Condo business August 2022

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PM#40063056 PART OF THE PART OF THE COSTSCONSTRUCTIONCLIMBING +‘Smart’ Health Amenities Networks At Risk The Latest in Pet Etiquette August 2022 • Vol. 37 #3Canada’s Most Widely Read Condominium Magazine

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TECHNOLOGY 16 Is Your Network At Risk? By Brian Bosscher 23 Condos Tap into the Global Wellness Movement By Rebecca Melnyk LEGAL 12 Pooch-Friendly Living A new case on canine compliance By Inderpreet Suri FEATURE 20 Inflationary Pressures Push Construction Costs Up By Barbara Carss Contents DEVELOPMENT 28 Scrutinizing the Supply Gap By Rebecca Melnyk 34 Digging into Land Assemblies By Brendan Fagan REGULATORY 19 Private Homes Preferred for Toking IN EVERY ISSUE 6 Editor's Note 8 Ask the Expert 38 New & Notable 42 23 THINKING OF RENOVATING? YOUR SEARCH ENDS HERE. C o m m o n A r a s A m e n i t y S p a c e s B u i l d i n g E n v e l o p e e Visit us at www pacbuildinggroup com or call 416 999 9626 to get started today! PAC_Condo_August_2022_FINAL.pdf 1 2022-08-29 9:30 AM

The view is even better, when it’s coupled with peace of mind. Ensuring open communication between unit owners and their Board of Directors is just one aspect of effectively managing condominiums. CLM’s team of professionally trained managers not only provide the highest standard of service, they ensure all aspects of accounting, site operations and physical maintenance is tailored to the needs of individual properties. If it’s time to reconsider your choice of professional management services; CLM—peace of mind, worry-free living. For competitive management rates, or to find out how CLM can be of further assistance, please contact; Kazi Shahnewaz Director, Business Development Office: 1.877.81CONDO (26636) x467 Cell: k.m.shahnewaz@condominiumliving.ca647.887.5676 www.condominiumliving.ca

Director &

six times Kevin Brown Group Foley Therien Sheppard Toronto, Ontario M2J 4Z8 (416) 512-8186 Fax: (416) 512-8344 CONDOBUSINESSinfo@mediaedge.cawelcomes letters but accepts no responsibility unsolicited manuscripts Publications Mail Product Agreement No. 40063056 ISSN 0849-6714 contents copyright Canada

or photographs. Canadian

Of course, the shift to better indoor air quality is also on that list. At least two developers in Ontario are incorporating this demand into their new projects with the addition of smart technologies that kill COVID-19 particles. More on that on page 23. We also take a look at the construction constraints impeding new projects from the perspective of contractors, many of whom foresee special assessments coming to condo corporations. And a condo lawyer discusses a new case where a resident canine and its owners shook up the good vibes at one building in Ontario.

e-mail:

2001

rebeccam@mediaedge.caCondoBusiness A healthy home /condomediaedge /condobusiness /condomediaedge ACMO 2000 Certified Company Tel: 416-663-2220 | 905-832-2220 www.jtbgroup.ca | info@jtbgroup.ca WORKINGMATOGETHERKINGADIFFERENCE PROUDLY SERVING CONDOMINIUM CORPORATIONS SINCE 2007 JTB_Condo_May_2020_FINAL.pdf 1 2020-06-16 12:16 PM

Rebecca Melnyk Editor,

One thing the pandemic hasn’t put a real damper on is the global wellness industry. A new study is forecasting this market to reach $7 trillion by 2025, and somewhere in there, wellness real estate is thriving. Canada ranks eighth in the top 10 national markets on this front and shows no intention of sizzling out. Across residential projects, including condos and master-planned communities, the Global Wellness Institute reports there are more developers initiating wellness living concepts to protect the health of residents.

Publisher Sean

Accounting Manager Michele

MediaEdge Communications Inc. Printed in

Some key drivers of future growth are a rapidly rising interest in wellness certifications for residential properties. Wellness features are also expected to become nearly ubiquitous in luxury properties and trend upwards in mid-market and affordable multifamily buildings.

Speaking of good energy — we wish you lots of it heading into fall.

Sales

on recycled paper. EDITOR’S NOTE

Associate Publisher Bryan Chong Editor Rebecca Melnyk Advertising Sales Bryan Chong, Sean Foley, Ron Guerra, Jason Krulicki, Melissa Valentini Art Director Annette Carlucci Graphic Designer Thuy Huynh Production Manager Rachel Selbie Contributing Writers Barbara Carss, Brian Bosscher, Brendan Fagan, Inderpreet Suri, Ashley Winberg. Digital Media Director Steven Chester Subscription Rates Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $10*. Elsewhere: $12 USA: $85 International: $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca. Circulation Department Adrian CONDOBUSINESS(416)circulation@mediaedge.caHollard512-8186ext.234ispublished

Avenue East Suite 500

All

a year by President

for

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meeting is to vote for the removal of the board member, who must be named in the requisition; 5) state the reasons for the board member’s removal, which can be general in nature, for example, not acting in the best interests of the corporation; and 6) state whether the board member occupies a position on the board that is A BOARD MEMBER

8 CONDOBUSINESS | Part of the REMI Network

Governance is a challenging feat, but especially alongside a difficult board member whose temperament or lack of ethics may negatively affect the operations of a condo corporation. Ashley Winberg, a condo lawyer with Elia Associates, explains the legalities behind removing a troublesome board member.

If owners at a condominium want to oust a problematic board member, they would need to requisition a meeting of owners for the purposes of voting on the removal of the board member as detailed in Section 46 of the Condominium Act. Pursuant to Section 46 of the Act, in order for the requisition to be valid, the requisition must be: 1) in writing; 2) signed by owners who own at least 15 per cent of the units at the corporation; 3) delivered personally or by registered mail to the president or security of the board or deposited at the corporation’s address for service; 4) state that the nature of the business to be presented at the requisition

OUSTING

www.REMInetwork.com | August 2022 9 reserved for voting by owners of owneroccupied units. Once the requisition is submitted to the corporation, they will have 35 days to call and hold the meeting. The board member will only be removed if the majority of unit owners vote in favour of removal at the requisition meeting. For example, a condominium of 100 units would mean the owners of 51 units must vote in favour.Although submitting a requisition that complies with the requirements may seem challenging, this is a walk in the park compared to ensuring that the majority of owners vote in favour of removing the board member at the requisition meeting.

“The board member will only be removed if the majority of unit owners vote in favour of removal at the requisition meeting.”

ASK THE EXPERT

Prior to COVID-19, owners would generally obtain the support of their fellow owners by conducting door-to-door solicitation and asking each owner to sign a hardcopy proxy vote in favour of the removal of the named board member. However, since COVID-19, generating owner support in such a manner has been almost obsolete since many condominiums either discourage door-todoor solicitation or explicitly prohibit this in their Furthermore,rules. if the requisition meeting will be held virtually, it is unlikely that a hardcopy proxy will be included in the notice of meeting package and, as such, owners will likely be hesitant to execute a hardcopy proxy presented to them for execution.Priorto an owner requisitioning a meeting of owners for this purpose, it is advised that owners reach out to their legal counsel for assistance to help make this challenge more attainable. 1 Ashley Winberg is a corporate lawyer specializing in condominium law at Elia Associates. She assists a diverse array of condominium boards and management companies throughout Ontario on all matters relating to condominium governance and management. She is also the chair of CCI Huronia’s Communication Committee, a director on CCI Huronia’s Board of Directors, and a member of CCI Toronto’s Volunteer Committee and CCI Toronto’s By-Law SubCommittee.

