Apartment CANADIAN
VOLUME 18 / NUMBER 2 / APRIL 2021
SKY-HIGH PURSUITS
ZIBI TAKES SUSTAINABILITY TO NEW HEIGHTS
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SURVIVING COVID
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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. We concentrate on revenue growth, controlling expenses, and strategic capital investment in your property to maximize your profitability over the long term — 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
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EDITOR’S NOTE>>
Apartment CANADIAN
TO BETTER DAYS
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With the third wave of COVID-19 creating new challenges for Canadians, the consensus is that herd immunity is out there on the horizon as vaccination programs finally gain momentum across the country. For apartment owners and managers, this is good news— but nothing to cheer about yet. April lockdown measures continue to impact several provinces, calling for hyper-vigilant infection control and unwavering compliance with health and safety protocols in apartment communities. It’s been a tough year for all, but at last we can take comfort in knowing the bulk of the crisis is finally behind us. Since March 2020, the pandemic has put a spotlight on residential building design given that people are spending more time at home than ever before. Access to fresh air, green space, flexible amenities, and energy-efficient building features are topping tenant wish-lists. A lot has changed since Canada’s first “towers in the park” emerged decades ago. In this issue, we take readers behind the scenes at Zibi, a new master-planned community in the Ottawa-Gatineau region that’s striving to become Canada’s most sustainable city. Find out what makes it so remarkable in our cover story on page 16. Also in this issue, we look at recent apartment transactions, rental market trends, the concept of “Energy Poverty” and other timely topics—including today’s dreaded insurance rates. For ongoing daily news, be sure to visit us at www.REMInetwork.com and reach out if there’s a topic you’d like to see us cover.
Editor
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Andy Schwartze
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rent trends
The opinions expressed are those of the authors of articles and do not necessarily reflect the views of Canadian Apartment Magazine. This information is general and is not a substitute for legal advice. Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Apartment Magazine makes every effort to ensure the accuracy of the information published, we cannot be held liable for any errors or omissions, however caused. Printed in Canada.
ENERGY FACTS AND FIGURES Source: Government of Canada
Buildings produce 17% of Canada’s greenhouse gases.
40% of emissions from electricity generation is for energy used in buildings.
Exterior walls can account for 25-35% of heat lost in a typical dwelling.
An ENERGY STAR certified clothes dryer uses 20% less energy, on average, than a regular model.
Measures to promote energy efficiency could create up to 100,000 new jobs by 2030.
Canada is developing increasingly stringent building codes, so that new buildings will use up to 60% less energy than those built under today’s codes.
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Apartment CANADIAN
VOLUME 18 / NUMBER 2 / APRIL 2021
FEATURE 12 Energy Poverty in Canada Efficiency Canada’s campaign to help ease the burden on low-income households
COLUMNS 8 Transactions Rental Demand in Canada 10 CMHC More Affordable Rental Housing Coming Soon by Graeme Huycke 22 Ask the Expert How Green is Your Green Roof? 26 Newsworthy Industry Hot Topics 28 Insurance The New Cost Reality by Andy Schwartze
COVER STORY
DEPARTMENTS
16 Zero Carbon, Zero Waste Behind the scenes at Zibi, Canada’s most sustainable master-planned community by Erin Ruddy
4
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ON THE COVER:
Apartment CANADIAN
Editor’s Note
VOLUME 18 / NUMBER 2 / APRIL 2021
The new Zibi development in Ottawa. Rendering by Norm Li
SKY-HIGH PURSUITS
ZIBI TAKES SUSTAINABILITY TO NEW HEIGHTS
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Rental Demand in Canada Pandemic continues to impact the apartment sector As April lockdown measures begin to lift and vaccination rates pick up across Canada, rental housing experts foresee better market conditions in the near-term. But right now, as COVID-19 cases surge in Ontario and restrictions continue to impact employment and mobility, the apartment sector is feeling constrained.
“L
andlords, in some cases, are still offering incentives like free rent to lure prospective tenants,” observes Keith Reading, Director of Research at Morguard. “Government supports continue to help landlord bottom lines and occupancy, but the consensus is that rental demand will [naturally] improve as vaccines are made available to the masses.”
Investment activity Investment activity has been strong, according to Reading, with investors acutely aware that the sector has a solid performance history and outlook. Demographics, immigration and the high cost of home ownership will further support the rental housing sector over the long term.
New & Notable Transactions: Address
City
# of Units
Sale Price (Millions)
Sale Price/Unit
Purchaser
1505-1525 Wilson Ave, 893 Kennedy Road
Toronto
210
$56.0
$266,667
Golden Equity Properties
Oshawa/Ottawa 2. Starlight Portfolio
Oshawa/ Ottawa
329
$92.0
$279,635
Centurion Apartment REIT
3.
