INSTI-NEWS SUMMER 2022
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IN THIS ISSUE 08 MEMBER ELEVATIONS 13 W.J. LETTNER MEMORIAL AWARD WINNER 04 PRESIDENT’S REPORT Greg Martino, M.I.M.A. 03 STAY CONNECTED 09 RELIGIOUS INSTITUTIONS IN IQALUIT NO LONGER EXEMPT FROM PROPERTY TAX Jeff Semple 23 BEING ETHICAL: WHAT DOES THAT MEAN? Janice Hunter-Desjarlais,M.I.M.A. 25 LONG-SERVINGMEMBERSHIPRECOGNITION 15 THE ROAD AHEAD FOR THE ECONOMY AND HOUSING Bob Dugan 05 CASE LAW REVIEW: POWER OF SALE RESTORED BY COURT OF APPEAL UNDER “SAFE JamesPROTECTIONS”HARBOURR.G.Cook 11 SCHOLARSHIP WINNERS 21 DIVERSITY & STATEMENTINCLUSION 02 IMA | INSTI-NEWS PAGE 27 IMA ANNOUNCEMENTS
SUMMER 2022 ISSUE Insti-News is published by the Institute of Municipal Assessors with assistance from the Communications Services Committee. Chaired by: Cathy Ranieri Sweenie, Affiliate. Any opinions or recommendations expressed in this issue are those of the contributors and do not necessarily reflect the views of the IMA. SUBMISSIONS Interested in submitting an article? Have a great idea for a hot topic? Make your submission to communications@theima.ca. Be sure to put “Insti-News Submission” in the subject line or contact the IMA office by phone to discuss. REPRINTS Written permission must be obtained before reproduction or use of any contents. CONTACT Institute of Municipal Assessors 16 Industrial Parkway South, Suite 205 Aurora, Ontario, L4G 0R4 info@theima.ca1-877-877-8703905-884-1959 Institute@the_ima1957@theima.cahttps://theima.ca/ofMunicipal Assessors STAY CONNECTED 03 IMA | INSTI-NEWS
IMA President PRESIDENT’S
One of our immediate priorities for the executive is the recruitment of a new Executive Director. I would like to thank Tyler Callaghan for his contributions to the IMA. Tyler led the IMA through some extremely challenging times. He helped usher in a new strategic plan, built important strategic partnerships, and helped improve and stabilize operations, among many other accomplishments. I know you will join me in wishing Tyler success in his future endeavors.
REPORT
The summer is a time to relax and spend time with family and friends. I hope everyone had an opportunity to enjoy these last few months particularly after what has been a challenging couple of years. It’s hard to believe we are already looking ahead and planning for the fall.
We have a robust program delivered through a multi-channel platform to grow our members and expand our reach, including plans to support the Fast Track Program. Candidates for the Fast Track Program started their respective journeys on April 1st, through the brand-new learning management system that is part of the IMA Learning Centre. The full program timeline for both A.I.M.A. and M.I.M.A. candidates can be found in our 2022 FTDP Candidate Brochure.
Our next opportunity to connect will be at our 2022 Fall Virtual Symposium. Preparations are underway with Janice Desjarlais, 1st Vice President, chairing the Fall Virtual Symposium Advisory Committee. We look forward to everyone’s participation at the event. Our outreach will continue this fall with the IMA’s attendance at the Ontario Municipal & Tax Revenue Association (OMTRA) and the Association of Assessing Officers of Manitoba. I look forward to seeing you all, virtually, at our fall symposium November 2-3, and hope many of our members are able to Gregparticipate.Martino, M.I.M.A.
In addition to our ongoing commitment to training and career development, we want to continue to evolve and strengthen the IMA’s position as the go to association for assessment and taxation. Strengthening our governance as an association is also a critical part of our plans. We want to make sure that we are supporting all our districts so that regardless of location, your member experience is meaningful and relevant to you.
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I was honoured to begin my term as the IMA’s president in June and I would like to take this opportunity to express my gratitude and appreciation to Caterina Chiarandini for her contributions to the IMA over the term of her Educationpresidency.and professional development have been an important part of my career in assessment, and I have been a proud member of the IMA for many years. I can personally speak to the value this association brings to the assessment and taxation community and it is truly my privilege to serve our members for the next year.
The IMA’s new strategic plan is centered on our renewed goals to Educate, Grow, Lead and Govern, and my goal is to continue to advance our shared profession with a focus on continuing education. We will ensure members have access to content and training relevant to our ever-evolving industry.
The application judge found that the mortgagees had improperly refused to provide the mortgagor with the requested information statement and that the mortgagees’ enforcement rights were consequently suspended at the time they sold the property: 2544176 Ontario Inc. v. 2394762 Ontario Inc, 2021 ONSC 3067 (CanLII). As a result, the application judge determined that the mortgagees’ sale was invalidated and set aside.
On appeal, the buyer of the property from the mortgagees argued that because the transaction occurred under power of sale, without any notice of defects in the power of sale process, its rights took precedence over those of the mortgagor even if the mortgagor had a claim against the mortgagees for the improper exercise of the power of sale.
James R.G. Cook, Partner at Gardiner Roberts
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THE POWER OF SALE RESTORED BY COURT APPEAL UNDER “SAFE HARBOUR PROTECTIONS”
The buyer relied on the “Safe Harbour Protections” under sections 35 and 36 of the Mortgages Act, which specify the Compliance Declaration and Statements that must be provided by a mortgagee during a power of sale, and section. 99 of the Land Titles Act, which provides as follows:
Section 22(3) of the Mortgages Act requires a mortgagee to provide a written statement to the mortgagor that sets out the amount of the principal or interest with respect to which the mortgagor is in default, and, if the mortgagee fails so to do within 15 days without reasonable excuse then the mortgagee’s rights to enforce the mortgage “shall be suspended”.
