Building Excellence - Summer 2021

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SUMMER 2021 VOL.4 ISSUE 2

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BE Your Best 6 7 8 12

PRESIDENT’S LETTER John Meinen and Larry Clay

CEO’S LETTER

Kevin Lee

MEMBER PROFILE

Clay Construction Inc.

BY THE NUMBERS

Lumber and Other Supply Chain Issues

Features VICKY’S HOMES, EDMONTON, ALBERTA PHOTO BY MERLE PROSOFSKY PHOTOGRAPHY LTD.

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BUILDINGEXCELLENCE.CA

Announcing the winners of the 2021 CHBA National Awards for Housing Excellence

ASSOCIATION LEADERSHIP AWARDS

Honouring volunteer members, HBAs, and executive officers

LEADING BY EXAMPLE

Three CHBA members who are working hard to break through the glass ceiling By Diane Peters

OUTDOOR LIVING

Focus on these COVID-coping projects for your clients this summer By Allan Britnell

Insider Info 38

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THE WINNER IS…

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FINTRAC 101

What builders need to know about anti-money laundering compliance By Greg Draper, MNP

THE GIVING BACK PAGE Community Spirit


VOLUME 04, N UMBER 02 CEO Kevin Lee

EDITOR Allan Britnell

DIGITAL CONSULTANT Dave Gray

ART DIRECTOR/ PRODUCTION MANAGER Darrell Leighton

WEB MANAGER Regina Gadacz

DIRECTOR, MARKETING AND COMMUNICATIONS Natasha Rombough

VP MARKETING – GTA Leanne Speers

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SALES & MARKETING COORDINATORS Gary Chilvers, Vi Nguyen

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HOME SHOW MANAGER & NEWSPAPER CIRCULATION – GTA Josh Rosset

DIRECTOR OF PRINT MEDIA Lauren Reid–Sachs VP PRODUCTION – GTA Lisa Kelly

Julie DeBoer 613.875.6673 julie.deboer@nexthome.ca

PRODUCTION MANAGER – GTA Yvonne Poon

DIGITAL SALES MANAGER Amanda Bell

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SUMMER 2021

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P R E S I D E N T ’S m e s s a g e

TWO VOICES, ONE MESSAGE

Larr y Clay

COMMENTS FROM CHBA’S OUTGOING AND INCOMING PRESIDENTS BY JOHN MEINEN, OUTGOING PRESIDENT AND LARRY CLAY, INCOMING PRESIDENT

John Meinen

JOHN MEINEN, OUTGOING PRESIDENT

As

I reflect on the past year of my presidency, I remember what I had envisioned going into it: travelling and meeting members from coast to coast, having important in-person dialogue on the pressing issues in every region, and celebrating events and accomplishments with you, the members. The reality turned out differently, but the association didn’t miss a beat. Members met virtually and HBA staff worked from home. Critical advocacy work was in high gear: construction continued in most areas of the country with increased health and safety measures, critical financial support was adjusted to better fit our industry, and the importance of residential construction to Canada’s economic recovery was made clear – reflected in several government announcements and the recent federal budget. The work continues as we do all we can to influence the stabilization of lumber prices and supply, and push for better affordability through more housing supply. We started off uncertain of what the pandemic would bring. What we got was an

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unforeseen elevated demand for housing, including renovation of existing homes for changing lifestyles. Meeting that demand has been challenging, and yet the resiliency of our industry is proving as always to be a key driver in Canada’s economic recovery. And the resiliency of our association comes from members. Membership is at the heart of our association and we all need to work hard to ensure that every member sees not only the value of our association, but understands that it’s through the three levels working together that we ensure members have the tools to further strengthen their businesses and get the economy running again. I am proud to have served as President over the last year. While the times were unique, my passion for belonging to this association remains constant. And when this whole thing is over, I can’t wait to be on the road as Past President to attend local and provincial events. I encourage all of you to show others in our industry how belonging to this association strengthens our collective voice and allows us to better provide homes for Canadians. CHBA membership has never been more valuable – let’s get more industry members to see that and join! LARRY CLAY, INCOMING PRESIDENT

Earlier this month many of us participated virtually in CHBA’s Home Building Week in Canada. Volunteer members on the National Committees and Councils gathered virtually to continue the important work of addressing building code changes, working to improve development processes, and exploring innovative technologies and construction

techniques for both renovation and new homes. We engaged in important dialogue on our government relations advocacy positions and actions on timely issues like lumber prices and the Greener Homes initiative. And hopefully you were able to join us for the Housing Economic Outlook Panel, the Product Innovation Showcase, and the 2021 CHBA National Awards for Housing Excellence and Association Leadership Awards Gala. We are all eager to get back to having events like this face to face. And we’ll get there soon. In the meantime, our association continues to support our businesses, as always. And each one of us should be looking at how we can get the most out of our membership. I believe there are three pillars of credibility for brand development and business success: education and professional development, awards, and leadership. The association gives you the means to pursue each one of these. Take advantage of them. Being a member of CHBA has been more valuable to my brand than I could have ever dreamed. Once upon a time I was a schoolteacher who wanted to build houses. Now I’m a custom homebuilder who wants to encourage and teach others to succeed in their businesses. For me, the single best thing anyone can do is to join the association and then really be engaged with all the opportunities it presents. Those of us who are already benefitting should be encouraging others to join and do the same – it’s good for them, and it’s good for all of us. The more members we have, the more our Association can do for our businesses, our industry, and Canadians.