42-46 Bedard Street
Gatineau
320
$39.0
$121,180
KSAR Investments
4. Fairgreen Gardens
Edmonton
168
$22.5
$133,929
Oneka Land Company
5. Park Towers
Vancouver
83
$50.0
$602,410
Starlight Investments
6. 20 Tuxedo Court
Toronto
210
$64.0
$304,882
Q Residential
7.
Montreal
94
$34.0
$361,702
Centurion Apartment REIT
1.
Le Montefiore
8 | Canadian Apartment | Part of the REMI Network |
TRANSACTIONS >>
Canada’s Major Cities – Has the market bottomed?
Meanwhile, upward pressure on values continues as competition for a limited number of properties available for acquisition remains intense. REIT, private and institutional capital is available in large quantities and is looking to invest in the country’s major population centres in core product and value-add opportunities. Looking ahead, Reading says the reopening of the economy will support stronger rental demand patterns, lower vacancy rates and rising rents. “Investors are making decisions to capitalize on this upside,” he says.
With fewer immigrants crossing the border, fewer students moving closer to school, and fewer recent graduates moving closer to their first jobs, rental demand has fallen in most urban centres. Adding to lower demand is a feverish resale housing market brought on by low borrowing costs, the desire for more space, and the uncoupling of many workers to the location of their employer’s office. Here are key takeaways from the latest rent report from Rentals.ca: • The average asking rent for all Canadian properties listed on Rentals.ca in March was $1,685 per month, down $157 (or 8.5 per cent) from a year ago. • Four of the five largest cities in Canada experienced year-over-year rent declines for all property types in March. Only Calgary saw a small increase of 1.8 per cent. • As the work-from-home phenomenon persists, renters continue to look for larger units for a home office, which has resulted in more smaller units being listed on Rentals.ca pulling the average rent down. • Anecdotal evidence from leasing agents suggests that rental demand could be increasing in the downtown areas of Canada’s major cities, as tenants look to get in at the bottom before rents rise in conjunction with the rise in vaccine distribution.
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This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved.
| www.REMInetwork.com | April 2021 | 9
More Affordable Rental Housing Coming to Canada Rapid Housing Initiative exceeds target Since launching in October 2020, the $1 billion Rapid Housing Initiative (RHI) has exceeded its initial target of creating up to 3,000 new affordable homes for vulnerable Canadians.
“T
he Rapid Housing Initiative is perhaps the boldest move in a generation to end chronic homelessness,” said Adam Vaughan, Parliamentary Secretary to the Minister of Families, Children and Social Development (Housing). “It not only finds permanent shelter for people in need, but it is a crucial public health measure to keep individuals
10 | Canadian Apartment | Part of the REMI Network |
and communities safe during the pandemic, while also saving cities and communities across Canada money as we work together to provide safe, secure and affordable housing in precarious environments. There is more to do, and there is more to come.” Over the past year, the COVID-19 pandemic has put a harsh spotlight on the affordable housing crisis as thousands of
CMHC REPORT >> Canadians lost their jobs or experienced income loss due to emergency restrictions. RHI will now support the construction of more than 4,700 permanent affordable units for Canadian families, including 1,806 units for Indigenous peoples, from coast to coast to coast. Projects Stream Through the Projects Stream, the RHI will provide $500 million in funding for 179 priority projects. These projects will help quickly build 2,951 safe and affordable new homes for vulnerable populations across Canada.
To address Canada’s lack of affordable housing and encourage the creation of new supply, Scotiabank has become the first large financial institution to align with CMHC and mobilize $10 billion over the next ten years toward new affordable housing construction. “We are facing a clear shortage of affordable housing in Canada and Scotiabank is proud to work with CMHC to raise that supply,” said Jake Lawrence, CEO and Group Head of Global Banking and Markets at Scotiabank. “Scotiabank is committed to developing innovative lending, investing and underwriting solutions for retail, commercial and corporate clients who support the achievement of this important housing objective in Canada.” “Governments alone can’t solve Canada’s housing challenges,” said Romy Bowers, President and CEO, CMHC. “The private sector also has a key role to play in supporting shared objectives of building strong, vibrant communities. We’re pleased to have Scotiabank join us in our efforts to create a new generation of housing in Canada. Safe and affordable housing is a basic need to creating a more inclusive society where everyone has the opportunity to be well and succeed.” Scotiabank’s collaboration with CMHC to address housing affordability is aligned to ScotiaRISE, Scotiabank’s global community investment initiative to promote economic resilience among disadvantaged groups. “Our commitment in support of CMHC’s aspiration is another way that Scotiabank is working to build economic resilience for the future,” said Lawrence. “By removing barriers to advancement and increasing access to opportunities, we are helping to create a more inclusive and resilient world.”