In 2544176 Ontario Inc. v. 2394762 Ontario Inc., 2022 ONCA 529 (CanLII), the Ontario Court of Appeal restored a power of sale transaction that had been invalidated by an application judge due to the mortgagees’ refusal to provide the mortgagor with a discharge statement. The case involved a gas station which had been purchased by the owner/ mortgagor for approximately $5.4 million. The purchase was financed with a mortgage of approximately $3.79 million that was assigned to several mortgagees.
In December 2020, the mortgagees delivered a notice of sale to commence private power of sale proceedings under the mortgage. Unbeknownst to them, the mortgagor had already entered into an agreement to sell the property. The 35-day mandatory standstill required in power of sale proceedings expired January 13, 2021. The next day, on January 14, 2021, counsel for the mortgagor told the mortgagees that the property had been sold with a February 15, 2021 closing date. Counsel for the mortgagor also requested a discharge statement for the amount required to discharge the mortgage. The mortgagees refused to do so and took the position that because the notice of sale period had expired, the mortgagor’s “equity of redemption” had expired. The mortgagees then sold the property to another buyer for $4.9 million.
In April 2021, the Ontario Superior Court of Justice heard an application regarding whether the mortgagees conveyed good title when they sold the property by private power of sale without providing the mortgagor with a discharge statement when requested under section 22 of the Mortgages Act.
99(1) Subject to the Mortgages Act the registered owner of a registered charge that contains a power of sale, upon registering the evidence specified by the Director of Titles, may sell and transfer the interest in the land or any part thereof that is the subject of the charge in accordance with the terms of the power in the same manner as if the registered owner of the registered charge were the registered owner of the land to the extent of such interest therein.
99(1.1) The evidence specified by the Director of Titles under subsection (1) is conclusive evidence of compliance with Part III of the Mortgages Act and, where applicable, with Part II of that Act and, upon registration of a transfer under that subsection, is sufficient to give a good title to the purchaser. The buyer submitted that the “Safe Harbour Protections” on their face and as a matter of policy, must “trump” since otherwise, under a power of sale, no buyer for value and without notice could ever be assured of good title.
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The Court of Appeal agreed with the buyer: 2544176 Ontario Inc. v. 2394762 Ontario Inc., 2022 ONCA 529 (CanLII).
In the Court of Appeal’s view, while the mortgagees’ enforcement rights were suspended at the time of the transfer due to its failure to comply with section 22(3) of the Mortgages Act, the Safe Harbour Protections operated to protect the innocent buyer who registered title to the property under the Land Titles Act system after receiving both the Compliance Declaration and the Compliance Statements from the mortgagees. In that regard, the Court of Appeal reviewed the three principles that underlie the Land Titles Act , namely (i) the mirror principle, where the register is a perfect mirror of the state of title; (ii) the curtain principle, which holds that a purchaser need not investigate the history of past dealings with the land, or search behind the title as depicted on the register; and (iii) the insurance principle, where the state guarantees the accuracy of the register and compensates any person who suffers loss as the result of an inaccuracy: Stanbarr Services Limited v. Metropolis Properties Inc., 2018 ONCA 244, 141 O.R. (3d) 102, at para. 13. While fraud is an exception to the mirror principle, there were no such allegations in this case and the application judge had found that the buyer had no notice of any defects in the power of sale Contraryprocess.
to the application judge’s determination, the Court of Appeal found that no other exception exists to the mirror principle when a mortgagee is subject to a suspension of its enforcement rights under section 22(3) of the Mortgages Act. In the Court of Appeal’s view, that was an erroneous interpretation of the Sectionlegislation.22(3)does not give a mortgagor substantive rights. Rather, section 22(3) provides that, absent reasonable excuse, a mortgagee’s right to enforce the mortgage shall be “suspended”
07 IMA | INSTI-NEWS until the mortgagee complies and provides the mortgagor with a default statement. The mortgagee does not lose its substantive rights as a result of section 22(3); rather, it loses its right to enforce them. Here, it was not the mortgagee who sought to enforce its rights but the innocent buyer. The mortgagor cannot rely on section 22(3) to invalidate the buyer’s title: its recourse is against the mortgagees for the improper exercise of the power of sale. As a result, the Court of Appeal set aside the application decision and ordered that the mortgagor’s application be dismissed with costs. The mortgagor was left to pursue its remedies against the mortgagees. This case balances the interests of a mortgagor against the interests of an innocent buyer who has received the requisite compliance statements from a mortgagee and has no notice of other issues regarding a mortgagor’s complaints with a power of sale. As long as the statutory requirements are met, a buyer may generally rely on the safe harbour protections to obtain good title from a mortgagee. A PDF version is available to download here.
08 IMA | INSTI-NEWS MEMBER ELEVATIONS THE IMA WOULD LIKE TO CONGRATULATE THE RECENTLY ELEVATED AND NEWLY APPOINTED MEMBERS! AFFILIATE MEMBERS NAME COMPANY Martins Aina Kelly NataliaMengdiDarcyTedburtRohanAmberAdamPierre-LucNaziyaWayneCatherineChristopherMatthewButtonCodyCorazzolaMcDonaldMulzacPatelPelletierRennicksShaverStephensonTheobaldsWalkerWangWeidner A.I.M.A. MEMBERS NAME COMPANY Shelly FeiMingMunishSalehConnorMJTaylorMaryJohnOliviaSamsonSimeonAngeloBarnesCeraseDeVriesEjetaHallMichaelKellyMurrillParkerPietrasPoulainSalehSethiTangWang M.I.M.A. MEMBERS NAME COMPANY Service New Brunswick MPAC TheobaldsMPACCushmanMPACServiceMPACMPACMPACMPACRecentKitchenerGraduateMississaugaOttawaPickeringTorontoNewBrunswickMississaugaWakefieldTorontoandAssociates, Saint Lucia MNP MPACLLPRichmond Hill Parry Sound Muskoka Appraisals MPAC Pickering MPAC Mississauga MPAC VeracityTorontoRealEstate Solutions MPAC Richmond Hill Government of Prince Edward Island MPAC North Bay MPAC London MPAC Mississauga MPAC Trenton City of Kitchener MPAC Mississauga MPAC Richmond Hill MPAC Toronto Barbara Fisher Michael Temianko Morgan Timberg MPAC Hamilton Ernst & Young LLP DMA
JeffPROPERTYFROMTAXSemple,SeniorCorrespondentwithGlobal
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News in Toronto Following the discovery of unmarked graves at former residential school sites and ahead of Pope Francis’ visit to Nunavut’s capital on Friday, the City of Iqaluit has passed a bylaw that could require churches to begin paying property taxes.
