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(March 4, 2014 / 14:09:12)
85085-1_37047_FRPO_JanFeb_p01.pdf .1
JANUARY/FEBRUARY 2014
FRPO’S FAIR EXCHANGE OF
RENTAL INDUSTRY NEWS
FRPO’s 2013
MAC Award Gala
Rental Housing’s Big Economic Impact
Small Landlord, Big Problem: Medical
Marijuana is Ailing Landlords
Electricity Rates: a 10-Year Forecast
Introducing FRPO’s new President & CEO
Rule 32 Legal Crisis Averted!
(March 4, 2014 / 14:09:14)
85085-1_37047_FRPO_JanFeb_p02.pdf .1
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(March 4, 2014 / 14:09:16)
85085-1_37047_FRPO_JanFeb_p03.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 3
CONTENTS
January / February 2014
FRPO’S FAIR EXCHANGE OF
RENTAL INDUSTRY NEWS
Features Departments
Cover
18 FRPO’s
2013 MAC
Awards
28
Ontario Rental
Housing
Vacancy Stable
5 President’s Perspective
By Scott Andison
at 2.6%
9 CFAA Report:
CFAA 2014 Rental
11 FRPO
Introduces your
new President &
32 Ferguslea
Properties
Teams Up with
Housing Conference
By John Dickie, CFAA President
CEO the Ottawa
Senators 31 Small Landlord,
Big Problem
12 Carbon
Monoxide
Detector Law
33
CMHC's Letter
to the Editor
Medical Marijuana
is Ailing Landlords
By Mike Chopowick
Passes
37 Legislative Report
13 Fairness and
Accountability
in Development
34 Housing
Affordability in
Ontario 42 Upcoming Events
Charges
14 Why
Ontario
Electricity
36
Renters Guide
Turns 25!
Cover Story
Prices will
Go Up Cover photo:
17 38 Common Former
KPMG Prime Minister
Economic Overbilling and Jean Chretien
Impact Errors on your at FRPO’s 2013
Awards Gala
Study Electricity
Invoice
(March 4, 2014 / 14:09:16)
85085-1_37047_FRPO_JanFeb_p04.pdf .1
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(March 4, 2014 / 14:09:17)
85085-1_37047_FRPO_JanFeb_p05.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 5
President’s
P E R S P E C T I V E
by Scott Andison
I
I couldn’t be more excited to be
FRPO’s new President & CEO. Since
my first day on January 16th, I’ve been
meeting some great people in the
industry, on FRPO’s board of directors,
and of course the association staff. In
fact I have the added benefit of getting
to work with Mike Chopowick once
protecting the industry from ineffective
and ill-conceived policies set by
government decision makers.
During my career I have spent some
time being one of those government
decision makers. At one time I was a
provincial negotiator with the Ministry
Key FRPO Policy Priorities
• Safeguarding rental housing
from municipal licensing
• Fixing the current rent dispute
process
• Removing rent controls
• Bringing fairness to property
again—he and I both served as of Municipal Affairs and Housing and taxes on multi-residential homes
political staff to Ontario Cabinet implementing the restructuring of • Promoting an environment to
Ministers a little more than a decade different municipalities around the build much needed new rental
ago and it is great to have another province. At a later time I found myself housing
opportunity to work together again. serving as the Chief of Staff to the
Ministers of Education and Finance, continuum, not as a destination.
Before accepting the position I did implementing such things as Webster’s dictionary defines public
some research about Ontario’s rental education reform, and helping to table policy as “..a definite course or method
housing industry, and I was surprised a provincial budget. And most recently of action selected from among
to discover just how large and diverse I had the opportunity to lead a policy alternatives... to guide and determine
the industry is, and how big of a player team at the Ministry of Health and present and future decisions.”
it is in the Ontario economy. And not Long-Term Care focused on Guiding decisions in the present are
surprisingly, an industry that generates improvements to quality and efficiency much easier than trying to foresee the
over $18 billion a year in economic throughout the healthcare system. needs of the future. Therefore, no
activity is affected significantly by government decision should ever be
government policy, regulations, and These experiences caused me to reach viewed as “final”—new information,
legislation. And over the years FRPO one important conclusion: public new evidence, new events can cause
has been championing the cause of policy decisions must be viewed as a need to re-evaluate how ongoing
decisions should be made. This is
Ontario’s Rental Housing Industry where industry associations such as
FRPO play a vital role in providing the
• $18.3 billion contribution to Ontario’s GDP necessary influence on ongoing
• $4.5B annually in capital expenditure on new construction and renovations decisions that affect the industry and
to existing housing stock
its members.
• $7 billion annual in tax revenues to all three levels of government
• Over 145,000 full-time jobs in Ontario, with an average wage of $56,600,
well above the national average
Continued on page 7
(March 4, 2014 / 14:09:18)
85085-1_37047_FRPO_JanFeb_p06.pdf .1
6 FAIR EXCHANGE January / February 2014
Letter from the Editor
A License to Bill
FRPO’S FAIR EXCHANGE OF
RENTAL INDUSTRY NEWS
Mike Chopowick
The voice of the Federation of
Rental-housing Providers
of Ontario
A PUBLICATION OF:
Federation of Rental-housing
EDITOR:
Mike Chopowick • FRPO
EMA IL: mchopowick@frpo.org
TF: 1 (877) 688-1960
PHONE: (416) 385-1100 EX 21
FAX: (416) 385-7112
www.frpo.org
Providers of Ontario
I
If I told you that many tenants in Ontario
are facing a new $400/year tax for the
privilege of renting (plus the high
property taxes they already pay through
their rent), would you agree that it’s
wrong? Incredibly, this is exactly what is
happening in Ontario right now.
20 Upjohn Rd., Suite 105 In 2007, the Ontario Government let
Toronto, Ontario M3B 2V9
municipalities impose new taxes on
ADVERTISING & SALES: residents and businesses. This included
Mike Rich • MPH Graphics new municipal taxes on car registrations
EM AIL: frpo@mphgraphics.com
TF: 1 (800) 668-6037
and residential home sales, and a variety
PHONE: (905) 470-2265 of new licensing fees.
