ontario building code regulatory changes · 2006. 6. 26. · guido a. mazza, p. eng. director of...

June 14, 2006City Council

Bill 124 de loi

Bill 124Ontario Building Code Regulatory

Changes

Presented by

Guido A. Mazza, P. Eng.Director of Building Services/Chief Building

Official

City Council – June 14, 2006


Bill 124 de loi

Construction Activity in Greater Sudbury

June 2006


Bill 124 de loi

Total value of construction in 2005 represents a 18% increase in development activity compared to 2004.

Source: Building Services Section, City of Greater Sudbury. All figures in current dollars.

68.0

118.5

101.4

125.0

180.4

106.4

152.8

181.2

0.0

40.0

80.0

120.0

160.0

200.0

1998 1999 2000 2001 2002 2003 2004 2005

Total Value of Construction

(million $)


Bill 124 de loi Total Construction Value:2006 Year-to-Date Results

47.048.2

0.0

10.0

20.0

30.0

40.0

50.0

Ja - Ap 2005 Ja - Ap 2006

Total construction value for the first four months of 2006 is on track to match last year’s positive results.

(million $)

Source: Building Services Section, City of Greater Sudbury. All figures in current dollars.


Bill 124 de loi New Residential Units

The number of new residential units in 2005, as measured by building permits issued, increased by 8% over 2004.

Source: Building Services Section, City of Greater Sudbury.

179

226

185208

311

363

411443

0

100

200

300

400

500

1998 1999 2000 2001 2002 2003 2004 2005


Bill 124 de loi New Residential Units 2006 Year-to-Date Results

9593

50

60

70

80

90

100

Ja - Ap 2005 Ja - Ap 2006

Based on building permits issued, the number of new residential units created in the first half of 2006 are slightly higher compared to the same period last year. CMHC is forecasting further gains in housing starts for 2006 and 2007.

Source: Building Services Section, City of Greater Sudbury. CMHC, Housing Market Outlook, Northern Ontario, Spring 2006.


Bill 124 de loi Plans of Subdivision: Number of Lots Created

336

111

491

309

0

100

200

300

400

500

600

No. of lots draft approved No. of lots registered

2004 2005A significant increase in the number of lots created through draft approved and registered plans of subdivision in 2005 reflects increased demand for new housing.

Source: Development Services Section, City of Greater Sudbury.


Bill 124 de loi Average Selling Price of a Home

$141,519

$134,440

$100,000

$105,000

$110,000

$115,000

$120,000

$125,000

$130,000

$135,000

$140,000

$145,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 -1Q

The average selling price of a resale home has increased significantly in the last few years, reflecting a very active housing market. The average price of a new single detached dwelling in 2005 was $236,530, a 14% increase over 2004.

Source: Sudbury Real Estate Board, MLS Sales Activity, Resale Market.


Bill 124 de loi Apartment Vacancy Rates

In the rental market, apartment vacancy rates have fallen dramatically in recent years, from a high of 11.1% in 1999 to 1.6% in 2005. A vacancy rate of 3% is generally considered to be a balanced rental market.

1.6%

11.1%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

1997 1998 1999 2000 2001 2002 2003 2004 2005

Source: CMHC, Northern Ontario Rental Market Report 2005.


Bill 124 de loi Estimates of Real GDP Growth

1.6%

1.9%

2.2% 2.2% 2.2% 2.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

2005 2006f 2007f 2008f 2009f 2010f

Conference Board indicators are also positive related to growth in real GDP, which is forecast to average 2.1% over the five-year forecast period.

Source: Conference Board of Canada, Metropolitan Outlook Series 2B, Winter 2006, Greater Sudbury CMA (f = forecast).


Bill 124 de loi

• The Building Code Act, 1992 has been amended through the Building Code Statute Law Amendment Act, 2002 (Bill 124). Related changes to the Building Code have been made through O. Reg. 305/03 filed July 25, 2003.