Last year, 16 local organizations were exempt from paying property taxes under the city’s previous rules, including eight religious institutions.SaintJude’s Anglican Cathdral in Iqaluit may be forced to begin paying property taxes next year, along with other religious institutions and community groups
Religious institutions in Canada are generally exempt from paying taxes. Iqaluit’s new bylaw, first proposed by the mayor last year, requires churches and other community groups to apply for tax relief. Applicants must meet a series of strict conditions and the total annual funding available for all groups is capped at $300,000. City council approved the third and final reading of the bylaw on April 12, which means local churches risk receiving only partial tax relief, or none at all, beginning in 2023.
“It is unfair. It is a kind of revenge, a kind of game,” said Father Daniel Perreault, pastor at Our Lady of the Assumption, Iqaluit’s only Catholic Church. Perreault said the bylaw may limit the church’s ability to offer free services — from weddings and funerals to hospital and prison visits. “It will not kill us. It’s just one more thing to make us suffer a little bit more,” he told Global News. “For some churches, they can even (become) bankrupt by that tax.”
National
INSTITUTIONSRELIGIOUS IN IQALUIT NO LONGER EXEMPT
In a statement, a spokesperson for the City of Iqaluit said the “intent of this bylaw is to provide a fair opportunity, to all community-based organizations, to apply for full or partial property tax relief.”
“It’s good that he’s coming. It’s almost surreal,” Tagalik said. While grilling freshly caught Arctic char on the banks of the Sylvia Grinnell River, he explained why he believes the discovery of unmarked grave sites has only accelerated the decline of the church’s role in Nunavut.
“In the early days, our parents were very much going to church and following the teachings of the Bible,” he said. “The young people today, they don’t go to church, they don’t read the Bible, they’re not really religious in any way anymore. I think it was kind of forced on us at that stage. It was all part of converting us,” he said.
Nunavut MP Lori Idlout also defended the bylaw in an interview with Global News in Iqaluit, noting the remote northern city is already struggling to pay for basic “Everyoneservices.
The Pope will spend just three hours in Iqaluit, where he’ll attend a public event hosted by members of the Inuit community and a private meeting with some of Nunavut’s residential school survivors.
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“They’ve lost the control they used to have.” Residential school survivor Abraham Tagalik grills freshly caught Arctic char on the banks of the Sylvia Grinnell River in Iqaluit.
Abraham Tagalik attended Sir Martin Frobisher Federal Day School as a child. The former radio host and co-founder of the Aboriginal Peoples Television Network told Global News he welcomed the Pope’s visit and hoped for a heartfelt apology.
“This is not a by-law specific to the church,” the spokesperson said.
Asked about the significance of the Pope’s upcoming visit, Father Perreault confessed he didn’t know what to expect.
Global News recently attended Sunday morning mass at Our Lady of the Assumption, where parishioners from a range of ethnic backgrounds recited scripture in English, French and Inuktitut. The pews were packed with several dozen people, who bowed their heads as Father Perreault prayed for those who “hate the church.”
“It will be a great day for all of us,” he told Global News following the service. “But for many people it will be another occ asion to hate us more. This is their decision: to love or to hate. It is a decision.”
is lacking in resources,” she said. “It’s not fair to the rest of the municipality to have to carry the burden of a faith-based group — that itself is part of the history of colonialism.” The bylaw has proved polarising in the community, which is home to about 7,500 people. The per-capita impact of residential schools was higher in the North than anywhere else in Canada because of its large Indigenous population. But despite their traumatic history with the church, around three quarters of Iqaluit’s population still identifies as Christian, according to Statistics Canada.
Mario Vittiglio Achievement Award, 2022 Recipient: Lisa Lee Available to the student who achieves the highest overall grade in the full-time Real Property Administration diploma program at Seneca College. The winner will receive $1,000 for obtaining the highest mark in the RPA Program, awarded in the second year of study.
During my time at RPA, I could expand my knowledge on the property valuation to pursue my future career in the real estate industry. My favourite courses were “Appeals in Practice” as well as “Real Estate Investment Analysis and Advanced Income Appraisal.” They definitely amplified my interests in different approaches to value through hands-on experiences by utilizing my analytical skills in various projects, such as participating in a mock trial and building a pro forma. At the same time, I have been involved with peer mentoring and tutoring at Seneca to help 1st-year students personally and academically. They all have been meaningful and rewarding experiences, especially when peers have difficulties in the virtual learning environment. I am very grateful and honoured that my hard work throughout the past two years has been recognized by receiving this prestigious award. It certainly will allow me to have confidence in myself and continue chasing my dreams. The financial assistance you provided will be of great help to me in pursuing further studies to achieve designations. I will take this as another encouragement and motivation to move forward and keep working hard. Once again, I extend my gratitude for allowing me to receive this reward.” Each year thanks to the generous donations from our members and sponsors via the IMA Scholarship Fund, we can support the growth and advancement of the next generation of property assessment and taxation Visitprofessionals.ourwebsite if you are interested in learning more about how you can contribute to the Scholarship Fund.
