s target of building 1.5 million homes by 2031. Some of our previous recommendations remain timely and we will continue working with the Ontario government to ensure that all the necessary pieces to create more housing supply in our province are put in place. These recommendations include, among others:

• A density incentive program for purpose-built rental housing projects in communities with low vacancy rates to stimulate more rental housing development

• “As-of-Right” infill development on existing purpose-built rental sites, which could unlock more than 176,000 new units

• Changes to the tax system to incentivize rental housing by deferring or rebating HST

• The development of a strategy to address the shortage of skilled trades workers in Ontario FRPO is also engaging with the federal government in collaboration with CFAA, REALPAC, and Canadian Rental Housing Providers for Affordable Housing to ensure there is good understanding of the rental housing market, the challenges rental housing provides operate under, and what is needed to stimulate more rental housing supply in Canada. On June 8, FRPO spoke before the Standing Committee on Human Resources, Skills, and Social Development and the Status of Persons with Disabilities (HUMA) in a session on the financialization of housing. We made the case that only more housing supply will help to stabilize the market and all levels of government should be advancing policies that will encourage and incentivize more purpose-built rental housing supply.

As the summer recess sees both the Ontario legislature and the House of Commons adjourn until fall, we will continue our efforts to engage with policymakers at all levels of government to promote the need for more rental housing supply and a more important role for purpose-built rentals when discussing solutions to the housing crisis.

National Apartment Group - Ontario

Ontario’s multi-residential sector remains one of the most resilient segments of commercial real estate capital markets. Notwithstanding broader market volatility, investor sentiment for multifamily assets remains positive. Through Q3 2023, values have weathered the impact of higher borrowing costs and are well-positioned to counteract elevated inflation and higher interest rates through stable cashflow growth. Please see below for a summary of recent deals as of Q3 2023.

For additional info on cap rates, valuations, and market trends in the current investment landscape, please reach out to a member of our team.

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135 Units | $444,444 Per Suite

Closed June 2023

SOLD FOR $60,000,000

2200 Roche Court, Mississauga

142 Units | $286,498 Per Suite

Closed June 2023

SOLD FOR $40,682,765

For more information, please contact:

David Montressor * Vice Chairman

(416) 815-2332

david.montressor@cbre.com

* Sales Representative

Tom Schuster * Associate Director

(416) 847-3257

tom.schuster@cbre.com

Scan to receive Apartment Listings and Market Research

1225 York Mills Road, Toronto

140 Units | $605,345 Per Suite

Closed June 2023

SOLD FOR $84,748,231

246 Cosburn Avenue, Toronto

40 Units | $265,750 Per Suite

Closed May 2023

SOLD FOR $10,630,000

FRPO APPOINTS NEW CHAIR

By David Gargaro

The Federation of Rental Housing Providers of Ontario (FRPO) is pleased to announce the appointment of R. Jason Ashdown to the position of Chair of the FRPO Board. Jason will be replacing Allan Drewlo, who held the position for the previous two years. FRPO would like to thank Allan for all the work he did in promoting the organization and defending the rental housing industry.

Skyline Group of Companies. He has been involved in the business of real estate asset management, development, construction, and building systems for nearly 30 years.

In his new role, Jason will serve as a representative for our members on behalf of the Board. He will also support the efforts of the executive and committees, work diligently to advance the organization’s government relations priorities, and help to drive significant change in the rental housing industry.

“I am excited to take on this role and continue to work with the FRPO Board members to address the challenges faced by Ontario’s rental housing market,” said Jason. “The province is facing a housing crisis and, as Chair, I look forward to working with policymakers to find solutions, while continuing to advocate for strong, stable rental housing for the people of Ontario.”

Jason’s appointment is well expected, given his extensive experience within the rental housing industry and his involvement with FRPO. Jason –who previously served as FRPO’s Vice Chair – is the Co-Founder and Chief Sustainability Officer of

In his current role as Skyline’s CSO, Jason is responsible for overseeing corporate strategy and the company’s sustainability and social responsibility efforts. To support environmental stewardship, in 2006 he launched Skyline’s Portfolio Efficiency Plan (PEP), which is focused on reducing the consumption of natural gas, hydro, water, and waste, as well as tenant outreach and education on sustainable-minded living. Jason takes a threepronged approach to sustainability: environmental, social, and economic. He ensures Skyline leads the industry in these three areas, and keeps abreast of innovation, efficiency, and community service in the industry. Jason previously held the role of Skyline’s COO, where he worked to improve the performance, profitability, and efficiencies of the company’s real estate portfolios.

Jason is the Chair of United Way GuelphWellington-Dufferin’s Home for Good Campaign, and sits on the Skyline Apartment REIT Board of Trustees. He is also a past Board member of Shelldale Family Gateway, a community organization in Guelph, to which he provided advisory services in helping hundreds of local children and families.

As the new Chair of FRPO, Jason will provide a wealth of knowledge and a fresh perspective. His experience with FRPO, property management, and the rental housing industry, combined with his passion for sustainability, will be of great value to the organization. Members can expect a strong advocate who will work to represent their interests at all levels of government.

"I am excited to take on this role and continue to work with the FRPO Board members to address the challenges faced by Ontario’s rental housing market."