FAX: (905) 470-2205
mphgraphics.com One ‘revenue tool’ directly affected tenants: the new ability of municipal
35 Mobile Drive
Toronto, ON M4A 2P6 governments to charge licensing fees on apartment units. For tenants, this would
not be a ‘revenue tool’, but a new tax that would significantly increase their
SUBSCRIPTIONS & ADDRESS CHANGE: housing costs.
Lynzi Michal • FRPO
EMA IL: lmichal@frpo.org
TF: 1 (877) 688-1960 FRPO and other industry associations formed a coalition to oppose these
PHONE: (416) 385-1100 EX 22
FAX: (416) 385-7112
measures. We predicted that new licensing powers would be abused by
www.frpo.org municipal councils who would increase taxes on the lowest income Ontarians
20 Upjohn Rd., Suite 105 under the pretense of regulatory licensing. We were right.
Toronto, Ontario M3B 2V9
DESIGNED AND PRINTED IN CANADA BY: Five Ontario municipalities have imposed licensing fees on rental homes so far.
Cities like Guelph and Hamilton are considering them. The landlords must pay
The paper selected for this project represents these environmental savings:
FRPO IS A MEMBER OF: trees water (litres) air emissions (kg) solid waste (kg)
PRESERVED SAVED PREVENTED ELIMINATED
Canadian Fédération
Canadienne Des
Federation Associations
1 15,210 336 122
of Apartment De Propriétaires
Associations
*compared to products made of 100% virgin fibers
Immobiliers
The table above demonstrates the environmental benefits of running stock with 10% PCW
Opinions expressed in articles are those of the authors and (Post Consumer Waste).
do not necessarily reflect the views and opinions of the The formulas shown are based upon production of 12,000 magazines per year printed on 70lb Starbrite Plus
FRPO Board or Management. FRPO and MPH Graphics
Inc. accepts no liability for information contained herein. Gloss Text FSC®
All rights reserved. Contents may not be reproduced Printed by MPH Graphics Inc.: 100% Bullfrog Powered (energy and green natural gas) and the First
without written permission from the publisher.
FSC® Certified Printer in North America. Printed on Starbrite Plus Gloss Text FSC® Certified containing
10% post-consumer fibre, processed elemental chlorine free, acid free and using vegetable oil-based inks.
(March 4, 2014 / 14:09:19)
85085-1_37047_FRPO_JanFeb_p07.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 7
Some municipalities are not seeing
Tenant Licensing Fees (2013) enough new supply of rental
accommodation. The “Vital Signs”
project in Toronto, Hamilton and other
Thorold $50 communities has raised the alarm over
the effect of segregating low-income
North Bay $300 households in areas where the limited
supply of older rental housing tends to
Oshawa $250 be concentrated. Even the City of
Hamilton predicted up to a 30% loss
of rental units if licensing took effect.
London $230
The licensing of rental homes by
Waterloo $400 municipalities even runs directly
contrary to the Government of
$0 $100 $200 $300 $400 $500 Ontario’s Long Term Affordable
Housing Strategy, which plans to
these fees upfront, but like all than 5 times the Rent Guideline set by require municipalities to establish
municipal taxes they must be passed the Province, so they face eviction or policies allowing second units in new
onto tenants. These tenant license fees the expense of moving.” and existing developments, and
(really, a “tenant tax”) are not your promised to protect people from
practices that limit their housing
average, nominal $20 license charge – Licensing Reduces Housing opportunities.
many are in the range of hundreds of
dollars per year.
Options for Tenants
As pointed out in FRPO’s 2013 report The argument that licensing
In some cases, small landlords will on this issue, another consequence of addresses housing quality issues
have to just pay for this out of their licensing rental homes is the resulting doesn’t fly. We already have the
pocket. “It is little comfort that the fees business decision taken by the Residential Tenancies Act and Landlord
are a municipal charge which can be property owner either to comply with Tenant Board to deal with those issues
passed directly on to tenants”, says new licensing requirements, or to across the entire province. It’s time to
lawyer Joe Hoffer. “Many tenants can’t discontinue the rental use. call rental housing licensing exactly
afford the rent increase, which is more what it is: A tax on tenants. And it’s
time for it to stop.
President Perspective...Continued from page 5 Assembling expert opinions on topics everything we can to greatest impact
such as municipal licensing and the possible with policy makers to bring
The best way to try to influence key
ineffectiveness of the current rent more fairness and balance to Ontario’s
policy decisions is to provide evidence
dispute process provides needed rental housing industry.
to support a specific policy option or
credibility to the call for changes to
direction. FRPO has shown significant
existing policy positions that are having Once again, I am very enthusiastic
leadership in this area by investing in
what we must believe to be unintended about being part of this industry and
expert opinion reports and statistical
negative impacts to a critical industry this association, and I look forward to
research that can help inform the
such as housing. being part of bringing better outcomes
policy advice and options we will put
for rental housing providers and
forward as an industry. The recent
We are going to have a very interesting tenants in Ontario.
KPMG report completed at the end of
year in Ontario, with a likely provincial
last year provides FRPO with an
election looming sometime this year,
economic baseline on which to
and municipal elections scheduled for
measure the expected impacts of policy
this fall. Your board of directors and
or regulatory changes being
association staff are preparing
considered by government.
(March 4, 2014 / 14:09:20)
85085-1_37047_FRPO_JanFeb_p08.pdf .1
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85085-1_37047_FRPO_JanFeb_p09.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 9
C FA A
R E P O R T
CFAA 2014 Rental Housing Conference
by John Dickie, CFAA President
O
On June 9 to 11, 2014, CFAA will host • Current building operations and
the 2014 Rental Housing Conference tenant relations issues.
at the Sheraton Vancouver - Wall
Centre Hotel in downtown Vancouver. According to Ruth Buckle, Vice
This is your chance to hear Benjamin President, Property Management, at
Tal’s economic update, find out where Killam Properties, “The 2013 CFAA
the experts think interest rates and cap Conference was extremely valuable on
rates are going, hear new ideas about many levels. The education sessions
key operating issues, and network! were informative, providing leading
edge insights with regard to current
The conference begins on Monday, challenges, and the connections made
June 9, with a tour of innovative rental with both suppliers and peers were
buildings in Vancouver. Tuesday, June very useful. If you can only attend one
10, will include two streams of rental housing conference next year,
presentations on Investment in rental the CFAA Rental Housing conference
housing and one stream of is the one to attend.”
management topics. For Tuesday
evening, delegates are invited to the Speakers website at www.cfaa-fcapi.org.