11 IMA | INSTI-NEWS IMA
Sandy Medeiros Available to students in the full time Real Property Administration diploma program at Seneca College. This award is given to the student who achieves the highest mark in IMA-321: Fundamentals of Canadian Assessment Law. Students must also demonstrate good attendance and class participation. The winner will receive $500 awarded in the second year of study.
“I would like to thank you from the bottom of my heart for giving me the chance to receive the Mario Vittiglio Achievement Award at Seneca. It means the world to me to receive this generous award and to know that you are supporting my education.
Congratulations to this year’s winners on their tremendous personal and professional accomplishments! We are proud to be a part of your professional journeys.
2022SCHOLARSHIPAWARDWINNERSChristianG.SchulzeAward,2022Recipient:
“The Real Property Administration program, which incorporates several of the A.I.M.A./M.I.M.A. courses, has provided me with a strong foundation in property assessment. I am entering the field with a great deal of confidence in my knowledge and with a strong sense of readiness, thanks to the support that I’ve received along the way. I am honoured and grateful to be a recipient of this award and thankful to the IMA for recognizing and validating my hard work and the hard work of students each year.” Seneca College Scholarship Awards
Carl B. Davis Award, 2022 Recipient: Judy Sauder Available to all members. This award is given to the student who achieves the highest mark in IMA-321: Fundamentals of Canadian Assessment Law. The winner will receive $500, awarded annually in April. “I’m excited to be this year’s recipient of the Carl B. Davis award. For me, this acknowledgement reaffirms my career path and professional goals in the industry. I found the Fundamentals of Assessment Law course to be of particular interest as it proves to be an important piece of the assessment puzzle, showing its relevance as I move through my career. I’d like to extend my thanks to the IMA for being a strong support and providing the education necessary for my continued success.”
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This award is given to students demonstrating potential in the field of property assessment and taxation as deemed deserving, by the faculty of the RPA program at Seneca College, based on enthusiasm and interest shown in the subject matter and notable in-class participation and performance. The winner will receive complimentary registration for IMA-435: Cost Depreciation Analysis.
Pamod Alawattage: “I am writing to thank the Institute of Municipal Assessors for recognizing and considering me for the 2022 IMA Assessors recognition award. As a prospective RPA graduate and a future professional within the industry, I’m truly grateful for the opportunities and support shown by the Institute and the RPA faculty members who work tirelessly to ensure I reach my full potential. Thank you again, it is an honor to be receiving this award.”
Institute Scholarships
IMA Assessors Recognition Award, 2022 Recipients:
Pamod Alawattage & James Ju Suk Han
James Ju Suk Han: “Thank you so much for the IMA Recognition award. I enjoyed taking IMA courses and I am certain this award will enable me to further pursue a designation with the IMA. With the IMA Recognition award, I will be able to learn in-depth about the Cost and Depreciation Analysis, which is essential for the Cost Approach to Value.”
Jennifer Williston, M.I.M.A.
Congratulations to the 2022 recipients! “I would like to take this opportunity to express my sincere appreciation for the recognition and support you have provided me through the W.J. Lettner Memorial Award. The support and resources provided by the Institute of Municipal Assessors throughout the designation process has not only expanded my knowledge as a property valuation specialist but has also increased my confidence, competence and credibility in the field of property assessment. Thank you for your generous support and for providing me with the invaluable knowledge to advance in my field.”
13 IMA | INSTI-NEWS W.J. MEMORIALLETTNERAWARD2022Recipients:JenniferWilliston,M.I.M.A.&BradleyDuce,A.I.M.A.
The IMA’s Scholarship Trust Fund Committee and Board of Directors amended the criteria for the prestigious W.J. Lettner Memorial Award. M.I.M.A. Category ($1,500): Awarded to the M.I.M.A. Accredited member with the highest composite mark on the M.I.M.A. Written Exam and Oral Interview (weighted equally). A.I.M.A. Category ($500): Awarded to the A.I.M.A. Designated member with the highest composite mark for all seven IMA-300s courses (weighted equally). Dividing this prestigious award into two categories (one for A.I.M.A. designated members and the other for M.I.M.A. accredited members) grants the Institute an opportunity to recognize two exemplary and deserving candidates each year. With the goals and objectives outlined in the 2020-23 Strategic Plan guiding the revision process, these amendments were approved to ensure fair and equal access to members regardless of geography. As one of the IMA’s most celebrated awards, we are delighted to continue honouring the values and memory of award founder W.J. Lettner.
Bradley Duce, A.I.M.A.
“I am honoured to have received the W.J. Lettner Memorial Award. This recognition encourages me to continue to work hard on my journey towards my M.I.M.A. designation. I am excited to be enrolled in the Fast Track Designation Program which will assist me in progressing in my assessment and valuation career. I’d like to thank all of the staff and instructors at the IMA for their outstanding assistance and support throughout.”
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Inflation in Canada has reached its highest level in nearly 4 decades prompting moves to raise policy interest rates with further hikes to come. The attention for many turned to what this means for future housing activity. Most important concerns focus on: • what this means for the outlook for house price growth in Canada • the industry’s ability to accelerate housing supply to begin restoring housing affordability in this country Here, we try to answer some of these important questions and look at how different policy interest rates and economic scenarios will impact housing activity. How will different interest rates and economic scenarios play out?
CMHC, Canada Mortgage and Housing Corporation
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During the COVID-19 pandemic, household demand recovered rapidly after the initial sharp declines. However, the supply of goods and services has not matched demand recovery. The war in Ukraine drove up energy and commodity prices, while China’s zero-COVID policy caused further supply chain disruptions. Both external factors have contributed to rising inflation. The Canadian economy has rebounded from the pandemic. Strong economic growth and strong job creation have caused
THE AHEADROADFOR THE ECONOMY AND
BobHOUSINGDugan,ChiefEconomistfor
Figure 1 - Gross Domestic Product (GDP), Canada (Chained 2012 Dollars) (2015-2025)
The moderate scenario details a policy interest rate that reaches 2.5% by early 2023 and then stays at that level until the end of 2025. At 2.5% the policy interest rate reaches a level that is neither stimulating growth in the economy nor causing it to contract (the neutral policy rate).