• Changes intended to–– StreamlineStreamline the building regulatory process– Increase the accountabilityaccountability of building practitioners– Enhance public safetypublic safety

• Proceeding with phased implementation– Most elements came into force July 1, 2005– Remainder came into force January 1, 2006

Policy Update:Building Regulatory Changes


Bill 124 de loi Key Elements

• Effective July 1, 2005:– Mandatory use of common building permit

application– Building permit fees limited to the “reasonable

anticipated costs of enforcement”– New mandatory notices and inspections at key

construction stages– Roles for different building practitioners defined in

Act including owners, builders, designers and manufacturers

– Code of Conduct for Building Officials


Bill 124 de loi

• Qualification requirements for Building Officials & designers• Registration requirements (i.e. qualified staff & insurance) for

designers • Time frames for the review of building permit applications by

municipalities• Commencement of the first reporting period for the Annual

Building Permit Fee Report to be prepared by municipalities

(Bill 124) As of January 1, 2006

Final Phase New OBC Regulation Implementation

Key Elements


Bill 124 de loi DLAC Subcommittee Bill 124 Implementation

1. Process Modifications● Common building permit application form deemed

unwieldy● Two-stream approach (short form) between July 1, 2005

to January 1, 2006● Permit application check list ● HVAC guidelines drafted including recommendation for

“heating permit”● Heating Trades License

Review broken down into three categories:

DLAC Subcommittee directed by Council to provide recommendations on Bill 124 Implementation.


Bill 124 de loi

2. Municipal Staffing Levels Evaluation

● Additional inspections residential (2) & ICI sectors (6)

● Time study/travel time/inspections per day● Historical workload past 11 years● RCA/contract staff● Study workload over first 6 months of partial Bill

124 implementation July, 2005 – January, 2006● Initial reviews indicate staff short fall – 2 Building

Inspectors/1 Plans Examiner

DLAC Subcommittee Bill 124 Implementation


Bill 124 de loi

3. Building Permit Fees

● Fees limited to cost of enforcing● Committee drafted approved list of direct &

indirect costs● Historical data on budget cost vs. user fees● Comparison survey with other municipalities● ICI/Residential fees imbalance● Raise fees based on current construction cost

survey with Sudbury District Home Builders Assoc. ● Heating Permit fee● Establish reserve

DLAC Subcommittee Bill 124 Implementation


Bill 124 de loi Public Safety/Streamlining/Accountability

• Mandatory Provincial Building Code knowledge (January 1, 2006)– CGS sponsored 9 Ministry/OBOA Courses

36 CGS Staff/41 Outlying Area Municpalities/80 Private Development Sector participants

– Currently all Plans Examiners (4), Building Inspectors (6) & Chief Building Official are registered

– Internship Program participation

Public Safety


Bill 124 de loi

• Mandatory notifications & inspections (July 1, 2005)– 3 additional mandated residential inspections– 6 additional mandated ICI inspections– Final DLAC subcommittee determination based on

time study & historical data additional 2 Inspectors/1 Plans Examiner required

– Further study/monitoring of process and procedures mandated by subcommittee

Public Safety – Cont’d

Public Safety/Streamlining/Accountability


Bill 124 de loi

• Specific time limits on building permit issuance (January 1, 2006) – applicable law

• Common province-wide application form for permits (July 1, 2005)

• Provisions which provide municipalities the use of RCA’s (July 1, 2005)

Streamlining



Bill 124 de loi

• Roles defined in Act for different practitioners(July 1, 2005)

• Mandatory professional indemnity insurance coverage enforced through provincial registration system July 1, 2005 (RCA’s) /January 1, 2006 (all others)

• Mandatory reporting by municipalities on permit fees (January 1, 2006)

• Code of Conduct for Building Officials (July 1, 2005)

Accountability



Bill 124 de loi Summary-Recommendations

1. Continue to monitor to better serve the development community.

2. Increase staffing by three, permanent employees in Building Services to respond to increased mandatory obligations of plans review and building inspection.


Bill 124 de loi

3. Amend the Building By-law to allow for a separate heating, ventilation and air conditioning permit to be established at a fixed fee of $50/permit (after a public hearing).

4. Modify procedures in calculating residential building permit fees to bring them more in line with Institutional Commercial Industrial (ICI) sector fee calculations for value of construction.

Summary-Recommendations


Bill 124 de loi Summary

• Amend Building By-law to allow for a separate Heating, Ventilation and Air Conditioning permit.

• Authorize increase in staffing by three permanent employees to meet mandatory obligations of plans review and building inspection required under Bill 124.

• Continue to monitor the regulatory processes through DLAC and report to Council.

• Modify procedures in calculating residential building permit fees to bring them more in line with the Institutional Commercial Industrial (ICI) sector fee calculations, effective July 1, 2006.

ontario building code regulatory changes · 2006. 6. 26. · guido a. mazza, p. eng. director of...

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