Reading this, owners then might assume that they need insurance to cover any sudden or accidental damage that occurs on their lot, but that is often not the case. In truth, the Condominium Act of Ontario states that if a condominium is a “standard registration condominium,” then the condominium corporation is required to insure the common elements and the units, but not any improvements to the units. That includes the actual homes and any other common corporation property such as curbs, roadways, and light standards. Moreover, condominium corporations must insure a basic level of finishes within each home, as described by the condominium’s standard unit bylaw. As such, it is critical to pay attention to your corporation’s standard unit bylaw to understand what materials and finishes are considered part of a standard unit, and thus insured by the condo. Anything over and above those standard finishes and materials need to be

Regardless of the marketing terms used to describe your condo unit, when you are setting up your personal insurance you should be most concerned if your condo is classified as a standard registration and what is indicated in your condominium’s unique standard unit description. It is important to note that the most common kind of condo registration in the province of Ontario is a standard registration. If a condominium is not described as a “Common Element Condominium” or a Vacant Land Condominium” within the registered name of your condominium, then it is highly likely it is a standard registration condo.

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It’s a common scenario: a homebuyer purchases what appears to be a regular townhome only to be told it classifies as a “freehold condominium.” This can be a confusing descriptor, but it technically holds true. The term “freehold” is frequently used as a marketing strategy to suggest purchasers are getting more than they would ordinarily receive when buying a unit, such as a front or back yard. That being said, a more accurate term for these types of condominiums would be a “lot line” condominium where the owner’s unit includes not just the building but also a portion of the land surrounding it.

WHO INSURES A FREEHOLD?

Freehold or lot line condos carry unique maintenance obligations, and this is where confusion over insurance can set in. Specifically, freehold or lot line condo declarations often hold owners more responsible for the ongoing repair and maintenance of lot elements (e.g., roof, building envelope, driveway, trees, etc.).

Freehold and lot line condos: WHICH INSURANCE DO YOU NEED?

• Special Limits and Extensions of Coverage: there may be other special limits of coverage required for jewelry, bicycles, sewer backup, and other exposures that may exist. Your condo’s standard unit bylaw, like many others, may also indicate that the unit owner must insure all of their floor coverings. If this is the case, be sure to include the replacement cost of all floors above the sub-floor within your betterments limit of your own policy as well.

www.REMInetwork.com | August 2022 11 SPONSORED CONTENT

The insurance requirements for a condo unit owner can be complex depending on the unit owner’s needs and their specific condominium bylaws. That’s why we strongly recommend working with an insurance broker that understands the complexities of condominium insurance and can recommend the right protection for you. insured by the owner under a condo unit owner policy and are commonly referred to as betterments or improvements.

• Improvements or Betterments: such as moldings, lighting, flooring, upgraded cabinetry, and anything over-and-above what is described in the standard unit bylaw.

AVOID MISMATCHED POLICIES

• Additional Costs to Live Elsewhere: if your unit is so badly damaged that you cannot occupy it until repairs are complete.

• Loss Assessment Coverage: if there is a major property or liability event that results in a shortfall in your condominium corporation insurance, you may be personally assessed as a unit owner.

• Personal Liability: condo owners are legally liable for any bodily injury or property damage arising out of their personal activities as a unit owner and from the ownership of your individual property.

• Charge Back of Corporation Deductible: unit owners may be responsible for the deductible under the Corporation’s Insurance Policy if the corporation has a bylaw that dictates this, or if the owner’s act or omission results in damage to any property the corporation is responsible for insuring.

Overall, anything inside your unit that is not described in the standard unit bylaw is your responsibility to insure. As such, you should be sure to include the replacement value of any of those finishes or features (over and above what is listed in the bylaw) within your own betterments limit of insurance in your unit owners’ insurance policy.

THE RIGHT POLICY One question we get from owners of freehold or lot line condos is “What kind of insurance do I need?” The answer is that you should not be purchasing a standard home insurance policy, but rather a condominium unit owners’ insurance policy. This requires bringing a copy of your standard unit bylaw to your insurance broker and understanding what’s covered.

IT PAYS TO GET ADVICE

• Personal Property: such as furniture, clothing, appliances, electronics, any moveable property within the unit, all personal effects stored in lockers, etc.

If you purchase a regular homeowners policy to insure your property in a standard registration condo, you are making a big mistake. Not only will you have double coverage for a lot of the property that your condo already insures, but you could also be paying up to four times what you would for a condo unit owner’s policy. Additionally, you will be missing key elements of coverage that you need, based on exposures you have as a condominium unit owner.

• Additional Unit Owner Protection: a unit owner policy should contain additional contingent protection to cover grey areas between the condo’s insurance and your own.

To review, condominium unit owners are responsible for the following:

12 CONDOBUSINESS | Part of the REMI Network

A national survey from Narrative Research, conducted in November 2021, found about three million pets joined Canadian homes during the pandemic, with Ontario at the top of that list. Ontarian pet owners are also most likely to own multiple pets, the majority being dogs and cats. BY INDERPREET SURI

POOCH-FRIENDLY LIVING A recent case on canine compliance

“Evictions by courts for condo compliance matters are extremely rare.”

We’ve Got You Covered

www.REMInetwork.com | August 2022 13

When an individual requires a service animal or an emotional support animal on the basis of a disability, he/she can submit a request to their condo corporation and ask to be exempt from the corporation's rules in relation to pets. In reviewing the individual's request for exemption, the condo will usually require medical evidence confirming the disability and the need for the service animal/emotional support animal.

Many condominium corporations that allow pets to varying degrees may see more fourlegged friends roaming around, and there are several common issues residents will likely have to contend with. New cases are also highlighting how a condo can go from petfriendly to pet-fearing. Residents Keeping Prohibited Pets/Animals In Their Units A condo corporation's governing docu ments (declaration, by-laws and rules) dic tate what is allowed in a condo. Some corporations prohibit certain types of pets and some prohibit pets altogether. Condo corporations will also sometimes limit the number of pets a unit can have.

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Despite these prohibitions, some residents may still require a pet because the pet may be a service animal or an emotional support animal. A service animal, such as a guide dog, is an animal who is extensively trained to help a person with some type of physical disability or limitation. Service animals usually have a vest that they wear while "on duty.” On the other hand, an emotional support animal is an animal that provides emotional support to a person who needs it, such as a dog who alleviates a person's psychological disability such as depression or anxiety. Emotional support animals do not usually wear a vest.

LEGAL

It is important to note that even when an exemption is granted, the condo can still impose reasonable conditions upon the pet to ensure that its presence in the building does not harm others or cause any nuisance to others.

Condominium Act, 1998 allows a court to terminate a tenancy if the tenants have breached a court's compliance order. Still, evictions by courts for condo compliance matters are extremely rare. Normally, tenants either comply or move out before further proceedings are necessary. In this case, however, the tenants' breaches were ongoing. The court found that the tenants had repeatedly breached the court’s order and were “ungovernable”. An eviction was the only reasonable remedy. The condo eventually had the tenants evicted and also received full indemnity costs of $48,635.10 against the owner and tenants.Oneof the major takeaways from this case is that owners should be careful with the tenants they choose to occupy their unit. In this case, the tenants caused the problems and despite the owner's cooperation, the owner was held liable for all legal costs incurred by the condo to remove the tenants from the unit.

Even if a condo corporation allows residents to have a pet or pets, the pets are still subject to specific rules about their conduct. The governing documents will usually state that pets are not permitted to litter or destroy common elements (for example, pets cannot urinate or defecate on common elements) or create noise/odours that negatively affect other residents. Dangerous or Illegal Pets or Animals Residing In a Unit Some corporations have provisions in their governing documents banning certain types of pets. A condo may prohibit snakes, reptiles and/or certain breeds of dogs from its premises. In other cases, certain pets that are otherwise permitted can become dangerous due to their behaviour. In a recent Ontario Superior Court of Justice decision, MTCC 1260 v. Singh et. al., 2022 ONSC 1606, a unit's tenants let their two dogs (who were either Pitbulls or American bulldogs) roam around the building's corridors unsupervised and unleashed. There were numerous complaints about the dogs’ behaviour.