R. Jason Ashdown Chair of the FRPO Board

WHAT’S THE PLAN? COMING OUT ON TOP OF CARBON TRANSITION

By Eric Chisholm,

Do you have a zero carbon transition plan for your multi-family rental building? Here are some things to keep in mind as you start planning.

We have reached a global consensus that humanity needs to act quickly to reduce greenhouse gas emissions if we are to avoid the most severe impacts of climate change. Each individual, business, government, and organization has a role to play.

Canada’s building sector contributes 17%1 of Canada’s total greenhouse gas emissions and nearly two-thirds of buildings that will exist in 2040 have already been built.2 Building owners should prepare to reduce carbon emissions as pressure increases by way of regulations, escalating operational costs, financing and insurance obligations, physical risks, and market demand.

Canada’s building sector alone will need to deliver decarbonization retrofits at a pace of nearly 600,000 homes and 32 million square metres of commercial property annually until 2040. The annual cost will be a fraction of the cost of not acting, but is still sizably estimated at roughly $21 billion according to the Pembina Institute.3

Why does planning early matter?

Retrofits take time to plan, design, finance, and construct. Building owners can plan ahead by defining the projects, investments, and timelines needed to transition to a net zero carbon future and aligning with repairs and replacements required in the course of business as usual.

By doing so, building owners avoid investing in upgrades that don't support a low carbon future, and prepare for regulations, grants and financial incentives, and regulatory carbon pricing.

• Regulations and municipal programs like the Toronto Green Standard and the Vancouver Zero Emissions Building plan drive predictable change to higher performing new buildings.

Now, attention is shifting to existing buildings. The City of Vancouver’s first-of-its-kind regulation in Canada requires large existing commercial and multi-family buildings to limit emissions and be zero carbon by 2040. Other jurisdictions are considering similar regulation.

• Grants and financial incentives are emerging for early adopters, including the Canada Greener House Grant for low-rise multi-unit residential buildings, and the federal government’s recent pledge of $6.9 billion in tax credits for low-carbon heat pumps, geothermal energy systems, and other cleantech projects.

• Regulatory carbon pricing (sometimes simplified as “carbon tax”) will continue increasing operating costs of stagnant buildings that do little to improve. Today’s carbon pricing ($65 per tonne) will rise by 2030 ($170 per tonne) and may continue rising thereafter ($390 per tonne after 2030 and $1800 per tonne by 2050), according to the Intergovernmental Panel on Climate Change (IPCC).

At these rates, carbon costs of stagnant buildings could rise from about $6 per residential suite per month today to $200 per month by 2050. Buildings that do not retrofit risk becoming stranded assets with operating costs becoming too expensive for tenants to rent.

1 Buildings accounted for 12% of Canada’s direct GHG emissions in 2019, or 91 Mt (2021 NIR). Off-site generation of electricity for use in buildings brings the total to around 17% Government of Canada, Emission Reduction Plan – Canada’s = Next Steps for Clean Air and a Strong Economy, 2022, p.32. https://publications.gc.ca/collections/collection_2022/eccc/En4-460-2022-eng.pdf

2 Architecture 2030. https://architecture2030.org/why-the-building-sector/

3 Government of Canada, Emission Reduction Plan – Canada’s Next Steps for Clean Air and a Strong Economy, 2022, p.33. https://publications.gc.ca/collections/collection_2022/eccc/En4-460-2022-eng.pdf

Purpose Buildings | David De Rose, Synergy Partners | Laura Fylyshtan, Purpose Buildings | Matthew Gelowitz, Synergy Partners

Trusted Advisors

ƒ Philip Sarvinis | Bill Gladu | Jeremy Horst | Michael Pond | Duncan Rowe Jack Albert | Beau Gaudreau | James Cooper | Michael Park | Tim Van Zwol

What does a net zero carbon transition look like for my building?

A building’s net zero transition plan includes an inventory of existing systems relevant to the net zero transition, a list of necessary projects, and a timeline for tracking project completion. Necessary projects will often include improving building efficiency and switching to low-carbon fuels.

Improving Building Efficiency

Building owners can reduce energy consumption by upgrading windows, roof insulation, and wall insulation. These updates will also improve thermal comfort, glare/solar control, and air tightness (meaning less air escapes from the building), and reduce size requirements for subsequent HVAC (heating or cooling) upgrades.

Simultaneous upgrades reduce efforts like staging construction access and installing interfaces between systems. Phased upgrades instead help spread out schedule or cashflow requirements.

Thicker roof insulation added during planned roof replacements has a great impact on heat loss, particularly on low-rise buildings.

Thicker wall insulation can be added either from the exterior (i.e., over cladding) or the interior. Exterior over cladding is typically less disruptive and more effective, and presents an opportunity to add Building Integrated Photovoltaics (BIPV).

Thermal bridges should be controlled where practical. Thermal bridges are high thermal conductivity building elements through which heat transfers rapidly, bypassing insulation. Balconies are a common example. Although there are options to manage and insulate existing balconies, some building owners have chosen to remove them entirely during a deep energy retrofit.

Effective suite ventilation improves suite air quality, which becomes increasingly important when building envelope airtightness improves. Heat recovery conserves energy lost from either general exhaust air, washroom exhaust air, or kitchen hood exhaust air. In-suite heat recovery options include in-cabinet (integrated with fan coil units and heat pump units) and through-the-wall units. Central options include dual-core, heat wheel or runaround loop.