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Major Cities Stream Under the Major Cities Stream, $500 million was immediately provided to municipalities with the most severe housing needs and the highest rates of homelessness. Investments made under the RHI are expected to support thousands of construction-related jobs for Canadians as the pandemic surges on. “Our government wants to ensure that every Canadian has a safe and affordable place to call home,” said the Hon Ahmed Hussen, Minister of Families, Children and Social Development and Minister responsible for CMHC. “The Rapid Housing Initiative will go a long way to supporting those who need it most by quickly providing 4,777 new affordable housing units to vulnerable individuals and families to keep them safe. Delivered by CMHC, RHI provides capital contributions to develop new, permanent affordable housing by covering costs associated with modular multi-unit rental construction; conversion of nonresidential to affordable multi-residential homes; and rehabilitation of buildings in disrepair and/or abandoned to affordable multi-residential homes. As of today, the RHI has exceeded its initial target by 1,777 units thanks to the support of the provincial, territorial and municipal governments as well as Indigenous governing bodies. The RHI has received significant interest from Indigenous groups, which resulted in nearly 40 per cent of all units created under the program to be targeted to Indigenous peoples.
Scotiabank announces $10 billion commitment to support CMHC’s housing goals
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Energy Poverty in Canada Easing the energy burden on low-income renters Recent data shows that roughly 20 per cent of all Canadian households face high energy burdens, spending more than double the median on home energy needs as a percentage of their total income. Adding to this burden, the upfront costs to tap into Canada’s current incentives for home energy upgrades would likely prevent those very people from accessing the resulting savings.
12 | Canadian Apartment | Part of the REMI Network |
FEATURE >>
E
fficiency Canada, a national research group promoting the benefits of energy and water efficiency, led a campaign in February urging the government to invest a minimum of $2 billion in no-cost energy efficiency improvements for qualifying low-income recipients, matching funds it had already pledged for commercial and residential retrofits. More than 110 industry associations, building service providers and public advocacy and community development groups voiced their support for a separate program targeted to lowincome households. Since then, the government has released its budget and the results are not exactly what the campaigning group had hoped for. “It appears as though the budget proposes to wrap a low-income program within a larger zero-interest loan initiative,” says Brendan Haley, Policy Director at Efficiency Canada. “This is not best practice in low-income program design because the lowest income Canadians will be unwilling or
“Energy poverty is frequently blamed on carbon pricing and renewable energy transitions in the media, as well as a lack of grid access.” unable to take on more debt, even if it is zero-interest.” According to Haley, the most effective provincial programs provide turn-key upgrades at no cost to participants with targeted community outreach and training. He notes that a zero-interest loan could provide some opportunities for upgrading multi-unit residential buildings with lowincome tenants since the loans can be directed to landlords, co-operatives and social housing providers, however a nocost to participants approach is needed for low-income homeowners. In addition, some direct contribution to retrofit costs in multi-unit residential buildings provide leverage in agreements to ensure benefits
flow to tenants, while protecting them against increases in housing costs or evictions. “Instead of lumping a low-income program into one aimed at general market homeowners, we hope the federal government recognizes the need for a separate and specific approach to provide energy efficiency services to low-income populations. This should involve taking the time to develop a strategy that learns from best practices and leverages existing program resources.” Additionally, Haley points out that the budget dedicated for low-income efficiency is equally uncertain and inadequate. “There is $779 million over
| www.REMInetwork.com | April 2021 | 13
FEATURE >>
Tiered Building Energy Codes Coming in 2021 Canada’s building energy codes are changing to ensure we meet the 2030 net-zero energy target. New model codes are expected to be released later this year, introducing a series of increased performance tiers the building sector will need to adhere to. “Building energy codes and compliance are important tools we can use to achieve our climate objectives while advancing the clean economy,” said Kevin Lockhart, efficient buildings lead at Efficiency Canada. “If you care about climate change and creating good, local jobs, then you should care about building energy codes.” According to a recent report by Efficiency Canada, there are already several barriers to verifying buildings are being constructed to the current energy code. Without early planning and intervention, the compliance regime will be further stressed. While the federal government drafts national model codes, building codes are established by law in the provinces or
territories in which the building will be constructed. Compliance with code falls in the purview of the city or municipality, known as the Authority Having Jurisdiction (AHJ). “Tiered codes may appear straightforward,” noted report author Andrew Pride, “however, there is a significant amount of work to be done on how to achieve the higher tiers and increasing awareness of the benefits in reaching the higher levels of efficiency those tiers require.” In addition to calling for the establishment of national energy compliance guidelines and access to provincial/territorial subject matter experts, the report also recommends increasing stakeholder training, development of a national compliance database and funding to increase the effectiveness of AHJs in enforcing code compliance. Residential building developers can find out more at www.efficiencycanada.org
five years that the budget is spending, which is meant to service $4.4 billion in loans,” he says. “It is unclear how much of this direct spending can be carved out for lowincome efficiency. We suggested a budget of at least $2 billion would put low-income efficiency on an equal footing with budgets already announced for energy efficiency in commercial buildings and residential buildings for middle- and upper-income Canadians.”