16 IMA | INSTI-NEWS the unemployment rate to drop to an all-time low of 4.9%. As of early 2022, the Bank of Canada estimates that demand for goods and services is becoming greater than what the economy can produce in Canada1
This excess demand is a key source of upward pressure on inflation. To contain inflation, the Bank of Canada raised its policy interest rate 3 consecutive times, totaling 125 basis points from March to the end of June 2022. The current consensus among economists predicts further policy interest rate hikes from the Bank of Canada. Because of the pervasive uncertainty, CMHC developed 2 scenarios to understand potential impacts on housing: a moderate and a high interest rate scenario.
1 https://www.bankofcanada.ca/wp-content/uploads/2022/04/mpr-2022-04-13.pdf
In this scenario, the moderate rise in interest rates is assumed to be sufficient to control inflation given the sensitivity of households to rising rates due to their large debt loads. In the high interest rate scenario, more actions by the Bank of Canada are required to prevent excess demand from triggering spiraling prices and wages in response to higher inflation expectations. This more aggressive response would be needed to slow growth in the economy, which allows excess demand to dissipate and allow inflation expectations to moderate and to bring overall inflation back to its 2% target. In this scenario, the Bank of Canada hikes more aggressively and increases its policy interest rate to 3.5% in early 2023 before gradually converging back to the neutral rate of 2.5%. In both scenarios, inflation gets back to the 2% mark by the end of 2023.
Monetary policy affects other macroeconomic variables. The moderate scenario sees Canadian GDP (Gross Domestic Product) grow by 4.1% in 2022 and 2.2% in 2023. External factors contributing to inflation disappear by 2023. Therefore, the strong growth of the economy is supported by both the demand and supply of goods and services. On the other hand, the higher rise in the policy interest rate in the high interest rate scenario results in lower growth. Here, GDP is predicted to grow by 3.4% in 2022 and 0.7% in 2023. Economic growth hits a bottom between Q4 2022 and Q1 2023. These two quarters register marginal negative growth, signifying a mild recession in the high interest rate scenario. In both scenarios, the economic slowdown causes an increase in the unemployment rate. The unemployment rate rises from its all-time low level of 4.9% in June 2022 and converges toward 6.2% in the long run. The high interest rate scenario sees the unemployment rate peak at 7% in early 2023, a result of weaker economic conditions.
Source: Statistics Canada, CMHC Forecast
Rising rates will cause economic growth to slow. This leads to higher unemployment and less wage growth, which coupled with higher mortgage rates will make access to home ownership more challenging. Equally, rising rates will increase construction costs, mainly due to increased financing costs. Compounded with surging material costs and labour shortages, this constrains housing supply. Taken together, the Canadian housing markets are expected to experience a downturn by mid-2023.
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Other interest rates will also rise with policy rate increases. In the high interest rate scenario, both the 10-year Government of Canada bond yield and conventional 5-year fixed mortgage rate rise quickly in mid-2022. At the end of 2022, the 5-year fixed mortgage rate reaches 5.7%. In 2023, bond and mortgage rate declines correspond to policy interest rate normalization and an economic recovery.
Figure 2 - 5-Year Conventional Mortgage Rate, Canada (2015-2025)
What do these scenarios mean for Canada’s housing markets?
Source: Statistics Canada, CMHC Forecast
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The high rates of house price increases during the last two years have been unsustainable. The cost of housing reached levels that are unaffordable for a large share of new home buyers, translating into a slowdown in 2022. The expected increases in borrowing costs contribute to a further slowdown in house price growth in 2022 and 2023. In the high interest rate scenario, the national average price remains elevated but is set to decline by 5% by mid-2023 compared to its level in early 2022. In the same forecast period, the moderate interest rate scenario sees a 3% decline. Mortgage rates eventually start to stabilize in 2024. Supported by rising household income and higher immigration, house prices are expected to return to positive but moderate growth. Elevated price levels persist over the forecast horizon placing pressure on homeownership affordability. As referenced in CMHC’s, Canada’s Housing Supply Shortages: Estimating what is needed to solve Canada’s housing affordability crisis by 2030, this would then lead to more pressure on the rental segment. Potential homeowners will stay renting longer and rental vacancy rates will be even lower.
Figure 3 - MLS® Average House Prices, Canada (2015-2025)
Source: Canadian Real Estate Association, CMHC Forecasts
Source: Canadian Real CMHC
Forecasts
Estate Association,
19 IMA | INSTI-NEWS Housing starts are expected to decline from their record levels in 2021 but remain elevated in comparison to their long-run Inaverage.theshort run, housing starts are constrained by: • labor shortages • surging material costs and • increasing financing costs due to rising interest rates However, high price levels will continue to motivate housing starts. The combined effects lead to slightly declining levels of housing starts. In the long-run, new home construction remains elevated compared to historical averages. They are supported by high prices and population levels. Figure 4 - Total Housing Starts, Canada (2015-2025)
The global financial system could weaken, burdened by high inflation rates and bigger government and private debt levels. Economic weakness among Canada’s trading partners and higher global interest rates would follow. This would weaken the Canadian economy through lower exports and less access or higher cost of access to capital.
Thefurther.economy and housing markets have seen significant volatility as the pandemic unfolded. We expect uncertainties will remain over the short term. CMHC will continue to monitor and report on these markets to help Canadians better understand uncertainties and what it means for them.
Home sales projections remain elevated compared to their pre-pandemic averages but are lower than their 2021 peak. This downward trend reflects the cooling impact of rising mortgage rates and lower housing affordability.