Switching to Low-carbon Fuels

Heat pumps are the backbone of efficient low-carbon heating systems because they are up to five times as efficient as gas boilers at heating, are powered by electricity as opposed to natural gas or other fossil fuels (50%+ of Canadian building emissions come from burning natural gas and other fossil fuels ), and

can provide cooling as well. Heat pump options include in-suite wall-mounted or in-cabinet (replacing fan coils), central air-source (drawing heat from outdoor air), and central geo-exchange (drawing heat from the ground). Selection typically considers equipment location/space use, weight, electrical draw, supply temperature, and ability to operate in extreme cold weather.

Consider confirming or upgrading electrical infrastructure in advance of heating system transition. Systems may require changes to available capacity of incoming electrical feed, central transformer and switchgear, distribution wiring, and electrical panels that will serve the new heating systems. Look for opportunities to align with co-beneficial upgrades such as adding cooling, electric vehicle (EV) charging, rooftop solar panels, in-suite laundry, etc.

Opportunities to include renewable energy should also be explored to reduce operational carbon and demand on the electrical grid.

Building owners can plan ahead to transition to a net zero carbon future. As regulation, cost pressure, risks, and market demands escalate, buildings with retrofits are expected to outperform stagnant buildings. The cost and effort are justified. When you are ready to prepare a net zero transition plan for your building to improve efficiency and switch to low-carbon fuels, contact a knowledgeable expert who will be ready to help.

4 City of Vancouver, Zero Emissions Buildings. https://vancouver.ca/green-vancouver/green-large-commercial-and-multifamily-buildings.aspx#background

5 Government of Canada 2023 Budget. Chapter 3: A Made-In-Canada Plan: Affordable Energy, Good Jobs, and a Growing Clean Economy. https://www.budget.canada.ca/2023/report-rapport/chap3-en.html#a5

6 International Panel on Climate Change, Summary for Policy Makers, Chapter 2: Mitigation pathways compatible with 1.5°C in the context of sustainable development. https://www.ipcc.ch/sr15/chapter/chapter-2/

7 Based on a 600 sq. ft. suite in a building consuming 12kWh/sf/yr of natural gas.

8 Canadian Green Building Council, A Roadmap For Retrofits in Canada: Charting a Pathway Forward For Large Buildings, 2017. https://portal.cagbc.org/cagbcdocs/advocacy/CaGBC_Roadmap_for_Retrofits_in_Canada_2017_EN_web.pdf

ANNUAL GENERAL MEETING

On May 29, FRPO held its Annual General Meeting virtually with 80 members in attendance. Participants were provided updates from our Chair, Allan Drewlo, President & CEO, Tony Irwin, and the Treasurer, Paul Chisholm. A review of activities from the previous year was provided and the financial health of the association noted as positive following FRPO’s annual audit.

The election and appointment of Directors also took place. The following individuals were re-appointed for additional three-year terms:

• Ugo Bizzarri (Hazelview Investments)

• Kris Boyce (Signet Group)

• Allan Drewlo (Drewlo Holdings)

• Gary Lee (BentallGreenOak)

• Mike McGahan (InterRent REIT)

• Ruth Grabel (Morguard Corporation)

• Alf Hendry (Homestead Land Holdings Ltd.)

• Brent Merrill (Metcap Living Management Inc.)

The Nomination and Governance Committee extends its appreciation to our returning Board members for their commitment to FRPO and the rental housing industry. On behalf of the membership, we’d like to recognize outgoing Chair, Allan Drewlo, for his leadership over the last two years. We’d also like to welcome Jason Ashdown, who will be stepping into the role of Chair.

Thank you to all those who participated in this meeting and to our generous sponsors for their support.

2023-2024 Board Members

Incoming Chair:

Jason Ashdown, Skyline Group of Companies

Vice-Chair:

1st Chair: Gloria Salomon, Preston Group

Past-Chair:

Allan Drewlo, Drewlo Holdings

Directors:

Ugo Bizzarri, Hazelview Properties

Kris Boyce, Signet Group

Paul Chisholm, Berkley Property Management Inc.

Larry Greer, CAPREIT

Ruth Grabel, Morguard Corporation

Alf Hendry, Homestead Land Holdings Ltd

David Horwood, Effort Trust Company

Ken Kirsh, Sterling Silver Development Company

Gary Lee, BentallGreenOak

Colin Martin, Realstar Management

Mike McGahan, InterRent REIT

Brent Merrill, Metcap Living Management Inc.

Todd Spencer, GWL Realty Advisors Residential

Jonathan Brimmell, Oxford Properties Group

Allan Weinbaum, WJ Properties

Geoff Younghusband, Osgoode Properties Ltd.

Patrick Eratostene, Greenwin Corp

Paul Baron, Minto Apartment REIT

Margaret Herd, Park Property Management Inc.

Thank You to Our Sponsors

LET’S BUILD ONTARIO CAMPAIGN UPDATE (JUNE 2023)

In early April, the Ontario government announced the next bill under its Housing Supply Action Plan designed to help solve the housing crisis in Ontario. The Helping Homebuyers, Protecting Tenants Act was introduced with new protections for tenants from illegal evictions, additional rules regarding air conditioning in units, clarification of existing processes, and increased penalties for wrongdoers, and $4.7 million in new funding for the Landlord and Tenant Board.

