Mar 7 2018

(please contact Yvonne for UDI Newsletter sponsorship opportunities)

ADVOCACY

PROVINCIAL

Budget 2018 amp Homes For BC On February 20 Finance Minister Carole James released Budget 2018

Working For You and the Governmentrsquos 30-Point Housing Affordability Plan Homes For BC Budget 2018 represents a significant provincial investment in affordable housing including $16 billion in operating and capital funding over three years and an important step towards the historic commitment to invest more than $7 billion in affordable housing over 10 years In addition to directly investing in affordable housing Budget 2018 and the companion document Homes For BC detail a number of new housing tax and regulatory measures forecasted to generate an additional $500 million in net tax revenue annually for the provincial treasury

Property Transfer Tax for Residential Properties over $3 million - Effective February 21 2018 the

additional property transfer tax payable on residential properties valued above $3 million is increased from 3 per cent to 5 per cent

Provincial School Property Tax on Residential Properties over $3 million - Beginning in 2019 the

provincial school property tax is significantly increased on residential properties in excess of $3 million including detached homes stratified condominiums or townhouse units and most vacant land The additional tax rate is 02 on the residential portion assessed between $3 million and $4 million and 04 tax rate on the residential portion assessed over $4 million The additional School Tax will not be applicable to rental buildings

Foreign Buyersrsquo Tax Increase and Expansionndash Effective February 21 2018 the Foreign Buyersrsquo Tax

is increased from 15 to 20 and the tax is also extended to include the Fraser Valley Capital Nanaimo and Central Okanagan Regional Districts

Speculation Tax ndash In Budget 2018 the BC government announced that it would be introducing

legislation to impose an annual speculation tax The tax will be effective for the 2018 tax year The speculation tax will target foreign and domestic speculators who have removed their units from BCrsquos long-term housing stock ndashmeaning they are not owner-occupied or a qualifying long-term rental property The speculation tax will initially apply to the Metro Vancouver Fraser Valley Capital and Nanaimo Regional Districts and in the municipalities of Kelowna and West Kelowna In 2018 the tax

rate will be $5 per $1000 of assessed value In 2019 the rate will increase to $20 per $1000 of assessed value It is expected the government will consult with key stakeholders in the development of the new tax in MarchApril 2018 prior to legislation being introduced in Fall 2018 It remains unclear whether British Columbians second homes and recreation properties will be subject to the tax In the meantime the Ministry of Finance has published this preliminary Information Sheet and FAQ

Assignment of Pre-Sale Purchase and Sale Agreements ndash BC will require developers to collect and

report comprehensive information about the assignment of pre-sale condo purchases which will be reported to a designated provincial office and other authorities The information will be used to inform future housing and tax policies

Beneficial Ownership of Land and Corporations ndash The Province is taking steps to track beneficial

ownership information through the Land Title and Survey Authority by requiring additional information to be reported as part of the property transfer tax form and will establish a publicly accessible registry of the beneficial owners of all property in BC The information collected will be shared with tax law enforcement and other authorities and will inform future housing and tax policies

Provincial Property Tax Exemptions for Purpose-Built Rental Housing ndash The Province will mirror

property tax exemptions provided under a municipal revitalization agreement for qualifying purpose-built rental housing

While UDI is supportive of the significant investments in social housing the tracking of pre-sale assignments and the new incentive for the Province to mirror municipalitiesrsquo property tax abatement for purpose-built rentals UDI is significantly concerned of the cumulative impact that this host of new tax measures will have on affordability

Due to the increased tax measures direct impact on increasing the costs of development including purpose-built rental earlier this week UDI sent a letter to Minister James and Minister Robinson communicating our concerns

that the new taxes will only increase the costs on all forms of residential development UDI has participated in a number of constructive meetings with Ministry of Finance staff to seek clarification on how development scenarios will be impacted by the new measures and it is our sincere hope that we will be able to work with the Ministers and their staff to resolve many of the unintended consequences of these policies BC Building Code (BCBC) Update The Provincial Government has been reviewing several proposed changes to upcoming edition of the BCBC Members of UDIrsquos Building Code Committee reviewed the

changes and provided the following responses to the Government middot UDI response to AccessibilityAdaptability middot UDI letter on Energy Efficiency Standards middot UDI letter on Mid-Rise Combustible Construction