Vancouver Lookout Tower to network Speakers committed to date include Registration is open now, with early
with colleagues. Benjamin Tal (CIBC World Markets), registration discounts.
Jenny Affe and Kris Boyce (Greenwin),
The conference concludes on Jeremy Bramwell (Bramwell & Housing and tax reforms ---
Wednesday, June 11, with two streams Associates), Avrom Charach (Kay
of topics on Rental Operations and
progress for landlords and
Four), Daryl Chong (GTAA), John
one on Investment. Investors, Dickie (CFAA), David Horwood (Effort tenants
operational staff and hands-on owners Trust), David Hutniak (LandlordBC), CFAA is making progress on reforms
of all sizes can find topics relevant to Jeremy Jackson (Killam Properties), Al to federal housing policy to make it
them on both days. Kemp (MHPOA), Ran Kuboyama better for private landlords of all sizes.
(CAPREIT), Valerie MacLean Specifically, CFAA is gaining significant
Conference topics will include: (LandlordBC), Maureen McMahon support for:
• Benjamin Tal’s economic update (Gateway), Arun Pathak (Smar • more use of direct financial assistance
• Rental building sales Canada-wide Holdings), Barry Remai (Remai for tenants (portable housing
or in BC Group), BJ Santavy (Skyline), Amy allowances or rent supplements)
• New issues in developing or Spencer (LandlordBC) and Wayne Tuck • reduced taxes on the income or
investing in rental properties. (Centurion). Other speakers will capital gains from residential
include leading experts and suppliers
• Recent proven ideas in hiring, rental property.
to the rental housing industry, as well
training and managing employees
as additional landlords, who have CFAA has long had the support of the
• Small landlord issues, including thought through issues you are facing. Canadian Home Builders' Association,
how best to grow a portfolio
• Key issues in marketing rental property To attend, please check the CFAA Continued on page 12
(March 4, 2014 / 14:09:22) 85085-1_37047_FRPO_JanFeb_p10.pdf .1
(March 4, 2014 / 14:09:23)
85085-1_37047_FRPO_JanFeb_p11.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 11
FRPO Introduces Your
New President and CEO:
Scott Andison
S
Scott Andison has been named
President & CEO of the Federation of
Rental-housing Providers of Ontario
(FRPO) as of January 20, 2014.
Previously, Scott was with Cushman &
Wakefield (Canada) where he was the
national practice leader for commercial
property tax.
government policy and management
to be assuming leadership of the
organization"
Scott’s government relations
background is further enhanced from
being named Chief of Staff to the
Ontario Ministers of Finance and
Education.
He brings extensive government
relations, board management, and "I am honoured to have been
association leadership experience appointed to lead the FRPO
gained through progressive positions organization," said Mr. Andison. "The
throughout his career. He has held association has a solid reputation in
FRPO is also pleased to announce that
senior director and CEO positions with the industry and with government
the scope of Mike’s responsibilities
provincial and national industry officials, and I am excited to be given
have been enhanced to further support
associations, and has held senior the opportunity to advance the work
the organization’s rapid growth in
management positions with the managed so well under the previous service delivery to its members, and is
Ministry of Municipal Affairs and leadership". He replaces Vince Brescia now the Vice President of Government
Housing, and the Ministry of Health who was the organization's President & Industry Relations. The 2014 year
and Long-Term Care. & CEO since 2000. promises to be a dynamic one for
FRPO members with both a provincial
"I am very pleased with the outcome of Scott holds an undergraduate degree and municipal elections on the
our executive search process, and on in administration from Laurentian horizon, and the launch of additional
behalf of the board of directors, we University, and has completed member benefits and services
look forward to working with Scott as certificate programs in negotiation and including a new education program to
we continue to advance the FRPO's management with Harvard University compliment our current Certified
mandate to promote a balanced and and the Massachusetts Institute of Rental Building program.
healthy housing market in Ontario" Technology. His appointment follows
said Ugo Bizzarri, Chair of FRPO's an executive search process following As always, please feel free to contact the
board of directors. "FRPO has become the departure of Vince Brescia at the FRPO team with any questions or
an important partner with government end of October 2013 after 13 years in service requests at 416-385-1100, toll
in advancing sound public policy on the position. During the past two free at 1-877-668-1960, or by email at
behalf of tenants and owners across months Mike Chopowick assumed the info@frpo.org. You can also reach Scott
the province. We are fortunate to have acting role of President & CEO during Andison directly at 416-385-1100 ext 20,
someone with Scott's background in the executive search process. or by email at sandison@frpo.org.(March 4, 2014 / 14:09:24)
85085-1_37047_FRPO_JanFeb_p12.pdf .1
12 FAIR EXCHANGE January / February 2014
Carbon Monoxide
Detector Law Passes
FRPO providing input to Office of the Fire Marshall on new Regs
BBill 77, the Hawkins Gignac Act (Carbon
Monoxide Detectors), 2013, has passed
3rd Reading by the Ontario Legislative
Assembly.
This new law will require working
carbon monoxide detectors in all
homes with fuel-burning appliances or
monoxide law are yet to be finalized in
the regulation. FRPO is participating
in consultations with the Office of the
Fire Marshal and Emergency
Management (OFMEM) Technical
Advisory Committee to assist with
development of a uniform provincial
standard for the installation and
burning appliances or storage garages.
Currently, CO alarms are required in
homes built after August 2001. Some
municipalities already have by-laws
requiring CO detectors in every home
where there is a fuel burning appliance.
In these instances, for multi-residential
buildings, the typical standard is for
attached garages. Bill 77 has been maintenance of carbon monoxide CO detectors to be required for suites
proceeding through the legislative alarms in existing residences. that are up to two floors above or one
process for the past 4 or 5 years. floor below where fuel burning
FRPO has worked Bill 77’s author, FRPO will comment on the draft appliances are located. This new law
Ernie Hardeman MPP, and also regulation once it is released for will ensure that one, uniform standard
appeared before the Standing consultation, and will continue to will be applied across the entire
Committee on Social Policy, to provide advocate that the regulation include province.
advice and recommendations on this practical and clear identifiers for when
new requirement. and where carbon monoxide detectors Further updates on this issue will be
are to be installed in multi-residential provided once additional details are
Many details regarding the new carbon buildings, based on proximity to fuel- available.
