vol. 6 no. 3 december 2007 greater toronto apartment ... · rental property has ever benefited from...

25
VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ASSOCIATION

Upload: others

Post on 12-Jul-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ASSOCIATION

Page 2: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 3

Page 3: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

4 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7 D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 5

Orkin is Canada’s largest pest control provider anda leader in the development of fast, effective andenvironmentally responsible pest control solutions.Our professionals are the best in the business andwe’re ready to help you – anywhere in Canada, 24hours a day.

We also offer a large variety of Multi-Unit SpecializedServices; Odour & Bird Control, Chute & CompactorRoom Maintenance Programs, Pretreat Protectionfor New Construction & Renovation Projects.

GTA Apartment & Termite Division 416-754-7339Across Canada 1-800-726-7378

Page 4: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 7

BUILDING BLOCKSVOL. 6 NO. 3 DECEMBER 2007

PUBLISHERRICHARD SORENDesign Print MediaT. [email protected]

EDITORBRAD BUTTPresident, GTAAT. 416.385.3435 [email protected]

• Building Blocks is published six times per annum (February, April, June, August,October and December) by Design Print Media on behalf of the GreaterToronto Apartment Association (GTAA) and is distributed through controlledcirculation to the GTAA membership.

• Please contact the Publisher for advertising dates and rates. • Opinions expressed are those of the authors and do not necessarily reflect

the views and opinions of the GTAA Board or management. • GTAA accepts no liability for information contained herein.

C O N T E N T S

CORPORATE PROFILEFounded in 1998, the Greater Toronto ApartmentAssociation (GTAA) represents the interests of Toronto’smost active and concerned firms working in the multi-family rental housing industry today.

In a climate of rapidly changing issues such as realty taxes,municipal fees, property and fire standards, inspectionsand bylaws, the GTAA was established as a municipal asso-ciation to advocate for the rental housing industry and toprovide a source of vital information, representation and lead-ership in the rental housing industry.

The GTAA now boasts more than 240 property manage-ment companies that own and operate more than 160,000apartment units. As well, there are over 150 supplier mem-bers in all trade categories.

GTAA’s regular meetings with municipalities throughoutthe GTA, including politicians and officials, provides avoice the industry needs for early warning about new poli-cies, regulations and research reports. The GTAA alsoengages in effective action campaigns in the media andlocal communities.

MEMBERSHIP HAS ITS BENEFITSGTAA is an active participant in the formation of munici-pal policy and helping to shape legislation and regulationsthat affect the industry. GTAA is “front and centre” on theentire spectrum of housing-related issues.

GTAA will inform member firms how actions by therespective municipal governments and other agencies con-cerning the building code, affect the multifamily industry’scosts and operations. GTAA will alert members to importantproposals to change the model codes, inform members ofcode improvements favored by the industry, and interpretthe practical impact of major code decisions.

FEDERAL 9 CMHC REFINANCING OPTIONS

10 BENEFITS OF RENTAL HOUSING NOT IN PUBLIC POLICY

PROVINCIAL11 ONTARIO HUMAN RIGHTS COMMISSION

CHALLENGES LANDLORDS

MUNICIPAL12 HOUSING ALLOWANCE MONEY BEING DIVERTED

12 JIM WATSON IS NEW MINISTER

13 TORONTO RELEASES HOT REPORT

GTAA 8 PRESIDENT’S MESSAGE

9 MESSAGE FROM THE CHAIR

14 EDUCATION REPORT

15 STRATEGIC MECHANICAL REVIEW

16 GO GREEN AND GO HOME

18 FOUNDATION AWARDS GRANTS

18 FOUNDATION GETS SPECIAL DONATION

18 THINKING ABOUT PAINTING?

25 CABLE AND WIRELESS TECH OFFERS FLEXIBILITY

26 FINANCIAL INCENTIVES FOR ENERGY EFFICIENCY RETROFITS

28 SCARY APARTMENT BUILDINGS - BUT JUST FOR ONE DAY

30 UNHAPPY RESULTS FOR LANDLORDS ON LEGAL FRONT

33 150 KIDS GO TO FAMOUS PEOPLE’S PLAYERS

34 FIRST EVER CLOTHING DRIVE GREAT SUCCESS

36 BUILDING ENVELOPE CHECKLIST FOR PMS

38 TAPESTRY AT VILLAGE GATE WEST

40 AGM & DINNER FESTIVE FALL AFFAIR

41 ANNUAL MEETING ELECTS NEW BOARD

42 VENDOR INTEGRATION: EVERYBODY’S TALKIN’

ON THE COVER: 201 Sherbourne St.

Page 5: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 9

F E D E R A L

8 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

BRAD BUTT GLORIA SALOMON

P R E S I D E N T ’ S R E P O R T

The last month has seen some of the most generous

giving in both time and resources ever since I have

had the privilege of working for this association.

At the Annual Meeting we were fortunate to have been

able to make $70,000 in donations to four community

agencies working with the homeless and hard to house.

The association, with the help of Bonnie Hoy &

Associates, cobbled together a very successful clothing

drive in support of The Scott Mission. And, we received

some special one-time donations from companies and

fabulous raffle prizes that were donated for the Annual

Meeting.

Members of the association have truly been giving far

more than receiving and I think it is a credit to all of you.

We can make 2008 even better through continued

volunteer effort and the donation of funds. Let’s make

next year the best!

MEMBERS GIVING…COMMUNITYBENEFITING

It is a pleasure to take part in Building Blocks as Chair

of the GTAA.

We recently had our annual general meeting which was

a great success. Many members, from both the property

management side and supplier side enjoyed the beautiful

venue at Liberty Grand and took advantage of the occasion

to touch base with each other in a social atmosphere. I

am assuming the role of chair after Paul Smith, who ran

a very successful two year term as chair steps down. My

aim is to help Brad keep our GTAA well informed of all

relevant issues relating to our industry. In that regard,

we recently hosted a very useful Environmental

Sustainability/Energy Conservation Forum at the Old

Mill. All who attended were surprised at the wealth of

knowledge that was offered that day. We came away

with new ideas to make our buildings more efficient and

the corresponding benefits clearly explained. I would

encourage all members to take advantage of our

educational seminars and reap the benefits of new

information. A future area of concern in the organization

involves various new methods of taxes (or fees) the City

of Toronto will be attempting to force on our industry.

We will be meeting City Officials in the short term to get

clarification and provide them our views on these

contentious issues.

