BUDGET 2022 PUTS FOCUS ON HOUSING

Inside Canada’s plan to improve affordability

The new federal budget, released April 7th, promises to make housing affordability a priority in 2022 and beyond. Plans to bolster housing development and increase affordability include launching a new Housing Accelerator Fund, expanding the Rapid Housing Initiative (RHI), and amping up energy-efficient rental construction via the Rental Construction Financing Initiative (RCFI).

Budget 2022 is about growing our economy, creating good jobs, and building a Canada where nobody gets left behind,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance. “Our plan is responsible and considered, and it is going to mean more homes and good-paying jobs for Canadians; cleaner air and cleaner

“water for our children; and a stronger and more resilient economy for years to come.”

Key steps include:

Launching a new Housing Accelerator Fund

To incentivize cities and towns across Canada to modernize housing and create up to 100,000 new housing units over the next five years, $4 billion will go towards a new Housing Accelerator Fund. The fund delivered through CMHC will be flexible with a single application system and will offer key supports and incentives to ensure a balanced supply of housing is built to meet the needs of all income levels. The new program will also consider

smaller and rural communities that are growing quickly, like those in Atlantic Canada and Northern Ontario.

Rapidly building new affordable housing

With affordable housing still urgently needed in most major markets, the government intends to extend the Rapid Housing Initiative for a third round with $1.5 billion over the next two years in allocated funds. Though this initiative, 6,000 new affordable housing units will be created, with 25 per cent of the funds going toward women-focused housing projects.

Speeding up housing construction and repairs

Over the last five years, the National Housing Co-Investment Fund has supported the construction and repair of 108,000 housing units for vulnerable Canadians (i.e. those at risk of homelessness or living with disabilities). With shelters and supportive housing being in high demand, Budget 2022 proposes to advance $2.9 billion in funding under the National Housing Co-Investment Fund to be used by 2025-26. The government promises that improvements will make the fund “more flexible and easier to access” with more generous contributions and faster approvals.

Building more affordable and energy efficient rental units

The Rental Construction Financing Initiative (RCFI) incentivizes the construction of new rental housing by offering low-interest loans and mortgage insurance to those building more rental housing in areas where it is needed most. Budget 2022 proposes to reform the initiative by strengthening its affordability and energy efficiency requirements. Developers who significantly exceed the requirements and build highly affordable and energy efficient units will be eligible to have a portion of their repayable loans converted to nonrepayable loans.

Additionally, the new RCFI will target a goal of having at least 40 per cent of the units it supports provide rent equal to or lower than 80 per cent of the average market rent in their local community. These new requirements are intended to ensure that the rental units built through this program are more affordable, more efficient, and more aligned with Canada’s climate goals.

“Over the last five years, the National Housing Co-Investment Fund has supported the construction and repair of 108,000 housing units for vulnerable Canadians”

Providing more direct support for those in housing need

The Canada Housing Benefit was codeveloped in 2020 with provinces and territories providing joint funding of $4 billion over eight years. This benefit gives direct financial support to Canadians who are experiencing urgent housing need. Budget 2022 proposes to provide $475 million toward a one-time $500 payment to individuals facing housing affordability challenges. The specifics and delivery method will be announced at a later date.

Supporting co-ooperative housing development

For generations, co-ops have offered quality, affordable housing using a communityoriented model of shared living spaces. While co-ops are home to approximately a quarter of a million Canadians, the government contends that not enough of these dwellings have been built in recent years. Budget 2022 proposes to reallocate $500 million of funding from the National Housing Co-Investment Fund to launch a new Co-operative Housing Development Program aimed at expanding co-op housing in Canada. It also proposes an additional $1 billion in loans to be reallocated from the Rental Construction Financing Initiative to support co-op housing projects and the construction of an estimated 6,000 new units.