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C EO ’S m e s s a g e

CANADIAN NEEDS, NATIONAL EFFORTS CHBA HAS BEEN WORKING HARD TO KEEP INDUSTRY’S AND HOMEOWNERS’ CONCERNS FRONT AND CENTRE BY KEVIN LEE, CHBA CEO

T

his spring continues to be busy for CHBA, just as it is for members. In April, the federal government announced its first federal budget in two years; last year’s budget was derailed by the pandemic. CHBA has been actively engaged with the federal government on a wide range of issues this past year, including pre-budget consultations, and was invited to the budget briefings. And there were indeed successful results for our members. The efforts of the Association’s ongoing advocacy were reflected throughout the 2021 Federal Budget. From the beginning of the pandemic, CHBA has been the residential construction sector’s voice regarding the design and adjustment of emergency response programs, which have evolved to better meet the needs of our members throughout the health/ economic crisis thanks to CHBA advocacy – the budget included the most recent announcement of continued improved business support programs. CHBA has continued to put the needs of the industry and current and prospective

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homeowners front and centre, and we saw several new budget measures related to housing this year, including interest-free loans for home energy retrofits, the expanding eligibility of the GST New Housing Rebate, additional funding for the Rapid Housing Initiative which will be of particular interest to modular builders, and funding to convert commercial property to housing. We also saw additional funds promised through the Canada Housing Benefit (a key win for CHBA a few years ago), and a pledge to help seniors age well at home – a space that CHBA is actively involved in through its Home Modification Council. Despite rumours, there was no mention of any capital gains tax on principle residences – CHBA had advocated aggressively against such a tax but had also confirmed this government had no intention on proceeding in that direction. The budget demonstrates clearly that our Association has made steady progress during a challenging time. Outside of the budget, lumber continues to be of top concern for members. CHBA has been active on this file since last summer, pursuing all avenues to ensure the supply chain is operating at 100 percent. Select locations have an on-site estimator who can help customers with budgeting. The Canadian lumber industry has indeed responded, with production in the fall surpassing that of the year before, but the U.S. lumber industry has not responded in kind, despite the same type of housing surge south of the border. As a result, according to lumber experts, we can expect prices to

remain high for several more months before starting to recede, though it will likely take another year beyond that for prices to return to anywhere near pre-pandemic levels. While there is little the federal government can do to directly lower lumber prices or increase supply, CHBA continues to engage regularly to ensure the government uses everything it does have at its disposal to help address the issue as best it can. In the meantime, CHBA is also heavily active in the media to ensure consumers know what to expect in terms of prices and delays, which in turn is helping members with their communications with customers. CHBA will continue to stay active on this file on all fronts. And while lumber and other material price increases are affecting the price of construction, surging house prices in the housing market overall continue to be a direct function of strong demand and insufficient supply in most of Canada. The Association has been advocating for more to be done to increase housing supply since prior to the pandemic, and that continues in full force now. Fortunately, almost all news articles now that cover Canada’s escalating house prices now point to housing supply shortages as the key issue. The Association at all levels will continue its work to push governments to now be part of the supply solution. As always, CHBA will advocate for more pathways to homeownership, and measures to enable our industry to be the important part of economic recovery and jobs that residential construction has always proven to be.

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M E M B E R p ro f i l e

CLAY CONSTRUCTION MEET THE CHBA’S NEW PRESIDENT, LARRY CLAY

BY NATASHA ROMBOUGH, CHBA’S DIRECTOR OF MARKETING AND COMMUNICATIONS

L

arry Clay wasn’t always a builder. The CEO of Clay Construction, based in Langley, British Columbia, taught high school for 17 years before switching careers. But even during that time, the self-professed farm boy wasn’t a stranger to working in the trades. He took construction jobs during his summers off, learning from painters, framers, electricians, and general contractors. Eventually, he built his own home, then pooled money with friends and started to build spec houses. And before he knew it, he had eight homes on the go. “I remember it was a beautiful, sunny spring day and I had to go to school,” he laughs. “And I thought I would just love it if I could stay on the jobsite all day. I knew I had to make a decision. Did I want to do this for a

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career? It was a no brainer.” Today, Clay Construction specializes in luxury custom homes, and Larry no longer has to juggle teaching with running his company. But success didn’t come without effort and sacrifice. It did come by asking a lot of questions, including looking up trades in the local telephone directory and admitting he didn’t know what to ask them.

A FAMILY COMPANY His large family is also involved in the business. One of his sons is getting his Red Seal to get more experience framing, and another is finishing his Bachelor’s degree in Business Administration with the intent on joining the family business as well.

And Larry’s wife, Candice, has been integral to the company from the beginning. She brought him dinners in the early days when he was up on the jobsite at 6 a.m., then teaching all day, and then back working until late in the evenings. She stayed home to look after their six children, and ran the household during the formative years of the company, including managing the expenses during hard times. “We always got along well,” Larry says about working together with Candice. “We always did everything together. Even during the recession, I don’t think we ever had a fight.” The recession hit in 2008, when Larry was primarily a spec builder. With several homes on the books that weren’t selling, the family

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faced bankruptcy. Candice fed and clothed all eight of them on a meager budget of $300 a month – including diapers. Larry put rigid insulation on the windows and bought a used wood stove, and together their family pulled through. Unable to afford to build on spec any longer, Larry knew he had to transition to building custom homes. But it wasn’t until a conversation with a fellow CHBA member that he realized he’d been charging too little for a viable business. “I started to turn my weakness – budgeting, reporting – into my strength,” he remembers. “That was the start of me becoming a custom builder, which we do very well now.” And those spec homes? They held on to them, and eventually sold them. Larry entered one into his local association’s Parade of Homes. Candice decorated it with a keen eye by scouring auctions and repurposing used furniture, and then Larry entered it into the

association’s provincial housing awards where it was named a finalist. “We sold it for full asking price,” Larry says, relief still in his voice two decades later. “That was really the start of us digging out of our financial hole.”

DEVELOPING A BRAND Larry worked out the financial side of building custom homes, but the contracts weren’t

coming in regularly enough. He realized he needed to start working on developing the Clay Construction brand. Figuring out how to do that was the next step. It took a variety of avenues, but today the company is well known and respected in the area. The company used to get six leads a year. Now, they get one a day. “I didn’t know back in 2010 how to build my brand. But once we had a strong brand,

I was able to look back and analyze how we achieved it. And it was really my involvement in the association,” Larry says. He breaks it down further into three pillars to brand development: awards, education, and leadership. “Awards give you credibility and separate you from other builders,” he explains, “and having education behind you is valuable in a conversation with a prospective client, whether it’s a Red Seal or a Master Builder certification or a registered housing professional offered through CHBA BC. And there’s really something about the accountability that being a leader brings to your business – you’re not going to be that builder that cuts corners when you’re

Coming CHBA Events FALL 2021

OCTOBER 2021

NOVEMBER 22-26, 2021

MAY 9-13, 2022

Call for Entries, CHBA National Awards for Housing Excellence

CHBA Fall Meetings

Net Zero Leadership Summit

2022 Home Building Week in Canada (Saint John, NB)

BUILDINGEXCELLENCE.CA

SUMMER 2021

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M E M B E R p ro f i l e

in a leadership position in the association.” The success of Clay Construction means that these days Larry gets to spend a bit more time doing what he loves: dining out, CrossFit, and fishing with his kids. “When we have a sockeye run I’ll take all the kids out,” he says happily.