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By mid-2023, national housing sales will decline by 34% compared to their level in early 2022 in the high interest rate scenario, while the moderate interest rate scenario sees a 29% decline. Stabilizing mortgage rates and an economic recovery from the downturn in 2023 cause home sales projections to recover and converge to their long run trend.
Presenting these scenarios don’t account for all downside risks to these forecasts. Further geopolitical tensions could increase commodity prices while reoccurring COVID outbreaks could prolong supply-chain disruptions.
What could worsen this outlook?
Finally, demand for homeownership could decline further than expected, with prolonged higher cost of living and the cost of borrowing still being elevated. A preference shift towards more affordable homes or regions could skew average prices
Both possibilities would lead to high inflation persisting in the short to medium term. Monetary policy may need to tighten even more with rates staying high longer than in our high interest rate scenario to tame households’ and firms’ expectations and bring inflation back to the 2% target. In the worst-case scenario, this could result in stagflation.
• Promote equitable access to leadership and mentorship opportunities in the organization, including promoting participation among underrepresented groups.
• Ensure education programs on racism, oppression, discrimination, and implicit bias are recognized as credible professional development training for members.
POSITION STATEMENT ON DIVERSITY & INCLUSION
• Endeavour to generate awareness, dialogue and action to advance inclusion and equity among our staff, members and volunteers.
• Learn about the lived experiences of those who have experienced oppression and discrimination, including understanding the history and impact of colonization on Indigenous peoples and the persecution of other groups in Canada.
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• Encourage IMA employees to complete training to learn about the lived experience of people who have experienced oppression, gain awareness of our own conscious and unconscious biases and how to maintain an inclusive workplace.
• Develop a strategy to diversify the Board of Directors to enhance representation and broaden expertise.
• Establish pathways for all members’ perspectives to be heard and their feedback to meaningfully guide the IMA.
• Ensure diversity, inclusion and equity are foundational principles that underpin all components of the IMA’s strategic plan.
Diversity and inclusion principles are embedded within our Vision, Mission, and Values statements and the 2020-23 Strategic Plan. The IMA Board of Directors remains committed to making progress on these topics and celebrating diversity as one of our membership’s greatest strengths. As a result, the Board felt it was appropriate to develop a clear postition statement identifying key priorities and opportunities for improvement. During our Annual General Meeting in June, the membership ratified the following statement.
• Foster an inclusive, safe and respectful workplace free of prejudice, discrimination and harassment.
• Commit to review current and future organizational policies through the lens of equity, diversity and inclusion.
• Foster environments where individual differences and contributions are valued and respected, and where diversity of thought is actively sought.
The IMA and its members value professionalism, inclusivity, diversity, integrity, ethics, accountability, and expertise. We are committed to serving all members and stakeholders with competence and respect, in accordance with the IMA’s Code of Ethics and Professional Standards. We are dedicated to integrating diversity, inclusion and equity (definitions in Appendix A) throughout our strategic planning process, and to embed these principles across all our work. To this end, we commit to the following actions.
The IMA will:
“Inclusion is an active, intentional, and continuous process to address inequities in power and privilege, and build a respectful and diverse community that ensures welcoming spaces and opportunities to flourish for all.”¹
“Equity refers to achieving parity in policy, process and outcomes for historically and/or currently underrepresented and/or marginalized people and groups while accounting for diversity. It considers power, access, opportunities, treatment, impacts and outcome.”¹ ¹Equity & Inclusion Glossary of Terms. University of British Columbia. https://equity.ubc.ca/resources/equity-inclu sion-glossary-of-terms/
Diversity refers to the “differences in the lived experiences and perspectives of people that may include race, ethnicity, colour, ancestry, place of origin, political belief, religion, marital status, family status, physical disability, mental disability, sex, gender identity or expression, sexual orientation, age, class, and/or socio-economic situations.” ¹
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APPENDIX A: DEFINITIONS
Because you are accountable for your community, you vote for its pillar. However, when they are brought to the decision-making table and a balance has not been formed, a swift decline might demolish all credibility, which leads into the hand of corruption. Making that decision at those ballot boxes is indeed an extension of your choice. You are the source of moral behaviour that refuels a planet in decline. Things work if you portray that correctly.
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Being kind, safe, or good is not the definition of ethical behaviour. Being ethical is a difficult task; you must be able to say no when it is appropriate, and you must mean it. You must stand your ground when it is necessary to do so. When you say no, you may mean it and it will stick if you carefully plan and think about it. To do that, a certain level of ingrained malice, moral fortitude, and education are required.
If you find yourself in a deemed unethical circumstance where you put in a lot of effort, are a wonderful person, and are doing your hardest, but your employer is a tyrant and you never get a break to advance your education, you live in a fake world. Get away from it. Instead of quitting your job, start down a road that will help you put your resume together, update your CV, fill in any gaps in your schooling, and move forward while getting ready to make a lateral transfer because you are in a horrible position. Most often the practice of learning about Municipal administration and Appraisal brought you to this organization in some way face or form to read this article and to learn. Success will soon follow if you go above and above the call of duty in an awake and intelligent way that is interpersonally and socially balanced by being dedicated with your work and having a positive attitude and courage. And since we do live in a free society, feel free to make a lateral shift if it doesn't work. There is a career path waiting for you and you must have courage to find it. Success as a society is not determined by hierarchy; it is determined by ethics, honesty, and the boldness of your attitude.
Any system will have some level of corruption, therefore part of your responsibility is to be vigilant and tell the truth when necessary so that, when the corruption begins to take hold, you can challenge it and prevent the system from devolving into a pathological power struggle. That falls under your ethical mandate as a morally upright or religious citizen as well as a member to this institution.
The construct of ethical appraisal is not set up for power. It is set up for reciprocity, skill and trust.