14 CONDOBUSINESS |

Pets or Animals Causing Noise/Nuisance For Other Owners/Residents

On one occasion, one of the dogs attacked and bit another resident and the resident's dog. The City of Toronto issued a Dangerous Dog Order against one of the dogs. Among other things, the City order required the dog to be muzzled at all times when in the common areas of the building. The tenants did not comply. In January 2022, the condo obtained a court order requiring the tenants to remove the dogs from the unit and the building. The dogs were initially removed but by early March 2022, the condo and the unit owner had evidence that dogs were still in the unit. The court ultimately made an order evicting the tenants from the unit.

LEGAL

Normally, eviction applications must be heard by the landlord and tenant tribunal, which has the jurisdiction to hear most tenant-related disputes, including applications for eviction. However, the

Part of the REMI Network

How Can Pet Disputes Be Handled/ Litigated

By a Condominium Corporation? Depending on the condo corporation's governing documents, some corporations have no choice but to abide by the enforcement system stipulated in their documents. The rules may obligate the corporation to take the following steps: send a warning letter, provide the resident/owner with two weeks to correct the behaviour and if the behaviour is not corrected, legal counsel is to be involved. For those corporations where the enforcement mechanism is not stipulated in the governing documents, they have more liberty to adjust their response to the situation at hand. Some situations are so serious that warning letters from the corporation will not be necessary and a letter from legal counsel is appropriate for the first step (for instance: if a dog has bitten a resident). If a legal letter is sent, and the situation still does not resolve, then the condo must decide if it wants to engage in further litigation. For litigation, the condo can either commence a Condominium Authority Tribunal (CAT) application or a Superior Court of Ontario application. Due to the recent amendments to the Condominium Act, all disputes in relation to pets/animals and nuisance are now within the jurisdiction of the CAT. Accordingly, a condo corporation must commence a CAT application for all pet-related issues. The only way in which a condo can move its application out of the CAT is if section 117 (1) of the Condominium Act is engaged. Section 117(1) of the Condominium Act states: "No person shall, through an act or omission, cause a condition to exist or an activity to take place in a unit, the common elements or the assets, if any, of the corporation if the condition or the activity, as the case may be, is likely to damage the property or the assets or to cause an injury or an illness to an individual". If a condition in accordance with this section exists, an application can be brought to the Superior Court of Ontario to deal with the pet/animal issue. For the MTCC 1260 v. Singh et. al. case, the Superior Court agreed to hear the matter (as opposed to deferring to the CAT) because there were allegations that the tenants' behaviour created a danger to others, contrary to section 117(1) of the Condominium Act. For the same reason, the court also agreed to hear both the initial and the follow up hearings on an urgent basis. The entire process took about three months to Everycomplete.situation is different. If your condo corporation has a pet issue, please consult your legal counsel for advice. 1

Inderpreet Suri is an associate at Shibley Righton LLP and works exclusively with the condominium law group at Shibley Righton. She articled with the firm from 2017-2018 and was called to the Bar in 2018. Throughout her time at Shibley Righton, Inderpreet has assisted condominium corporations with various litigation matters that involve a variety of different legal issues. She has also assisted individual unit owners and residents in situations where they are being unfairly oppressed or disregarded by their condo corporation.

LEGAL

16 CONDOBUSINESS | Part of the REMI Network You lock the door to your home because you want to keep yourself, your family, and your property safe. The same logic should apply to your condo community’s data and information. Unfortunately, too many databases and platforms are left unprotected. BY BRIAN BOSSCHER IS YOUR NETWORK AT RISK? Tips to help strengthen your condominium’s cybersecurity system

Minimize Security Breaches

Make two-factor authentication the default.Two-factor authentication (2FA) is an extra layer of security that makes it more difficult for unauthorized individuals to gain access to accounts, databases and software systems. It essentially requires users to enter two pieces of information – a password that they have memorized and a one-time code – in order to access a platform or data. The code is usually accessed through the user’s smartphone. This way, even if someone does guess your password, they would still need to obtain your phone and see the unique code to get your data. This simple step is highly effective, and it costs the user nothing to implement. In 2019, Google found that SMS-based multi-factor authentication successfully blocked 100 per cent of automated bots, 96 per cent of bulk phishing attacks, and 76 per cent of targeted attacks. While

TECHNOLOGY

It can be hard to believe that an employee would willingly sabotage their own company, but it’s happened before. An employee who is upset, or who has just been let go, may delete files, change passwords, or steal information.

www.REMInetwork.com | August 2022 17

On a similar note, don’t give all staff access to everything. They should only be able to access tools or information that they need to have in order to do their jobs. This helps ensure sensitive information doesn’t get into the wrong hands and reduces potential damage caused by illwilled employees.

It’s not that property managers and board members don’t care. Rather, they aren’t aware that a “door” has been left ajar until it’s too late. Here’s what you should know about cyberattacks, how to improve your cybersecurity network, and what to do if your corporation is hacked.

Condominium communities must maintain adequate records, including financial records, meeting minutes, and governing documents. “If the corporation stores these records in an electronic format, they must be able to reproduce them accurately, intelligibly and within a reasonable timeline,” states the Condominium Authority of Ontario. “They must also reasonably protect records against unauthorized access and have data recovery capabilities.” That means condos must keep accurate records of sensitive information, as well as take reasonable steps to keep that information safe.

Remote desktop protocol (RDP) attacks – RDP provides additional convenience as it lets people access files and data from virtually anywhere. However, cybercriminals may try to guess as many password combinations as possible, or purchase credentials illegally, to infiltrate the remote network. Exploiting software vulnerabilities –cyber criminals can take advantage of security weaknesses in software to deploy ransomware.

Top Cybersecurity Threats Ransomware Ransomware is by far one of the top threats to corporations. Ransomware is a form of malware designed to encrypt files, rendering them unusable to the person trying to access them. The person responsible for the ransomware will demand ransom, often money or some other financial asset, in exchange for decryption.Ransomware is very harmful to condominiums because the organizations store so much personal information. In addition to sensitive emails, they have hundreds of bank account or credit card numbers, email addresses, phone numbers, license plate numbers, etc., belonging to tenants and owners. Then there are all of the records which could not be replicated if they were lost.

Assess Your Corporation's Risk Boards and managers are strongly encouraged to educate themselves about cybersecurity in general and understand the cyber risks that they are most likely to encounter. If you’re not sure where to start, consider looking at the federal programs.TheCybersecurity & Infrastructure Security Agency (CISA) offers small American organizations toolkits, planning templates, and essential cybersecurity information.InCanada, CyberSecure aims to raise the cyber security baseline for small and medium-sized enterprises. Victor Beitner, CISSP, GG, and E-Technologist, says this is one of the easier (and more economic) starting paths for small corporations. Victor is the CEO of Cyber Security Canada, one of three accredited certification bodies recognized by the Canadian government. His company works collaboratively with CyberSecure, and evaluates an organization’s implementation of the program's certification requirements.

Internal hacks

The most common ransomware techniques used by intruders include: Email phishing campaigns – email with a malicious file or link is sent. Malware the efficacy rates may have dwindled from three years ago, it is still one of the easiest and best cyber defence mechanisms to employ.

Make Use of Good Cyberinfrastructure Invest in an antivirus program Antivirus software will help to limit the impact of a virus. Malware is very dynamic and is always evolving as hackers try to target software or system vulnerabilities. As such, they may eventually have success getting past is deployed when someone clicks on the link. They may also use precursor malware, which enables the attacker to use someone else’s email account to target more victims.

Update Software Regularily When prompted to update your work computer’s operating system, or a software program, do it as soon as possible. While it can be a minor annoyance, the updates ensure your program is as secure as possible.