GIVING BACK TO THE COMMUNITY The Clay family doesn’t just build homes, they also support causes near to their heart. Once a month they volunteer with an organization called NightShift, supplying and serving meals to those experiencing homelessness. Larry also joined the Canadian Board of New Hope Uganda, an international charity that supports orphaned children, after visiting the country with Candice and their two youngest daughters a couple of years ago.

FA S T FA C T S Company Name: Clay Construction Inc. Head office: Langley, BC Full-Time Employees: Varies from 5-16. About 8 in 2020, ramping back up now. Approx. Gross Revenue: $5-20 million Projects Per Year: 8-10 (75% new homes, 25% major renovations)

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DESIGNING FOR THE FUTURE, SERVING CLIENTS TODAY Having been in the business for many years, Larry is seeing some changes to home design in the custom market. While hardwood is still much in demand, vinyl plank flooring is taking a foothold, especially in basements and laundry rooms. And central vacs, which he once installed in almost every home, are phasing out as people want less carpet. That preference

access to a lot of information, but not always in the right context. It’s up to the team at Clay Construction to guide and explain what’s possible. It’s a facet of the business that Larry loves. “I’m a people person. I’m invigorated by people,” he says enthusiastically. The pandemic has put a temporary damper on that, though. “Zoom is just not filling my tank.” The pandemic won’t last forever, and Larry, who is the new CHBA National President for

“Get involved in the association. Don’t just become a member and get the emails. You need to join committees, get to know people, and start working on your brand.” seems to be driven by people increasingly aware of their indoor air quality and allergens. “There’s a growing interest in people wanting healthy homes,” Larry has found, “so my ability to sell high-performance homes is getting easier than it was ten years ago.” The need for great customer service, however, hasn’t changed. Larry notes that it takes a lot of communication to successfully manage client expectations. Thanks to the internet and social media, his customers have

2021-22, is looking forward to meeting with other CHBA members in person when things open back up. His teaching background stays with him, and he isn’t shy about sharing what he’s learned with builders and renovators who are new to the business. His advice to others looking to make waves with their companies? “Get involved in the association. Don’t just become a member and get the emails. You need to join committees, get to know people, and start working on your brand.”

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BY T H E n u m b e rs

LUMBER AND OTHER SUPPLY CHAIN ISSUES HOW COVID-19 HAS IMPACTED MATERIAL COSTS AND PROJECT TIMELINES BY VIKTORIA HALIM, ECONOMIST, CHBA

The impact of the COVID-19 pandemic on the Canadian economy and along residential construction supply chains has led to delays in meeting project milestones and closings, while also increasing construction costs that get passed on to the consumer through increased house prices.

According to a survey conducted by CHBA in March 2021, 34% of respondents indicated that the higher cost of lumber has increased their construction costs by between $10,000 and $20,000. On average, the higher cost of lumber increased our members’ construction costs by $19,254 (Table 1).

Graph 1:

Table 1:

The average increase in construction costs due to higher lumber prices 1

The Top Ten Products or Services Affected Appliances Plumbing materials and plumbing fixtures

PROVINCE

AVERAGE COST INCREASE

Nova Scotia

$26,667

New Brunswick

$25,143

Manitoba

$24,143

British Columbia

$20,868

Siding

Ontario

$18,432

Flooring

Alberta

$18,058

Saskatchewan

$17,893

Newfoundland and Labrador

$10,500

Prince Edward Island

$8,000

CANADA AVERAGE

$19,254

About 60% of builders also indicated that supply chain issues have resulted in significant delays in home completions. For almost half of these builders, the delays were less than four weeks with the average national delay being almost six weeks. The highest average delay was reported by respondents in Ontario (seven weeks). Overall, the survey showed that lumber isn’t the only supply chain issue being faced, with appliances being one of the most mentioned products that was impacted (Graph 1).

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Windows Doors Lumber Electrical materials and light fixtures

Cabinets All trades and subtrades 0

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Price volatility in lumber and other products have resulted in about 43% of respondents delaying some pre-sales and/or development. As is discussed in CHBA’s Recommendations for Budget 2021 and Beyond 2, if the price of lumber goes up between the time of sale and the time of construction, builders will have to pay the difference. This creates a highly unpredictable business environment for our members. CHBA has been actively involved in conversations with the lumber industry, the federal government, constituent associations, and the National Association of Home Builders in the U.S. to advance recommendations to address the skyrocketing lumber prices in Canada. The availability and price of lumber and other supplies needed for new home construction and renovation, driven by unprecedented demand for both new homes and renovations, continues to be a top concern for CHBA, our members, and the industry. Please note that the average cost increase numbers are not weighted. www.chba.ca/CHBADocs/CHBA/HousingCanada/Government-Role/ English-2021-Budget-Recomendations-Final.PDF

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202 1 C H BA a wa rd s

The

Winneris... ANNOUNCING THE WINNERS OF THE 2021 CHBA NATIONAL AWARDS FOR HOUSING EXCELLENCE

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nother year…another virtual awards show. While COVID-19 once again curtailed our plans to get together for our annual conference and wrap it up by showcasing the incredible work our members have produced across the country, as you’ll see on the following pages, these projects are definitely worth celebrating! First, we present a snapshot of the work of members who walked away with two or more awards this year, followed by a list of the remaining winners. A complete list of winners and images of their work is also available online at CHBA.ca/housingawards. Fingers crossed that in 2022 we’re able to gather in person to celebrate our members’ excellence!

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202 1 C H BA a wa rd s

Marquee

THE DESIGN EXCELLENCE AWARD

Frame Custom Homes K e l o w n a , B C / Fr a m e C u s t o m H o m e s . c o m

BEST

BEST

DETACHED CUSTOM HOME OVER 5,000 SQUARE FEET

DETACHED CUSTOM HOME 4,001 TO 5,000 SQUARE FEET

“Lakeside Haven”

“The Overlook”

Concert Properties Ltd. V a n c o u v e r, B C / C o n c e r t P r o p e r t i e s . c o m

BEST RENDERINGS “Tesoro”

BEST MID-TO HIGH-RISE BUILDING (PLANNED) “Tesoro”

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Twin Lions Contracting Ltd. N o r t h V a n c o u v e r, B C / Tw i n L i o n s C o n t r a c t i n g . c o m

Marquee

RENOVATION EXCELLENCE AWARD

BEST KITCHEN RENOVATION– $70,000 TO $100,000 “80’s Makeover” with TLG Millwerks Ltd.