REGIONAL Metro Vancouver Greater Vancouver Sewerage amp Drainage District Development Cost Charge (DCC) As noted in earlier newsletters Metro Vancouver has been updating its DCC Bylaw and rates The increases are substantial over

200 in the Fraser Valley Sewer Area UDI and the Greater Vancouver Home Buildersrsquo Association recommended that the increases be phased (as originally proposed by Metro staff) to mitigate their impact Metro has proceeded without the phasing It went to the GVSampDD Board of Directors for final adoption on February 23 2018 and the increases will come into effect on May 1 2018

MUNICIPAL City of Vancouver Supporting Small Businesses Policy On February 20 City of Vancouver staff presented to Council updates

on a January 17 2018 motion regarding policy changes for the support of small businesses Staff covered the most concerning issues small business owners face and informed Council on the initiatives underway to tackle each problem area affordability space city processes and engagement support ndash one proposed solution would be making changes to commercial property taxes to help mitigate the issue of increasing property taxes negatively impacting small businesses UDI has already written a letter voicing our support of the split tax

assessment approach and the proposed Province-led Intergovernmental Working Group while again reiterating our concerns and opposition to proposed commercial rent controls Commercial Tenancy Act and Split Tax Bills

Further consultation and engagement with industry stakeholders will be held to discuss other potential policy tools to assist small businesses and make recommendations that can be implemented in time for the 2019 tax year If you have any questions or request more information please contact Byron Lee 604-661-3035 Proposed Energy Efficiency Updates to the Vancouver Building By-law (VBBL) and Rezoning Policy As

noted in previous newsletters Vancouver has held several Town hall Meetings on proposed changes to the VBBL and Rezoning Policy As a result of previous input from UDI and its members they are adjusting some of the proposals Staff are recommending that the City adopt Step 2 of the ESC on January 1 2019 The adoption of Step 3 would be deferred from January 1 2020 to January 1 2021 The City will be grandfathering projects at Stage 1 (excavation) Building Permit They will also be including water amendments that were previously consulted on back in 2016 to the VBBL that include some measures required by the BC Building Code and also some EnergyStar appliance requirements The City will be hosting another Town hall meeting on March 13

th

at 800 am on the Ground Floor of 511 West Broadway If you would like to participate please contact Marissa Chan-Kent at 604-661-3033

Community Benefit Agreements On March 21

st Vancouver staff and Buy Social Canada will be providing a

presentation and workshop on Community Benefits Agreements (CBA) The City of Vancouver is developing a city-wide CBA policy framework ldquohellip that is intended to help strengthen supplier relationships and engagement between the development industry City and communitiesrdquo It is intended to support workforce development The City will be engaging with industry throughout spring and summer of 2018 about the specifics of its own draft policy framework The March 21

st event is a more general introduction to the state of current trends and best

practices in Community Benefits Agreements drawing from Canadian and international case studies To participate in the event please resister at

Registration is by invitation only via this LINK A password is required to register and that password

is Inner City

Cambie Corridor Phase 3 On March 5 the City of Vancouver provided a presentation to UDI members on the

Cambie Corridor Phase 3 Plan There was a strong UDI presence at the meeting and members were generally satisfied with the amount of community and stakeholder consultation being conducted for the development of this corridor plan Phase 3 is currently underway with its objectives being new family housing built-form transition coordinating large sites and streamlining these elements to work cohesively for the corridor City staff proposed an increased CAC rate but highlighted that 93 of sites in Cambie Corridor would have pre-set contributions