Developers release updated versions of systems to address bugs, minimize security vulnerabilities, and introduce new features. However, if you continue to use the old version of a program, you leave the corporation vulnerable to viruses or threats that exploit or take advantage of recently identified security flaws. In Case There's a Cyberattack Even if your corporation takes reasonable steps to protect data, a cyberattack may still occur. That is why every corporation must have cyber insurance. In addition to assessing cyber risks, condos need the basic protection offered by your operating system and gaining access to the corporation’s data. Antivirus programs provide an extra layer of protection so that even if malware gets onto your computer, it is detected and can be removed before critical damage is done to the corporation.

to create the appropriate risk responses.

The CAO cites four risk response types, including transferring risks. Obtaining cyber insurance is a perfect example of what it means to transfer risk. Cyber insurance covers things like regulatory defence expenses, legal and civil damages, forensic investigations, and crisis management costs. Having this could save the corporation, or your property management company, thousands of dollars. Condos may also consider having liability coverage, or third-party coverage. Cyber liability policies cover legal fees and judgments in cases where owners sue the corporation for damages caused by a cyberattack.

“The size of your condo corporation will dictate how much cyber protection you need.”

TECHNOLOGY

Like all insurance, you hope you won’t need to use your condo’s cyber insurance policy, but you’ll be very glad to have it if there is an attack.

How Much Protection Does Your Corporation Really Need? The size of your condo corporation will dictate how much cyber protection you need. A corporation with one work computer will need less than a corporation with dozens of computers. Managers will need to scale as they grow and implement layered cyber security architecture. Finally, once you have a system in place, don’t assume that’s the end of it. Cybercriminals are always looking for new ways to infiltrate vulnerabilities; your cybersecurity plan must also evolve. 1

Brian Bosscher is the president and founder of Condo Control, a leading software company that provides web-based communication, management and security solutions for condos and HOAs of all sizes. He is also a board member, having served more than 14 years as both treasurer and president.

www.REMInetwork.com | August 2022 19

9 per cent of survey respondents using their services. More recreational cannabis users are also growing their own plants — 14 per cent in 2021 versus 9 per cent in 2018 — although that may be a more common practice for homeowners than renters since 18 to 20 per cent of respondents age 45 or older reported doing so versus 13 per cent of those aged 25 to 44 and 7 per cent of those aged 19 to Survey24.

Unlicensed online dealers may be adding to the package delivery traffic in residential buildings since they’ve experienced an uptick in business, with Private homes emerge as the strongly preferred venue for recreational cannabis use in newly released survey results from the British Columbia government. More than 90 per cent of respondents confirm that they typically use non-medical cannabis in their own homes, while 46 per cent also use it in other people’s homes. A smaller proportion — 35 per cent — report smoking or ingesting cannabis in outdoor public spaces.

FEATURE

As part of the second survey that the BC Cannabis Secretariat has conducted since the drug was legalized across Canada in October 2018, nearly 25,000 provincial residents were queried via telephone between August and October 2021 to compile one of the largest samplings to date of general consumer and nonconsumer practices.

“The BC Cannabis Use Survey provides valuable information on the role of cannabis in the lives of people living in British Columbia, including how they use it, where they get it, how it impacts their lives and the extent that they engage in potentially risky behaviours such as frequent or heavy cannabis use or driving shortly after using cannabis,” the preamble to the survey results states.

PRIVATE HOMES PREFERRED FOR TOKING

“As the market continues to evolve and stigma around cannabis use slowly fades there is a need for regular monitoring and evaluation to effectively assess public health and safety impacts of cannabis use," it states. 1

The 8,473 or 34 per cent of initial respondents who selfreported as cannabis users were then invited to answer a more detailed online questionnaire, and findings are drawn from 2,420 subsequent participants.

results show there are generally more cannabis users now than prior to legalization. The B.C. government pegs it at 32 per cent of British Columbians, up from 28 per cent at the onset of legalization in 2018. More consumers don’t necessarily translate directly into smoke and odourrelated issues since results show more consumers are ingesting recreational products or applying medical products in the form of ointments and tinctures. Still, 81 per cent of respondents smoked cannabis and more used cannabis cartridges or vape pens in 2021 (42 per cent) than in 2018 (36 per cent). The survey does not include any exploration of fire safety risks, but it does pose questions about other risky behaviour related to cannabis consumption.Conclusions to the survey results also reiterate that there are still “data gaps” to fill.

Of interest to the property and facilities management sectors, fewer than 3 per cent of respondents report having used non-medical cannabis in indoor public spaces, the workplace or at school. However, more than half (53 per cent) of younger consumers, aged 19 to 24, used it in outdoor public spaces.

FEATURE

Contractors and project managers encounter daunting constraints

COSTSCONSTRUCTIONPRESSURESINFLATIONARY

CONSTRUCTIONPRESSURESINFLATIONARYPUSHUP

A spate of special assessments is anticipated as condominium corporations update their reserve fund studies and adjust for inflation. Coming out of an extended period when the consumer price index (CPI) hovered in the 2 to 2.5 per cent range, many condo boards will confront shortfalls as the CPI now pushes up past 7 per cent.

“That’s going to be a huge adjustment as to what you’ve actually got in the bank and what you are responsible under the (Condominium) Act to have in the bank,” observes Greg Moore, president of the construction management firm, Quantum Project Management Services. “There will be special assessments hitting all of these condo boards and people are going to freak out.”

Jeff Murva, a construction management consultant and chair of the Toronto Construction Association’s board of directors, gave examples of “runaway material and equipment costs” as builders worldwide compete for the scarcity of everything from swimming pool components to the conduit that encases electrical cabling within poured concrete slabs. Turning to labour, he cited soaring wage scales in response to widespread shortages of almost every skilled and unskilled trade. That’s coupled with diminished productivity as employers scramble to fill out their ranks and meet developers’ demands.“Theirclients, the developers, are saying: ‘You better take on this additional project. We don’t care where you get the men; just get the men and take it on, or else we’re going to take all of our dozen projects and give them to someone else’,” Murva recounted.

“And the problem is, you’re getting the C-team — someone who is not performing,” added Craig Lesurf, president of the construction

BY BARBARA CARSS

The looming hit for some condo owners reflects a confluence of escalating construction costs for materials, labour and contractual or financing penalties tied to delayed delivery. Industry insiders outlined some of those pressures during a panel discussion at the REMI Show in June.Onone side, contractors and project managers are encountering daunting constraints on the supplies and services needed to keep projects moving. On the other, they’re beholden to developers and institutional clients with budgets and timelines that aren’t sympathetic to supply chain woes.

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“People are saying: My price is good for 10 days. It’s no longer 30 or 60; it’s 10 days,” Moore underscored. “The notion of historical data is historical; it’s not relevant anymore. It makes it difficult to actually make a pro forma work. It makes investors nervous. It makes the banks nervous. It makes insurance companies reticent about getting involved.”

Condo developments face the added threat of sidelined purchasers.

Supply Chain Uncertainty Spurs New Storage Practices and Costs

That appears to be a reasonable fear.

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“An A-team crew used to have a majority of As. An A-team now has one or two As and all the rest are Bs, Cs, Ds and below.”

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There are also soaring transportation costs regardless of when products and material are obtained. It’s all filtering through to development pro formas — interjecting more caution and squeezing the margins even tighter in what Murva typifies as an already precarious pathway to profits for multi-residential high-rise projects. With institutional investors increasingly holding sway in the development space, contractors and project managers are getting the blowback from pension funds’ and insurance companies’ ingrained risk aversion.“It’sbecoming common now to ask for price certainty before the green light is given. What it means is that we are moving towards a stipulated price contract,” Murva said. “Ownership is becoming very nervous about the cost to actually build something, about the cost creeping or escalating on them over the course of the project.”

Here are some forecasted stats by province: As cited in the report, these figures do not consider the labour force demands related to the proposed 17 metric tons of carbon emissions reductions from residential buildings cited in the federal 2030 Emissions Reduction Plan. The projected stats additionally do not account for Budget 2022’s goals to double the number of new homes over the next decade. To read the full report, Construction and Maintenance Looking Forward: Residential Summary Highlights 2022-2031, visit: https://www.buildforce.ca/en/lmi/ forecast-summary-reports.