Messagefromthe Chair

M I L L E N N I U M M E M B E R S

CMHC REFINANCING OPTIONS CAN GIVEYOUR BUILDING A NEW LEASE ON LIFE

TO FIND OUT HOW TO BENEFIT FROM CMHCMORTGAGE LOAN INSURANCE, CONTACT PAULA GASPARRO, MANAGER, BUSINESSDEVELOPMENT, MULTI-UNIT MORTGAGEINSURANCE AT 416-250-2731. FOR MORE

INFORMATION, LOG ON TO: WWW.CMHC.CA.

Thinking of making improvements to your rentalproperty or using the equity in your building to finance

the purchase of another multiunit residential project?Today’s apartment owners have more options than ever for refinancing rental properties of all kinds. CMHC hasdeveloped a rental refinance product that gives prospectiveborrowers more autonomy with greater flexibility in itspremium structure.

WHO IS ELIGIBLE FOR CMHC’S RENTAL REFINANCING?

You can apply for rental refinancing from CMHC if yourrental property has ever benefited from a CMHC-insuredmortgage loan, if it’s currently encumbered with anuninsured mortgage or if it has no registered encumbrances.

There is no limit to the number of times you can refinance a particular property and no preset restrictions on how theborrowed funds can be used. CMHC evaluates each refinancingapplication on its merits—higher-risk transactions triggerhigher insurance premiums. CMHC is also providingpremium relief in the form of partial credits on premiumspreviously paid for recently insured loans on the sameproperty. The Corporation will even insure second mortgagesuntil the term renewal of the first mortgage under certainconditions. This will help clients avoid costly prepaymentpenalties and gain access to additional funds at the lowestpossible interest rates.

HOW MUCH CAN YOU BORROW?

If the loan is for repairs and capital improvements, CMHCwill insure up to 85% of the current value or up to 75% ofthe building’s improved value while construction is inprogress. That figure rises to 85% of the building’s improvedvalue once rents have been stabilized for at least one year.(For an extra 0.25% premium surcharge, CMHC willinsure up to 85% of the building is improved value duringconstruction.) Refinancing transactions come with a 25-yearamortization period, with the option to extend to an additional15 years with a 0.25% surcharge for each five-year periodbeyond 25.

Owners of apartment buildings, retirement homes and long-term care facilities have already taken advantage of this newrefinancing product to undertake energy efficiency retrofitsand other building improvements.

C H A I R

Page 6: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

Benefits of rental housingnot reflected in public policy

Across Canada, public policy does not treat rental housingand property owners with the respect they deserve. The

rental housing supply is aging and will require more andmore major repairs to remain in acceptable condition.Indeed, as standards and expectations rise over time, expensiverenovations will be needed to raise the standard of rentalhousing.

Yet despite the benefits of plentiful and low cost rental housingfor many people and for the economy, rental housing providersface unfavourable income tax treatment.

Who tends to rent?As compared to homeowners, renters tend to be young (or elderly), single, poor or more mobile. Newly formedhouseholds often rent. What drives these differences intenure choice?

Moving between two rental units is economical, whereasmoving between two owned houses is expensive.

Rental housing does not expose renters to financial risks(e.g. due to downturns in the market or a hidden defectwith the property).

Rental housing does not require the renter to managemajor repairs or to pay for them all at once

Rental housing does not require a large capital outlay,whereas housing ownership usually requires a downpayment.

The common element in all four differences is that rentersavoid a cost or a risk. Even if our society eliminated povertytomorrow, there would still be many people who want toincur the lowest possible cost to move, to avoid risk and/or toavoid having to make or manage major repairs. Rental housingsuits the needs of many people.

Having plenty of rental housing is also good for the economybecause it makes for easier and more economical moves (i.e.labour mobility).

Income tax treatment of renters versus ownersWhile our society is doing well at eliminating absolute poverty,we are not going to eliminate the existence of relatively lowincomes any time soon, if ever. Numerous low income people

own their houses, but they are mostly older people whobought their homes while they were working and now ownthem mortgage free. The income tax system makes that apositive strategy.

However, homeownership does not provide tax benefits tolow income households with little equity. Homeownershipprovides income tax benefits to those who have highincomes, or substantial equity, or even better both.

The tax benefits of homeownership flow from the tax-freecapital gains on one’s personal residence, and from the valuereceived (tax free) from equity in the home each year. If aperson invests $200,000 to buy a house, they pay no tax onthe value of the use of that home every year. We can valuethat at what the rent would be, say $1,000 per month, or$12,000 per year. However, if a person rents an apartmentand invests the $200,000 in stocks they will receive dividendsof say $12,000. On that income they will pay about $5,000 inincome tax, leaving them only $7,000 to use to pay their rent.The tax system makes owning better than renting for peoplewho pay income tax.

In addition, the landlord who receives the $7,000 in rentalincome will pay income tax on part of that. Federal andprovincial income tax rules further disadvantageous rentalhousing through taxes the landlord must pay:

taxes on capital gains (with no adjustment for inflation)

restricted ability to defer taxes if one property is sold and a replacement is bought

lower capital cost allowances than apply to commercial or industrial property

numerous other tax rules

Right across Canada, governments need to improve the taxposition of rental housing in order to enhance labour mobilityand to be fair to low income renters and to those who rent bychoice.

With sufficient income tax reforms, property owners will beable to obtain the means, and will have the incentive, topreserve and enhance the rental housing supply for thebenefit of renters and society as a whole.

F E D E R A L

1 0 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7 D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 1 1

P R O V I N C I A L

ONTARIO’S HUMAN RIGHTS COMMISSIONHIGHLIGHTS CHALLENGES FACING LANDLORDS

MIKE CHOPOWICK, MANAGER OF POLICYFEDERATION OF RENTAL-HOUSING PROVIDERS OF ONTARIO (FRPO)

THE HUMAN RIGHTS COMMISSION WILL REPORT BACK ON THE CONSULTATION EARLY IN 2008. FRPO WILL UPDATEMEMBERS AS THIS PROCESS UNFOLDS. FOR MORE INFORMATION, VISIT WWW.FROP.ORG>HUMAN RIGHTS,

OR VISIT THE COMMISSION’S WEBSITE AT HTTP://WWW.OHRC.ON.CA.

In the spring of 2007, the Ontario Human Rights Commissionstarted a consultation into discrimination in the rental housing

sector. Provincial laws regarding the application of the HumanRights Code in the rental housing business are far-reaching andcomplex, and in most cases represent another example of howthe rights of landlords have been stripped away.

FRPO fully participated in the consultation process, and posted acopy of its submission on the www.frpo.org website. The launchof this consultation was surprising. Ontario’s Landlords arealready leading the way in rights protection and inclusiveness –most of our customers are of lower-income groups, new Canadiansand other groups specifically protected by the Human Rights Code.

