RHB Magazine May/June 2024 - National Outlook

Annual Hill Day

By Tony Irwin, Interim President, CFAA

On April 29, CFAA members travelled to Ottawa for our first Annual Hill Day on Parliament Hill, with the support of Crestview Strategy who put together a great program. Over the course of three days, CFAA members participated in 25 meetings with MPs, staff, and department officials to provide our feedback regarding the Federal Budget and to discuss key CFAA member priorities.

Our first meeting was with the Honourable Sean Fraser, Minister of Housing, Infrastructure & Communities, who encouraged an open dialogue with us and a willingness to collaborate with CFAA. We praised the Minister for several positive initiatives in the Budget, including $15 billion for the Apartment Construction Loan Program and program changes that will make it more efficient and accessible, the $6 billion Infrastructure Fund, increased funding for the Housing Accelerator Fund, funding for modular housing, accelerated capital cost allowance, and an exemption from new EIFEL rules regarding interest deductibility limitations for new purpose-built rental construction.

We also raised concerns regarding the proposed increase to the capital gains inclusion rate. We suggested either an exemption for rental construction or a deferral if the gain is reinvested in new rental construction. We discussed the proposal to tax vacant land and some provisions in the Renter’s Bill of Rights, to which the Minister encouraged us to provide our feedback through a written submission. It was a positive meeting focused on advancing solutions that support the building of more purpose-built rental construction right across Canada. Other highlights included meetings with MP Scott Aitchison, Conservative Housing Critic; MP Alexandre Boulerice, NDP Housing Critic; MP Chad Collins, Chair; Liberal Housing Caucus; and a rare opportunity to meet with the Saskatchewan Caucus. Everyone we met with was interested to learn about CFAA’s members and mandate, and to engage in constructive conversations about how the federal government can support rental construction.

Thanks to everyone who made to trip to Ottawa to participate in a very impactful three days that elevated CFAA’s profile with political Ottawa and opened the door to future conversation and collaboration with key decision makers. We look forward to our next Hill Day and encourage CFAA members to consider participating!

RHBTV interview with Tony Irwin

NATIONAL OUTLOOK

Vanessa Topple, Anchor and Producer of RHBTV and BoldTV, recently had an exclusive interview with Tony Irwin, President and CEO of FRPO and Interim President of CFAA. They discussed his thoughts on the recent federal budget and how it is likely to affect the industry. To follow is an edited transcript of the interview. To watch the interview in its entirety, please visit RHBTV.ca.

RHBTV: Recently, you were at an event in Belleville, Ontario, discussing the recent federal budget and how it might impact the industry. Let’s talk a little bit about the event, which was both in-person and virtual. How did it go?

Tony Irwin: It was a great opportunity to speak to many rental housing providers. It was QRLA who invited me, and they also extended the invitation to many other regional associations from the area and around the province to attend. And it was really a good opportunity to talk about the federal budget, lots to unpack there. I welcome the opportunity to come, as I always do, and talk directly to those in the front lines about government announcements. And in this case, a pretty significant one with respect to the federal budget.

RHBTV: Let’s dig right into the budget. What are some of the significant items and what should everybody know about it?

Tony Irwin: It was definitely a housingfocused budget. I think over $30 billion was announced… leading up to the budget. In terms of what specifically was announced that’s important for rental housing providers, lots of great initiatives. [There was an] additional $15 billion for the apartment loan construction program. We’ve been urging the federal government through CMHC to provide more funding through that program. Of course, we know it’s lower interest rate loans and to be able to get more rental housing built. Six billion dollars for infrastructure funding across Canada is also a big one. We hear consistently from our friends in the municipal sector about how important infrastructure is, and frankly, how old it is, not unlike our aging apartment stock, and the critical need for help from the federal government to be able to pay for the updated and modernized infrastructure that’s needed to support more rental housing construction… More money for the Housing Accelerator Fund is good news. More money for modular homes, for example, is good news. Certainly, the announcement with respect to capital cost allowance, the increase there is another measure we’ve been advocating for many years. All of these are good measures when you also add on the GST announcement from last year that removes GST from new proposal rental construction. All of those are good signs and good announcements by the Government of Canada that we hope will really start to help get more rental construction built. That said, there are some measures in the budget that we certainly are eager to follow up with the government on and that we’ve been hearing from many members about. And I would say in particular, the announcement with respect to capital gains, as well as the renter bill of rights. Those are two that CFAA will be in Ottawa next week. for three days of meetings with government officials. And we’ll certainly be addressing concerns we’re hearing from members on those two points.

RHBTV: Is there anything that landlords can do to protect their interests in a situation like this?