BEST RENOVATED DETAIL “Embracing Change – EV Carport”

BEST WHOLE HOME RENOVATION – OVER $800,000 “Making New Memories” with TLG Millwerks Ltd.

SookePoint Ocean Cottages/Landus Sooke, BC / SookePoint.com BEST ATTACHED LOW-RISE HOME UNDER 1,500 SQUARE FEET “SookePoint Ocean Cottages”

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BEST DETACHED PRODUCTION HOME UNDER 1,800 SQUARE FEET “SookePoint Single Family Home”

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Acorn Developments

Marquee

MARKETING EXCELLENCE AWARD

To r o n t o , O N / A c o r n D e v e l o p m e n t s . c o m

BEST

BEST

SIGNAGE

INTERIOR DECORATING (MODEL/SHOW HOME)

“Lookout on the Knoll” with Gladstone Media

“Limerick Point” with GCB Interior Architecture Inc.

BEST

BEST

BRANDING AND IDENTITY

LONG VIDEO

“Lookout on the Knoll” with Gladstone Media

“Hometown NetZero Ready” with Gladstone Media

Kylemore

BEST

BEST

M a r k h a m , O N / Ky l e m o r e C o m m u n i t i e s . c o m

PRINT AD

BROCHURE/KIT

“Angus Glen South Village” with The Brand Factory

“Angus Glen South Village” with The Brand Factory

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Brookfield Residential Edmonton, AB / BrookfieldResidential.com

BEST GROWING COMMUNITY AWARD “Chappelle Gardens”

BEST SHORT VIDEO “#Stay Home”

Ultimate Renovations C a l g a r y, A B / U l t i m a t e R e n o v a t i o n s . c o m

BEST KITCHEN RENOVATION – UNDER $70,000 “Marda Loop Kitchen Transformation”

RENOVATED SPACE

EXTERIOR RENOVATION

“Fast Cars, Whiskey, and Rock & Roll Basement”

“The Roxanne”

BUILDINGEXCELLENCE.CA

BEST

BEST

SUMMER 2021

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Modular Innovation Award Grandeur Housing, Winkler, MB

Net Zero Home Award

Hasler Homes Ltd., North Vancouver, BC

BEST WHOLE HOME RENOVATION – $200,000 TO $400,000

BEST DETACHED CUSTOM HOME 2,000 TO 3,000 SQUARE FEET

BEST WHOLE HOME RENOVATION – $400,001 TO $600,000

BEST DETACHED CUSTOM HOME 3,001 TO 4,000 SQUARE FEET

Worton Homes, Puslinch, ON

Creek Stone Fine Homes, Okotoks, AB

BEST WHOLE HOME RENOVATION – $600,001 TO $800,000

Community Development Award

Amsted Design-Build, Ottawa, ON

BEST NEW COMMUNITY AWARD

BEST ATTACHED LOW-RISE HOME 1,500 SQUARE FEET AND OVER

Canada Lands Company, Edmonton, AB

Marketing Awards

New Home Awards Boffo Properties, Vancouver, BC

Reid Developments Ltd., Coquitlam, BC

Barrett Group Custom Builders, North Vancouver, BC

BEST ENTRY-LEVEL HOME AFFORDABILITY AWARD

Douglas Homes Ltd., Calgary, AB

New Home Spaces BEST PRODUCTION KITCHEN UNDER 175 SQUARE FEET eQ Homes, Ottawa, ON

BEST WEBSITE

BEST MID-TO HIGH-RISE BUILDING (COMPLETED)

Gilbert + Burke Associates Ltd., Lindsay, ON

The Tricar Group, London, ON

BEST DIGITAL ADVERTISING CAMPAIGN

BEST DETACHED PRODUCTION BUNGALOW

BEST ORGANIC SOCIAL CAMPAIGN

BEST DETACHED PRODUCTION HOME 1,800 TO 2,100 SQUARE FEET

Wastell Homes, London, ON

BEST DETACHED PRODUCTION HOME 2,101 TO 2,400 SQUARE FEET

Morley Mountain Homes, Nelson, BC

Eden Oak Homes and Madhouse Advertising Inc., Blue Mountains, ON Empire Communities, Toronto, ON

BEST SALES OFFICE

Branthaven Homes, Burlington, ON

BEST VIRTUAL TOUR EXPERIENCE Tridel, Toronto, ON

Renovation Awards BEST KITCHEN RENOVATION – OVER $100,000

Vision Pacific Contracting Ltd., Whistler, BC

BEST BATHROOM RENOVATION

Reborn Renovations, Calgary, AB

BEST WHOLE HOME RENOVATION – UNDER $200,000 Enzo Design Build Inc., West Vancouver, BC

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Trico Homes, Calgary, AB

Deanmark Developments, Calgary, AB

Accent Infills, Edmonton, AB

BEST DETACHED PRODUCTION HOME 2,401 TO 2,800 SQUARE FEET

North Pointe Homes Ltd., Edmonton, AB

BEST DETACHED PRODUCTION HOME OVER 2,800 SQUARE FEET Minto Communities Inc., Ottawa, ON

BEST DETACHED CUSTOM HOME UNDER 2,000 SQUARE FEET Maric Homes, Winnipeg, MB

BEST PRODUCTION KITCHEN 175 SQUARE FEET AND OVER

Brookfield Residential, Calgary, AB

BEST CUSTOM KITCHEN UNDER 230 SQUARE FEET

BEST CUSTOM KITCHEN 230 SQUARE FEET AND OVER BEST BATHROOM UNDER 130 SQUARE FEET OakWood, Ottawa, ON

BEST BATHROOM 130 SQUARE FEET AND OVER Vicky’s Homes, Edmonton, AB

BEST PRIMARY SUITE

Novak Contracting & Construction Ltd., Surrey, BC

BEST HOME OFFICE

Gordon Weima Design Builder, Ottawa, ON

BUILDINGEXCELLENCE.CA


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202 1 C H BA a wa rd s

ASSOCIATION LEADERSHIP

Award Winners

HARD HATS OFF TO THESE WELL-DESERVING CHBA RECIPIENTS

A

fter a challenging year, the Canadian Home Builders’ Association (CHBA) celebrated its annual Association Leadership Awards recognizing the outstanding work of dedicated volunteer members and local and provincial Home Builders’ Associations (HBAs) and their Executive Officers (EOs). Every year, volunteer members, HBAs, and their staff work tirelessly to build strong communities, strengthen the industry, and give back to cities, towns, and neighbourhoods across Canada. This year, their work is especially impactful as we continue to navigate the challenges of the COVID-19 pandemic. At all levels of CHBA, we commend the efforts and accomplishments of all members Curtis Mercer

and HBAs and are proud to recognize the resilience and professionalism of the residential construction industry during a difficult time.