CFAA...Continued from page 9 sector. A better investment climate
could lead to a renaissance in
and the Canadian Real Estate apartment development in Ontario,
Association (Canada's realtors) for while existing buildings are renewed
those measures. New support comes and made more profitable and better
from the Federation of Canadian for landlords, tenants and the broader
Municipalities, the Canadian Housing community.
& Renewal Association, the Co-
operative Housing Federation and the FRPO is a member of the Canadian
Canadian Medical Association. Federation of Apartment Associations,
warm reception from Minister Bergen which is the sole national organization
As well, CFAA has met with Candice and the Conservative Housing Caucus. representing the interests of Canada’s
Bergen, Minister of State for Social $480 billion dollar private rental housing
Development, and the new CFAA’s polices would assist tenants, industry, providing homes for more than
Conservative Housing and raise the demand for private rental eight million Canadians. Learn more at
Construction Caucus, discussed in housing, raise after-tax returns on rental www.cfaa-fcapi.org.
National Outlook (which is available at housing, and encourage more rental
www.cfaa-fcapi.org.) CFAA received a supply in an expanding rental housing(March 4, 2014 / 14:09:25)
85085-1_37047_FRPO_JanFeb_p13.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 13
Towards Fairness
and Accountability in
DEVELOPMENT CHARGES
O
One solution for encouraging new supply of rental housing is
a more balanced approach toward fair and predictable
development charges across the province. Fair development
charges are also key to keeping new housing affordable. There
must also be greater accountability and transparency by
municipal governments so that residents of new housing
developments understand that up to one quarter of the cost
of their new home is to pay for the infrastructure used by the
broader community.
Development Charges Facts:
• For a new condo apartment, the average government
charge per apartment is approximately $64,000, or
roughly 20% of the average price for a new condo.
• For a new apartment building in Toronto, upfront
development taxes are $15,265 for each new 2-
bedroom unit ($3 million for a 200-unit building).
• In Toronto alone, the government has collected an
Recently, new transit strategies have suggested that incredible $137 million in Section 37 cash benefits
developers should have to pay for transit into Toronto. from developers between 2007 to 2011.
Although this proposed tax would not affect existing
properties, it would deliver a decisive blow to new investors
and new residents. Recent data from the Ontario Home Any increases to development charges must be fair and
Builders’ Association suggests that new homebuyers and predictable. If development charges were to increase
new businesses paid more than $1.3 billion in development excessively, the incentive for investors to build new units
charges across Ontario.1 decreases. Shorter supply will ultimately mean higher rents
across the province.
Development Charges In the case of new rental housing, projects are even more
Make Housing Less Affordable sensitive to development charge increases. Investments
There is no assurance that development charges that are take a much longer period of time to recover through long-
collected by municipalities are used to actually fund the term collection of rents, compared to costs of new
public facilities that are required. There must be greater owner-occupied projects.
accountability measures to ensure that residents of new
homes directly benefit from the infrastructure that is funded “If construction and land costs come off a bit and if
by their development charges. municipalities encouraged rental housing by taking away
development charges, you may be able to make the equation
Development charges by governments add significantly to work. And the industry would gear up and build some purpose-
the price of a new home. For a new condo apartment, the built rental housing for the first time probably in 25 years.”4
average government charge per apartment is approximately Thomas Schwarz, CEO, CAPREIT
$64,000, or roughly 20% of the average price for a new
condo2. For a new apartment building in Toronto, upfront The province and municipalities must consider affordability
development taxes are $15,265 for each new 2-bedroom and fairness within the Development Charges Act, and prevent
unit ($3 million for a 200-unit building). development charges from being used as a new “tax”, whereby
new residential communities are forced to finance long-term
For new rental housing, most municipal governments also municipal infrastructure deficits. Growth should pay for
use provincial legislation to demand what are known as growth, but municipalities must not rely on development
Section 37 payments from developers. In Toronto alone, the charges to pay for infrastructure projects that benefit existing
government has collected an incredible $137 million in cash residents. There must be greater fairness, accountability and
benefits from developers between 2007 to 20113. transparency in all growth related taxes, fees and charges.
1 OHBA-BILD-HHBA Response to MetroLinx Investment Strategy July 8 2013
2 Altus Group, July 23, 2013, “Government Charges and Fees on New Homes in the Greater Toronto Area”, prepared for Building industry and Land Development Association.
3 Aaron A. Moore, 2013. “Trading Density for Benefits: Section 37 Agreements in Toronto”. Institute of Municipal Finance and Governance, University of Toronto.
4 Perkins, Tara. “Rental apartment construction set to boom.” Globe and Mail. 8 September 2013, Online Edition.(March 4, 2014 / 14:09:26)
85085-1_37047_FRPO_JanFeb_p14.pdf .1
14 FAIR EXCHANGE January / February 2014
WHY ONTARIO ELECTRICITY
PRICES WILL GO UP
by Mike Chopowick, Vice President of Government & Industry Relations
IIn December 2013, the Ontario
Ministry of Energy released its Long
Term Energy Plan. Part of this plan
included commitments to mitigate
future increases in electricity rates for
consumers.
The problem is, electricity bills are still
Typical Electricity Bill Forecast (10 Years)
18
16
14
12
10
LTEP Forecast
“Realistic” Forecast
projected to go up significantly over
8
the next decade. And they will go up
even more if the government’s own 6
numbers are just slightly off. Current 4
projections for hydro price hikes are 2
banked on future cost estimates being 0
exactly right, though the past has -2
taught us that future costs in the 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
energy sector are hard to predict.