Launching a multigenerational home renovation tax credit

To support Canadian families living in multigenerational homes, Budget 2022 proposes to introduce a Multigenerational Home Renovation Tax Credit, which would provide up to $7,500 in support for the construction of a secondary suite for a senior or an adult with a disability. Starting in 2023, this refundable credit would allow families to claim 15 per cent of up to $50,000 in eligible renovation and construction costs associated with these projects.

For a complete summary of Budget 2022’s housing-related policies and initiatives, visit: www.Canada.ca

Keeping the Water at Bay Keeping the Water at Bay

Protecting buildings against springtime water damage Protecting buildings against springtime water damage

With winter making its slow retreat, now is an ideal time to ensure buildings aren’t susceptible to a springtime of water issues.

“Ontario has seen a signifi cant amount of snow over the winter; and with temperatures fl uctuating, much of this snow has now thawed and frozen, resulting in ice build up on the roofs and around the base of our buildings,” says Craig Smith, Director of Commercial Business Development with First Onsite Property Restoration.

True, the odd crack or clogged catch basin won’t seem like much at fi rst glance. However, property operators who leave these building defi ciencies off the radar for too long risk opening the doors to signifi cant fi nancial and safety risks down the road.

In short, Smith adds, it pays to get ahead of issues before they turn into disasters. Plugging the source of water disasters Where water damage appears in a building, costly repairs and safety risks are soon to follow. And after decades of responding to fl oods, extreme weather events, and water-related emergencies across the country, Smith and the team with First Onsite have seen how small leaks and breaches turn into oceans of trouble for building owners and residents.

Granted, not all water damage is created equal. According to First Onsite, the three main hazard categories for water include: • Clean water (Category 1): clear water that may come from overfl owing sinks, broken water or steam lines, and rainwater which needs to be addressed 24-48 hours after detection to mitigate risks of contamination. • Grey water (Cat 2): water that comes from more contaminated

water sources and therefore poses slight to severe health risks. • Black water (Cat 3), highly contaminated (and highly dangerous) water from exterior sources such as sewers, rivers, and other potentially hazardous sources.

No matter the colour, it’s important to catch and mitigate water damage before the situation evolves. According to Smith, a good starting point is to have an inspector conduct a top-to-bottom assessment, explaining: “You want to start at the roof and inspect all the fl ashing and shingles for openings where water may get in, as well ensure waterproofi ng is intact. While up there, it’s important to remove large snowdrifts and any snow or ice build-up as this will reduce any stress on the roof structure.”

Most apartment/condominium buildings won’t have a sloped

roof, he adds, but those that do pose additional risks of falling snow and ice. As such, it’s important that building occupants and visitors are alerted to these risks when walking below.

It’s also important to inspect for water damage at the base of the building. While there, inspectors should ensure that water is being directed to catch basins and that those basins are free from obstructions.

“This is crucial in preventing costly water damage,” says Smith. “Also, you’ll want to keep an eye out for ice buildup where the foundation or base of the building meets ground level, as ice buildup here can lead to water entering and expanding in even the smallest cracks in the foundation, leading to potential water damage in the interior of the building.”

Building on this, it’s also important to inspect the building’s foundation for any holes or cracks, and to repair these wherever possible as ice and snow begin to melt. Leave it to the pros Property operators have a lot on their plates at all seasons, meaning water damage prevention and mitigation isn’t always high on their list of things to do. As such, there is an advantage to working with a third-party water damage specialist who knows what to look for and who can step up in the event of a water emergency.

For its part, says Smith, First Onsite believes strongly in helping clients not only spot trouble before it occurs (e.g., mould development, leaks, etc.) and ensure issues are spotted and mitigated quickly and effectively.

“As with any potential water or weather damage issues, First Onsite is here to help, as a trusted partner in not only responding to costly repairs, but in helping our clients with preparation and prevention,” he adds.

FIRST ONSITE is a leader in water damage prevention, disaster remediation, property restoration, and reconstruction services, helping North America restore, rebuild, and rise after catastrophic events of every kind. Learn more at www.fi rstonsite.ca.