The bill represents another good step forward toward solving the crisis and creating the rental housing supply we need by creating a fairer system, reducing LTB wait times, and removing uncertainty. The Let’s Build Ontario campaign promoted the bill across our social media platforms by highlighting how it will help make the housing market in Ontario better for rental housing providers and residents alike. Beyond sharing supportive posts on social media, the campaign also amplified media discussion on the new bill from a rental housing provider perspective.

In the wake of the bill, Let’s Build Ontario amplified media appearances by FRPO President and CEO Tony Irwin on TVO’s The Agenda, CBC Radio One, and Newstalk 610’s Searching for Solutions. Let’s Build Ontario also amplified Preston Group CEO Gloria Salomon’s The Agenda appearance.

Additionally, to show support for the new bill while also showcasing the important role rental housing plays in solving the housing crisis in Ontario, we

launched an integrated ad campaign on digital platforms, as well as radio and TV. The campaign was intended to spread awareness and show the government that rental housing providers are important allies in solving the housing crisis. Ads ran on CP24, Newstalk 1010, and the digital editions of media such as the Toronto Sun, Toronto Star, and Global News for a month. They also ran digitally on Meta and Google concurrently. The campaign achieved good results, with nearly 25 million impressions in Ontario across all platforms, showing once again the value and cost effectiveness of targeted advertising campaigns.

Meanwhile, with the Toronto municipal election campaign in full swing, we stepped up media and social media monitoring efforts to ensure that rental housing and rental housing providers did not become undue targets in the political rhetoric.

Let’s Build Ontario will continue championing rental housing as a cornerstone solution to the crisis, and we will continue proactively proposing changes designed to create a better system for all. We have exciting plans in the works for the weeks and months ahead. But we want to hear from as many Ontarians as possible. If you have ideas, opinions, or stories to share, we want to hear from you. We want to tell your stories and show the government that rental housing is an essential part of the housing market in Ontario. For more information on the campaign, or to get involved, visit the Let’s Build Ontario website at https://letsbuildontario.ca/ Let’s Build Ontario together.

Interior suite turn over

Interior common spaces repaint

Interior vinyl and wallcovers hanging

Exterior brick and stucco

Exterior trim and patios

Exterior wood, vinyl and aluminum siding

New construction/reno and repaint

RENTAL MARKET OUTLOOK IN THE GTA

CITREX

Attn: Vladyslava Kapustina

By Dana Senagama (she/her/elle)

T: 800-643-6922

C: 416-877-9229

Rental market conditions will remain tight, maintaining strong upward pressure on rents.

info@citrex.ca

According to CMHC’s latest Housing Market Outlook report, Toronto’s average vacancy rate for purpose-built rental apartments will edge lower over its forecast horizon (2023–2025). This will maintain strong upward pressure on rents. Several factors will contribute to rental demand in 2023 and beyond:

• Immigration continuing at high levels will be a key driver of rental demand. Newcomers to the country, especially non-permanent residents, have historically had a high propensity to rent.

COHEN HIGHLEY LLP

Attn: Kristin Ley

T: 519-672-9330

F: 519-672-5960

ley@cohenhighley.com

• Mobility from the rental market to the homeownership market will remain hindered by the high cost of homeownership in the GTA. As a result, some debating between renting and owning will likely choose to rent, while prospective buyers currently renting may choose to occupy their units for longer.

• Should the region’s labour market remain tight, and wages continue to rise strongly (especially for the youth segment – a demographic group that is more inclined to rent), stronger rental demand will ensue.

DELTA ELEVATOR CO. LTD.

Attn: Jeff Righton

T: 905-828-4423

The above demand drivers would have the effect of placing downward pressure on the average vacancy rate and upward pressure on the average twobedroom rent. An estimated large number of rental apartment completions in 2023 and in the early part of 2024 would partially offset declines in the average vacancy rate.

F: 519-745-7587

The provision of purpose-built rental housing in Toronto appears less and less tenable. The reasons: higher construction costs, higher interest rates, and elevated land costs. Rental apartment starts in the Toronto CMA fell in both 2021 and 2022. This may result in fewer completions over the second half of CMHC’s forecast horizon. This would keep rent growth elevated, given strong expected demand.

jrighton@delta-elevator.com

EDGE GROUP LTD

Attn: Frank Di Giacomi

T: 905-850-2332 ext. 102

CFAA REPORTS ON THE FINANCIALIZATION OF RENTAL HOUSING

By John Dickie

As many readers know, the House of Commons HUMA Committee is considering the financialization of purpose-built rental housing, and what the federal government should do to make rents more affordable across Canada (including whether the federal government should impose new taxes or ask the provinces to tighten rent control).

CFAA and the rental housing industry presented a strong case that financialization is not a problem, and that tighter rent control and the other solutions put forward by the Federal Housing Advocate would be counter-productive. We also made the case that the current promises of the Liberal government need to be re-evaluated due to the negative effect they could easily have on rental housing supply.