MEMBER OF THE YEAR – CURTIS MERCER Curtis Mercer, President and CEO of K & P Contracting Ltd. in St. John’s, Newfoundland, has served on the Canadian Renovators’ Council for several years, including as chair for two terms. This past year, Curtis also served as Presidential Appointee on the Executive Committee and stepped up as Treasurer of the Home Modification Council Management Committee. And back home in St. John’s, he served as interim CEO for CHBA-NL for most of 2020, which means he was also participating on the Executive Officers’ Council. On top of providing insight and leadership at national committee and council meetings, Curtis successfully led his company during their busiest year yet. CHBA is proud to name him as Member of the Year.

past year, including offering a 25% discount on their education courses and free access to the Energy Step Code Course to more than 300 members (a $166,000 value), launching new online training sessions – including delivering CHBA’s Net Zero training programs to train more than 90 builders, renovators, and energy advisors – and developing their energy programs to achieve record enrollment. CHBA BC also developed a funding application program for its eight local associations to support new initiatives related to membership development, while providing close to $200,000 to local HBAs as a revenue share to help build member services at each local. The association was very active during the 2020 provincial election in elevating housing issues with the public and candidates. And when the pandemic hit, CHBA BC communicated often with members, including issuing surveys to use for government advocacy, and maintained nearly all its 2,100 members through challenging times.

EXECUTIVE OFFICER OF THE YEAR – JOE VACCARO (OHBA) HBA OF THE YEAR – CANADIAN HOME BUILDERS’ ASSOCIATION BRITISH COLUMBIA (CHBA BC) CHBA BC did a lot to support BC members this

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Under Joe Vaccaro’s leadership during the early days of the pandemic, health and safety protocols at the Ontario Home Builders’ Association (OHBA) were developed and eventually adopted by the Ministry of Labour, leading to

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well informed of the facts and issues related to residential construction’s activities and vigilant efforts to keep members’ staff, customers, and communities safe. He has worked with Tarion, the provincial new home warranty, as it splits into two separate bodies, and is keeping members apprised of developments. He has also been personally active in other files affecting members, including development charges and changes to conservation regulations. And during a difficult time for many Ontario HBAs, his regular communications, financial transparency, and heartfelt offers to help impacted many local associations.

Joe Vaccaro

the progressive reopening of residential construction sites. Joe also provided immediate and effective communication during an uncertain and ever-changing time, ensuring that members and locals HBAs were up to date on current restrictions, requirements, and regulations, and that media was

COMMUNITY SERVICE AWARD – SIMCOE COUNTY HOME BUILDERS’ ASSOCIATION (SCHBA)

Simcoe County Home Builders’ Association (SCHBA). Members of SCHBA have been giving back to their local community for 15 years. They are always willing to lend a hand by offering their skills, funding, supplies, and more. The association has donated more than $450,000 in that time to various charitable organizations including Habitat for Humanity and the Women & Children’s Shelter. This year, as local charities and organizations struggled during an uncertain time, SCHBA was not able to do their usual toy drive due to COVID health and safety measures. Not deterred, members organized a Christmas fundraising campaign and participated in creating a video, and ultimately raised $17,850 for the Barrie Food Bank and Christmas Cheer.

Recognizing members working as a team within their HBA to improve communities, this year’s Community Service Award goes to the

JUNE 1-3 2021

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WINTER 2020

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Got a story to tell? Email our editor Allan Britnell allan.britnell@nexthome.ca

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WO M E N i n Co n s t r u c t i o n

Leading

Example

BY

YES,

THE RENOVATION AND HOMEBUILDING INDUSTRY IS STILL MALE DOMINATED. BUT THESE THREE WOMEN – AND MANY OF THEIR FEMALE COLLEAGUES – ARE WORKING HARD TO BREAK THROUGH THE GLASS CEILING

BY DIANE PETERS

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WO M E N i n Co n s t r u c t i o n

Cassidy deVeer

C

assidy deVeer spent time in her youth on construction sites, sweeping and moving lumber to help with her parents’ construction business. Every few years, the family would move into a new home they’d custom built. “When I knew we’d be moving, I insisted on laying out my bedroom and telling them how I wanted it to look,” she recalls. While women are a minority in the residential construction industry, many who work in it, like deVeer, grew up around it. Both her mother and her grandmother worked in construction, so she had female role models, and could see herself working in this male-dominated field. Now as president and co-owner of Kelowna-based company 3rd Generation Homes — and president of CHBA Central Okanagan — deVeer occasionally surprises clients. “When I go to the jobsite I sometimes get a lot of questions. Are you the

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clean-up gal? The designer? Sometimes I am. But eventually I tell them, ‘I run this business, I own this company.’” She founded the company with her husband a decade ago: she now has her Professional Project Manager certification and runs the business while he serves as operations manager. Construction has long had a gender

imbalance. Overall, women still make up a only a small percentage of those who work in the industry, hovering around 5 percent. But numbers out of the U.S. suggest their ranks are growing quickly – more than 17 percent between 2017 and 2018. Along with growing the number of women in residential construction, there is also still