• Sector efficiencies within the $18 • About $1.5 billion annually in
Plan now for future cost billion cost of operating Ontario’s improvements to the transmission
electricity system system (eg: replacing hydro poles
increases and transformers)
It is important for landlords and As a result, the government’s 2013
property managers to consider future • Increases by local hydro utilities in
plan is estimating that future price service and delivery charges
hydro costs. If your electricity bills are increases will be lower than previously
still included in your tenants’ rent, you forecast in 2010.
will have to figure this into future rent The 10% Clean Energy Rebate
increases, or even consider suite However, the following costs loom: ends after 2015
metering. If your tenants pay their own • The $1.1 billion costs of cancelling Since 2010, most multi-residential
bills, this information will be of interest two gas plants in Mississauga and customers have seen their entire
to them, as well. Oakville (up from an original cost electricity bill (including delivery charges)
estimate of under $300 million). discounted by 10%. This was known as
To estimate future costs, the the “Clean Energy Benefit”, introduced
government’s Long Term Energy Plan • The $6 billion to $10 billion cost of
refurbishment of the Darlington to mitigate the cost increases of
first looked at mitigating factors. renewably energy production. However,
These included: Nuclear Power Station.
this 10% discount had a built-in sunset
• Not proceeding with the • Higher planning costs due to
date of December 31, 2015.
construction of two new nuclear stricter consultation obligations
reactors at the Darlington with First Nations and Metis
Beyond 2015, the OCEB program’s
Generating Station. groups.
future would require legislative
• Reduced contract costs for green • The costs of phasing-in over changes. From a policy perspective,
energy and feed-in-tariff contracts 10,700 MW of wind, solar and unless politics play a big role (and it
bioenergy projects by 2021. could) the province’s finances likely(March 4, 2014 / 14:09:27)
85085-1_37047_FRPO_JanFeb_p15.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 15
won’t support continuing this $1.1 we can look at the track record so far. It is very safe to say that we can expect
billion annual rebate. FRPO’s advice is In 2010, the government estimated annual increases at least 9.5% to 10%
to firmly expect this 10% discount to rates would increase an average 8% per year (on average) from 2014 to
end after 2015. per year. Actual rate increases 2018 (largely sue to the end of the 10%
approved by the OEB have been +9.1% OCEB in 2016). For the next decade,
The $10 billion “Guess- since that time. As noted, governments price increases of at least 6% annually
typically underestimate cost increases, are a very conservative assumption.
timate” of Darlington in this case by about 1.1%. For contingency, you may want to plan
Refurbishment: for even higher increases.
“The final cost will not be known until the Budget for up to 10% per year
regulatory and technical scope is For more information, you can read the
determined, engineering is completed,
in annual increases for the Ontario Long Term Energy Plan yourself at:
construction contracts are signed, and a next 5 years http://www.energy.gov.on./en/ltep/
release quality cost and schedule is The Ontario Long Term Energy Plan
developed (2015). It would not be forecasts increases of about 8.5% per
prudent to speculate on a potential cost year over the next four to five years, on
when construction is many years away average. The Plan forecasts much
and so many variables, outside of OPG smaller increases beyond 2018, though
control, might impact that estimate.” there is not really anything material
Source: OPG Website that explains the much smaller
forecasts this far out, not to mention
So, how can we really estimate so many unknown costs that can arise
in the future.
future electricity costs?
Estimating future increases always
involves uncertainty. For actual rates,
t Transparent billing
increase your CARMA, reduce your costs
t Control rising utility costs
t Customized solutions
t 35 years of experience
Call today at
1-888-298-3336 or
CarmaIndustries.com
Green building tools for energy management and sustainability c 2013 CARMA Industries Inc. All rights reserved.(March 4, 2014 / 14:09:28)
85085-1_37047_FRPO_JanFeb_p16.pdf .1
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To learn more, call 888.569.2734
or visit www.yardi.com/multifamily(March 4, 2014 / 14:09:29)
85085-1_37047_FRPO_JanFeb_p17.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 17
KPMG STUDY:
ONTARIO’S APARTMENT INDUSTRY
CONTRIBUTES $18.3 BILLION TO THE ECONOMY
Report highlights the rental housing industry's contribution to jobs,
tax revenue, infrastructure investment and GDP
O
Ontario’s rental housing industry contributed over $18.3
billion to the province’s GDP in 2012, while supporting
147,000 full-time jobs and generating $7 billion in tax
revenues to governments, according to a new report
released today by the Federation of Rental-housing
Providers of Ontario (FRPO). The report, along with a
summary of highlights titled, “Bringing it Home”, is
available on www.frpo.org.
Rental Housing by Comparison:
GDP Impact of Select Industries (Ontario)
Manufacturing
Finance and Insurance
Construction (Total)
Tourism Industry (Total)
$76.1 billion1
$51.8 billion1
$32.8 billion1
$19.5 billion3
Rental Housing Industry $18.3 billion2
Based on research completed in December 2013 by KPMG Defence industry $13.9 billion2
Canada using data from Statistics Canada, the report covers Aeropace industry $11.2 billion2
the economic contribution of apartment construction, Mining and oil and gas extraction $6.5 billion1
renovation and operations in Ontario. Agriculture, forestry, fishing & hunting $4.7 billion1
Arts and Culture Industries $3.7 billion4
Highlights from the report include: 1. Statistics Canada GDP CANSIM table 379-0030, 2013.
• Ontario’s rental housing industry generates 146,534 full 2. KPMG 2013, Economic Impact Assessment Study – Federation of
time jobs in Ontario, with an average annual salary of Rental Housing Providers of Ontario.
$56,600 and total labour income of $8.29 billion in 2012. 3. Ontario Ministry of Tourism, Culture and Sport, 2013.
4. Ontario Arts Council, 2012.
• The rental housing industry contributes to almost 3% of
Ontario’s GDP, totaling $18.3 billion, plus a remaining
$1.9 billion to the GDP of other Canadian provinces for seek choice and affordability in housing”, says Mike
a total GDP impact of $20.2 billion. Chopowick, Vice President of Government & Industry
• The rental housing industry invested over $4.5 billion Relations at FRPO. “An improved regulatory environment
in housing infrastructure in 2012 – more than the that encourages future investment can help secure the
annual provincial capital budgets for hospitals, economic activity, tax revenue, jobs and personal earnings
highways or public transit. created by rental housing.”