The CFAA speakers were Tony Irwin, Krish Vadivale, John Dickie, and Christian Szpilfogel. They spoke at various time on June 6 and June 9. You can watch the presentations and questioning by clicking on the links for the relevant dates at https://www.ourcommons.ca/Committees/en/huma/Meetings

At https://cfaa-fcapi.org/resources/submissions/ under “Financialization“, you can read:

• A longer summary of the remarks made by all four speakers

• The full opening remarks made by each speaker

• The joint CFAA-FRPO written submission (“Brief”) to the HUMA Committee

Set out below is a summary of the key points that the CFAA speakers made, and a note about next steps. The purpose-built rental market in Canada totals 2.5 million homes. Besides that, there are a little over 500,000 rental homes in social housing, and two million more rental homes in the secondary rental market. The total rental supply across Canada is five million homes.

Because of this widespread competition, large rental providers have no power to set rents above the levels determined by supply and demand.

Market rents are rising because supply has lagged behind the growth in the population and in rental demand.

On the demand side, there is a growing population, driven largely by immigration, along with stricter rules for mortgage qualification, which make home ownership less attainable for first-time buyers.

On the supply side, there are increasing costs of rental operation, increasing costs to build, growing notin-my-backyard syndrome (“NIMBY-ism”) delaying new developments, and increasingly hostile political rhetoric aimed at the largest providers of rental housing.

On average, paying the operating expenses of 45 cents (36 cents for the mortgage and 11 cents for major repairs and building modernization) leaves just 8 cents as the pre-tax return on each dollar of rent.

In Ontario, over 80% of the existing purpose-built rental stock was built before 1980 – making it over 43 years old. Even with good maintenance, building elements must eventually be replaced or refurbished. This includes roofs, balconies, heating equipment, elevators, windows, and underground parking structures. Before all the other building expenses, replacing any one of those could easily cost 20% of the total annual building revenue, and some cost 50% more. In provinces with rent control, AGIs are a critical mechanism to fund essential repairs in private market housing.

Regulating against financialization, limiting expansion by REITs or other for-profit rental housing providers, or tighter rent control could easily reduce investment in new rental housing, and in modernizing aging rental stock. Instead, to increase rental supply (and thus moderate rents), the government needs to incentivize new housing supply or reduce current disincentives.

In summary, financialization is not nearly as significant an issue as it is said by some to be, and the proposed “cures” being suggested to the Committee are much worse than the alleged “disease”.

The next stages

The HUMA Committee staff will write a draft report over the summer. The Committee will revise the draft report and issue it in the fall. There could be a majority report and one or more minority reports.

The next governmental review of financialization is the Review Panel of the National Housing Council, which is receiving written submissions on the impact of financialization on the right to housing until August 31.

FRPO is a founding member of the Canadian Federation of Apartment Associations, which represents Canada’s rental housing industry at the federal level with the support of 13 member associations and many direct members

June 22, 2023

To our members, corporate sponsors, vendors, and partners:

After decades of supporting the rental housing industry, John Dickie is stepping down as President of the Canadian Federation of Apartment Associations (“CFAA”). The CFAA Board would like to thank John for his years of tireless service to the industry and wish him all the best in his future ventures.

Going forward, Tony Irwin, a current CFAA Board Member, and the current President and CEO of the Federation of Rental-housing Providers of Ontario (FRPO) will be stepping in as interim-President of CFAA, with the support of FRPO. The CFAA Board welcomes Tony, as he takes up the national mandate for Canadian rental housing on behalf of CFAA.

- Krish Vadivale, CFAA Board Chair

2023 CFAA RENTAL HOUSING CONFERENCE

The annual CFAA Rental Housing Awards recognizes excellence among rental housing providers, employees, and suppliers across Canada. On Thursday, June 15, CFAA recognized the winners of this year's Awards Program at the CFAA Awards Dinner in Halifax.

Congratulations to all the finalists and winners of the CFAA Rental Housing Awards 2023! CFAA thanks the judges, everyone who entered the Awards Program, and the Awards Presentation Sponsors.

For more information about CFAA's Awards Program, contact awards@cfaa-fcapi.org.

Here are the winners:

Rental Housing Provider of the Year

Over 10,000 units

Skyline Living

Supplier Member of the Year Wyse

New Product or Service of the Year Leasing

Pre-Development 3D Visualization

Marketing Program Excellence of the Year Brand Awareness

Just Steps Away. Literally.

Renovation of the Year

Common Area/Amenity over $750,000 The West Lodge

103 & 105 West Lodge Ave, Toronto, ON Hazelview Properties

Renovation of the Year Unit over $50,000

7 Jackes Ave, Toronto, ON Starlight Investments

Rental Development of the Year Low/Mid-Rise

G17 Apartments 789 Tamarack Way NW, Edmonton, AB Deveraux Apartment Communities

Rental Housing Provider of the Year

Under 10,000 units

BentallGreenOak

New Product or Service of the Year Operations

GrydPark Lot Management

Association Achievement of the Year

Investment Property Owners Association of Nova Scotia

Marketing Program Excellence of the Year Lease-Up

This is NovUS

Renovation of the Year

Common Area/Amenity under $750,000

Knightsbridge King Cross 3 Knightsbridge Rd, Brampton ON CAPREIT

Renovation of the Year Unit under $50,000 25 St Dennis Drive, Toronto, ON DBS Developments

Rental Development of the Year High-Rise

Tippett Park Two 18 Tretti Way, Toronto, ON Shiplake Properties Ltd.