BEING ETHICAL: WHAT DOES THAT MEAN?
Janice Hunter-Desjarlais, M.I.M.A. | IMA 1st Vice-President
You must be able to stand your ground, which you may develop in part by being honest. You play the hierarchal game ethically and accept your place in this society as a respectable citizen and human. As the world is under assault with tyranny of cultures to cope with, natural disasters looming everywhere, and your own degree of malice and stupidity, you must stand up tall and with your shoulders back.
All of this unstructured mess is coming at you with an undermining nature of the future, and it is all your duty to hold the line. Well, I say bring it on because there is more to me and you than the disaster. You have a choice, you can squirm away from it, be resentful and cynical about it and to no surprise because it can be extremely unpleasant. The strongest foundation you can lay for success is your willingness to make things right.
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Since the beginning of the appraisal practice which extends to biblical times, it has been a continuing practise to dig deeper to understand not only the positions of one evaluation but also the movement of so many different components that make up the practise of constructing a fair tax system for our towns, provinces, and countries. Presenting the truth and expressing thoughts that are valuable carries a heavy burden but is also incredibly personally satisfying. We must make sure that a balanced strategy and consistent directions support the industry as a non-corrupt institution as our assessment/appraisal governance evolves.
I want to start by stating that every area of our society is touched by our line of work in the subject of finance. It's essential to provide an accurate picture of the market's conditions and a just work environment that envelopes multiple institutions across our nation. Thus, it brings us into the digital age, where information is gathered more quickly than we can understand it. Being well-rounded in our grasp of all facets of our organisation, which necessitates knowing a lot about a lot of things, is one of the most valuable positions we can adopt along the way. We have a valuable construct in dealing with rushed mass appraisal and a bold practice of mediating those decisions are a necessary framework in reaching the goal post as fairness. Moving the goal post to appear fair is corruption and you better understand the difference.
There is more to us than the horrifying way that nature is determined to destroy us and how evil our civilization and history are. Your ability to make things right is a highly regarded skill, and it is our duty and —more importantly — absolute responsibility to face challenging circumstances and scenarios so that corruption within our line of work is avoided. Do not shy away from the unpleasant circumstances rather view them in a way that supports an ethical framework for the appraisal field.
When you seek to understand more about the appraisal field, you are not just collecting data and spitting out a number as a front-line staff member. It means incorporating powerful entities together to develop ethical practices along the way that demonstrates a fair construct with good business practices in turn driving success in our rural communities, towns, province, states, and nations. Without Ethics you have failed. With Ethics we can weed through the difficult conversations and develop best practices not only within our region but throughout the world. Truth is freeing, truth is difficult, truth will get you in trouble and when troubles come, we are here to help frame guiding practices that can garner success as a practicing professional. No one is above mistakes, errors, omissions, and corruption including the people who sit at the judgement table. Remember you as the professional are the force of ethical embodiment. Take up the powerful sword in the face of adversity as it is your dutiful calling.
Dean Petrovic, A.I.M.A. Brian Rath, M.I.M.A. Simon Tsui, M.I.M.A. Andrew Yeoman, M.I.M.A. Cory Yeoman, M.I.M.A.
Louie Sepe, A.I.M.A.
Vicki Kamperogianis, A.I.M.A. Chris Kandelas M.I.M.A. Brittney Hook, M.I.M.A. Chin-wei Li, A.I.M.A.
Elizabeth Gibson, M.I.M.A.
Salvatore Ferrante, M.I.M.A.
Ryan Gulyas, A.I.M.A.
Justin Johnson, M.I.M.A.
Frank Guglielmi, M.I.M.A.
LONG-SERVING MEMBER RECOGNITION
Randy Mcdonald, M.I.M.A. Jose Mejalli, M.I.M.A. Bill O’connor, M.I.M.A. Jonas Perov, A.I.M.A. Scott Robinson, A.I.M.A. Shauna Shifrin, A.I.M.A. Chris Sitlington, A.I.M.A. Scarlett Smith, A.I.M.A. Abilash Susheelendra, A.I.M.A. Michael Yeo, A.I.M.A.
Andrea Davies, M.I.M.A.
Christopher Mason, A.I.M.A.
The IMA was pleased to announce the launch of a new initiative to honour and recognize our long-serving members in June. As a program of the Memberhip Committee, this initiative celebrated major membership milestones throughout the year, paying tribute to member dedication and Institute support. Our long-serving members have shown admirable devotion to their professional growth and the broader property assessment industry.
NAME Imran Asmal, M.I.M.A. Catherine Brusso, M.I.M.A. Owen Chinnery, A.I.M.A.
John Horwood, A.I.M.A.
CELEBRATING 10 YEARS
NAME Ryan Fagan, A.I.M.A. Leann Field, A.I.M.A.
Mark Hotte, A.I.M.A. Melissa Iglesias, A.I.M.A. Erin Jennings, M.I.M.A.
Anthony Candito, M.I.M.A. John Chow, A.I.M.A.
CELEBRATING 15 YEARS
Jason Wareham, A.I.M.A. Lixin Zhu, M.I.M.A.
David Poupard, A.I.M.A.
Robert Coady, A.I.M.A. Diane Douglas, A.I.M.A. Pete Fortin, M.I.M.A.
Christopher Fusco, A.I.M.A.
CELEBRATING 20 YEARS
Michael Schwartz, A.I.M.A.
Marsha Blakely, A.I.M.A. Evan Brown, A.I.M.A. Anna Candelori, M.I.M.A.
Erika Greer, M.I.M.A.
Rachel Mazur, A.I.M.A.
Catharine Hancharek, A.I.M.A. Tim Harrison, A.I.M.A. Lea Hostelidis, A.I.M.A. Roger Jarjour, M.I.M.A.
Robert Madore, M.I.M.A.