• Over 56,000 new rental housing units were constructed
FRPO is the largest association in Ontario representing
between 2006 and 2012, creating over 33,000 full time jobs
those who own, manage, build and finance residential rental
• Ontario’s rental housing industry contributes $7 billion properties. FRPO’s membership includes more than 2,200
in tax revenues to all levels of government – more than members in every area of Ontario, who own or manage over
the agriculture and food, arts and culture, mining, and 350,000 rental homes. KPMG Canada has offices in 33
aerospace industries combined. Of this amount, $6.45 locations across the country. The firm's more than 700
billion was collected in Ontario. partners and 5,600 employees provide crucial Audit, Tax,
and Advisory services to many public and private business,
“Ontario’s private sector apartment industry is robust, not-for profit, and public-sector organizations in Canada.
providing over 1.2 million rental homes to Ontarians who(March 4, 2014 / 14:09:30)
85085-1_37047_FRPO_JanFeb_p18.pdf .1
18 FAIR EXCHANGE January / February 2014
FRPO’S 2013 MAC AWARDS
RECOGNIZE RENTAL HOUSING EXCELLENCE
O
On December 5, 2013, FRPO held its 13th annual awards
gala in Toronto. FRPO’s MAC (Marketing, Achievement and
Construction) Awards recognize success and quality in
Ontario’s rental housing sector.
FRPO’s awards gala continues to grow, with record
attendance of over 800 guests, and 135 award
submissions. Our keynote speaker was former Prime
Minister Jean Chretien.
Award Presenters included: Peter Friedman (CMHC); Greg
Stokes (Rogers Cable Communications); Gord Alderdice
(Coinamatic Canada Inc.); Jackie Caillé (Union Gas
Limited); Ross Garland (EnerCare Connections); Peter
Altobelli (Yardi Systems).(March 4, 2014 / 14:09:47)
85085-1_37047_FRPO_JanFeb_p19.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 19
Speaker sponsored by Rent Sync featuring Homes.com
FRPO would like to express gratitude to all sponsors for making this event a great success:
Exclusive Event Sponsor Speaker Sponsor • Park Property Management Inc
• Rent Sync featuring Homes.com • Phelps Apartment Laundries
• Magical Pest Control
Dinner Sponsors • Midnorthern Appliance
• Cohen Highley LLP • Maxim General Contracting
Event Sponsors • The Byng Group • Maxim Roofing
• My Ideal Home Rental Network • Aird & Berlis LLP
• Ace Painting & • InterFace
Decorating Company
• Renters Guide Water Sponsor
• Horlick Levitt Di Lella LLP • HD Supply
• The Toronto Star
Centrepiece Sponsor
Official Media Partner • 4Rent.ca
• Rental Housing Business
(RHB) Magazine
Chocolate Sponsor
• O'Shanter Property Management
Award Sponsor
• CMHC
Photography Sponsor
• SOLID General Contractors
Red Wine Sponsor
• Halsall
Coat Check Sponsor
• SPAR Property Consultants Ltd
Audio Visual Sponsors White Wine Sponsor
• Absolute Ventilation
Decor Sponsor
• Wyse Meter Solutions
• H&S Business Supplies Ltd
• Canadian Apartment Cocktail Sponsors
Investment Conference
• Gottarent.com
• Enbridge Gas Distribution
• Sparkle Solutions
• Ace Painting & Decorating Company(March 4, 2014 / 14:11:05)
85085-1_37047_FRPO_JanFeb_p20.pdf .1
20 FAIR EXCHANGE January / February 2014
Photography sponsored by Solid General Contractors Kayla Shaw, Connie Pappas, Colleen Prempulec
Mike Chopowick (L) & Gloria Salomon (R) join Carol and
Allan Weinbaum as they accept the Lifetime Achievement
Award for Jack Weinbaum.
Lifetime Achievement Award Property Management
Jack Weinbaum, WJ Properties
Advertising Award
Jack’s integrity and business acumen make him one of the Timbercreek Communities –
most respected rental housing providers in Canada. Known
for exemplifying the highest business ethics and giving back Metropolitan Apartments
generously to society, Jack Weinbaum has always This award recognizes a residential rental organization that
demonstrated an unparalleled vision for the future of has demonstrated clarity, innovation and excellence in
housing in Ontario, beginning with his instrumental role in marketing their advertising campaigns for rental housing.
the founding and development of the Flemingdon Park Entries were judged on overall concept, creativity, layout,
community. Jack’s motivation of providing the best possible copy or script, results and execution.
rental experience for tenants resulted in the construction
of a large number of high quality apartment communities Other Nominees:
that continue to house thousands of families today. Greenwin Inc. - 125 Wellington St North, Realstar
Management & Bentall Kennedy - 50 Laurier(March 4, 2014 / 14:11:07)
85085-1_37047_FRPO_JanFeb_p21.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 21
Trish MacPherson, Michael Di Nunzio Fayez Kassam, Colin Martin
Property Management Property Management Website Award
Advertising Award – Social Media Realstar Management - realstar.ca
CAPREIT Realstar’s website best achieved a design that is both
usable and eye-catching, clearly conveying the company’s
This new award recognizes a property management
brand and purpose, while being technically sound, easy to
organization that has demonstrated clarity, innovation and
navigate and visually coherent.
excellence through use of social media. This can include
various social media platforms used to engage existing
tenants as well as attract prospective renters. CAPREIT Other Nominees:
delivered informative, insightful and useful content on a Minto Properties - Minto.com
regular basis while also using social media as an integral Cherishome Living - Cherishome.com
part of their marketing and communications strategy.