22 CONDOBUSINESS | Part of the REMI Network

The lingering disruptions of the COVID-19 pandemic are melding with more recent repercussions from Russia’s invasion of Ukraine to create new complications and further goad inflation. Lesurf noted that Ukraine is a prominent source for various construction materials and products, including steel, wood and electrical equipment, much of which is shipped from its beleaguered ports.

Meanwhile, for in-progress development, it’s another cost that wasn’t contemplated when the budget was set. “If it’s available, we buy it now and store it. Those storage costs weren’t factored in, and it’s robbing the market of something that used to turn over every three months, but now we’re keeping it for nine months before we need it,” Lesurf confirmed. Investors Seek Assurance Against Creeping Project Costs

QUEBEC +22,876RETIREMENTS +14,340RETIREMENTS+25,034REQUIREDRECRUITS +12,389REQUIREDRECRUITS

“If you want to get a certain birch for millwork. Ukraine is the principal place it comes from. You may have specified it two

Canada’s residential construction sector is facing major labour force challenges. A new report from BuildForce shows that between 2022 and 2031, an estimated 128,400 workers are expected to retire. By then, the sector will need to recruit and train 107,900 new workers. While a majority of this gap is projected to be filled by new industry entrants aged 30 and younger, a gap of almost 6,000 workers could emerge.

“These condo buildings are 75 to 80 per cent investor-owned. Now they are all getting nervous about where interest rates are going,” Murva said. “It’s putting pressure on the residential high-rise industry in terms of whether or not future projects are going to be financially viable. So there’s this entire ripple effect.” 1 Barbara Carss is editor-in-chief of Canadian Property Management. years ago, but you can’t get the material now,” he said. “I had some components of a building stuck in a container ship in Kyiv and we had to get it off-loaded from the container ship and shipped to Poland to get it out. We were nervous about having to find a replacement (elsewhere) because we ordered it 12 months ago.” Such supply chain uncertainty is triggering new procurement practices as construction managers order products when the opportunity arises and hold them for the future. That comes with new costs and requirements for storage capacity, while exacerbating overall material and equipment shortages.“Storage was never common in conversations or contracts three years ago. Now there are so many contracts where we’re having to prospect storage,” Murva reported. management company, the Gillam Group.

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AKRA Living.

“In a post-pandemic world, wellness and access to highquality fresh air is no longer a nice-to-have; it's a feature that residents and condo purchasers will actively seek out,” says

Jesse Speigel, senior vice-president at Curated Properties. “I’d be surprised if we didn’t see more widespread adoption.”

www.REMInetwork.com | August 2022 23 FEATURE

BREATHE EASY

PHOTO BY NORM LI.Two developers tap into the growing global wellness movement

BY REBECCA MELNYK

Residents of up-and-coming condos won’t have to escape their urban homes for fresh air and water. In an industry hesitant to embrace new technologies, two developers are bringing smart health innovations to the forefront of their amenity offerings.

The team behind AKRA Living—a retreat-like condo rising 22 storeys near Toronto’s busy intersection of Yonge and Eglinton—is filling the high-rise with clean air technology, including Covid-fighting devices that aren’t prevalent in multi-residential living.

Then, there’s a more novel addition that Curated Properties actively sought out with the pandemic in mind.

“People are still a bit hesitant to be mixing with other residents in common areas unmasked—that behaviour will likely persist,” he further predicts.“As developers, it’s our responsibility to future-proof these buildings as best we can and respond to residents’ wants and needs.”

Unchartered Waters About an hour away by car, in Hamilton, Ontario, there’s a growing population looking for healthy spaces to live among the brick-and-beam aesthetic of the city’s industrial past.

Projects like AKRA are fuelling momentum. Inside the 211 suites will be increasingly popular technologies: fan coil units will be equipped with energy recovery ventilators for dedicated fresh air supply and high-efficiency HEPA and MERV filters.

24 CONDOBUSINESS | Part of the REMI Network “I’d be surprised if we didn’t see more adoption.”widespread FEATURE

“It’s a very budget-conscious business and you have to look at where every dollar goes, but I like the idea of trying to provide a low-cost, healthy living environment,” he says, alluding to some anticipated amenities.

Aura Air is a system developed in Israel and currently installed at the country’s Sheba Medical Center. The technology was clinically proven to eradicate more than 99 per cent of viruses, including Covid-19 particles through six stages of air purification and disinfection that includes UV-CThereLEDs.aren’t similar devices on the market being used in Ontario’s multi-residential spaces as it stands. “We’re quite excited about the technology and keen to build it into the design of our high-traffic common areas,” says Speigel.

A company called Clear Inc. is integrating both indoor health technologies into the building’s plan and maintaining them, with real-time tracking of air quality and the UV treatment of water for residents to monitor. It’s described as an affordable and holistic approach, which distinguishes the service provider in the condo sector. In most cases, Clear says it’s able to do this work for under one dollar per unit per day.

In the common areas, the plan is to equip the air makeup unit with fresh air, and also install heat recovery ventilation units so specific amenity spaces, like the fitness centre and lobby, have their own fresh air supply.

Radio Arts will rise at 206 King Street West by the Hamilton LRT. Image by Drawn in Depth.

The non-profit Global Wellness Institute measured the wellness industry at $4.4 trillion in 2020 and predicts it will reach $7 trillion by 2025. Wellness real estate is currently estimated at $245 billion and growing. Canada is now second in the world when it comes to growth, as the market ballooned 240 per cent from 2017 to 2020.

On the former CHIQ radio station site, the Radio Arts condo is bringing such a place forward. Vernon Shaw, founder and president of Canlight Realty Corporation, hopes to do as much as possible inside the 14-storey building.

Among them are high air quality for the common elements, via Aura Air, and fresh drinking water from a purification system called Atlantium, which produces 99.99 per cent microbiologically pure, pharmaceutical grade water at the property.

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“There is water contamination and limited air quality in the buildings we live in and that’s where we spend the majority of our time.”

According to Health Canada, as pipes age, they become prone to leaks and breaks, which leads to the intrusion of microbial contaminants, and corrosion and development of biofilm.

The social lounge, with interiors by Baudit Interior Design. Image by Drawn in Depth.

Over the past few years, there have been increased building outbreaks across the globe. Legionnaires and E. coli are among approximentaly 250 microbial variations that can make people sick from drinking water, but a gap in testing isn’t telling the whole story.

Water contamination has long been documented. A report from the Environmental Protection Agency profiled the risk two decades ago, stating that various types of microbes have demonstrated the ability to survive in the distribution system. Some are able to grow and produce biofilms, which may become a breeding ground for viruses, bacteria and parasites to cultivate and propagate. This potentially causes disease in healthy individuals or facilitates infection in people with underlying conditions.

While water is said to be treated to high standards across North America, the pipes it flows through are often old and decrepit.

“The issue really isn't about how cities clean the water; it's that we run this clean water from the treatment facilities several miles through 60- to 80-year-old piping infrastructure that is filled with biofilm and can re-introduce harmful microbes as it travels to our properties,” says Merkur.

“Health, wellness, and ESG are all major topics now in real estate and we are seeing more companies get behind the movement,” says Merkur. “The pandemic, along with shifting public priorities, has only expanded people's awareness of the concept of healthy properties and the value it brings.”

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In a Zoom interview, Clear’s Chief Operating Officer Ryan Merkur holds up a plastic bottle of water. “The concept was how do we produce this without the plastic waste and still protect people,” he says. “There is water contamination and limited air quality in the buildings we live in and that’s where we spend the majority of our time.”