RIGHTS COMPLAINTS AGAINST LANDLORDS ARE VIRTUALLY NON-EXISTENTThere is already a very low level of human rights complaintsagainst landlords - less than four percent of all human rights com-plaints in Ontario are housing related. In fact, in 2006 there wereonly 90 complaints out of over 1.3 million tenant households.

In an industry that is becoming more professional and focusedon customer service, landlords and property managers are on|the front lines of providing a valuable service to almost a thirdof Ontario households, all the while ensuring fair and equaltreatment for a diverse group of tenants.

The two key issues rental housing providers should be concernedabout stemming from the Commission’s latest investigation area review of tenant selection rules, and accommodation of specialneeds tenants.

TENANT SELECTION RULESThe rules around what a landlord is permitted to do in the screen-ing of tenant applications is contained in Ontario Regulation290/98 (posted in the Human Rights section of www.frpo.org).Approved by the province less than decade ago, the Regulationoutlines a strict and rigorous set of requirements for landlords to ensure all rental applicants are treated fairly. As currentlywritten, the Regulation provides the highest protection againstdiscrimination – not just blatant discrimination, but also againstindirect constructive discrimination against low-income groups.

FRPO has emphasized to the Commission that the process ofselecting prospective tenants is an important aspect of businesslife for a residential landlord. Tenants in Ontario have lifetimesecurity of tenure. Landlords have no ability to terminate businessrelationships with tenants, except in unusual circumstances.Landlords need basic rights to assess reasonable informationfrom applicants. The current interpretation of Regulation 290/98is fair, reasonable and protects the rights of prospective tenants,yet lets landlords conduct a reasonable assessment through alegitimate business practice.

ACCOMMODATING TENANTS WITH SPECIAL NEEDSThis is an area where landlords require more help and protectionagainst potentially unlimited requirements to accommodate thedisabled or those with special needs. Worst of all, residentialtenancies law in Ontario has created a conflict between the statu-tory duty to protect other tenants’ reasonable enjoyment of theirrental unit, and human rights code requirements to accommodatepotentially disruptive behaviour.

One example where these circumstances may arise is where atenant who is hard of hearing substantially increases the volumeof their stereo or television at late hours thereby disturbing othertenants and residents. The landlord here must handle thecomplaints from neighbouring tenants against the noise, butmay be forced to “accommodate” the special needs of the tenantwith the hearing disability.

The current approach by the Commission to issues of“accommodation to the point of undue hardship” of the landlord isunreasonable. FRPO has recommended that reasonable andadequate guidelines and standards be set for assessing andimplementing accommodation as a response to discriminationunder the Code. We also recommended that where physicalmodifications of a rental unit are appropriate to house a personwith special needs, the costs should be offset by public fundingor government grants.

WHAT THE HUMAN RIGHTS COMMISSION SHOULD FOCUS ONThe most obvious and widespread causes of discriminationagainst tenants have nothing to do with landlords. FRPO haspointed out that:

Municipal governments in Ontario, such as Toronto, Hamiltonand Thunder Bay routinely discriminate against tenants bycharging them a higher property tax rate than homeowners.

The planning process has fostered a discriminatory Not-In-My-Backyard (NIMBY) attitude by the public and electedofficials against higher density rental housing. Every year it ismore difficult to gain approvals for high density residentialdevelopment, which negatively impacts housing affordabilityespecially for low income households.

Excessive focus on social housing construction programscontinues to create barriers against fair and equitable accessto housing for low-income groups. The social housing lotterysystem, segregation of low-income groups and lack of autonomyfor social housing tenants could all be avoided through abroad portable housing allowance program.

By John Dickie, President | Canadian Federation of Apartment Associations

GTAA is pleased to support CFAA, the sole national organization epresenting the interests of Canada’s $37 billion rental housing industry.

Page 7: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

HOUSING ALLOWANCEMONEY BEING DIVERTEDIn an October 30, 2007 staff report, Canada-Ontario

affordable housing program money that is not being usedfor rent supplements and housing allowances has beenrecommended to be spent on capital funding for rental andsupportive housing.

In July, the Minister of Municipal Affairs and Housing madechanges to the program which permit the conversion ofuncommitted Housing Allowance/Rent Supplement funds to a capital component and also to offer greater flexibility in setting levels of down-payment insurance.

“This change of policy concerns me,” said Brad Butt, President,Greater Toronto Apartment Association. “It seems now theCity can just say they can’t use housing allowance money and thendivert it for some other cause.”

The Greater Toronto Apartment Association has workedvery hard in past years to get government to the table onhousing allowance programs. Sometimes the rules thegovernment itself sets make these program unworkable. Itwould have been better to readjust the rules and the level ofsubsidy rather than convert the money to other uses.

M U N I C I P A L

1 2 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7 D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 1 3

M U N I C I P A L

The Hon. Jim Watson, MPPhas been named the new

Minister of Municipal Affairs& Housing in the re-electedDalton McGuinty government.Minister Watson served as boththe Consumer and BusinessServices Minister and HealthPromotion Minister in the lastgovernment.

Mr. Watson is a former Mayorof Ottawa and has a very strongworking knowledge of bothmunicipal affairs and housingissues.

Jim Watson isNew Minister

TEL 905-848-2992 FAX 905-848-3883www.conterra.ca

3633 ERINDALE STATION ROAD, MISSISSAUGA, ONTARIO L5C 2S9

PARKING STRUCTURE REHABILITATION

BALCONY, MASONRY, AND CAULKING REPAIRS

TRAFFIC DECK WATERPROOFING SYSTEMS

EXPANSION JOINTS

HYDRODEMOLITION

SPECIALIZED CONCRETE REPAIRS

TORONTO RELEASES HOT REPORT

The Affordable Housing Office of the City of Toronto hasreleased an Affordable Housing Framework document

entitled HOT – Housing Opportunities Toronto. The reportfor public review and engagement sets a ten year plan from2008-2018 to address affordable housing issues in the city.

Mayor David Miller and Councillor Giorgio Mammoliti,Chair of the Affordable Housing Committee state, “HousingOpportunities Toronto demonstrates that great things havehappened and can happen when we work in partnership withothers. It acknowledges the vital contribution of the federal andprovincial governments to fuelling action on affordable housingand the need for their ongoing and enhanced engagement. It alsooutlines the important role to be played by the private, co-operative,charitable and non-profit sectors.”

In terms of what role the private rental housing sector isrecommended to have, the report recommends a significantincrease in rent supplements and housing allowances with a goal of helping 60,000 households within the ten years.