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Defining “energy poverty” The concept of energy poverty describes the situation in which households face financial difficulties or inadequate heating or cooling as a result of the high costs of energy services. Energy poverty is frequently blamed on carbon pricing and renewable energy transitions in the media, as well as a lack of grid access. Without the right supports and solutions enabling lowincome Canadians to transition to a net-zero economy, the problem will only worsen.
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COVER STORY >>
ZERO CARBON Let Zibi show you the way…
COVER STORY >>
N, ZERO WASTE By Erin Ruddy
Rising out of its industrial past, Zibi is a community unlike any other in Canada. Framed by Portage Bridge and Waterfront Quarter to the east and Chaudière Crossing and Albert Island to the west, the new waterfront city straddling Ottawa and Gatineau features a connected system of walking trails, extensive cycling paths, retail space, and multiple transit options. Progress has been underway on the 34-acre development since 2013, bringing to life an ambitious masterplan of standalone buildings, public squares and retail plazas that will soon serve more than 5,000 residents and countless visitors to the nation’s capital region.
| www.REMInetwork.com | April 2021 | 17
COVER STORY >>
“T
he Zibi project presents a perfect opportunity to bring housing to urban professionals looking to live more affordably and lighten their environmental footprint,” says Justin Robitaille, VP, Development at Dream Asset Management. “With 7.7 acres dedicated to four parks, as well as a mix of housing to accommodate various levels of income, the draws of this exceptional new community go on and on.” Among the attractions, brave souls will be able to launch themselves across the river on the world’s first interprovincial zipline. Meanwhile, residents looking to set roots in the area can choose from two-storey townhomes or single-dwelling urban flats. For renters, a new high-rise component, featuring a mix of 18 | Canadian Apartment | Part of the REMI Network |
co-living spaces and market rentals, is set to open within the next two years. Kohn Partnership Architects along with Teeple Architects in association for Dream Unlimited and Theia Partners, led the design on Block 206 and the adjacent Block 207, which together form the northern boundary of Zibi’s Head Street Square. As Sean Lawrence, partner at Kohn Architects puts it, everything about these residential buildings and the Zibi community at large was designed to push the limits of sustainability. “To achieve LEED and meet today’s bar, you can expect all new builds to include certain green features—like the ability to retain rainwater for irrigation, a green roof system, and increased thermal
COVER STORY >>
values in the walls,” he says. “By adhering to the One Planet Living framework, we have all that at Zibi and more.” Developed by Bioregional and the World Wildlife Fund, One Planet Living includes 10 principles that Lawrence and his team were strict to follow. Driven by the overarching goals of eliminating GHG-emitting energy sources and encouraging social equity, Lawrence says Zibi is on track to become Canada’s most sustainable community. “We wanted to take a holistic approach that focuses on the wellness of residents, while providing a sustainable, energy-saving solution,” he explains. “This means fewer cars will be accommodated with the emphasis being on bicycle and pedestrian traffic. Also, great
efforts were taken to preserve the history and heritage elements of the site. One of our top priorities since the start has been to consult and engage with the local Algonquin Anishinabe people.” In fact, the name Zibi is derived from the Algonquin Anishinabe word for “river”. It was given to the development in honour of the surrounding waterways that have long held importance to the area’s First Nations people—long before European settlers arrived and turned the region into an industrial zone. Until recently, Chaudière Falls (“Akikodjiwan”) and the Ottawa River (“Kichissipi”) falls have been blocked off from public access. But now, thanks to an accessible pubic park, everyone can appreciate the natural beauty that has been restored. | www.REMInetwork.com | April 2021 | 19
COVER STORY >>
“With the pandemic putting a spotlight on socio-economic inequities over the past year, the need for more adequate, affordable housing has emerged as a priority in Canada’s major hubs.”