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truck and I’d like to do a job for you.” Another time, a guy called the office and declared, “I’d like to speak to the man in charge!” “How is this still happening?” deVeer asks of these sometimes absurd comments. She knows sexism on jobsites, meanwhile, is far worse than anything she sees in the office or as a business owner. The improvement of gender diversity in the industry comes with opportunities. “Women bring a fresh perspective. I think they’re great multitaskers and many women have great skills in communication,” says

work to do to address the earnings gap that lingers through most women’s careers in the Red Seal trades. A report by the Labour Market Information Council found that women earn $9,000 less than men in their first year in construction, a trend that continues throughout their careers. Few women grew up with the kind of role models that deVeer did. Hopefully, as more women work in residential construction, young girls will see themselves reflected in the workforce and will consider a future career within the industry. In the meantime, there is still work to be done to ensure that all jobsites are welcoming towards women. The industry does still have a reputation for being a boys’ club, and whether or not there are women on site, employers and crews should be taking a look around and taking steps to make sure their workplace is inclusive. With the current skilled trades shortages – which is only projected to worsen – no business should risk losing great people. And the workplace needs to be a positive environment, because women working in this industry still come up against outright sexism in many facets of their jobs. DeVeer says that once, a man handed her a business card, saying, “I see you driving your husband’s

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Laurie Cole

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WO M E N i n Co n s t r u c t i o n

Laurie Cole, owner of New View Designs in Fredericton, N.B. She runs the company on her own — she used to share the responsibility with her husband, who died in 2019 — and is nearly finished her Master Builder Certificate. “We bring a unique perspective compared to the men who are in our industry,” says deVeer. “You always get the best outcomes with a diverse group thinking about things with different perspectives.” She also thinks women make great bosses: her staff can leave work without fuss to deal with family responsibilities, something many of her employees have never experienced at other companies. Cole says women working in residential construction may have an advantage in dealing with clients. “Most people do not have an issue with working with a woman. I haven’t come across any. In our experience, it’s women who are the ones making decisions when it comes to the house.” Plus, a report from the Associated General Contractors of America says diverse companies are more successful, safer, more productive, have less turnover, and are more innovative.

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The Hot Seat: Stefanie Coleman and CHBA CEO Kevin Lee onstage with Prime Minister Justin Trudeau at the 2019 National Conference in Niagara Falls, Ont.

Stefanie Coleman

Stefanie Coleman came to the construction industry after working as a buyer for a fashion retail chain. “The fashion industry is made up of mostly women with very, very few men. This industry is the opposite of that,” says the St. Thomas, Ont.-based renovator and marketing and business

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development manager with Building Knowledge Canada, a building science consulting firm. When she started in construction, she found herself the only woman in the room. “When I got into this, someone said to me, ‘You know, this is an old boys’ club.’ So, I thought, all right, I guess we’ll see what happens.”

“What I found was I was able to bring a different perspective,” she says. Early on, Coleman focused on training and sought educational opportunities to transform herself into an expert on building science and energy conservation. Indeed, a decade ago when she first started, being able to thrive when one was the only woman in sight seemed a prerequi-

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WO M E N i n Co n s t r u c t i o n

site for working in the field, says Cole. “It’s starting to get a lot more commonplace,” she says of seeing women in construction. Still, she says few in New Brunswick are working as businessowners, so she finds few female peers. Coleman started to feel truly comfortable in the industry after she got involved with a home builders’ association committee. “They got to know me, and I got to know them, and it just grew from there.” Coleman — who has served on the home builders’ association at the local, provincial and national level, serving as CHBA president CHBA in 2019 — found mentors early on that made a difference in her career. “I was willing to get my hands dirty and I was willing to learn. Mutual respect grew from that.” Presidential Material: Mary Lawson (at left), the first woman to serve as CHBA president, Stefanie Coleman, the third female CHBA president, and Jane Morgan, the second to hold the position.

Associations may play a key role in helping the industry move forward. DeVeer is the first female president of her local CHBA chapter, and has recruited more women to her board. It’s now got a 50/50 split, gender wise, and the women don’t come from the expected roles — real estate

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agents and marketers — but builders like herself too. She hopes this leadership team can make decisions to better the industry overall, plus make it more appealing for other women. Cole says she’d like to see more opportunities for young women to get exposure through job placements and co-ops. “They may really see a future for themselves. I’m sure many women don’t know what it entails if they haven’t been exposed to our industry through family and friends,” she says. That’s happening with organizations such as the YWCA, Build Together, Canadian Construction Women, and local chapters of the Women in Trades and Technology, among others, launching programs targeted at girls and young women. Their work has a long way to go in raising women’s participation in the industry. Doing that could benefit women, who can make more in construction than they can in many other trades or professions. And the industry itself needs what women have to offer. “We’re changing the old boys’ club way of thinking,” says deVeer. “I don’t care what happened 20 years ago. We’re moving forward and looking at what’s going to be the best for everyone.”

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A DV E RTO R I A L

CONDOVILLE YOUR PARTNER FOR A SUCCESSFUL CONDOMINIUM DEVELOPMENT PROJECT

A

few years ago, John and Jane, owner–operators of a local Main St. hardware store in Southern Ontario, entered into an agreement with a real estate builder to develop their parcel of land and build a mid-rise condominium. Thinking the process would be simple with no delays, the couple spent $150,000 retrofitting their building as a sales centre and relocated down the street to a larger commercial space to expand their business. With initial hopes of cashing out in two years, the next four years would instead become a whirlwind of financial distress and sleepless nights. The problem was that developing land is anything but simple. In addition to paying rent at their new business location, they were still paying for the retrofit as well as the mortgage on the property under development. One of the main reasons for the delay was an ineffective marketing and sales strategy. Enter Shaminder Gogna, Broker of Record and Founding President of Condoville Realty Inc., whose team stepped in to take control of marketing and sales after the previous team only managed to sell a handful of suites over several months. Within 12 weeks, Condoville relaunched the building and sold 80% of the units, enabling them to begin the process of construction financing. Along the way, Condoville’s dynamic pricing strategy increased revenues, which resulted in higher profits. “The majority of readers would agree that renovating an older home isn’t the same as building a new home. The same concept applies when selling real estate,” says Gogna.