“This report is one of the first that really recommends a large basketof options to achieve affordable housing,” reacted Brad Butt,President, Greater Toronto Apartment Association. “We areused to the old social housing or nothing approach but this onerecognizes the considerable benefit of rent supplements and housingallowances.”

The Greater Toronto Apartment Association has written toCouncillor Mammoliti indicating its willingness to workwith the City on these important recommendations. A full copy of the report can be obtained atwww.toronto.ca/affordablehousing.

Comments can be sent to [email protected]

Your choice of coin operated or smart card equipment

Front load, high energy efficient Maytag machines

Revenue share, rental plans and sales

All machines come with full audit capabilities

WWW.HARCOCO.COM

SINCE 1961 OUR NAME HAS BEENSYNONYMOUS WITH SERVICE EXCELLENCE

AND DEPENDABILITY

A P A R T M E N T L A U N D R Y S Y S T E M S

P R E S E N T E D T O T H E

TOP MAYTAG DISTRIBUTOR IN THE WORLD

MULTIPLE

WINNERS OF

THE REDCARPETSERVICEAWARD

MULTIPLEWINNERS OFTHE FREDMAYTAGTRAVELLINGTROPHY

TORONTO BRANCH

5915 Coopers Avenue, Mississauga, OntarioPhone: 905-890-1220 OR 1-800-387-9503

Fax: 905-890-7039

Page 8: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

G T A A

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 1 51 4 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

STRATEGIC MECHANICAL RENEWAL

G T A A

EducationReportThe Education & Training Committee has had a very

busy fall with seminars primarily focused at theSuperintendent and Resident Manager positions.

HSI SOLUTIONS PLUMBING & ELECTRICAL SEMINARS

The association partnered with HSI Solutions to deliver athree-day plumbing and a three-day electrical trainingprogram at their facilities in November to ensure ahands-on experience for each student. With classescapped a 12 students to ensure a strong teacher tostudent ratio, participants obtained a much higher skilllevel in these disciplines which can be used back at theirproperties.

SUPERINTENDENT RENTING PROGRAM

Back by popular demand, Bonnie Hoy & Associates ran asix-part renting program focused on leasing, telephoneand internet, showing apartments, touring apartmentsand related issues in November and December designedto help Superintendents who also have exclusive rentingresponsibility in their properties.

SUCCESS STORIES

On November 12, 2007, Bonnie Hoy led a group of closeto 30 people through three specific case studies ofbuildings that used innovative marketing and customerrelation techniques to ensure the properties improved,kept residents and attracted new ones.

We all know that the Ontario apartment stock is gettingolder. The strongest years for Ontario private rental

starts were in the late 60’s and early 70’s, peaking at 38,000starts in 1972 and declining after that. The drop-off wasdramatic. There has not been a single year with more than5,000 starts since 1990.

In the past 35 years, then, the apartment industry has shiftedattention from asset creation to asset maintenance and thenrepair. In the past 10 years we’ve moved from maintenance/repair to renewal. And no part of a rental building is ingreater need of renewal than hot water heating systems. Theoriginal heating equipment (boilers, pumps, tanks, piping,valves…) was designed for no more than 30 years of service,so those systems that are still in place are running onborrowed time.

So the time is right for renewal of many, many heatingplants in the Ontario apartment sector. But don’t assumethat direct replacement of the old boilers with new ones isthe same as renewing the heating system. Boilers are the keyheat-generators, but are not the only parts that will fail withage. There are many components than can fail and leave youwith a flood or leave your tenants without heat. At the sametime, it’s not usually cost-effective or necessary to replaceabsolutely everything. The occasional contractor or vendorsmay suggest that approach, but the better strategy is to assesseach part of the plant on the likelihood of failure. For examplesome pipe walls can be expected to erode and wear thinsooner than others. Pipe sections with greater flow velocity,longer hours experiencing flow, or more exposure to oxygen

(open systems or inadequate chemical treatment) will be thefirst to fail and so should be considered first for replacement.Expansion tanks located in basement boiler rooms tend todevelop leaks sooner than tanks located in the penthouse.

Although it is a big expense (think $1000 to $1700 per suitedepending on construction scope and plant size), heatingplant renewal is also an improvement opportunity thatshouldn’t be overlooked. The market is full of options andtradeoffs affecting energy efficiency, life expectancy, ease ofmaintenance, and various operating benefits. Take the timeto educate yourself on the options so that you get the systemthat will suit your building and organization for years tocome. And it will take some time… your heating plants aremore elaborate than you think, and the marketplace is veryconfusing. There is no single answer for every building.Physical factors like building height, chimney size, floorstructure, and existing piping layout must all be weighedagainst owner financial and operational priorities to arrive atthe best solution for any single site.

These days, energy efficiency is a key market driver, but don’tlet efficiency blind you to the other concerns. As just oneexample, there is no benefit in buying temperamental highefficiency boilers that fill with sludge from your old pipesand fail in a few years.

I will be writing a series of articles in Building Blocks,discussing the issues that apartment owners need to beaware of before they invest in major renewal of theirmechanical systems.

THE EDUCATION & TRAINING COMMITTEE ISNOW WORKING ON ITS 2008 SCHEDULE AND

IS ALWAYS INTERESTED IN TOPIC IDEAS FOR SEMINARS AND EVENTS.

PLEASE EMAIL BRAD BUTT AT [email protected] WITH ANY SUGGESTIONS.

Page 9: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

GO GREEN AND GO HOME – AN INDUSTRY FIRST!On November 21, 2007 the Greater

Toronto Apartment Associationhosted its first environmentalsustainability/energy conservation allday forum at The Old Mill for ownersand operators of apartment buildings.The event was attended by close to 80people who received presentationsfrom very high profile and expertspeakers in these tow important areas.

The “green” push is coming very quicklyto the housing sector and this forumprovided a peak of what is to come.The following presenters, many ofwhom are featured in the picturesherein, donated their time and expertisefor the event for which the associationis eternally thankful.

The association would also like to thankour headline sponsors for the day –

Stratacon Inc. and Toronto HydroElectric System, our breakfast sponsorthe Canada Mortgage & HousingCorporation and the lunch sponsorEnbridge Electrical Connections Inc.

The forum also featured a number ofmember companies that had displaytables demonstrating their firm’scommitment to and supply ofenvironmentally friendly and energyconservation measures.

G T A A

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 1 71 6 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

G T A A

RICHARD BUTTS, DEPUTY CITY MANAGER,CITY OF TORONTO

TIM STOATE, ASSOCIATE DIRECTOR,TORONTO ATMOSPHERIC FUND

RODNEY WILTS, LLB, LOOP INITIATIVESINC.