The presence of the Anishinaabe Peoples will be felt throughout Zibi’s street and park names, wayfinding, landscaping and art installations. Lawrence says this collaboration was thread into every aspect of the community’s design and hopes it will set a precedent for how Indigenous Peoples and non-Indigenous private sector companies work together in the future. Zero Carbon Energy Of critical importance to the One Planet Living framework, Zibi will bring zero carbon heating and cooling to every tenant and resident of the 34-acre city. The region’s first zero-carbon District Energy System (ZCU) will rely on post-industrial waste energy for heating, and the Ottawa River for cooling. Although many district thermal systems do 20 | Canadian Apartment | Part of the REMI Network |
exist in Canada, this will be the first of its kind in North America to use post-industrial effluent energy recovery in a master-planned community. “District energy has countless advantages including increased reliability, reduced greenhouse gas emissions, and overall lower costs,” he says. “Moving toward zero carbon is the way of the future and Zibi is leading the way here in Canada.” According to the website, all buildings in the community will be interconnected through a hydronic loop that will deliver heating and cooling energy generated at the ZCU central plant currently under construction. The heat will be injected into the plant through low-grade heat from effluents recovered from the neighbouring Kruger Products plant. Heat will be rejected
through chillers into the Ottawa River to efficiently produce chilled water to cool the buildings. In the interim, temporary plants in Ontario and Quebec are heating and cooling the current buildings by gas. The permanent plant will be completed in 2021 and the DES is expected to go online at the same time. Encouraging Social Equity With the pandemic putting a spotlight on socio-economic inequities over the past year, the need for more adequate, affordable housing has emerged as a priority in Canada’s major hubs. In the Ottawa area, Zibi intends to help fill some of that need with Zibi Block 206. Once intended as a condominium, Lawrence explains that plans were later revised to
COVER STORY >>
Health and happiness Equity and local economy Culture and community Land and nature Sustainable water Local and sustainable food Travel and transport Materials and products Zero waste Zero carbon energy
The One Planet Living framework Bioregional and WWF created the One Planet Living framework in 2002 to help drive transformational sustainability across the globe. The framework consists of ten easily understood principles, backed with detailed guidance and tools that anyone, including housing developers, can use. Visit www.bioregional.com for more details.
Renderings by Norm Li
address the need for affordable rental. When complete, the elegant tower rising out of the commercial podium will consist of the equivalent of two floors (45 units) of social housing, owned and managed by Ottawa Community Housing, and 140 market-value rental units. Among those will be a mix of co-living units ranging in size from 5 to 15 bedrooms with shared kitchens and common areas. Additionally, there will be fully adaptable and accessible units designed to CMHC standards. “COVID-19 has reinforced the need for outdoor access and co-working spaces that allow residents to cocoon themselves in a corner,” says Lawrence. “Block 206 will provide that, as well as indoor and outdoor amenities at the 25th floor and the 3rd floor podium roof. Residents will also be able to
use a community garden at the building site fed by rainwater.” At neighbouring Block 207, an existing post-industrial building was adapted for residential use, drawing on the rich industrial heritage of the site with a salvaged pulper integrated as an artefact. The 6-storey building will also provide new commercial retail and office spaces for the area at ground level. Of course, to help encourage a car-less existence, the eco-minded community will include an oversupply of bike parking — and for those needing access to a vehicle, electric vehicle charging stations have been incorporated into the site plan. “The community is designed to be highly walkable with beautiful waterfront routes and an LRT system only steps away,” he says.
Aiming for Zero Waste To earn the title of “Most Sustainable Community in Canada” reducing waste is an important goal. Zibi will increase the rate of waste diversion from landfills to more than 70 per cent by prioritizing waste prevention, reuse, recycling and composting. In the meantime, construction waste follows a reuse, deconstruct and demolish hierarchy requiring that material from existing buildings be reused wherever possible. In the end, Lawrence concludes: “Being mindful of everything, finding ways to reuse materials found on the site and incorporating them into the design, has made this project far more challenging but well-worth the efforts we’ve taken. Zibi is a massive project many years in the making. It will be great to see it all come together.” | www.REMInetwork.com | April 2021 | 21
FEATURE >>
How Green is Your Green Roof? Exceeding carbon neutral to create an environmental benefit
Green roofs are known for a variety of socio-economic and environmental benefits, including rainwater absorption, added insulation, creating valuable greenspace for residents, and helping to lower urban air temperatures. But not all green roofs were created equal.