Public information sessions dates are as listed

middot 4 ndash 8PM Thursday March 8

middot 10AM ndash 1PM Friday March 9 middot 12 ndash 4PM Saturday March 10 middot 4 ndash 8PM Monday March 12 middot 10AM ndash 1PM Tuesday March 13 middot 4 ndash 8PM Wednesday March 14 all sessions contain the same content Staff aims to bring the Cambie Corridor Phase 3 plan to City Council by April and establish a Utility Servicing Plan and Financing Strategy by June July The process for rezoning applications has yet to be determined

Neighbourhood Energy Utility Expansion Optimization Working Session - On February 21 2018 City Council approved expansion of the service area for the City-owned False Creek Neighbourhood Energy Utility (NEU) to

parts of Mount Pleasant Northeast False Creek and the False Creek Flats (see map below) Staff held an initial meeting with UDI members on January 16 2018 - see here for the presentation and the NEU 2018 Customer Rate Report that was provided to Council The City is seeking further input from the UDI on technical design and

optimization opportunities that could improve performance and add value for developers and customers Key principles guiding the exploration of system optimization include the following bull Maximize energy efficiency and recovery of waste heat bull Preserve 100 renewable energy outcomes bull Achieve economic efficiency and affordability bull Maintain long-term technology flexibility bull Balance innovation and risk bull Maximize design flexibility and co-benefits for connected buildings Members that have interests within the existing SE False Creek andor expanded service area are invited to attend the working session being held on April 5 2018 from 930-1100 AM in the Business Centre Meeting Room located on the 2nd floor of City Hall Please register for the session by emailing Marissa Chan-Kent or at

604-661-3033

Rain City Strategy Workshop The City of Vancouver is hosting an industry roundtable workshop on March 6th

to help guide the City reach their goals to improve water quality increase resiliency and enhance the livability of Vancouver through sustainable rainwater management There will be two sessionsmdash one will focus on complex large site developments and the other session is geared towards small scale residential developments Industry members can choose which session fits better with their business activities Complex large site developments workshop Date March 6 2018 Time 930am ndash 1200pm Location 511 West Broadway ndash ground floor Crossroads building Small scale residential developments workshop Date March 6 2018 Time 230 ndash 500pm Location 511 West Broadway ndash ground floor Crossroads building

If you are unable to attend or would like more information visit andor sign up for our email list at Vancouvercaraincitystrategy or contact them at rainwatervancouverca

City of Richmond BC Energy Step Code Implementation for Part 3 Buildings As noted in previous Newsletters the City of Richmond has hosted several workshops regarding the implementation of the BC Energy Step Code (ESC) in

the municipality They are hosting a final workshop for Part 3 buildings at noon on March 6 2018 at Richmond City Hall It is anticipated that staff going to Council for approval of a By-law in the next couple of months and the By-law would come into effect in June However there will be grandfathering provisions

City of North Vancouver Zoning bylaw Livability Review The City of North Vancouver hosted a focus group information session on February 21 when they presented their Zoning Bylaw Livability Review to developers and homebuilders The

reviewrsquos scope focusses on changing the zoning language around ground oriented dwelling units (single family dwellings amp duplexes with secondary suitscoach houses) The review aims to make it more flexible for homebuilders to build ground oriented housing with more units by reducing minimum lot size requirements increasing height envelope allowances permitting higher density allowances for lots with livable suites amp coach houses etc Details are available in this presentation If you have any questions please contact Byron Lee 604-

661-3035

Township of Langley Development Cost Charges (DCCs) At the February 22

nd Langley Liaison Committee meeting staff provided

an update on their DCC review As park acquisition costs have risen substantially (as have construction costs) since the last review five year ago it is expected that the DCC rate increase will be significant Staff will likely be going to Council with a report in July UDI will be organizing a special meeting with the Township regarding the DCCs when more information is available UDI will be suggesting that the Township phase in the rates as Surrey did (see below) Community Amenity Contributions (CACs) At the same time the DCC increase is implemented the