Samples aren’t always collected directly after events that can cause microbe levels to fluctuate. “Sampling today might come back with OK results,” says Merkur. “Sampling after a storm, heavy rainfall, construction or leaks—you could get very different results.”Theidea behind the water technology at Radio Arts is to destroy pathogens on site to eliminate any risk factors of contamination. When water flows into the building, it will be treated with UV disinfection directly in the mechanical room, with real-time water qualityWhilemonitoring.thistechnology has been around for more than a decade, it hasn’t proliferated in the capacity of multi-residential real estate, but there’s the potential for widespread adoption.

However, ask what they use it for, and you will likely get more varied answers, often regarding which software they use; in some instances, that property management software is used by the property management company and not at all by the property managers that work for them.

• Manual versus automated.

• Only for the management company as opposed to something that provides client self-service.

IS YOUR PROPERTY MANAGEMENT SOFTWARE GROWING YOUR BUSINESS (OR HOLDING YOU BACK)?

So, is your software holding your company back? Ask yourself if your software is:

Ask anyone in property management if they use property management software, and they will all answer “yes.”

I was recently at the REMI Conference in Toronto, where a property manager for a large Toronto company confided in me that he generates purchase orders by hand. This was a bit of a shock – especially in our modern age and for a manager of a larger operation that was not a small, mom-and-pop shop. I wondered how this could be, and my conclusion was that the required tools to effectively manage condominium buildings are fragmented across many platforms. Not only that, but the decision as to which issues require software tools often lies with the property management company, not with the property manager.

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• A repository of data versus information to support decision-making.

• Reactive versus proactive.

• One which you have outgrown rather than a property management software that grows with you. If you agree to one or more of the above, the answer is “yes.”

Mark Bush, Vice President - Business Development

• A place that stores documents versus a place for sharing information.

It is common, then, that property management companies invest first in a management system that can automate (if not somewhat) the processing of financial transactions while ignoring or undervaluing software that improves client satisfaction or adds greater efficiencies to a property manager’s job.

For one, is the software web-based so it can be accessed anywhere? Furthermore, does it have a mobile app that brings functionality to the manager on the road and the ability of self-service to your owners, residents, and tenants? The software should be to condominium management what ATMs are to banks.

• Make performance statistics available to managers to share with board members in regard to the number of services requests opened and closed or how long a request has remained unresolved. It should also allow for the direct reservation of common amenities and broadcast messaging through the communications module.

FIT FOR PURPOSE

• Provide direct access to real-time financial information and budget to actual forecasting from the accounting and finance module, including electronic payments and digital signatures.

• Support the technical documentation of your building – What engineering systems are present, what type and model, where are they located, and track modifications and replacements, warranties, and linked it to purchase orders to facilitate generation of accurate reserve fund studies and annual operating plans.

For example, let us look at the sale of access keys and remotes and updating the intercom system. Your software needs to be able to establish work assignment parameters so that work is automatically routed to the best person to fulfill the request. These workflow management tools increase efficiency that allows you to grow your business without adding additional backoffice personnel. It also provides a payback on your software investment, and let us be honest, it would be nice if your software paid for itself?

• Generate certificate transfer packages for notaries for the sale of a unit, as well as automated meeting convocation tools from the administrative module.

Secondly, does your software have the tools you need to manage a condominium, and are they integrated to remove duplicative work? In general, the system should have a comprehensive set of tools to manage the five basic areas required to manage and administrate a condominium building, including Accounting and Finance, Communications, Administrative, Operational, and Technical.

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Lastly, is your property management software easy to implement and use and does the software provider offer high quality customer support, online training sessions available to subscribers that not only shows how the software works, but how to use it to accomplish your daily work within the regulatory framework required.

In conclusion, property management teams need an all-in-one property management software - one that is integrated, accessible to all, anywhere at all times, and provides full transparency. Moreover, you need a system that your business will not outgrow and pay for itself over the long run. If this is not the property management software you have, then perhaps it is time to look for a better alternative.

If you are looking for project management software to help your business grow and will grow with you, then there are a few aspects to keep in mind.

Thirdly, does your property management software allow for multi-level security over access and functionality? Moreover, does it provide for full transparency of information with complete drill-down capability from financial statement line item to an electronic copy of the actual invoice, purchase order and any associated expertise report? If so, then it should also:

Fourthly, functionality should exist that places the expertise within the system. For example, you should not have to be an accountant to enter a special charge for a co-owner infraction. Basic information should be entered by administrative personnel through dropdown menus, and the system should generate the accounting transactions to affect the charge.

• Contract and authorized supplier database with renewal and expiration reminders, again generated by the operational module.

The above criteria make an excellent system for providing management services to your clients. However, what does your property management software do to help you run your business? Depending on the size of your condominium management company, you may have many property managers, and consolidated backoffice functions for administration, accounting, and operation services to provide those operational services that do not require a trip to the building.

A SYSTEM FOR PROPERTY MANAGERS

the expectation for bold policy changes

With Ontario’s Progressive Conservatives (PCs) entering another four-year term, the development community is keeping close tabs on election promises made around housing affordability, including the pledge to build 1.5 million residential units over the next decade.

Industry digs into

SCRUTINIZING THE SUPPLY GAP

28 CONDOBUSINESS | Part of the REMI Network

BY REBECCA MELNYK

www.REMInetwork.com | August 2022 29 DEVELOPMENT

The task force cites 55 recommendations to further action on supply. With this blueprint in place, the panelists expect more ground-breaking to come.

Dave Wilkes, president and CEO of BILD, said the industry needs to stay mindful of long-term structural challenges in the face of variable changes, reiterating how interest rates will come and go. “The biggest risk is that we get distracted by the short-term and fluctuations,” he said. “When we get out of this and the economy always does, we will still have a structural problem.”

“This is an opportunity to shape-it-up to do things differently, and I think there’s a recognition in this government that that needs to happen,” said Lorraine Huinink, director of rapid transit and transit-oriented development with the Region of Durham.

“There’s a recognition that doing the same is not going to change the situation; we’re not going to relieve the crisis that we’re in.”

There were post-election concerns that “high-performing” ministers would be shuffled out. On June 24, Doug Ford’s newly sworn-in 29-member cabinet returned Steve Clark to the role of Minister of Municipal Affairs and Housing and added an Associate Minister for housing. Michael Parsa, the member of provincial parliament for AuroraOak Ridges-Richmond Hill, will work alongside Clark.

On the municipal level, he sees an evolving discussion emerge of which he is most hopeful. “It’s a slow burn, but there’s a recognition that things have to change; there’s a recognition that government turbocharging legislation around home building. But there’s a general sentiment of hope across the industry—that aggressive action will unfold to meet this massive target. Earlier in the summer, a post-election event hosted by the Urban Land Institute tackled the issue. As Peter Norman, vicepresident and chief economist at Altus Group, observed, the war in Ukraine is causing supply chain disruptions and higher commodity prices, with the challenge of inflation becoming suddenly more meaningful.Thereare also 20,000 vacant positions, as of June, in Ontario’s construction sector— double than about a year ago. Panelists at the session, Ford Government, Second Term: Getting to 1.5 Million New Homes, all agreed there’s no going back to the housing status quo. Moderator Chris Loreto, managing principal at Strategy Corp, raised several questions about the reality of follow through. How can this agenda reasonably move forward in the Greater Golden Horseshoe and what gutsy policy changes could roll out to expedite the process? In doing so, how can the province realize a balanced housing mix so intensified areas don’t end up gentrified?

Good-Bye To the Status Quo—What to Expect in the Next Few Years? There are an estimated 90,000 units currently in the pipeline into 2023, observed Norman. Altus data shows more singlefamily than apartment starts in the GTA, which are down due to the sales pause in 2020, but likely to resurge next year when projects break ground.