C
olin Tougas, Project Engineer with RJC Engineers, has been entrenched in the evolution of the green roof for some time. He recently conducted a study with Pearl Yip, Landscape Architect with PWL Partnership, comparing various aspects of green roof systems when used alongside lower embodied carbon products. “The carbon neutral green roof assembly pushes the building envelope by providing an actual measure of a green roofing system’s 22 | Canadian Apartment | Part of the REMI Network |
performance,” he says. “Many professionals in our industry are wary of greenwashing, which is to make something appear “greener” while not considering the impact on sustainability.” Since the mid-2000s, green roofs have been part of the urban landscape across Canada, with some cities, like Toronto, making them mandatory for all new builds. Since then, sustainability practices have evolved considerably with the new goal being to achieve lowered
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FEATURE >> embodied carbon. With green roofs, there is great potential to push the results beyond “zero”, exceeding carbon neutral to create an environmental benefit; in other words, to intentionally remove carbon dioxide from the atmosphere. “By making carbon neutral assemblies the new standard, we are moving closer to green roofing systems that are carbon positive,” explains Tougas. “A carbon positive system begins to offset the carbon footprint of the underlying structure and building beneath the green roof.” Aiming for longevity: the key to carbon positive green roofs The typical components of a green roof system include vegetation that is planted over a waterproofing system designed with a root barrier and adequate drainage and irrigation systems. In terms of size and scope, these systems can be complex or simple with space, budget and maintenance constraints ultimately steering the outcome. As Yip puts it, “Green roofing is more expensive than a ballasted or paved roof, and the inclusion of landscaping adds to the maintenance requirements, but the cost of
these cheaper alternatives is an increased carbon footprint.” The limiting factor with most green roofs today is the service life of their waterproofing membrane, which typically only last about 30 years regardless of condition and performance history. This means that all your lush, beautiful greenery will need to be removed at the end of that service life to access and replace the waterproofing membrane. “Designing waterproofing for green roof systems with extended service lives will allow for the landscaping to maximize its potential,” Tougas says. Adds Yip: “The longer the living components can remain in service, the greater the potential to offset the embodied carbon of the entire system.” Choose local Another important
step,
according
to
Tougas, is to choose locally manufactured and sustainable materials that still meet the long-term performance requirements of the overall system. This combined with your chosen vegetation can significantly improve sustainability. The main restriction in terms of design will stem from how tall your plants will ultimately grow. “If you allow for collaboration between professional landscape architects and the building envelope engineers, these impacts can be mitigated,” he says. “But going with a green roof doesn’t necessarily mean increasing your structural requirements.” Finally, Yip suggests owners keep it simple by opting for gardens featuring local plant species as a way to promote habitats for local birds and insects. “Local plants would reduce the maintenance requirements and need for irrigation,” she says.
3 ways to get more from your green roof design: • Design for a waterproofing system with an extended service life. • Choose locally sourced materials and components. • Select local plant species to reduce maintenance and irrigation needs.
A premier real estate services company in Canada DMS Property Management is one of Canada’s leading apartment managers with a portfolio of over 20,000 units
www.dmsproperty.com 24 | Canadian Apartment | Part of the REMI Network |
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NEWSWORTHY >>
Industry Hot Topics Keeping up with pandemic restrictions
A
s COVID-19 variants continue to spread at an alarming rate throughout the country, residential landlords find themselves in a perpetual state of uncertainty as they attempt to keep up with changing regulations. With B.C. having entered a three-week lockdown, and Ontario announcing a shutdown for April, measures to reduce case counts in both provinces include closing patios and indoor dining, further limiting capacities in grocery stores and a return to online learning. Meanwhile in Quebec, a 10-day lockdown affecting Quebec City, Lévis, and Gatineau closed schools and nonessential businesses for a short period in April.
“Most residential landlords, property managers and tenants know by now about the importance of compliance with constantly changing COVID-related protocols in high density, multi-res environments,” said Joe Hoffer of Cohen Highley LLP. “The only constant for landlords is uncertainty about levels of compliance and whether the next localized outbreak will strike in their building.” In other words, keeping informed of new protocols, prioritizing cleaning, ensuring occupants are adhering to physical distancing measures and maintaining regular communication have become the central focus of daily operations. In B.C, David Hutniak, CEO of LandlordBC, says current lockdown measures haven’t changed much for the sector given it has
become accustomed to this extended new normal. Landlords are simply “keeping their heads down” while remaining vigilant about infection control and cost management. Ultimately tenant health and safety remain the number one concern. “Vacancies are up a bit and rents have tempered at the higher end of the market, but by and large rental housing providers continue to navigate these interesting times as they anticipate less tenuous ones,” he said. “Folks still need homes, and those who provide quality housing and are focused on maintaining a mutually beneficially relationship with tenants, are doing fine.” By all accounts, working together is the only course of action for landlords weathering this ongoing crisis. “With the announcement of a province-wide [shutdown], we are all reminded that the pandemic continues to be front and centre in our daily lives,” said Tony Irwin, CEO of the Federation of Rental Housing Providers of Ontario (FRPO). “As we have done since Premier Ford first declared a state of emergency on March 17, 2020, rental housing providers will continue to work with their residents to get through this difficult time together. Our frontline staff are working tirelessly to help control the spread and create safe environments for residents, and we encourage residents to reach out to their property manager with any questions or concerns.”
Flushed PPE causing havoc on plumbing and sewers
S
ince the onset of COVID-19, an increase in PPE being flushed down toilets—including face masks, gloves, and sanitizing wipes—has been creating blockages in underground sanitary infrastructure. AQUALIS, a provider of stormwater and lift station management services, has raised concerns over the matter, noting that flushing of illadvised products is not a new phenomenon, but one that has been exacerbated by the pandemic due to the universal use of disposable PPE products. At the the height of public concern in May 2020, a new state-of-the-art lift station in El Paso, Texas, had to be cleared over 20 times in 24 hours due to the continuous disposal 26 | Canadian Apartment | Part of the REMI Network |
of PPE in the sanitary system. This is a good reminder to all building owners that wipes, cotton swaps, gloves, face masks, feminine hygiene products, and rags are not safe for sewer systems, as they do not shred like toilet paper and can lead to backups, clogs, and flooding. The most effective preventative measure to ensure your plumbing remain clog-free is to communicate rules regarding the proper disposal of PPE, and to add “do not flush” signs in communal restrooms.