Township will also be moving forward with CACs that were discussed with industry over one year ago Please see attached UDIrsquos letter to the Township The Township will be hosting an Open House shortly and UDI will

provide the details when they become available

City of Surrey

Development Cost Charges (DCCs) and Affordable Housing Charge In 2016 when Surrey reviewed its DCC

By-law the City with the support of industry agreed to phase in the rate increases over three years because of their magnitude The third and final instalment of the DCC increases will be coming into effect on May 16 2018

In addition to the DCC increases Surrey is also contemplating a $1000 per unit charge for a fund that would be used for developing affordable housing projects in the City It will likely come into effect in May of this year Adaptable amp Accessible Housing Standards As noted in previous newsletters the City of Surrey has been considering requiring that 100 of new apartment units conform to the Adaptable Housing provisions in the BC Building Code UDI and its members have raised concerns about the 100 adoption because of size constraints in smaller and affordable units At the February 22

nd Development Advisory Committee (DAC) meeting staff

indicated that a report will be going to Council in April with the proposed changes ndash including provisions for floor area exemptions (20 to 30 sq ft) and grandfathering UDI will be writing Council about the implications of the requirements on smaller units Demolition and New Construction Waste Management Bylaw The new Demolition and New Construction Waste Management Bylaw that was noted in our end of year newsletter was discussed at the February DAC

meeting The Bylaw will be coming into effect on July 1 2018 and is aligned with a Metro Vancouver template that was developed with stakeholders including UDI a few years ago The City will be seeking a ldquohellip 70 or greater diversion of demolition wastehelliprdquo through a depositrefund model Guildford Town Centre ndash 104 Avenue Planning Process On March 1 the City of Surrey hosted an open house on reviewing the land use and transportation concepts for Guildford Town Centre and the 104 Avenue

corridor The project aims to redevelop and enhance the Surrey town centre support LRT ridership by focussing growth around LRT stops leverage investment to achieve community objectives and establish a land use and road network plan to guide redevelopment

City of Coquitlam Electric Vehicle (EV) Charging Infrastructure On Tuesday February 27 UDI Subcommittee on EV Charging

Infrastructure Policy and Regulations met for the first time with the City of Coquitlam to discuss Electric Vehicle Charging Options for Multi Family Developments The City presented multiple options for implementation of EV infrastructure and based their cost-benefit analysis on Richmond and Port Coquitlam approaches Members discussed the issues with implementing EV infrastructure given current electricity regulations There will be another consultation session (date TBC) that will look to include electrical consultants EV charging companies and BC Hydro If yoursquod like to join this subcommittee please notify Marissa Chan-Kent by e-mail or at 604-661-

3033 Housing Affordability Bylaws The City of Coquitlam sent the following letter to UDI and individual developers

regarding feedback previously requested for clarifying policies in the Housing Affordability Strategy (HAS) incentive program The terms as highlighted in the letter remain flexible in definition and the City has said that they would prefer to use a future ldquoinformation bulletinrdquo as a non-statutory way to define some of the terms associated with the HAS bylaws They have said that once they gather input from UDI they will complete the information bulletin which will be a ldquouser-friendlyrdquo summary of the new bylaws The City will be discussing these definitions further at the upcoming March 16 liaison committee meeting District of Squamish

New Staff Development Liaison Committee On March 1 UDI participated in the first meeting of the District of

Squamishrsquos new Staff Development Liaison Committee The purpose of the liaison committee is to establish and maintain an effective channel of communication between District staff and members of the Development and Building Industry active in Squamish The committee confirmed the committeersquos terms of reference and received updates from DOS staff on their Flood Management Guide for Developers Subdivision and Development Control Bylaw Trees and Soils Bylaw and the revised draft CAC Policy For more information on the DOS Staff Development Liaison Committee please contact Rob MacKay-Dunn

GENERAL NEWS

We encourage all of our members to share their latest news about industry awards philanthropic contributions amenities theyve built through CACs DCLs and DCCs in BC communities along with photos please And dont forget to add our email to your corporate news release lists for updates