DERRICK FINN, P.ENG., PRINCIPAL, FINN PROJECTS

MARK SALERNO AND GIM RETSINAS,CANADA MORTGAGE & HOUSINGCORPORATION

HEINRICH FEISTNER, CITY OF TORONTOBETTER BUILDINGS PARTNERSHIP

FRANK SNYDER, NOVITHERM CANADA

ALEX WINCH, PRESIDENT, MONDIAL ENERGY INC.

LAWSON OATES, DIRECTOR, TORONTO ENVIRONMENT OFFICE

MICHAEL MCCLELLAND, PRINCIPAL, ERA ARCHITECTS

KYLE REES, MANAGER, DISTRIBUTED ENERGY, TORONTO HYDRO ELECTRIC SYSTEM

MORGAN STE. MARIE, STRATACON INC.

RICK WILLIAMS, CARMA INDUSTRIES INC.

RAY ASHBY, ENBRIDGE ELECTRICAL CONNECTIONS INC.

RICHARD ADAMSON, COINAMATIC CANADA INC.

YVES LEMOINE, TORONTO HYDRO ENERGY SERVICES

ROBERT SMITH, MINTO GREEN TEAM

DOUGLAS WEBBER, HALSALL ASSOCIATES AND THE CANADA GREEN BUILDING COUNCIL

RENEE DELLO, CITY OF TORONTO, SOLID WASTE MANAGEMENT SERVICES

DERRICK WENDELL, GREENWIN PROPERTY MANAGEMENT INC.

Page 10: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

The Crestview Group/Lawrence Construction recentlymade a special donation to the Greater Toronto

Apartment Association Charitable Foundation of$1,000.00. This donation is very timely and is being usedto offset the costs associated with sending the childrenfrom Toronto’s shelter system to see Famous People’sPlayers.

THANKS CRESTVIEW/LAWRENCEVERY, VERY MUCH!

Thinking aboutpainting?Remember that it pays to do your homework before you start

making any final decisions about where you will be spendingyour facility’s money, especially if you are on a budget. Topurchase the paint for your project yourself and then contractout the labour is an excellent way to save.

HOW MUCH PAINT SHOULD I BUY?Once you have chosen the desired colour and type of paint foryour facility it is time to calculate exactly how much paint youwill need for your job. Here is a simple formula to calculate thepaint required.

One gallon of paint will cover 350 sf; therefore divide the area ofthe wall that you are going to paint by 350. Round out the unevennumbers; if the remainders is more that .5 then order an extragallon, if it is under.5 then a couple of quarts should suffice

Please keep in mind you will need to subtract 20 sf for each doorand 15sf for each window. Here is an example: a 14’ x 20’ roomis 8’ tall with two doors and two windows, you will require 1gallon and 2 quarts of paint for a single coat.

To paint this room with **two coats** (which is recommended)you should purchase 3 gallons.

TO GET MORE INFORMATION ABOUT OUR PROGRAM:ICI Paints is now a member of GTAA. To help you make aninformed decision, and to find out how to receive preferredpricing, please contact Joanna Tiffin at ICI Paints at 416.209.3905or [email protected].

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 1 91 8 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

FOUNDATION AWARDS GRANTSThe Greater Toronto Apartment Association Charitable

Foundation awarded cheques totaling $70,000 to fourcommunity agencies working with the homeless andhard to house at its Annual Meeting on October 24, 2007.This is the second installment on what is hoped to be athree-year funding commitment.

The groups that received funding have completed arigorous application process and provided detailedsubmissions to the Foundation Board of Directors. The 2007-2008 commitments were as follows:

Massey Centre for Women - $20,000Interim Place - $20,000Horizons for Youth - $20,000Street Haven at the Crossroads - $10,000

FOUNDATION GETSSPECIAL DONATION

PROPERTY MANAGEMENT IN THE GTA SINCE 1987

CO

MM

ER

CIA

L/O

FF

ICE

. R

ET

AIL

. I

ND

US

TR

IAL

. M

ULT

I-R

ES

JOEL SNITMAN905-764-0869800-895-5897

[email protected]

G T A A

24 HOUR EMERGENCY SERVICE

173 ADESSO DRIVE, CONCORD L4K 3C3

TEL 905-760-0017 TEL 416-480-2247FAX 416-760-2001

ANAX OVERHEAD DOORS

New & Old Construction

All Electrical & Manual Operators

High Speed Rubber Doors

Commercial & Industrial Doors

Dock Shelters & Seals

Rolling Steel Doors

Dock Levelers

Repairs & Tune-ups 24/7

ANAX ROOFING SINCE 1987

Re-roofing Specialists

Industrial & Commercial

Condominiums & Apartments

Built Up - 2 Ply - Single Ply

Metal Sloping Roofs

Copper & Slate Roofs

Siding in Aluminum, Vinyl & Commercial

Maintenance & Repair

EXPERT PROFESSIONAL COMPETITIVE

Page 11: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 2 12 0 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

Page 12: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured
Page 13: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

MORE INFORMATION ON ROGERS’ RESIDENTIAL OPTIONS VISIT WWW.ROGERS.COM/CMA.

CABLE AND WIRELESS TECHNOLOGY OFFERS RESIDENTIAL TENANTS FREEDOM AND FLEXIBILITY

For those looking to make Canada’s largest city their home,there is no shortage of options when it comes to residential

housing. From booming new condo developments to athriving apartment rental market, there is something forevery lifestyle and budget.

Beyond bricks and mortar, there are also a wide range oftechnologies available for residential tenants designed tomeet their communications and entertainment needs.Advancements made over the past 10 to 15 years haveincreased access and awareness of new trends and consumersare quicker to adopt new technology than ever before. Theyalso have higher expectations of what they consider to besatisfactory experiences.

Think about it…20 years ago, families were happy with accessto a few TV channels and activities were planned (to a certaindegree) around the television programming schedule. Ascustomers began demanding more from their service providers,the technology evolved to meet that need – in this particularcase, personal video recorders (PVR) are now a major force inthe residential cable market.

One of the companies leading the way is Rogers. With itswell-established cable infrastructure and enhanced wirelessnetwork capabilities, the company offers higher capacityservices and innovations to meet the ever-growing needs oftoday’s – and tomorrow’s – residential consumers.

“We’ve witnessed the emergence of wireless and broadbandconnectivity and the rise in residential customers’ expectations first-hand,” says Mike Lee, Chief Strategy Officer at Rogers. “Our

commitment to developing next-generation technology continues tomake accessing information and entertainment from the comfort ofyour home more flexible and convenient.”