NEWSWORTHY >>
Breaking down Budget 2021
T
he government recently released it’s much-awaited Budget 2021, which includes funds to address Canada’s need for more affordable housing. In total, the budget proposes an additional $2.5 billion over seven years to the Canada Mortgage and Housing Corporation, broken down as follows:
Boardwalk REIT shares positive operational update
B
oardwalk REIT released an operational update in early April pertaining to its portfolio occupancy and rental revenue collection rates. According to Sam Kolias, Boardwalk Chairman and CEO, move-ins exceeded move-outs in the months of January, February and March, which led to a significant gain in occupancy to 95.7 per cent. “We cannot thank our Boardwalk team of heroes enough for continuing to provide safe and affordable homes for our resident members, as our brand of product quality, service and experience continues to lead in market share and performance,” Kolias said. With vaccinations now well underway, the April operational update points to “positive leading indicators” for housing demand in the REIT’s largest market of Alberta. A population growth of 0.8 per cent, combined with low interest rates, improving sentiment in the energy sector, and steady news of companies choosing Alberta for their headquarters, has led to record home sales and a balancing of the housing market. Additionally, the return to in-person learning at post-secondary institutions in September has further increased housing demand since the onset of the pandemic. “Economic and rental market indicators continue to reflect Alberta’s economic rebound, which is grounded on some of the most affordable and desirable housing in Canada as we transition to the endemic economy,” Kolias said.
• An additional $1.5 billion for the Rapid Housing Initiative, of which 25 per cent would be used towards women-focused housing projects. Overall, this would add about 4,500 new affordable units to Canada’s housing supply, building on the 4,700 units already funded in the 2020 Fall Economic Statement through its $1 billion investment. • $600 million over seven years, starting in 2021-22, to renew and expand the Affordable Housing Innovation Fund, which encourages new funding models and innovative building techniques in the affordable housing sector. To date, this program has helped create over 17,600 units. The new funding would support the creation of up to 12,700 more, bringing the total to over 30,000 units. • $315.4 million over seven years, starting in 2021-22, through the Canada Housing Benefit, to increase direct financial assistance for low-income women and children fleeing violence to help with their rent payments. • $118.2 million over seven years, starting in 2021-22, through the Federal Community Housing Initiative, to support the delivery of long-term housing to vulnerable Canadians. In addition to these new investments, Budget 2021 also proposes to advance and reallocate $1.3 billion of previously announced funding, including: • $750 million under the National Housing Co-Investment Fund to accelerate the creation of 3,400 new units, and the repair of 13,700 units. • $250 million under the National Housing Co-Investment Fund, which will be allocated to support the construction, repair, and operating costs of an estimated 560 units of transitional housing and shelter spaces for women and children fleeing violence. This targeted funding is being reallocated— including advancing $200 million to 2021-22 and 2022-23—to make sure the government delivers on its commitments, and reinforces the government’s efforts to address gender-based violence, including the measures outlined in the forthcoming National Action Plan to End Gender-Based Violence. • $300 million in 2021-22 and 2022-23 from the Rental Construction Financing Initiative, which will be allocated to support the conversion of vacant commercial property into housing. As the demand for retail and office space has changed due to COVID, some landlords, particularly in major urban cores, are facing higher vacancies. The government says this is an opportunity for property owners and communities to explore converting excess space into rental housing, enhancing the livability and affordability of urban communities. The funding will target the conversion of excess commercial property space into 800 units of market-based rental housing. Budget 2021 also includes $25 million for the government of the Northwest Territories to support the construction of 30 new public housing units, and $25 million for the government of Nunavut to support its short-term housing and infrastructure needs. Visit www.budget.gc.ca/2021 for complete details. | www.REMInetwork.com | April 2021 | 27
INSURANCE >>
The New Cost Reality Understanding your rising insurance rates by Andy Schwartze For those who are wondering where insurance rates are going, there are early signs that the standard is going to be a 10% increase. There is no guarantee of this, however—and trying to accurately predict how different insurance portfolios will be affected is next to impossible. But still, failing some unexpected developments in our North American economies, the general underwriting attitude seems to be trending that way.