RTA AMENDMENTS: INCREASE RISK AND FINANCIAL LIABILITY FOR LANDLORDS

By Joe Hoffer, Cohen Highley LLP

On June 8, 2023, the Ford government passed Bill 97, which, among other things, amends the RTA (see Schedule 7 of Bill 97 at this link). It adds new rules permitting tenants to install and use AC units in their suites; new rules for giving N13s based on renovations and notice to tenants to move back in; and new liabilities if a tenant is not properly given a “right of first refusal” to re-enter a unit or if a designated person does not move into a rental unit “within a prescribed time” after a tenant vacates based on “landlord’s own use.”

AC unit rules

With limited exceptions, a tenant can now install an in-suite AC unit subject only to certain conditions as set out in 36.1 (3) RTA. The tenant must notify the landlord in writing before installing the unit; must ensure the unit won’t damage the rental unit; must install the unit “safely and securely”; and ensure the installation complies with applicable law. The tenant must pay for increased hydro based on the use of the AC unit unless a tenancy agreement expressly states that the unit may be installed without an increase in rent. The rent increase that the tenant must pay is to be based on the landlord’s actual cost of the increased hydro used by the AC unit, so where hydro is included in the rent, unless the unit is sub-metered, the “actual cost” is bound to be the subject of numerous, time, and money wasting disputes at the LTB, a recipe for conflict and financial loss to the landlord.

In our view, window AC units over a sheer drop may still be prohibited, but portable in-suite AC units

may not. There is a special provision to allow for inspection of an installed AC unit but the right of inspection only increases the onus on the landlord to ensure it is properly installed and operating without potential damage to the unit. This means that where damage is caused, the landlord is likely to be blamed for not properly inspecting. Bottom line: landlords better make sure the tenant has insurance and, where practicable, should consider submetering units so an objective measure of increased hydro consumption and cost (next year) can be determined.

Renovation rules

Now when an N13 for renovations is issued, it must be accompanied by a properly qualified person stating that vacant possession is necessary and will probably require an estimate of the time for which vacant possession is required. In a dispute, an LTB member is not bound to accept the conclusion of

GTA CONSTRUCTION & GENERAL CONTRACTING SPECIALIST

ABOUT US WHO WE ARE

Seasons Colours LTD works with multi-residential, condo and apartment renovations which include lobbies, entrances, corridors, common areas, management offices and suites. We work with you to assess, plan, and engineer the project. We secure all building permits, provide and provision utilities, manage personnel on-site and operate safely and efficiently.

Building Plans

C O M M

C O M M

a professional that vacant possession is required. Most LTB members will not have the qualifications to dispute the report of a professional so it is unclear on what basis the member’s opinion will “trump” that of the professional who prepared the report.

After the N13 is given, if the tenant shows an intention to exercise the right of first refusal, the landlord must “without delay” inform the tenant as to when the unit will be ready for re-occupancy and, if there is a change to that date, again without delay notify the tenant of the change. At a minimum, the tenant who has a right of first refusal is to be given a minimum of 60 days “…after the day the unit is ready for re-occupancy” to exercise the right of first refusal. Landlords will have to carefully plan the timing of the notice; otherwise, the unit may sit vacant for months pending the tenant’s return to the unit. If a landlord does not strictly comply with the new rules for notice, the landlord will be “deemed” to have failed to afford a tenant a right of first refusal, thereby exposing the landlord to serious financial penalties and an order putting the displaced tenant back into possession.

New “landlord’s own use” rule

There was always a question about how long a person who was entitled based on “landlord’s

own use” could have before being required to move into the vacated rental unit. If the unit was to be renovated to accommodate the landlord or one of the other class of persons who fall within “landlord’s own use”, there was no specific time limit for the renovations to be completed and the person to move in. The RTA will now have a deadline for the move-in date; however, that is to be “prescribed” by legislation and the time has not yet been prescribed.

Summary

The amendments to the RTA will invite more conflict between landlords and tenants in Ontario on the issues of AC unit use and landlord’s possession for renovations or landlord’s own use. Landlords are encouraged to know the rules before becoming embroiled in such conflicts. Advice concerning the rules is available through your legal advisor or a very careful reading of Schedule 7 to Bill 97!

See Schedule 7 to Bill 97 here: Bill 97, Helping Homebuyers, Protecting Tenants Act, 2023Legislative Assembly of Ontario (ola.org)

DID YOU GET theANNUA? IT’S OUT NOW!

By David Gargaro

Did you attend the CFAA Conference in Halifax on June 15? Then you would have had a chance to get your hands on the latest edition of theANNUAL from RHB Magazine. Digital subscribers received their copies on June 21, and physical copies will be mailed out to everyone else in July.

If you’re not familiar with theANNUAL, the publication provides rental property owners and managers with reports, insight, and analysis on what’s happening within the industry. It includes current and relevant data from key industry sources and experts across the country. Rental property owners and managers can use this information to identify and analyze market needs, size, and competition. There’s a national edition of theANNUAL, as well as local editions (Nova Scotia, Saskatchewan, Hamilton, London, Waterloo, and Ottawa).

What’s inside theANNUAL?

State of the Industry provides national and regional data on rental rates, vacancy rates, and turnover rates for Canada’s major cities, with data aggregated from Statistics Canada Census Report and CMHC’s Rental Housing Portal.