“I am feeling optimistic we can make a big dent in supply and continue that Sweeping reforms recommended through the government-commissioned housing task force this year come with urgency in a province of 15 million people and growing. Ontario’s housing market is said to be cooling, but beneath a decline in average prices lurks the issue of supply—fueled by new economic headwinds, labour shortages and rising construction costs. The government renewed its promise to tackle supply in its throne speech on August 9; to break down logjams that have historically slowed the pace of construction and give the mayors of Toronto and Ottawa more authority in provincial-municipal projects. Both cities are expected to see one third of Ontario’s growth in the next 10 years. There’s no real evidence yet as to how affordable the market will become by

upper momentum we need for 1.5 million over 10 years,” said Tim Hudak, chief executive officer of the Ontario Real Estate Association. “The Ford government has a very positive record when it comes to housing—the largest increase in housing starts that we’ve seen in over 30 years. We may not see that this year, but we are at least going in the right direction in getting supply. We built more homes in the 1970s than we did in the 2000s. No wonder we fell behind.”

reforms to the Ontario Land Tribunal, I think, are another one that will move forward—hopefully putting more bodies there,” said Hudak. The Tribunal is under-resourced and faces a backlog of more than 1,000 cases. As the task force report argues, opponents to even municipalapproved projects can appeal with a $400 fee—knowing the project could be delayed until its economic feasibility is quashed. Answering the call for a large housing delivery fund to reward municipalities that commit to boosting supply is also expected from the PCs. “The most obvious things moving forward are the carrots because they are easier than using sticks,” said Hudak. “The municipalities that are playing ball . . . adding on new homes and welcoming newcomers to their community, while ensuring their young people have a place to call home, reward them for that. Their projects for transit, new roads and bridges and recreational projects go to the top of the list.”

“There is a fear of consultation with communities.

A lot of that is because the communities we’ve heard most vocally from aren’t communities that need housing—probably communities that have paid off mortgages a long time ago.”

DEVELOPMENT

30 CONDOBUSINESS | Part of the REMI Network

What Bold Changes Could Unfold? Legislation tabled before the election vowed to speed up approvals at the municipal level, but recoiled from ending exclusionary zoning to spur the density of missing middle housing.Michael Cook, land use planning and development lawyer at Blake, Cassels, & Graydon, said there’s some expectation that gutsy policy changes will address exclusionary zoning, which, he adds, isn’t a silver bullet. He also foresees continued reliance on the Ontario Land Tribunal— where developers go to seek arbitration on approvals. “I think it is easier to rely on the OLT than it is to move forward with bold public policy changes—hopefully I am wrong,” he said. “For far too long we’ve been relying on policies that aren’t solving the“Certainly,crisis.”

As part of the More Homes for Everyone Act, 2022, the Community Infrastructure and Housing Accelerator (CIHA) was introduced. The tool, which requires municipalities to consult the public when they wish to issue a zone change, is similar to Minister’s Zoning Orders (MZOs), which give the minister of municipal affairs and housing the power to decide.

In April, the National Farmer’s Union of Ontario voiced concern that the problems associated with MZOs are replicated with the accelerator tool, which “neither specifies affordable housing as its aim, nor does it adequately protect agricultural land outside of theFromGreenbelt.”amunicipal perspective, Huinink sees “more certainly” around the CIHA, with “a bit more collaboration and partnership coming.” “It won’t work if you have people digging in your heels,” she said. To pay for growth in cities, property taxes and growth funding tools are currently the only options. Huinink observed that a fees and taxes are part of the affordability challenge, and there’s a recognition that we need to look at things holistically different.”

Such a tool is not without opposition.

“Through things like the accelerator fund, we can’t be so laser-focused and say supply, supply, supply. It’s got to be the right supply," saidAsWilkes.aboard member of non-profit Black Planner’s and Urbanists Association, Cook highlighted how the housing affordability crisis is affecting BIPOC communities. In its response to the task force report, BPUA identified several areas for further consideration, such as including more moderate-low-income community members in the planning process and defying housing needs through the planning approvals processes.“There is a fear of consultation with communities,” said Cook. “A lot of that is because the communities we’ve heard most vocally from aren’t communities that need housing—probably communities that have paid off mortgages a long time ago.”

“One of the ways we have to move for ward is to continue community consultations, but with the right communities,” he added. “If you talk to those people, you’ll hear them making the supply arguments as well. These are allies in the fight and we need to keep them engaged and do a better job of engag ingThethem.”BPUA also recommended various types of funding moving forward. Last year, the City of Toronto adopted an inclusionary zoning policy, requiring new residential developments to include affordable housing units.

More commercial-to-residential conver sions, including for underutilized government buildings to open up capacity, is something on Hudak’s radar. “One thing the task force called for that I hope is enforced is the asof-right ability to have a secondary suite in your home,” he added. “It supports renting, it helps pay down a mortgage faster, but it enables a quality place to live in pretty well any place in Ontario.” 1

DelProperty_Condo_March_2018_torevise.pdf

“This is a crisis—the people who stock our shelves, drive the buses, who help us in our hospitals—they need to live where they work,” she said. “Soon, we will not have that kind of balanced community. We need to be jumping on this big time.”

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“The way the City of Toronto moved forward with inclusionary zoning is the wrong way because it’s putting all of the burden on the developer and not going to get built if there is no government investment,” said Cook. “The best affordable housing comes when the government and the private sector are partners and we need to see more of that as “Ifwell.”you want the market to provide affordable housing, the government absolutely needs to step in and make that proforma whole,” said Huinink. “You do that by looking at where the costs are. If you can afford to bring a battery plant to this province, you can afford to put the (development charges) back into the housing; you can afford the land transfer tax deferral. Those are the only ways you will incent the market to provide what has not typically been provided.”Asaboard member of Habitat for Humanity GTA, she stresses the importance of governments empowering and partnering with non-profits to help deliver affordable housing.

Supply Means Prioritizing the Right Supply

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carrot-and-stick approach would be ideal going forward. “When you ask for stretched resources to be innovative to change, they won’t; they simply can’t.”

1 2018-04-13 2:44 PM

The conference will host fourteen educational sessions including sessions geared to condo owners, condo directors and condo managers. Ontario’s elite condominium lawyers will be presenting at several educational sessions. There will also be the opportunity to hear from some of Ontario’s top condo engineers, managers, auditors, accountants, insurance professionals, communication experts and energy professionals. Every educational session includes the who’s who of the most elite condo professionals sharing unique and insightful information that directly affects the condominium communities across Ontario.

The opening of the conference will see the two co-chairs, Katherine Gow and myself, give the opening remarks. On Saturday, we have a keynote session by Steve Patterson. Steve is a well-known comedian and host of the CBC Radio One’s hit show, The Debaters. What better way to start your Saturday morning at a conference? By Murray Johnson

As we head into fall, it’s refreshing to see some of the old “normal” creeping back into our professional and private lives, even if only in baby steps. What is particularly nice to see is the new hybrid workplace model, with some days allotted for working from home and others from the office. Finally, our work ethic has caught up with technology.

EXHIBITIONTOCONDOLEADINGEXPERTSDESCENDUPONPLACE

I am most excited about an industry staple returning for the first time since 2019. Yes, on September 30th some of the industry’s best condominium experts from across the country will descend upon the Enercare Centre and Beanfield Centre at Exhibition Place for the largest and most successful Condo Conference.

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In 2019, the conference and tradeshow had over two thousand delegates and just over 200 exhibitors. This year we are expecting to surpass the 2019 attendance numbers and if the lineup of presenters and exhibitors is any indication, the conference is well on its way to meeting that target. Jointly hosted by the Association of Condominium Managers of Ontario (ACMO) and the Canadian Condominium Institute – Toronto and Area Chapter (CCI-T), this will be the twenty fourth conference. Having conducted unofficial polls of various industry professionals and condominium directors, it seems everyone is longing for that in-person experience.