“Preconstruction sales require a unique strategy that encompasses dynamic pricing at different stages of the project. Simply relying on MLS for lead generation isn’t an effective sales approach especially when time is of the essence. Our marketing strategy includes an in-house web development and web design team to create a powerful online presence utilizing SEO and pay-per-click ads at no additional cost.” Integral to the company’s sales success is its aggressive and proficient marketing strategy. Condoville strives to become an extension of the development by executing all marketing tasks from concept design to final closing. All marketing initiatives are streamlined using several types of media to offer the greatest exposure and experience to the targeted clients. Along with a multimedia advertising campaign and a rich database of qualified buyers built over several years, Condoville partners with top-producing real estate sales representatives from a variety of communities, which casts a wide net to find buyers expeditiously. Every development will have top-producing realtors in every cultural group – a topproducing Cantonese or Mandarin speaker, a top-producing Hindi or Punjabi speaker, along with Italian, French, Russian, and Farsi

speaking reps – and Condoville offers these sales representatives advertising dollars so they can go on their local cultural radio or TV station to spread the word. “It’s unfortunate but John and Jane had another case of an undercover development. Unless a person was physically passing the development, no one would’ve known the development existed,” says Gogna. “The lack of marketing completely stalled the development. Prior to launching, the team obtained roughly 100 leads, which is a good start however repeatedly communicating to those 100 leads

isn’t an effective marketing campaign. The development needed more exposure.” Condoville, which works with developers and builders in secondary and tertiary markets to develop parcels of land brimming with potential, takes charge of those projects, offering a suite of services from assisting with raising capital from multiple investors to avoid overleveraging, to designing the building concept and floorplans and, eventually, marketing and selling the site to maximize real estate values and realize greater opportunities.


OUTDOOR Living

Great Escape THE

THESE ARE THE COVID-COPING PROJECTS THAT YOUR CLIENTS WILL BE CRAVING THIS SUMMER BY ALLAN BRITNELL

T

he vaccines are here (yay!). But we’re not out of the woods yet (boo!). We’re more than a year into the pandemic now, but it feels like we’re starting to turn the corner. But before we’re able to get to that coveted herd immunity we so desperately need, it looks like most Canadians will be facing another Summer of Staycation™. Here are some of the hot items your clients will be looking for to make the most of their time at home.

Ultimate Escape: Ultimate Renovations in Calgary created this amazing space, the winner of the Best Exterior Renovation in the 2021 CHBA National Awards for Housing Excellence.

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Backyard TO THE

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OUTDOOR Living

Instant Pergola Looking for a simple kit to build your clients a pergola? Oakville, Ont.-based Toja Grid has developed a patented system of brackets for assembling wall-mounted or freestanding pergolas that are framed in 4x4 or 6x6 posts. The made-in-Canada 12- and 14-gauge steel is powder coated for protection, and all brackets come with a five-year warranty. Accessories include sun and privacy shades, hammocks, integrated side tables, and even a 30"-wide planter box. Visit TojaGrid.ca for more info.

Build a Better Bunkie For Canucks with a cottage or a large rural lot, bunkies proved to be a blessing during the pandemic, doubling as a home office away from the chaos of the home, and a private retreat for guests to visit while maintaining social distance. Pan-Abode International, based in Surrey, B.C., manufactures ready to assemble kits from western red cedar and ships them around the world. The 108-sq.ft. Kawartha model doesn’t even require a building permit in most jurisdictions. In addition to homes and cottages, they also offer packages for garages, boathouses, and saunas. Visit PanAbode.com for more info.

Super Saunas Saunas are such a core part of Finnish identity that in late 2020 the United Nations designated “Sauna culture in Finland” to be on the list of “the Intangible Cultural Heritage of Humanity.” But you don’t have to be Finnish – or a UN delegate – to appreciate the therapeutic value of spending time sweating it out in a sauna. There are a number of manufacturers across the country that make ready to assemble kits, perfect for the renovator or landscaper looking to help their clients upgrade their outdoor space.

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Privacy Walls For those of us living in urban environments – but lucky enough to have an outdoor space – the biggest downside can be a lack of privacy on postage stamp lots. Sunspace Sunrooms, based in Newcastle, Ont., and originally known for its lineup of screened rooms (see below), recently launched the Sun Lounge, an easy to assemble kit featuring a seamless, non-slip aluminum deck enclosed in an L-shaped acrylic-panel wall. Visit SunspaceSunrooms.com for more info.

Screened Enclosures Ah the great Canadian outdoors…if there’s no snow on the ground it must be time to battle the bugs. A screened in three-season room is all but essential for enjoying our rural retreats at least part of the year. Sunspace Sunrooms offers complete packages for enclosing any space while allowing for the maximum light and airflow. Their complete lineup includes fixed and operating screened walls and doors, UV-blocking acrylic roof panels, bi-fold doors and more.

Pizza Time Food fads come and go, but one of the more enduring pleasures is a good-quality wood-fired pizza. But with most of us forced to do takeout, if your favourite pizza joint isn’t just around the corner you risk opening the box to find a soggy mess or an overly crunchy crust. There are ready made products like the hot new countertop item, the Gozney Dome (Ca.Gozney.com), but if you’ve got a mason on your crew why not offer your clients the custom woodburner of their dreams?

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I N S I D E R i n fo

FINTRAC 101

WHAT HOMEBUILDERS NEED TO KNOW ABOUT ANTI-MONEY LAUNDERING COMPLIANCE BY GREG DRAPER, MNP PARTNER, VALUATIONS, FORENSICS, AND LITIGATION SUPPORT

WHAT IS FINTRAC?

T

he Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit. Its mandate is to detect, prevent, and deter money laundering and terrorist financing activities. It’s enabling legislation – the Proceeds of Crime (Money Laundering) and Terrorist Financing Act – is aimed at meeting Canada’s international obligations to fight cross-border crime and terrorism, and to help Canadian law enforcement respond to organized crime. It achieves this by placing obligations for customer identification and record keeping on businesses susceptible to money laundering. Records of financial transactions reported to FINTRAC are used to provide intelligence

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to law enforcement. This intelligence is only as good as the information provided to it from those businesses required to comply with the Act. As a result, FINTRAC can audit the compliance programs of those businesses to ensure they are effectively designed and operating to help FINTRAC meet its obligations. Program deficiencies and inadequate recordkeeping can result in monetary penalties ranging from $1,000 to $500,000 per violation. In cases of deliberate violations of the Act, criminal charges can be laid with penalties including imprisonment. In 2021, FINTRAC administered separate penalties of $31,350 and $66,742.50 for non-compliance to two real estate firms in Ontario and British Columbia, respectively. The consequences can be significant, but they are avoidable.

FINTRAC AND REAL ESTATE Those businesses required to be FINTRACcompliant include real estate developers, brokers, and sales agents. Concerns about money laundering in the real estate sector have been front-page news for some time, prompting concerns about attracting the

illicit profits from organized crime and eroding housing affordability for Canadians. It’s no wonder that for the past three years in a row, the real estate sector has seen the most compliance audits by FINTRAC.