Allowable Guideline Increase

Realty Check lists key apartment building transactions that have taken place across Canada over the past year, with JLL Capital Markets providing most of the data.

Dollars & Cents includes economic updates and forecasts from Benjamin Tal, Chief Economist of CIBC World Markets.

Allowable & Actual Rents lists the allowable rent increases by province for the year, as well as actual rental rates with data provided by the Yardi Multifamily Report.

Multifamily Report includes data and analysis from the Yardi Multifamily Report, which covers key developments in the industry for the first quarter of the year.

Top 10 lists the top 10 owners, top 10 property managers, and top 10 REITs in Canada based on the number of suites they own or manage.

Events lists the most notable events in the rental housing industry, including tradeshows, expos, conferences, symposiums, and more.

Conclusion

If you’d like to have access to key data, reports, and analysis on what’s happening in the rental housing industry, so you can make more informed decisions, visit theannual.ca to subscribe to the 2024 edition of

ROAD MAP TO THE RTA

2023 Residential Tenancies Act Sessions April & May

The 2023 edition of the RTA series was extremely well attended with over 500 members taking part via virtual or an in-person session held in Toronto.

With the many provisions contained within the Residential Tenancies Act and its regulations, it can often be difficult to navigate changes, especially in the current operating climate. As rental housing providers, it’s important to understand your rights and responsibilities under the RTA.

This year, our session focused on a variety of relevant topics including intertenant conflicts, recovery of rent arrears, unauthorized occupants, AGIs, and the Human Rights Code. Our presenters also provided important updates from the Landlord and Tenant Board and current timelines for various hearings.

Thank you to this year’s sponsors for their strong support and we look forward to seeing everyone at next year’s events.

SPRING SOCIAL

The Wyse team was thrilled to join our clients, industry friends, and colleagues in celebrating a return to face-to-face connections at PM Springfest and the WyseFRPO Spring Social in April.

The event was a good reminder of why we take pride in working within an industry quick to embrace proven new technologies. Instead of waiting for the future to arrive tomorrow, we prepare for it today. Wyse is proud of our role in the industry’s environmental, social, and governance (ESG) leadership and we look forward to a continued pushing of boundaries to create a greener, more sustainable world.

As we heard from many of you at the Spring Social, ESG goals are already becoming more prominent in the minds of governments, investors, and residents. That fact has come as a wakeup call for many industries. Fortunately for us, it is an alarm we heard years ago.

When it comes to ESG, our industry knows the challenges that await us. The key to our preparedness has been the sustainable management of utilities, mainly energy and water, particularly as they relate to usage in our buildings.

At Wyse, we have quickly become one of Canada’s leading technology companies using utility data to further the sustainability agendas of property owners and managers, as well as their residents. Our solutions cover a range of areas, including electricity, water, thermal, heating and cooling systems, EV charging, data analytics, and more. We look forward to building a future – together.

Peter Mills Chief Executive Officer Wyse Meter Solutions

SPECIAL ANNOUNCEMENT

Strategy and client-focused leader Kate Pearce has joined Wyse Meter Solutions Inc. (“Wyse”) as Vice-President, Operations, effective May 29, 2023.

Kate will define and implement strategy, structure, and processes while overseeing day-to-day operations. She will also lead the development and implementation of next-gen systems to meet the current and future needs of the organization.

“Kate understands both the business and client side of our company and we are elated to have her tremendous expertise here at Wyse,” said Peter Mills, CEO, Wyse. “She is known for leading and driving big change while providing the creativity, insight, and technical understanding required to scale successfully.”

Prior to Wyse, Kate held C-suite positions within the consumer goods, technology, internet, and telco industries, among others. She was instrumental in scaling AOL in Canada and then added the U.S. market, scaling America Online’s consumer mobile and Latino businesses. Since returning to Canada, she has lent her unique operations and marketing expertise to growing tech companies including STI Technologies (health-tech), Wattpad (media and entertainment), and Viva Naturals (e-commerce).

“I am thrilled to join the dynamic and talented team at Wyse,” said Kate Pearce, Vice President, Operations, Wyse. “My passion lies in translating strategy into clear and executable operating plans, and Wyse makes an ideal environment for me to add value. I am eager to collaborate with this leadership team and contribute to the company’s ongoing success on behalf of our clients and their residents.”

She earned a Metallurgical Engineering degree from Queen’s University, as well as certificates from the MIT Sloan School of Management and Columbia Business School.

MASTERMINDING THE FUTURE IN ACCESSIBLE HOUSING

By John Groe, Accessibility Consultant/CEO Accessible Daily Living

One of the hardest questions I have to answer on a daily basis is, “Where can I find a home suitable for me or my loved one and not break the bank?”

The primary reason is that our current building codes (provincial and federal), along with AODA (Accessibility for Ontarians Disabilities Act) standards, do not require private residential dwellings to be accessible. There is a common thread with housing development across Canada. Fit as many dwelling types as possible. Use as little land and get more out of it. Safety, access, and suitability are variables left off the table with the majority of housing developers. Most don’t think about the needs of people with disabilities when they build living spaces. There is an assumption that everyone living in the spaces they design are “able” and can safely access all areas of the home. In the end, you have housing stock that is not accessible or safe.

Many Canadians live in unsafe conditions years due to the shortage in accessible housing. Even with ongoing residential development, few are accessible. When they are being built, affording them becomes the primary barrier.