Tony Irwin: I think it’s important to note that this is budget making and the process of budgets is a long one. We certainly understand why rental housing providers are concerned with some of these items. There’s a lot still to happen here in terms of seeing this become reality. I would just say to

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people watching: you are part of an association because of the work we do to advocate on your behalf. We are hearing loud and clear from members about why the concerns they have and impacts they could experience. There’s lots of work still to be done here before any of these measures are actually implemented. Capital gains is coming. There’s a date attached to that. We need to work quickly. Many people and many groups are expressing concern about that. With respect to the renters’ bill of rights, there’s a lot of work still to be done there. We’re a long way from it actually being realized. And we will certainly be doing a lot of work in the coming weeks and months… to really unpack the various provisions that were announced within that.

RHBTV: The CFAA is working really hard along with all the other associations. Is there anything that we can do as an entity, as an industry, to help out?

Tony Irwin: Whenever I speak, whether it was at IPOANS in Halifax last week or this event that I attended with the QRLA and all the other regional associations, I always convey the same message, which is it’s so important for rental housing providers to be involved. Join whatever association makes sense for you based on where you are and what you can manage. But it is so important that we work together, that we understand concerns of those who are working so hard day in and day out to provide rental housing that is so badly needed right across Canada. It’s critical that people do get involved, do support their associations, whether it’s at the municipal level, provincial level, or the federal level. And while we know there are a lot of challenges that we’re facing, that all Canadians are facing, and certainly rental housing providers are no exception to that, it is really important that we stand together and strength in numbers is important and that we support one another. And I think doing that positions us to be able to try to successfully advocate on behalf of our industry and continue to communicate those messages to government, urge them to make decisions and changes where we think they’re needed and bring forward policies that achieve what I have always said and believe is critically important, which is to support an industry that protects residents. We do need to have resident protections and we do have them, but also speak to those who provide rental housing that support an environment that is conducive to this industry providing such urgently needed housing. They need to provide a framework that allows for rental housing providers to operate their businesses and to do so in a way that is supportive of them. And we know that there’s always work to be done there and we’ll continue to do that. But having an industry that speaks to both ends is very important. And that’s our mandate. And we’ll just keep working toward that. And we appreciate the support of all those who are with us and also support that objective. Well, definitely one voice will always be heard louder and clearer than the clutter of many chattering away.

RHBTV: The upcoming CFAA show is going to be here in Toronto. Tell me more about it.

Tony Irwin: We are super excited about the CFAA Rental Housing Conference. The theme this year is building stronger communities. We think that is so appropriate given all the conversations we’re having about the shortage of housing we have right across Canada and the urgent role, the critical role, that rental housing providers play in providing housing that’s so needed. So that’s the theme. We have a great program lined up. I think people that have attended before are going to really like what they see, like some of the changes. And for those who are coming for the first time, we are super excited to welcome you to Toronto for three great days of sessions and speakers and a program that will both educate and entertain. We’ve got sessions on topics that are really topical, very top of mind for many in the industry, whether it’s ESG, AI, marketing all-stars, emerging leaders, our executive roundtable. We’ve got politicians from every level of government speaking to us and some fun social after-parties and networking experiences that our industry loves so much. Looking forward to bringing everyone together for a couple of days in Toronto. Really excited about it and hope to see you all there.

RHBTV: Thank you so much for your time. We always appreciate you coming in and sharing your thoughts. And I’m looking forward to seeing you at the CFAA show, RHBTV, crew and all.

Tony Irwin: My pleasure. Looking forward to seeing you too soon.

NATIONAL OUTLOOK

2024 CFAA Rental Housing Conference

CFAA held the 2024 Rental Housing Conference, from May 14 to 16, at the Hyatt Regency Hotel in Toronto, under the theme “Building Stronger Communities.” It was another successful event that brought together hundreds of members of the rental housing industry, including rental executives, property managers, apartment association leaders, rental housing suppliers, and more. They were able to engage in valuable networking opportunities, learn about new technologies and techniques, and gain valuable insights from industry leaders and experts.

As usual, Benjamin Tal, Deputy Chief Economist of CIBC World Markets, provided an update on the economy and its impact on Canada’s rental housing industry. Special guests included Toronto Mayor Olivia Chow, Paul Chalandra, Minister of Housing and Municipal Affairs, Scott Aitchison, MP and Shadow Minister of Housing, and David Colettto, Abacus Data. Attendees enjoyed an exceptional Buildings Innovation Tour and had a great time at the Wyse and Rentals.ca after-parties. This year’s conference featured the inaugural Lifetime Achievement Award, presented at the conference dinner on May 15 to Peter Altobelli, Vice President and General Manager at Yardi Canada Ltd.