Other Nominees:
Greenwin Inc
Oxford Residential(March 4, 2014 / 14:11:09)
85085-1_37047_FRPO_JanFeb_p22.pdf .1
22 FAIR EXCHANGE January / February 2014
David Binder, Kris Boyce Brian Levy, Gloria Salomon, Richard Aubrey
Curb Appeal Award Lobby Renovation of the Year
Rosebind Developments Ltd. Preston Group – 90 Eastdale Ave
& Greenwin Inc. - 30 Carabob Court Preston Group was recognized for achieving excellence in
The Curb Appeal award recognizes exterior property renovating the interior of an existing lobby. The overall
improvements, gardens, landscaping, structural design, interior improvement, a modern and functional design,
functionality and aesthetics of the entrance to the building. creative and efficient use of space and improved
The winner must demonstrate evident success in functionality of the floor plan made this a winning
enhancing the appearance and design of the building and submission.
grounds, while creating a strong favourable impression
upon approach. Other Nominees:
M&R Holdings - 45 Wynford Heights Crescent
Other Nominees: Timbercreek Communities - 2837 Yonge Street
Oxford Residential - Goldengate Apartments;
Vertica Resident Services - 5166 & 5170 Lakeshore Road(March 4, 2014 / 14:11:11)
85085-1_37047_FRPO_JanFeb_p23.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 23
Leonard Visconti (L), Evelyn Visconti (C) Bethany Curtis, Jason Ashdown, B.J. Santavy
Suite Renovation Award Rental Development of the Year
Tandem Property Management - Skyline Group of Companies –
Sheppard Centre Apartments The Gummer Building
Tandem was recognized for excellence in renovating Skyline was rewarded for its efforts in overcoming
existing rental units at its Shepard Centre Apartments. numerous challenges in reconstructing the historic
Improvements and upgrades to floors and appliances Gummer Building in downtown Guelph, following its
enhanced the overall interior appeal and attractiveness. devastation in a 2007 fire. Skyline achieved high overall
Unique design, creative and efficient use of space improved creativity and suite design, curb appeal, efficient use of
functionality and appearance of the unit. space and functionality of the floor plan in this new,
landmark development.
Other Nominees:
Hollyburn Properties Limited - 1286 Islington Avenue Other Nominees:
M&R Holdings with Multitech Contracting 2000 Inc. - 30 Medallion Corporation - West Q
Trudelle Street Concert Realty Services Ltd. - Palomar at Village Gate West(March 4, 2014 / 14:11:12)
85085-1_37047_FRPO_JanFeb_p24.pdf .1
24 FAIR EXCHANGE January / February 2014
Basketball teams practising at Accora Centre's renovated gymnasium. John Lucic, Daniel Drimmer
Residential Amenities Excellence Environmental Award of Excellence
Ferguslea Properties Ltd. - Starlight Investments Ltd.
Accora Village, Ottawa Starlight was recognized for demonstrating excellence in
This new award recognizes a residential rental company environmental practices. This includes energy
that has demonstrated excellence in providing, creating or conservation, water conservation, recycling and educating
improving common area and amenities for their tenants. staff and residents about environmentally conscious
This can include improvements to existing common areas practices. Starlight achieved a high quality level of
(excludes lobby) or creation of new amenities or common environmental accomplishments when compared to an
areas. Examples include (but not limited to) pool upgrades, average rental housing provider in the province.
laundry room renovations, addition of fitness facilities or
media rooms, rental offices, rooftop patio, etc. Other Nominees:
Nominations were judged on creativity, design and value Hollyburn Properties Limited
provided to tenants. Concert Realty Services Ltd.
Other Nominees:
Minto Properties - Cherryhill Village
CAPREIT - 2076-2100 Sherobee Road(March 4, 2014 / 14:11:14)
85085-1_37047_FRPO_JanFeb_p25.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 25
Al Bolduc, Sana Qureshi, Steve Ryan Floyd Taylor
Outstanding Community Service Leasing Professional of the Year
Ferguslea Properties Ltd. Floyd Taylor - Greenwin Inc.
Ferguslea went above and beyond to give back to their local This award recognizes an individual employee nominated
communities. This company has become involved in their for an outstanding job in leasing and tenant screening. Fred
community through volunteer activities, contributions to a demonstrated a high closing ratio, low tenant turnover and
charity or charities, and other service projects. Nominees high occupancy rates.
were be judged on their overall contribution (funds raised,
people helped, volunteerism, etc.) to their community Other Nominees:
service project and/or initiative, and the positive impact Florence Maposa - Sterling Karamar Property Management
(both short-term and long-term) that their efforts have Mihaela Iacobut - Minto Properties
made toward their community service project(s). Special
consideration will be given to projects based in Ontario.
Other Nominees:
Concert Realty Services Ltd.
Skyline Wealth Management Inc.(March 4, 2014 / 14:11:16)
85085-1_37047_FRPO_JanFeb_p26.pdf .1
26 FAIR EXCHANGE January / February 2014
Dianna Attar Siddeek Mohamed Ahamed
Property Manager of the Year Resident Manager of the Year
Dianna Attar - KG Group Siddeek Mohamed Ahamed – CAPREIT
Dianna was awarded for excellence and professionalism in Siddeek was recognized for his dedication to on-site
property management. She excelled at effectively managing building management. Consideration was given to
her portfolio, staff and budgets while ensuring a high level challenges faced in the past year, work accomplishments
of resident satisfaction. for the year, and the standard of service provided. Extra
weight was given for the effective management of on-site
Other Nominees: daily activities, building and maintaining positive
Brandi McIlvenny - Minto Properties professional relationships with tenants, and providing a
Georgeta Morar - CAPREIT clean and organized environment in which tenants can call
home. Testimonials demonstrated a high level of tenant
satisfaction.
Other Nominees:
Anne Coligan - Skyline Management Inc.
Edna & Edgar Valenzuela - Realstar Management(March 4, 2014 / 14:11:18)
85085-1_37047_FRPO_JanFeb_p27.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 27
Jennifer Collier, Liza Williams, Rod Pirie, Darlene Wesley,
Alexandra Koumoudouros, Alicia Mitchell, Anjela Kalendjian
Customer Service Award of Excellence
Concert Realty Services Ltd.
This award recognizes high standards of resident care in
rental housing. From high maintenance standards, to
building a community atmosphere, to staff courtesy,
Concert demonstrated leadership in providing quality
services to tenants, starting right from the application
process to throughout their tenure, resulting in exceptional
levels of resident satisfaction and retention.
Other Nominees:
Vertica Resident Services Ltd.
CAPREIT(March 4, 2014 / 14:11:20)
85085-1_37047_FRPO_JanFeb_p28.pdf .1
28 FAIR EXCHANGE January / February 2014
Ontario Rental Housing
Vacancy Stable at 2.6%
Rents increase an average of 2.7% from last year, in line with 2013
guideline limit of 2.5%
CCanada Mortgage and Housing
Corporation’s (CMHC) October 2013
rental survey indicates a slight increase
in vacancy rates in Ontario, from 2.5%
in 2012 to 2.6%% in 2013.