The Ontario Building Code (OBC – Sec. 3.8) has regulations mandating accessibility in apartment buildings in relation to common elements. For instance, new apartment buildings must have:

• Ramped or level entrances

• Barrier-free paths of travel through buildings, including:

• Wide hallways

• Automatic doors and wide doorways

• Pools and spas

• Accessible public washrooms

• Visual fire alarms

The current code requires barrier-free access between floors in apartment buildings that are at least:

• 3 storeys high

• 600 square metres

At least 15% of apartments in a building must have accessible features:

• Kitchen

• Living room

• Full bathroom

• Bedrooms

The same code unfortunately has no governance or impact in other types of dwellings, such as:

• Single detached dwellings

• Semi-detached dwellings

• Duplexes

• Triplexes

• Townhouses

• Row houses

• Boarding or rooming houses with fewer than eight boarders or roomers

The OBC does not provide guidelines for residential accessibility. However, the code and other building standards (federal and provincial) rely on best practices to improve accessibility of future developments.

The need for affordable accessible housing is an immediate and present concern and the need is growing. Contact Accessible Daily Living for all of your residential, public space, and commercial accessibility needs related to the built environment.

1-884-ADL-CORP (235-2677)

www.myadl.ca

john@myadl.ca

Turning Possibilities Into Reality

LAUMAR DESIGN LTD.

L a u m a r D e s i g n i s a l e a d i n g a n d r e p u t a b l e c o n t r a c t i n g c o m p a n y b a s e d i n T o r o n t o F o r t h e p a s t 1 5 y e a r s w e ' v e t a k e n a c o m p r e h e n s i v e a p p r o a c h t o p r o j e c t m a n a g e m e n t , p r o v i d i n g c l i e n t s w i t h a w i d e r a n g e o f s e r v i c e s D e d i c a t e d s p e c i a l i s t s i n c a r p e n t r y , d r y w a l l , f l o o r i n g , d e s i g n & m o r e , L a u m a r D e s i g n L t d p r o v i d e s p r o f e s s i o n a l , e f f i c i e n t a n d r e l i a b l e s e r v i c e s f o r b o t h r e s i d e n t i a l a n d c o m m e r c i a l c l i e n t s

GOOD FOR BUSINESS: 5 REASONS YOU SHOULD ATTEND INDUSTRY EVENTS

By Michelle Cuthbert and Shivani Patil, Canadian Real Estate Forums

These days, it’s easy to get caught in a loop at work. You open your email, check in with the same people, and read the same publications. We all know that business is better when you’re learning new things and making new connections, so how do you do that? The answer is simple: attend industry events. Conferences, forums, and receptions are all perfect places to increase your reach and expand your knowledge. Not convinced? Here are five reasons to prioritize attending industry events.

1. Networking opportunities

Whether it’s during coffee breaks, receptions or lunch, industry events are rife with opportunities to network. Of course, there are senior decision-makers you know you’d like to meet, but you never know who you will meet that will change the way you do business.

Kris Boyce, Chief Executive Officer of Signet Group, said that the 2022 Canadian Apartment Investment Conference was an “energized event with physical networking,” and that “the positive energy and exchange of success stories are tremendous."

Making new connections with people in your industry will give you unique new perspectives, expand your contact list, and offer innovative solutions to your most pressing problems.

Attendees networking at the 2022 Canadian Apartment Investment Conference. Photographer: Dennis Chui

2. Knowledge sharing from industry experts

Where else but a well-planned conference can you hear from the top experts on every pressing subject in your industry? If you are looking for specific solutions and advice, or top-down knowledge of market conditions and trends, industry events are the place to be.

“The Canadian Apartment Investment Conference gives us an opportunity as an industry to speak to issues with one voice. It brings us up to date on all the latest and greatest in PM, marketing, buildings, development, and ESG. If you did not attend, plan to do so next year," said Randy Ferguson, Senior Vice President, Melcor REIT.

3. Professional development and education credits

While you’re making new connections and learning from the experts, you could also be fulfilling your professional development requirements. At the Canadian Real Estate Forums events, you can earn credits from organizations like the Appraisal Institute of Ontario, BOMI International, and more.

4. Creative solutions and inspiration

At this year’s Canadian Apartment Investment Conference, the theme will be “bringing together the multi-residential industry to find groundbreaking solutions.” Industry events like this are important community gatherings, where like-minded people can share their thoughts and opinions on issues that affect them every day.

Ashley Willard Bauman, Principal, Beyond the Buildings, said that one Canadian Real Estate Forums event "felt like a group of friends coming together to discuss important topics."

Events like the Canadian Apartment Investment Conference "provide a platform for innovative ideas,” says Aik Aliferis, Senior Managing Director, Investments, Institutional Property Advisors, Division of Marcus & Millichap.

If you’re looking for a place to get inspired and to find solutions to your problems, industry events are a great place to start.

5. The after-party

We’d be remiss if we left out the best part of any conference or industry event – the after-party! After a day of hard work networking, learning, and collaborating, you deserve a drink and a bit of fun with new connections and old. Cheers!

Looking for an industry event that has all the benefits above? Check out the Canadian Apartment Investment Conference, which will take place on September 13, 2023 at the Metro Toronto Convention Centre. Go to CanadianApartmentInvestment.com for more information.