CFAA’s Rental Housing Conference was packed with a number of informative educational sessions. Here’s a sample of what you missed.

Executive Insights Panel – Looking Forward

Sponsored by First National LP and moderated by Jeremy Wedgbury, the session featured leaders from diverse sectors of the rental ecosystem members, including Kerri Jackson (Concert Properties), Michael Tsourounis (Hazelview Investments), Adrian Rocca (Fitzrovia), and Dean Holmes (QuadReal Property Group). The panelists shared their expertise and offered unique perspectives on navigating the everchanging landscape.

Safe and Sound

The session, moderated by Sheena Keslick (Mainstreet Equity Corp.), featured BJ Santavy (Skyline Living), Kris Figurski (Weidner Homes), and Kristin Ley (Cohen Highley LLP). They discussed vital safety strategies for rental housing communities, and the importance of prioritizing safety to protect staff and tenants and to boost satisfaction and retention. Attendees learned about security protocols, safety inspections, communication channels, and training to mitigate risks and ensure a secure environment.

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Partnering for a Better Future

Moderated by Tony Irwin and sponsored by CMHC, this session explored innovative collaborations aimed at addressing the challenges of building more rental housing. The panelists included Brad Bradford (Toronto Councillor, Ward 19), Mwarigha (WoodGreen), Joel Genest (CMHC), and Andrew Joyner (Tricon Residential). Attendees learned how strategic partnerships can drive positive change for enhanced availability and affordability.

The Next Gen: Emerging Leaders Panel

This session, hosted by Peter Altobelli and sponsored by Yardi Canada, featured a panel including Shannon Tullio (Tricon), Courtney Chisholm (Fitzrovia), Shubham Agarwal (Valour Group), and Nathania Dixon (RioCan). The panel of emerging leaders discussed the latest trends, strategies, and technologies shaping the next generation of rental housing leaders.

Redefining Work Culture and Meaningful Connection

This session was moderated by Brandi Mclivenny Clarke of Sifton Properties, and featured Kim Reid (Taeus Group), Randy Daiter (M&R), and Alicia Ross (Hazelview). They discussed the changing landscape of work culture and connections, from remote work to digital collaboration. Attendees learned about the pivotal role of company culture in fostering meaningful connections and purposeful work.

Driving Business Impact: ESG Initiatives

Moderated by Peter Mills and sponsored by Wyse, this session included Mairi McKinnon (Killam Apartment REIT), Jonathan Diamond (Well Grounded Real Estate), Kyle Hulme (Lankin Investments), and Ariel Feldman (Choice Properties REIT). They explored the strategic advantages of integrating ESG principles into rental housing operations. Attendees learned how this approach can elevate brand reputation, appeal to socially conscious investors, and cultivate positive tenant and community relations.

Accelerating Leases with Proptech

Sponsored by Rentsync and moderated by Max Steinman, this session included Ryan Funt (Fitzrovia), Jonathan Margel (BuildingStack), Meherzad Bakht (Yardi), and Josh Donen (GRYD). They discussed how technology is revolutionizing leasing, making tenant acquisition faster and more efficient. Attendees received insights into cutting-edge tools and strategies that automate tasks, lower vacancy rates, and improve tenant satisfaction, and learned how to transform their leasing approach with the latest innovations in the rental market.

Fostering Social Impact

This session was moderated by Renee Bourgon of RB Consulting, and included Ossana Ber (Greenwin Corp.), Jasmin Pirani (Hazelview), and Krish Vadivale (Skyline Living). The panel members discussed how today’s businesses are becoming key drivers of social change, and how it is particularly noticeable in rental housing communities, where new methods are revolutionizing old practices. They explored how companies are making a difference by prioritizing social impact, discussed successful strategies, and offered expert insights to inspire collaborative action.

Sign-up for CFAA’s National Outlook e-newsletter to receive up-to-date news on what is happening across Canada, as well as industry insights and insider information on CFAA happenings. Email communication@cfaa-fcapi.org to start receiving CFAA’s e-Newsletter today!

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Labour and Innovation Panel

This panel, moderated by George Carras of R Labs, included Chris Spoke (Toronto Standard), Hon. Rob Flack (MPP Elgin-Middlesex-London), Richard Lyall (RESCON), and Dean Campbell (Parkbridge). They explored how Canada can attract and retain talent essential for the residential construction sector. They also discussed innovative tools and strategies for ensuring affordability, scalability, climate compatibility, and resilience in new rental homes.