Blvd,

Toronto has been confirmed as the condo capital of the world with the most existing condominiums and condominiums currently under construction, so it only makes sense that the conference takes place in the heart of the city. You don’t have to be in a Toronto condominium to find value in the conference; all material is provincial in nature and the exhibitors service most areas in theDidprovince.youknow that if your condominium is a member of the Canadian Condominium Institute you get preferred pricing? Are you considering becoming a director in your condominium? Are you currently a condo director? Are you a condominium manager? Thinking of becoming a condominium manager? Are you a service provider looking at getting into the condominium market? If you answered yes to any of these questions, the conference is a must attend event. Visit the Condo Conference website, www.condoconference.ca, to register and take advantage of the early bird pricing before September 9th 2022. Accessible by public transit, GO train and car, getting there is easy. Food and beverage is included in your admission, and let’s not forget the networking event of the conference on Friday September 30 at the Rec Room. The social event is always a lot of Keepfun.an eye on the various social media channels for updates on the conference and don’t forget to register at www.condoconference.ca Beanfield Centre/Enercare Centre 100 Princes’ Toronto, BY

The Friday sessions will be offering a new twist on some of the old favourites, including three “rapid fire” sessions: “Rapid Fire Legislation: Free legal tips”; Rapid Fire Maintenance: Are you missing Out?”; and “Rapid Fire Engineering: Better than Adequate”. These rapid-fire sessions are a favourite of directors and managers. Friday will also include a session on communication strategies, the current staffing shortages and a session on technology and working smarter. Saturday looks to be just as exciting as Friday’s sessions. Industry experts will look at the post-pandemic state of the industry, energy saving tips, insurance, mental health, finances and a deep dive into governance and ethics in condominiums. Finally, the closing plenary will be the Case Law Update: Condos in the Courts. Year after year the case law update has remained a favourite of delegates and professionals alike, and this year’s line up is a session not to be missed.

Murray Johnson, OLCM, CCI (Hon’s), LCCI, is President of the CCI Toronto and Area chapter and the 2022 Condo Conference Co-Chair.

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The Condo Conference website, www.condoconference.ca , has video interviews and testimonials galore that target directors, owners, managers and condo professionals. Over the years my interviews with delegates and exhibitors have always received the same positive feedback. Some go back to the board room with tips that help save money and others tell me they always take something back to their respective roles that is value-added.

SEPT 30TH - OCT 1ST/2022

34 CONDOBUSINESS | Part of the REMI Network

Others, like the Greenbelt and a growing opposition to urban sprawl, are political. With space to build out starting to running short, Ontario is increasingly building up.

What is Land Assembly? Land assembly is the joining of multiple adjacent parcels of land to form a single site that can be used to construct a larger

BY BRENDAN FAGAN

The Golden Horseshoe of South Central Ontario has some of the most valuable land in Canada. For years, the region’s developers focused on single-family suburban housing and spread-out commercial plazas. As the population grew, that style of development continued. This led to the urban sprawl that defines much of South Central Ontario today.

DIGGING INTO LAND ASSEMBLIES

But that style of development is running into barriers. Some barriers, like Lake Ontario and the U.S.A / Canada border to the south, and Georgian Bay to the north, are physical.

www.REMInetwork.com | August 2022 35 property. Because vacant land is scarce in urban areas, land assembly is a key tool for developers looking to build higher and bigger properties. Most people, especially in Ontario, associate land assembly with highrise condo projects. That’s a fair association, but land assembly also includes projects like: • residential subdivisions, • retail complexes, • schools, • hospitals, • airports, • government use. How Does Land Assembly Work? Usually, a developer approaches the owners in the block they want to build on and makes each owner an offer, often for well above their property’s value. A group of property owners can also agree to approach a developer and market all their properties together. Tr us t. 1 Concorde Gate uite 808 Toronto, m416.443.9499Ontarioaallsopcomcgregor Mechanical & Electrical Engineering , S Generator Diesel Fuel Systems designed for your building Advance your career in Condominium Management Get recognized with skills that are in demand in Condominium Management. Register now for this part-time program that includes management, law, relationship building, physical building management, financials and operational quality knowledge and skills. Learn from experienced facilitators who are industry experts. Register now humber.ca/cpl/cmrao The Condominium Management program is offered in partnership with the Condominium Management Regulatory Authority of Ontario (CMRAO). DEVELOPMENT

• old undischarged mortgages or leases, • orphaned laneways. Land assemblies are complex deals, involving the merger of several different titles. Each of the assembled properties may have title or off-title risks that the developer needs to account for. Proper planning, including title insurance, can be key to a project’s success. Every land assembly project is unique, and smart developers are using every tool at their disposal. 1 Brendan Fagan is FCT’s Chief Underwriter with 14 years of industry expertise. Brendan assesses and advises on developing trends in risk and underwriting, also providing input into the development and implementation of initiatives across the company. Brendan holds a Master of Laws degree from the University of Montreal and has been called to the bars of Ontario and Quebec.

As land price is at a premium in cities, property owners with houses grouped together can demand much higher prices than they could by selling individually. Any contiguous group of properties can become part of a land assembly, but most often land assemblies include properties along or near a major transport conduit. Older districts with single-family homes are a prime location for this kind of development. One example of a condo or mixed-use land assembly area is the Eglinton corridor in midtown Toronto, with its blocks of small residential properties all grouped together right along the new Eglington LRT.

• gaps between the lots being assembled,

DEVELOPMENT

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• encroachments from lots not being purchased, • old easements or rights of way,

Is it Possible to Get Left Out of a Land Assembly Deal? Yes it is. The property owners have high selling power because the developer can only assemble the land if they buy several adjacent properties, but there are limits to that power. Once the developer has a few proper ties together, pressure starts mount ing on their end to start construction because of how much they’ve already invested. Delays can motivate the developer to change their plans for the site. They might just build the project around holdout properties instead of waiting for a deal.

The properties involved in a land assembly deal aren’t always treated equally, depending on the circumstances and groups involved. The sale price could be an equal share for each owner, or might be per square foot, or even based on where in the assembly that property is located.

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36 CONDOBUSINESS

In the case of the Eglinton corridor example, a developer would likely value a property bordering Eglinton Avenue higher than one further from the main road, especially if it would form a corner of the new property.

What Challenges Does a Land Assembly Face?

A land assembly has many of the same potential issues as any property purchase, with the added challenge of dealing with multiple vendors. Problems that can arise include:

• errors in the legal descriptions,

“This is due to the inability for radio waves to penetrate into and out of the structures themselves as well as between specific levels, depending on the materials used for construction,” the report states. “Communications are further complicated by limitations in the current radio infrastructure, Kamloops’ challenging topography, and increased signal loss as these taller structures block the signal paths.”

“In order for responders inside the building to communicate with incident command, a responder must stand outside to reach the KFR repeater and use one radio to communicate with the incident command and use another radio on an independent channel to communicate with interior crews,” the report states. “If emergent transmission or general operational communications on tactics are required, communication cannot be achieved between floors or back to dispatch.

Public safety radio in-building amplification systems can be installed using various infrastructure. As the report lays out, some of this comes at a cost between $4,000 and $25,000.

Rescue (KFR) presented a report last week to the city’s community services committee. An increase in highrises is hampering the ability for first responders to communicate in real time with people inside, as well as outside the buildings (incident command, dispatch, etc.). Sometimes, communication is completely ineffective.

In addition to the proposed bylaw, KFR is procuring a consultant for establishing the entire range of possible radio interoperability levels that could be required for any spectrum designated for public safety applications. 1 B.C. Bylaw Would Address High-Rise Radio Communication

38 CONDOBUSINESS | Part of the REMI Network NEW AND NOTABLE

A public safety bylaw is being proposed in Kamloops. B.C., that would mandate radio repeaters in new and existing highrise buildings for the use of first responders. Repeaters help eliminate unwanted noise and interference, to clarify messages as they are strengthened and re-transmitted.KamloopsFire

One case where this has apparently become an issue is at Royal Inland Hospital’s new tower.

The report zeros in on modernized construction techniques to increase energy efficiency, such as the metallic content of the cladding and high-efficiency windows.

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