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James Lee, M.I.M.A. Alex Locantore, M.I.M.A. Glenn Lucas, Affiliate Dorota Marshall, A.I.M.A.
Victoria Gowans, A.I.M.A.
NAME Les Aberdeen, M.I.M.A. Jeffrey Batcher, A.I.M.A.
Charles Shane, M.I.M.A. Kyle Simpson, M.I.M.A.
Sally Mcinall, A.I.M.A. Jose Pacheco, A.I.M.A. Terry Peckham, M.I.M.A.
Nick Minichillo, M.I.M.A.
Manda Vansteenkiste, M.I.M.A.
Brenda Petro, A.I.M.A.
Charlene Macneil, M.I.M.A. Bradley Maloney, M.I.M.A. Brent Mcintyre, M.I.M.A. Carla Nell, A.I.M.A. Peter Simon, M.I.M.A. Paul Slobodzian, M.I.M.A. Malcolm Stadig, M.I.M.A. Greg Wylie, M.I.M.A. John Young, M.I.M.A.
Bev H. Seney, M.I.M.A. Ted White, M.I.M.A.
Maureen Petersen, M.I.M.A.
Lyndon Johnston, M.I.M.A. Mark Joyce, A.I.M.A. Baljit Kaur-dhinsa, M.I.M.A.
Carlos Resendes, M.I.M.A.
Paul Goulet, M.I.M.A.
Robert Patterson, M.I.M.A.
CELEBRATING 40+ YEARS
CELEBRATING 25 YEARS
NAME James Edmunds, M.I.M.A.
CELEBRATING 30+ YEARS
John Glen, M.I.M.A.
Robert Prete, M.I.M.A.
Sylvain St. Denis, M.I.M.A. Ruth Swan, M.I.M.A.
NAME D. Robert Allen, M.I.M.A. Catherine Darby, M.I.M.A. Simon Goldstein, M.I.M.A.
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Sharon Tallon-Goulet, M.I.M.A.
Sheriann Wadley, M.I.M.A. Christoph Walat, A.I.M.A. Paul Yeoman, M.I..M.A.
Paul Milligan, M.I.M.A.
Frank Pace, M.I.M.A.
Joseph Rossanese, M.I.M.A.
Karen Russell, M.I.M.A.
Eileen Ostrowski, M.I.M.A.
NAME Robin Barnier, M.I.M.A. Robert Buller, M.I.M.A. Greg Baxter, M.I.M.A. Terry Bishop, M.I.M.A. Tristan Bock, M.I.M.A. Judy Canning, M.I.M.A. Maria Colavecchio, M.I.M.A.
Rosemary Dyni, M.I.M.A. David Fedoruk, A.I.M.A. At Fiore, M.I.M.A. David Gibson, M.I.M.A. Frank Gisonni, M.I.M.A. Philip Greenall, A.I.M.A. Nyal Hope, M.I.M.A.
Mark Mcmanus, M.I.M.A.
Michael Palmer, M.I.M.A.
Douglas Pattison, A.I.M.A.
Jeff Cowan, Affiliate Ann Danford, M.I.M.A. William Davis, M.I.M.A. Bill Donato, M.I.M.A.
Bruce Longtin, M.I.M.A. Paul Loo, A.I.M.A. Dan Macdonald, M.I.M.A. Chris Mack, M.I.M.A.
Michelle Gravelle, M.I.M.A. David James, A.I.M.A. Stephen Lazette, A.I.M.A. Linda Liotti, M.I.M.A.
Scott Niepage, A.I.M.A.
Patrick Tait, M.I.M.A.
The Communications Services Committee would like to extend our sincere thanks and appreciation to Gina Stone, for her commitment and support to the organization over the past decade. Gina has chaired the Communications Services Committee since 2009, leading us through some tough challenges and remarkable changes over the years. Gina, your dedication as a volunteer, is an inspiration to others. We wish you all the best. IMASincerely,Communications
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Services Committee A MESSAGE FROM OUTGOING EXECUTIVE DIRECTOR TYLER CALLAGHAN It has been a tremendous honour serving the Institute of Municipal Assessors and I feel incredibly fortunate to have crossed paths with this great organization. I am extremely proud of all we accomplished together and hold dear to my heart the relationships I’ve built during my time as Executive Director. As the IMA embarks on the next phase of its strategic plan, I am leaving the organization in very capable hands. I could not have led the organization without the support of our incredible volunteers and members. I can’t wait to see the ways in which the IMA continues to evolve under new leadership. I send my heartfelt gratitude to the Board of Directors, Committee volunteers and IMA office staff (past and present). Thank you for your ongoing support, leadership, and mentorship. You are the pillars of our great accomplishments together and I am so very grateful to have been able to work and collaborate with all of you. I wish you all the very best of success for the future! With gratitude, Tyler Callaghan, MBA, CAE Executive Director 2021-22 In June, we wrapped up another successful Thank you to everyone who attended and to our partners at IPTI. We’ll be announcing more information on the 2022-23 Until then, why not catch up on any you missed via our new We forward to 2022 November hope you can Stay tuned
2021-22 SPONSORSIMA THANK YOU TO THE FOLLOWING SPONSORS, WHOSE GENEROUS DONATIONS SUPPORTED THE IMA SCHOLARSHIP FUND SUPPORT THE NEXT GENERATION OF PROPERTY ASSESSMENT PROFESSIONALS WITH A TAX-DEDUCTIBLE DONATION TO THE IMA SCHOLARSHIP FUND. LEARN MORE ABOUT THE AWARDS AND VIEW PAST RECIPIENTS HERE 28 IMA | INSTI-NEWS DIAMOND GOLD BRONZEPLATINUM
29 IMA | INSTI-NEWS WE HOPE YOU ARE YOURENJOYINGSUMMER!
TEAMYOUR
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FROM
INSTITUTE OF MUNICIPAL ASSESSORS | AUGUST 2022