W
e need to remember that insurance rates reflect a combination of legal and economic outlooks, interest rate levels and past claims statistics. While all three still look a bit unpleasant to insurers right now, the ugly rate-increase environment of 2020 is probably abating nicely and those who suffered a serious rate shock last year should not expect that to repeat itself this year. The seriously underpriced accounts have, by now, been adjusted, and no doubt some building owners are pretty unhappy with their new premium levels. The ridiculously low rates of a few years ago are probably gone forever. We all need to accept the fact that insurance costs for residential rental properties have been re-set to higher levels and that only something unexpectedly amazing will push them back down. Having established the new cost reality, let us re-visit the world of “underwriting” and what we can expect in the years ahead. While insurance rates are one way to cure an unprofitability problem, effective underwriting is the other option that these insurers have. And I think we can safely predict that this is going to be the next hurdle that building owners will have to deal with. As has been stated in the past, historically many owners have concentrated on the aesthetic improvements that potential renters see as the competition with condo rentals. While this is entirely understandable, it is the unseen parts of the building that underwriting
28 | Canadian Apartment | Part of the REMI Network |
is now targeting. We all know that concrete doesn’t burn and, in the old days, that was enough to garner one a pretty low insurance rate. But those buildings, and many rental properties of “lesser” construction are getting old. Underwriters don’t care about the trendy new kitchen counters and updated bathrooms. Here’s what they do care about: 1) Full roof replacements (not just patching, as needed) 2) Riser replacement 3) Copper and PVC plumbing throughout 4) Fully updated main electrical panels 5) Replacement of in-unit fused pony panels 6) GFI plug/switches throughout the building 7) No more ungrounded knob and tube wiring 8) New window systems 9) Replacement of old boilers and water heaters The list is a bit longer and can vary depending upon the type and age of different buildings. Insurers have come to understand that water claims bring expensive mould remediation expenses with them, not to mention tenant health claims if these are left unattended for too long. An old burst riser can pour water over many units on different floors. And nothing is more important than having a sound roof protecting the building, especially in these northern regions.
INSURANCE >>
MOBILE FRIENDLY Underwriters are no fools. They well understand that upgrading a building takes commitment by an owner, financially and in full appreciation of protecting the comfort of the building’s tenants. It is a big deal to improve and modernize a building and nobody denies it. But, as a homeowner must endure the inconvenience of necessary improvements, so an apartment dweller must also put up with the betterments that his/her home needs. In this low interest rate environment, underwriting managers expect prudent building owners to take the initiative to shape-up their buildings to a more modern standard. By doing so they can continue to be eligible for competitively priced insurance protection, notwithstanding the continued benefits that happy tenants will enjoy in their rented “homes”. The best thing that an owner or building manager can do is to put together a “resume” of each building’s characteristics, completed upgrades and capital expenditure plans for the upcoming 12-month period. Together with current front/back photographs, this will create a dossier of information that is easy for an underwriter to review and work on. Remote Work: what’s ahead Additionally, in regards to the COVID-forced “work from home” situation and how this will impact work spaces moving forward, there are employees who mistakenly believe that they are under no obligation to return to the office when they are eventually called upon to do so. The fact is, they do not necessarily have the right to refuse. The employer always has the obligation to provide a safe work environment, and that has not changed. But there will inevitably be a growing “tug-of-war” with those who enjoy the convenience of working at home and simply do not want to return to the old way. The choice is not theirs to make without good cause. Well-respected Toronto employment lawyer, Howard Levitt, writes an excellent column on these issues in every Saturday’s National Post. It’s well worth reading.
For insurance-related inquires, contact andy@takecover.ca
VISIT US AT
CONTACT Michael Gnat Phone: 416-635-4835 Email: mgnat@midnorthern.com | www.REMInetwork.com | April 2021 | 29
Smart Ideas
WATER LEAK DETECTION Did you know…the average household wastes nearly 10,000 gallons of water annually, enough water for 300 loads of laundry. Klaus Reichardt, CEO, and Founder of Waterless Co. Inc. shares the following tips for detecting leaks before they lead to costly damage. 1. Feel the pipes under the sink. If the pipes feel damp or wet, it means there is a leak somewhere along the line. 2. Check for pooling near the water heater. Small pools of water under the water heater means a leak is developing. Look for signs of rust—that’s likely where the leak is occurring.
30 | Canadian Apartment | Part of the REMI Network |
3. Look for diversions in the diverter. Bathtub/shower combinations have diverters that divert water to the shower when pulled. Diverters can wear out, leaking water behind the bathtub wall. Here’s a quick test: pull the diverter. If water is still coming out of the tub’s spout, there likely is a leak. 4. Watch for toilets that re-cycle on and off. When the toilet fill valve keeps cycling on and off, it usually means there’s a leak. Feel under the tank or exposed pipes. If damp, you found the problem. “Finally, know when to replace fixtures,” adds Reichardt. “They last for years, but they do not last forever. The older they are, the more likely they leak and waste water.”
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