In today’s “information age”, customers have come to expectfaster speeds, wireless connectivity and access to moreentertainment content. Rogers for one, has invested in thetechnology to make this possible with network developmentssuch as its HSDPA cellular network, High-Speed Internet andTV entertainment options such as high-definition digital PVRs.

Twenty years ago, going wireless was a luxury and residentialcustomers paid a premium to be mobile. Today, mobile voiceand data services that connect at faster speeds than ever beforeare widely available. “Broadband (high-speed) connectivity hasreached a place where it can be considered the norm for mostresidential properties,” adds Lee. “In fact, close to 60 per cent ofhomes enjoy the convenience and speed of broadband access.”

What’s more, companies like Rogers are continually investingin new technology to modify and improve existing servicesas customers demand more from service providers.

Looking ahead to the next 20 years, Lee predicts furtheradvances to existing technology and foresees that wirelessInternet connectivity will grow as a key trend. Imagine anetwork PVR that could provide access to global televisioncontent with full time-shifting capabilities, or street signsthat detect your approach via wireless Internet embedded in your cellphone. With the groundwork already in place,these concepts could become a reality in the not-so-distantfuture.

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 2 5

G T A A

2 4 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

1-888-968-7491www.metrogroupcan.com

RECYCLING PROGRAM SOLUTIONS WHMIS TRAINED STAFF

Prompt Reliable Service*Compactor & Bin Repairs*Preventative Maintenance Programs

*Emergency Service*Mobile Welding

Standard & Specialty “towing” Casters

Waste & Recycling ContainersQuality Compaction Units*Standard, High Pressure & Specialty machines

Bin Moving Devices*Motorized hand-operated units

*Tractor Towed Bin Trailers

WILKINSON CHUTES CANADAT 416-746-5547 | F 416-743-5632

[email protected]

METRO JET WASH T 416-741-3999 | F 416-741-9088

[email protected]

Prompt Reliable ServiceALL MAKES/MODELS:*Replacement Doors, Cylinders, Flaps, Handles, Latches, etc. *ULC Fire dampers *Plugged chute service

Replacement Chute Liners*Best Industry Warranty

Quality fully weldedRubbish & RecyclingChutes

Electrical Safety“Lockout” Feature

PLC Control for variableoperating features*improved recycling

Quailty High Pressure Cleaning Services*Chutes, Compactors & Containers

*Underground & Parking Area sweeping/washing

CSA Approved MonthlyOdour Control MistingSystems

Scheduled Multi-Year“Rate Guaranteed” Maintenance Programs

Optional Services*Airshafts, Stairwells, Exhaust Fans & Draincleaning

METRO COMPACTOR SERVICET 416-743-8484 | F 416-740-8687

[email protected]

OVER 30 YEARS SERVICE

INTEGRITY / QUALITY / RELIABILITY

RELIABLE WASTE / RECYCLINGEQUIPMENT SUPPLY & SERVICE

Page 14: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

CONDITIONS OF ELIGIBILITYTo be considered for this program, the building must beconnected to the Toronto Hydro distribution grid for atleast (1) one year

The proposed project should result in a minimum of 3 kW of peak load reduction or has a minimum totalincentive value of $450.00.

More information:

There are three program streams: -3kW to 100kW | 100kW - 350kW | Over 350kW

Note: Projects that are signed up for other Ontario PowerAuthority (OPA) programs are not eligible.

6) CITY OF TORONTO - WATER CONSERVATIONThe City of Toronto offers the following incentives forreplacement of toilets:

$60 per low flow six-litre toilet installed.

$75 per high efficiency toilet installed.

$150 per rear-exit six-litre, or less, toilet installed.

up to $150 per six-litre or less flush-valve toilet.

The City of Toronto also offers property owners andmanagers up to $125 cash back for each new high-efficiency (HE) commercial washer that is purchased or leased.

More information: http://www.toronto.ca/watereff/index.htm

7) BETTER BUILDING PARTNERSHIP – TORONTO CENTRIC

Announcement coming in mid to late November

MORE INFORMATION:HTTP://WWW.TORONTO.CA/BBP

G T A A

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 2 72 6 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

G T A A

This information is provided to help assist those interestedin improving the energy efficiency of high-rise

structures. TAF does not guarantee the accuracy orapplicability of the information provided. Programs aresubject to change without notice. Incentives for newconstruction are also available – check with eachorganization. Interested parties should discuss details ofeach program with the appropriate organization.

1) ENBRIDGE GAS DISTRIBUTION’S ENERGY AUDIT INCENTIVES

Enbridge Gas Distribution offers financial rebates for energyauditing based on the lesser of:

A. $0.01/m3 of natural gas consumed at the applicablebuilding(s) during the most recently completed calendar year

orB. 1/2 the cost of the audit* up to $5,000

orC. 1/3 the cost of the audit* up to $5,000 if you

are receiving audit incentives from other sources.

For multi-residential a minimum of 25% of savingsidentified must be implemented to receive the auditincentive.

Audit incentive application and audit scope must be pre-approved by Enbridge and must materially meet therequirements of Enbridge’s Report Outline.

More information: https://portal-plumprod.cgc.enbridge.com/portal/server.pt?space=Opener&control=OpenObject&cached=true&parentname=CommunityPage&parentid=5&in_hi_ClassID=512&in_hi_userid=2&in_hi_ObjectID=360&in_hi_OpenerMode=2& (Click on Multi Residential)

2) ENBRIDGE GAS DISTRIBUTION’S ENERGY RETROFIT INCENTIVES

Enbridge Gas Distribution offers financial incentives forenergy retrofits, calculated on the projected first year’snatural gas savings using the following rates:

$0.05/m3 saved up to a $100,000 limit (regardless of thenumber of measures) or

$0.10/m3 saved up to a $30,000 limit (3 measures or moresuch as pipe insulation)

Incentives are remitted upon project completion. Enbridgepre-approval is required.

More information: https://portal-plumprod.cgc.enbridge.com/portal/server.pt?space=Opener&control=OpenObject&cached=true&parentname=CommunityPage&parentid=5&in_hi_ClassID=512&in_hi_userid=2&in_hi_ObjectID=360&in_hi_OpenerMode=2& (Click on Multi Residential)

3) NRCAN’S ECOENERGY RETROFIT INCENTIVE FOR BUILDINGS

Natural Resources Canada's ecoENERGY Retrofit Incentive isnot offering any more funding for 2007. The 2008 programhas not yet been announced.