REAL ESTATE amp DEVELOPMENT ARE BUILDING BLOCKS OF BC ECONOMY

The construction of residential homes of all kinds shopping malls and office towers across the province is a foundation of BCrsquos economy A new Economic Impact of the Development Industry Report says the development industry in 2016 contributed $229 billion towards GDP almost twice that reported for the forest industry

This is up from $17B in 2012 a 346 increase according to the new independent study by accounting tax and business group MNP Released in March 2018 the study was commissioned by the Urban Development Institute the British Columbia Real Estate Association (BCREA) and the Greater Vancouver Home Buildersrsquo Association (GVHBA) The development industry is part of the larger BC real estate and construction sector which includes real estate agents brokers lessors and businesses involved with residential and non-residential building construction Together the real estate and construction sectors directly account for about 15 per cent of the BC provincial GDP the report says

Hundreds of thousands of employeesmdashabout 233600 full-time equivalent positions many of them highly-paid

unionized tradesmdashdepend on the industry for their livelihoods Governments at all three levels rely on the taxation revenues about $66 billion annually to pay for health education social services and affordable

housing These taxation revenues to governments include all the taxes and fees paid by the development industry to the federal provincial and municipal governments but not the additional GST Property Transfer Tax or annual property taxes paid by the home buyer Please view the full Media Release here

Fourth Quarter 2017 State of the Market Housing Supply Report

UDI recently released the fourth quarter State of the Market 2017 report confirming the housing supply

shortage continues Across Metro Vancouver from West Vancouver to Maple Ridge and in between the independent report found just 80 new move-in ready units were available to purchase confirmed Michael Ferreira Managing Principal of

Urban Analytics This is a decrease of 95 from the 5-year average of 1776 move in ready units As well multi-family presale supply is down 74 across Metro from the Q2-2013 peak

UDIs State of the Market report is produced by Urban Analytics and generously sponsored by Terra Law and Rare Earth Marketing Infographic below by Ballistic Arts

Media Release

Media Backgrounder

ORDER OF BC Chair appointment

Sarah Morgan-Silvester who is a member of the esteemed Order of British Columbia has been appointed Chair of the Grosvenor Americas Board Grosvenor is a proud member of UDI

Congratulations to Ms Morgan-Silvester who takes up the role on June 14th

2018

UPCOMING UDI and OTHER EVENTS UDI has many events for networking education amp member engagement For more UDI events or

to suggestsponsor an event please see Event Calendar For comments or compliments on our events

please email UDI events staff

Developers Jam for Covenant House Charity April 5

UDI will host a musical jam night featuring many of the major land developers in Vancouver The net proceeds of this fundraising event will go to Covenant House Vancouver

LOCATION Drais Vancouver

3rd Floor - 1161 West Georgia Street Vancouver BC DATETIME

Thursday April 5 2018 600 PM - 800 PM FEES TBA Registration details to come

Featured band

Steve Jedreicich Ledingham McAllister Guitarvocals

Pete Ryznar Vancouver Sun Keyboards Jon Stovell Reliance Properties UDI Chair Bass

Joo-Kim Tiah Holborn Group Drums

We are seeking singers and musicians After the featured band performs talented singers and musicians are invited to come on stage for a jam If you would like more information please contact Ginny Normandeau

REGISTER

UDI Breakfast Seminar with TransLink amp PCI Developments April 10

TransLinkrsquos CEO Kevin Desmond will unveil recent

public transit improvements such as London-style double-decker buses and more SkyTrain cars and an update on the Mayors 10-year Vision on transit and transportation in Metro Vancouver How does the provincial governmentrsquos recent budget impact Mayorsrsquo Vision timelines the regional funding gap and federal funding deadlines When will we see shovels in the ground to keep pace with all the housing growth The morning seminar will also feature a short overview by Guy Akester Director of Real Estate Programs and Partnerships whorsquoll share best practices for building high-density Transit-Oriented Development in and around rapid transit stations concentrating growth in urban centres Tim Grant Vice President Development of PCI Developments will provide a developers perspective

on challenges and solutions to building successful transit-oriented communities

LOCATION

Mackenzie Balloom Fairmont Waterfront 900 Canada Place Way Vancouver BC DATETIME

Tuesday April 10 2018 715 AM Registration and hot breakfast buffet 745 AM Presentations and Q+A 915 AM Conclusion FEES