Average 2-bedroom rents in new and
existing structures increased from
5-Year Trend
Average Vacancy Rates-Privately Initiated Apartment Structures (3 units and over)
CMA
Barrie
Guelph
Hamilton
Oct 2009
3.8%
4.1%
4.0%
Oct 2010
3.4%
3.4%
3.7%
Oct 2011
1.7%
1.1%
3.4%
Oct 2012
2.0%
1.4%
3.5%
Oct 2013
3.0%
1.9%
3.4%
Kingston 1.3% 1.0% 1.1% 1.7% 2.3%
$1,033 to $1,059. The percentage rent
Kitchener 3.3% 2.6% 1.7% 2.6% 2.3%
increase (in existing structures only)
was the same as last year, at +2.7% London 5.0% 5.0% 3.8% 3.9% 3.3%
from October 2012 to October 2013. Oshawa 4.2% 3.0% 1.8% 2.1% 2.1%
Ottawa 1.5% 1.6% 1.4% 2.5% 2.9%
Highlights from CMHC: St.Catharines/Niagara 4.4% 4.1% 3.2% 4.0% 4.1%
• According to CMHC, current Sudbury 2.9% 3.0% 2.8% 2.7% 3.4%
vacancy rates are the result of Thunder Bay 2.3% 2.2% 1.7% 1.1% 2.6%
growth in rental housing demand Toronto 3.1% 2.1% 1.4% 1.7% 1.6%
from net migration and the small Windsor 13.0% 10.9% 8.1% 7.3% 5.9%
improvement in full-time Ontario Average 3.5% 2.9% 2.2% 2.5% 2.6
employment among people aged Source: CMHC Rental Market Reports, 2009 to 2013
15 to 24, offset by a greater increase
in the supply of rental units. Factors Exerting Upward qualify for ownership housing.
Meanwhile, Ontario has lost almost as
• For 2013 overall, CMHC estimates Pressure on Vacancy Rates
the arrival of 269,500 immigrants many migrants to other provinces in
Net migration to the province has
to Canada, for an increase of 1.5% 2013 as it did during the year of 2006.
been less supportive of rental demand
over 2012. Relatively stronger job growth in
in recent years. Net migration into
resource producing regions has
• Full-time employment among Ontario has slowed since 2010 largely
encouraged Ontarians to leave the
young people aged 15 to 24 grew due to lower net international
province in search of job opportunities
by 1.8% between October 2012 migration and rising migratory
elsewhere.
and October 2013. outflows to other provinces. According
to census data, most immigrants rent
• Additional rental apartment “Housing activity will post some
upon immediate arrival into Ontario as
completions are maintaining modest growth in 2014 thanks in large
they lack the credit and job history to
upward pressure on vacancy rates.(March 4, 2014 / 14:11:21)
85085-1_37047_FRPO_JanFeb_p29.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 29
Average 2-Bedroom Rents ($) 5-Year Trend (New & Existing Buildings)
CMA Oct 2009 Oct 2010 Oct 2011 Oct 2012 Oct 2013 Oct 2012 - Oct 2013
% Change
(Existing Buildings Only)
Barrie $961 $968 $1,001 $1,037 $1,048 +1.4%
Hamilton $831 $862 $884 $886 $932 +3.1%
Guelph $874 $887 $903 $941 $957 +3.3%
Kingston $909 $935 $965 $1,005 $1,054 +2.8%
Kitchener-Waterloo $856 $872 $889 $908 $952 +3.2%
London $896 $869 $881 $919 $924 +1.6%
Oshawa $900 $903 $941 $939 $985 +4.6%
Ottawa $1,028 $1,048 $1,086 $1,115 $1,132 +2.0%
St.Catharines/Niagara $804 $817 $833 $862 $872 +2.2%
Sudbury $830 $840 $881 $915 $914 +1.4%
Thunder Bay $742 $763 $772 $818 $858 +4.6%
Toronto $1,096 $1,123 $1,149 $1,183 $1,213 +2.9%
Windsor $747 $752 $753 $778 $788 +2.0%
Ontario Average $955 $980 $1,002 $1,033 $1,059 +2.7%
Ontario Rent Guideline 1.8% 2.1% .07% 3.1% 2.5%
Source: CMHC Rental Market Reports, 2009 to 2013
part to an improving Ontario economy, growing rental demand. Both Toronto Average 2-bedroom rents in the
stabilizing affordability conditions and and Ottawa registered significant Toronto CMA increased 2.9% year-
less out-migration to other provinces,” increases in investor held condos over-year, to $1,213 per month. The
said Ted Tsiakopoulos, CMHC`s during this year`s survey. vacancy rate in Toronto was stable
Ontario Regional Economist. “Tight year-over-year at 1.6%
resale market conditions for low Condo rentals carry higher rents and
density housing and improving create more competition particularly for Vacancy rates were highest in Windsor
income growth will allow demand for higher priced purpose-built rental units. (5.9%), Peterborough (4.8%) and St.
new single detached homes to hold up Catharines/Niagara (4.1%). Vacancy
better over the forecast horizon.” Additional Facts from rates were lowest in Toronto (1.6%)
CMHC’s Rental Survey and Guelph (1.9%). Rent growth was
Secondary rental apartment Between the 2012 and 2013, the strongest in Oshawa and Thunder Bay,
completions have also been growing in Canadian universe of rental housing both seeing annual rent increases at
the province of Ontario in recent years. units grew by 57,936 units, for a gain +4.6%.
While purpose-built completions did of 3.7%. In the Greater Toronto Area,
edge higher, they have not kept pace the share of condominium apartments
with condo rental apartment that are rented increased from 22% in
completions. Investors have in recent 2012 to 26% in 2013.
years purchased condominiums with
the intention of leasing these units out Ontario’s average rental availability
upon completion. Condominiums have rate, which includes vacant units plus
filled a void in the marketplace as less units where an existing tenant has
purpose built rental accommodation given notice to move, increased to
has been built in recent years to satisfy 4.2% from 4.1% last year.(March 4, 2014 / 14:11:21)
85085-1_37047_FRPO_JanFeb_p30.pdf .1
C E L E B R AT I N G
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