4) OPA ELECTRICTY RETROFIT INCENTIVE PROGRAM (ERIP)

Under ERIP the Local Distribution Companies (LDCs) areoffering electrical demand management incentives toqualifying Institutional, Commercial and Industrial customerswith an electricity demand of 50 kW or more. Incentivesare provided at $150 per kW. The incentives are available forpre-approved projects that result in measurable reductions inelectrical peak demand. (See information on Toronto Hydroproject below).

More information:http://www.everykilowattcounts.ca/HTML/BusinessPrograms/BusinessPrograms/ERIP-overview.shtml

5) TORONTO HYDROThe Business Incentive Program includes multi-usecommercial, office, retail, private institution, grocery store,hotel properties, multi-unit residential properties andindustrial properties.

More information:https://www.torontohydro.com/electricsystem/business/bip/index.cfm

Financial Incentivesfor Energy EfficiencyRetrofits

OUR SERVICES:Fast Lease

Up Program*

Mystery Shops*

Accelerated CashFlow Program

*Hidden Value

Market Survey *

Sales Training*

Repositioning Study*

New ApartmentConstruction

”From market research tolease up, DALA’s programs areresults oriented. The best part

is, you only pay if it works”

WILLIAM J. WALSH, CHAIRMANBRISTOL CHICAGO DEVELOPMENT LLC

”Its always a pleasuredoing business with the

DALA Group. I can dependon results”

KELLY HOURIGAN, VICE-PRESIDENTATLANTIS REAL ESTATE

[email protected]

Tel: 1.800.898.0347 x29

creative | marketing | media placement

416.465.6600

Page 15: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 2 9

G T A A

SCARY APARTMENT BUILDINGS – BUT JUST FOR ONE DAY

Hundreds of apartment properties across the greater-Toronto area held special Hallowe’en parties and fun for

the whole family in lobbies and party rooms. Many hadprizes for costumes and for decorating of units and balconies.

Here are some pictures of what different buildings did fortheir residents and all the fun that was had!

G T A A

2 8 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

Page 16: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

UNHAPPY RESULTS FOR LANDLORDSON THE LEGAL FRONT IN 2007

Ontario Landlords achieved limited success at the OntarioRental Housing Tribunal (“ORHT ”), the Landlord and

Tenant Board and in the Courts this year. This article describesthe major decisions and their implications.

Section 136 of the Residential Tenancies Act, 2006 (the “RTA”)which deems rent to be lawful if the rent or a rent increase isnot challenged within a year was narrowed by the decisionof the Ontario Court of Appeal in Price v. Turnbull’s GroveInc. Price’s rent was increased without any notice of rentincrease being given. Price initially paid the increase butthen reverted to his former rent. Price filed an application inApril 2004 for return of illegal rent collected, which wasdismissed. Turnbull then filed an application with ORHT to terminate the tenancy for non-payment of rent. ORHTgranted the application, which was subsequently endorsedby the Divisional Court. Price then appealed to the Court ofAppeal. The issue on appeal was whether section 136 of theRTA [formerly section 141 of the Tenant Protection Act, 1997(the “TPA”)] which deems rent to be lawful after one year,applies where a rent increase was taken without giving anotice of rent increase? Rent increases taken without givinga proper notice are void according to subsection 116(4) of theRTA [TPA, subsection 127 (4)]. The Court of Appeal determinedthat “void” meant that the rent increase was a nullity, notmerely unlawful, so there was nothing to “deem lawful” byoperation of section 141 of the TPA [RTA, section 136 ]. TheCourt also commented that section 141 of the TPA [RTA,section 136] is not rendered useless, because there are othertypes of rent increases that are unlawful, but not void. TheCourt also left the door open to an argument of laches orestoppel as a defence.

This is one of the decisions where the landlord was notrepresented so that the implications of the Court’s earlierdecision in Wolkow v. Dunnell does not seem to have beenraised with the Court. In Wolkow the Court determined thata written notice of rent increase was so lacking in sufficientparticulars as to be no notice aat all. So it remains an openquestion as to what defects in a notice will render it voidsuch that the deeming provision of the RTA is ineffective.

In addition, the basis on which the purchase price of aproperty is calculated is put at risk by the decision. In thepast, as part of the due diligence only rents charged in theyear immediately proceeding the closing date were checkedfor legality as part of the purchaser’s due diligence. Thatpractice was based on the deeming provisions of the TPAand RTA. Notices of rent increase were checked to a degree.However, in view of the Price decision all past rent increasesnotices need to be reviewed.

The no-contracting-out provisions of subsection 2(1) of theTPA [RTA, subsection 3(1)] were revisited by the DivisionalCourt in 1086891 Ontario Inc. v. Barber. Barber received anotice of a rent increase that was effective May, 2002. Afterdiscussions with the property manager, Barber received aletter stating that after May, 2003 the “rent would be frozen atthat amount until you choose to vacate your unit”. The ownersubsequently gave Barber notice of rent increase whichBarber did not pay and, as a result,an application for arrearswas made to the ORHT. The ORHT found that the agreementwas unenforceable under subsection 2(1) of the TPA and thatthe doctrine of estoppel could not override a statute. Barberappealed to the Divisional Court. The Court, in dismissingthe appeal, noted that the agreement in this case would haveeffectively prohibited the landlord from increasing rent untilthe tenant vacated and that such an agreement would directlycontradict the landlord’s right to increase rent under theTPA. The Court said:

“The policy rationale behind ss.2 (1) [now 3(1)] is to treat tenantsand landlords equally. The subsection is designed to prevent partiesfrom bargaining away or waiving their statutory rights no matterwhat the circumstances … To permit a departure would create asignificant loophole which could dramatically impair the entirescheme of the Act.”

The Court also held that the doctrine of estoppel cannotoverride the TPA .Otherwise, it would allow the parties to doindirectly what they could not do directly – contract out ofthe statute.

G T A A

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 3 13 0 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

G T A A

The authors had thought the law on this issue was well settledso it is troubling that there was a dissenting judgment thatwould have allowed the appeal, finding that a landlord whocontracts out of the right to increase was no longer “lawfullyentitled” to increase rent under s.126.

The decision of the Divisional Court in Wrona v. TorontoCommunity Housing Corp. both clarified and addeduncertainty to the scope of the 24-hour notice of entryprovisions of the TPA and RTA. The Landlord carried out its annual inspection of smoke detectors and gave noticeidentifying a nine-hour window for entry. However, thetenant was home and let the workers in.