Member Price $7500 Non-Member Price $13500 Corporate tables of 10 seats 72 hours notice required for cancellations Substitutions are allowed

REGISTER

Budget Pundits Event Photos

Those who attended our recent political pundit event with panelists Keith Baldrey of Global News Mike Smyth of The Province Vaughn Palmer of the Vancouver Sun please find event photos on our Facebook page Feel free to tag or share pics

Thanks to our generous sponsors mlacanada and SparkCRM All photos by Ryan Broda Photography

Post-Budget Analysis Event Video Available

UDI invited some senior economic experts and analysts (pictured) from diverse perspectives to discuss the outcomes of the 2018 Budget released by the provincial government For those unable to attend please view the complete event video below A Facebook Live video available here

Thanks to our thoughtful panelists moderator and generous sponsor Deloitte

UDI FRASER VALLEY EVENTS

Save the Date Open for Business Township of Langley April 25 Details TBA

UDI NEW MEMBERS

VANCOUVER

BMS Canada Risk Services City of Port Coquitlam Fraser Basin Council LDG Project MarketingReMax Select Properties Suncor Development TATLA Developments Vancouver Native Housing Society CAPITAL REGION

AME Consulting (Secondary Membership) Fitzpatrick Enterprises Pinchin Ltd (Secondary Membership) OKANAGAN

Melhoff Development

UDI IN THE MEDIA

UDI reaction to federal budget including the request to reinstate the GST rebate for purpose-built rental-Business in Vancouver

High land costs in Vancouver will mean more commercial strata in future say experts at UDI event-Vancouver Sun

Real estate and development importance to GDP-Vancouver is Awesome and Richmond News Tri-City News

UDI response to BC Budget-Chinese Media

UDI says budget will do nothing for affordability-Business in Vancouver and Toronto City News

Municipal permitting delays and bottlenecks impact housing-Tri-City News

Multi-family housing supply down 74 per cent from 2013-Vancouver Courier

Increasing taxes such as the foreign buyersrsquo tax will only drive prices up-Richmond News

Speculation tax was supposed to hit people who flip and dont pay tax academic tells UDI event-Vancouver Sun

Curbing home sales and adding taxes to Alberta home buyers in Okanagan doesnt help lower mainland affordability-Chinese Media

Real estate and development a big part of Okanagan economy-Yahoo News

New taxes on land will be passed onto homebuyers and renters-Ming Pao

Not enough labour to build all the social and market housing-Chinese Media

High taxes will impact luxury homes and force new zoning and density-Buildingca

Finance Minister says tax goals to devalue homes even if they go lower than mortgage-The Province

All new taxes will get passed onto homebuyers-The Eagle

New taxes will not improve affordability-The Province

Massive tax increase without addressing municipal permit delays-Western Investor

Focus on speculators is misplaced without tackling municipal permit approvals-NewsCafcom

Even CMHC confirmed Vancouvers weak housing supply response-Vancouver Courier

Financing issues extremely rare in presales-The Province

UDI empathizes with buyers caught up in finance issue-Ming Pao

New taxes will impact local owners and do nothing to help housing supply-Singtao

Developers will work with governments to ensure presale buyers and assignors pay their taxes-The Globe and Mail

Restore civility in civic politics-West Coast Homes and Design

Half billion in alarming new real estate taxes also target local buyers and homeowners-The Province

Steep developer cost charge increases are a major concern-North Shore News

UDI supports ride-share-News 1130 and Canadian Business and Daily Hive

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