COMPLIANCE FOR REAL ESTATE DEVELOPERS (HOMEBUILDERS) FINTRAC defines a real estate developer as anyone who, in any calendar year since 2007, has sold to the public: • Five or more new houses or condominium units, • One or more new commercial or industrial buildings, • One or more new multi-unit residential buildings each of which contains five or more residential units, or • Two or more new multi-unit residential buildings that together contain five or more residential units. If your business has met these thresholds you are required to implement and maintain a FINTRAC compliance program as long as you are developing real estate, even if not at this volume.


FINTRAC PROGRAM REQUIREMENTS The required elements of a FINTRAC compliance program are: 1. Appoint a compliance officer responsible for the implementation and oversight of the compliance program; 2. Develop and apply written compliance policies and procedures that are kept up to date and approved by a senior officer; 3. Apply and document a risk assessment, including mitigation measures and strategies; 4. Develop and maintain a written training program for employees, agents, and others authorized to act on your behalf; and 5. Review your compliance program every two years for the purpose of testing its effectiveness. A key part of your compliance program is Know Your Client, requiring specific methods to confirm the identity of persons purchasing real estate units, including identification of transactions made on behalf of third parties. Additional ongoing monitoring is required for high-risk clients or politically exposed persons.

You are also required to provide FINTRAC with specific reports in certain circumstances: Suspicious Transaction Reports When you have reasonable grounds to suspect that a transaction is related to the commission or attempted commission of a money laundering or terrorist financing offence. Terrorist Property Reports When you know that property in your possession is owned or controlled by a terrorist or terrorist group. Large Cash Transaction Reports When you receive $10,000 or more in a single transaction or in multiple transactions within a 24-hour period. FINTRAC can assess sanctions for missing, incomplete, or inadequate program elements, client and transaction records, or required reports. Those businesses sanctioned by FINTRAC are named on the Government of Canada’s website.

HOW MNP CAN HELP For those real estate developers who have recently committed to meeting their FINTRAC compliance obligations, or now realize they need to do so, MNP can work with your team

to develop some or all of your compliance program elements. Our subject-matter expertise can be a resource for your staff in writing the policies and procedures or training program, or support the development of a risk assessment. For resource-constrained developers, we have a foundational compliance program that can be readily customized to your specific business, allowing you to move into compliance with relatively minimal effort and cost. Once your compliance program has been developed and implemented, let MNP support your continued compliance efforts through the required biennial compliance effectiveness review. Our independent anti-money laundering experts review your program, provide insight into regulatory changes and program enhancements, and help you balance your compliance obligations with the realities of your current business. To learn more about how MNP can help your organization achieve FINTRAC compliance, contact Greg Draper, FCPA, FCGA, CFF, CAMS, ICD.D, Partner, Valuations, Forensics, and Litigation Support, at (403) 537-7679 or greg.draper@mnp.ca.

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A SIMPLE SOLUTION FOR SEALING LEAKS DuPont FlexWrap EZ creates a durable seal around building penetrations such as HVAC lines, vents, wires, and gas lines. A uniquely flexible, self-adhering flashing, FlexWrap EZ helps prevent air and water intrusion and improves energy efficiency, so builders and contractors can make every project a sure fit. DUPONT DuPont.com

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The Aquor V1+ Hydrant is a beautiful, durable, low-profile water outlet for your client’s home. Its unique marine-grade stainless steel valve allows you to access water instantly, any time you need it. Just plug in the hose connector, and water turns on automatically. Disconnect, and the outlet automatically seals, drains, and winterizes. How cool is that? Distributed exclusively in Canada by bronte Collection. BRONTE COLLECTION brontecollection.ca

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MODERN COLLECTION Signature Modern brings exceptional design, performance, and customer experience together, creating a product line that meets the exacting principles and standards of true modern architecture. The high-density fibreglass material and proprietary frame design provide unparalleled thermal performance and durability. Low-gloss aluminum interiors – along with spacer bars and sealant – minimize visual distractions on the frame and enhance the flow of natural light. Internal covers completely disguise fasteners and concealed rubber gaskets to help products maintain clean, crisp edges. MARVIN CANADA MarvinCanada.com

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t h e G I V I N G BAC K p a g e

COMMUNITY SPIRIT C

anadian Home Builders’ Association (CHBA) members have been building, developing, and renovating Canadian homes for generations. We are sharing the extraordinary contributions CHBA members make in their communities every day through our ongoing #CdnBuilt for Generations campaign. Here are a few recent stories. To read more stories follow our hashtag or visit blog.chba.ca/category/giving-back.

GOHBA Presents the RenoMarkTM Reno Tour for Habitat for Humanity CHBA Medicine Hat Member Coulee Ridge Supports Local Non-Profits

Developer and CHBA Medicine Hat member Coulee Ridge partnered with local radio station CHAT 94.5 to host the “Community Builder” contest. From December 2020 – May 2021, Coulee Ridge donated $1,000 per month to a local non-profit or charity organization in celebration of their contributions to the Medicine Hat community. Monthly contributions were donated to a variety of organizations in the community, including the Halo Air Ambulance helicopter – the only dedicated medevac helicopter in Southern Alberta, the Mustard Seed – in support of the new Mustard Seed Community Centre in Medicine Hat, and the Medicine Hat Skateboard Association for an indoor skate facility offering a safe place for kids to skate year-round.

Members of the Greater Ottawa Home Builders’ Association (GOHBA) have teamed up with several industry sponsors to deliver the “RenoMarkTM Reno Tour” in support of Habitat for Humanity Greater Ottawa. Until September 2021, the virtual event allows homeowners who are considering a renovation to view the finished work of RenoMarkTM members through immersive 3D virtual tours. Tours feature nine unique renovations from local members, as well as Habitat for Humanity Greater Ottawa’s two ReStore locations. All proceeds raised from the fundraiser go to Habitat GO in support of their efforts to build affordable homes that provide a solid foundation for local families.

Niagara Home Builders’ Association Helps Kids Shine

The Niagara Home Builders’ Association (NHBA) partnered with The Niagara Children’s Centre in support of their 2021 “Help Kids Shine” campaign. The annual campaign aims to raise funds to enable the Niagara Children’s Centre to reach more children, offer new programs, purchase equipment, and improve the facility so that children in the Niagara region receive the care they deserve. Several members of NHBA have contributed to this year’s goal of $25,000.

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