Subsequently, the tenant applied to the ORHT complainingabout an illegal entry. The Divisional Court found that thelandlord was required to give written notice including aspecific time of entry within the 8 a.m.– 8 p.m. window. TheCourt endorsed the following ORHT finding:

“I do not accept that the landlord is required to specify the exacthour and minute of a required entry … I do not find that a six-hourentry period complied with the requirements that the Landlordspecify a time of entry …”.

The Court found the landlord’s notice deficient and that theentry, even with permission at the time of entry, was illegalas follows:

“In our opinion, by failing to consider the legitimacy of the notice,the Tribunal erred in law and further erred in law in holding thatin the face of the defect in the notice, a consent to entry could operateas a waiver of the requirement for notice.”

The Court awarded the tenant $1,000.

The decision settles, albeit adversely to landlords, the concernabout overly broad notices of entry. A nine hour window istoo broad. However, the Court did not specify the properlength of time to be specified in a notice. Undoubtedly thatissue will be worked over the coming year.

The extent to which, if at all, the ORHT [now LTB ] couldaward damages under its authority on an application tomake “any order it considers appropriate” [RTA, clause 31 (1)(f)]was considered twice this year. In Mejia v. Cargini theDivisional Court determined that the ORHT [now LTB ] hasthe power to award general damages for a breach of right toquiet enjoyment, which is an obligation placed on thelandlord under the lease. The ORHT in Tenant v. Thorntonheld that the terms “damages” and “compensation” are usedinterchangeably in the TPA, and that “compensation” isintended as the plain language term for “damages” and thatthe Divisional Court has found that ORHT has the power togrant compensatory damages. Since aggravated damages arecompensatory in nature – to compensate for tangible andintangible injuries (e.g. distress and humiliation caused bythe actions of the offending party), the Tribunal found that it had the power to grant aggravated damages.

A piece of good news in an otherwise bleak year for landlordswas delivered in Puterbough v. Canada (Public Works andGovernment Services). Public Works rented out 300 homesthat were 50 to 100 years old which eventually requiredrepairs in excess of projected rental revenues. Public Workssought orders to terminate tenancies and evict some of thetenants for the purpose of demolition because it was toocostly to repair the homes. The tenants opposed the evictionon the grounds that Public Works was in serious breach ofthe landlord’s responsibilities. The ORHT found that PublicWorks was in breach of obligations under the Act, andordered abatement of rent in four cases and repairs in five(all) cases. It also found Public Works was in “serious breach”of its responsibilities in two cases and refused to granteviction orders. The Tenants appealed eviction orders andPublic Works appealed the decision not to terminate twoother tenancies. The Divisional Court held that the term“serious breach” must be considered in its entire context,within the scheme of the statute, the object of the Act andthe intention of the Legislature. It said:

continued on page 32

BY ROBERT G. DOUMANI AND TOM HALINSKIAIRD & BERLIS LLP

Page 17: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 3 3

G T A A - C H A R I T A B L E F O U N D A T I O N

“I interpret one of the Act’s primary objectives as being to ensure afair balance between the rights and obligations of both landlordsand tenants in the context of an historical power imbalance infavour of landlords.”

The Court also held that the objects and scheme of the TPA[now RTA ] is to achieve a balance between a landlord’s rightto possession and tenant’s right to reasonable treatment.

It also concluded that whether a “serious breach” exists mustbe determined through a pragmatic, balanced and contextualapproach including consideration of:

the length of time the deficiency existed

the causal connection between the failure to repair and the deficiency

the absence of efforts by the landlord to deal with the deficiency

the severity of the health and safety risks produced by the deficiency.

As well, a landlord must be in breach of its obligations at the time of the hearing, not at some point in the past, orpotentially in the future.

The Court held that,while numerous breaches existed,theywere not “serious”.

The Court confirmed that a landlord has the right to givenotice of termination if the landlord wishes to demolishpremises when faced with premises “that are in need ofsubstantial repairs or upgrading in order for the premises tocontinue to be usable as residential premises” and it held that:“The owner has the right to make a rational choice from a range of available options, one being demolition.”

This reasoning was applied even where the condition of thepremises has resulted from the owner’s neglect.

The Court of Appeal has declined to hear the appeal.

The reasoning of the Court of Appeal did not spare thelandlord in Murjay Construction Ltd. v. Abdslam et al. Thelandlord applied for an above guideline rent increase. Inresponse, the tenants claimed the landlord was in “seriousbreach” of its repair and maintenance obligations pursuant tos.126 (12) and (13) of the RTA. The alleged “serious” breaches

included:

Washer and dryers not functioning properly;

Dirty hallway carpets and a dirty sandbox;

A broken treadmill in the exercise room for two months;

The outdoor parking pad not being level; and

Dust and dirt throughout the building because of exteriorconstruction.

At the hearing,the tenant witnesses admitted that each issuewas not “serious”.

The LTB applied the following to determine whether therewas a serious breach:

the breach must first be current and unresolved.

the landlord must have either been advised by the tenant, or ought to have known of the breach.

in analyzing a breach a member must consider the:

nature of the alleged breach;

duration of time since the landlord became aware of; and

the reasonable effect or impact on the tenant(s).

The Board found,what seem to the authors to be trivial,breaches to be serious in nature and current and ordered thatthe rent could not be increased until the serious breacheswere remedied and a motion brought by the landlord. In sodoing, the Board reasoned:

“If a landlord fails to make a number of minor repairs required,forwhich notice has been given to the landlord,within a reasonabletime frame, or repeatedly ignores requests for necessary repairs ormaintenance, the landlord may be in serious breach of the landlord’sobligations in this regard. This should be so even if each one of theminor repairs, if considered by itself and without regard to the timetaken to repair, would not be considered to be severe or have areasonable adverse impact on a tenant.”

It is not possible to reconcile this decision on the issue of“serious breach” with the Divisional Court decision inPuterbough .

On balance, 2007 was not a good year for landlords.

On Saturday, November 10, 2007 150 children living inToronto’s shelter system were treated to lunch and treats

and a performance by the Famous People’s Players courtesyof the Greater Toronto Apartment Association CharitableFoundation.

These children would likely never be able to go to such anevent without the support of the Foundation. Post-eventreports said the children had a wonderful afternoon andspecial visits during the day.

Thank you to Lynda Marshall and the staff of the City of Toronto Shelter Division for arranging the trip andsupervising the children.

G T A A

3 2 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

150 KIDS GO TO FAMOUS PEOPLE’S PLAYERScontinued from page 31

Page 18: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

First Ever ClothingDrive Great SuccessDuring November a clothing drive in apartment properties

was conducted and coordinated through Bonnie Hoy &Associates for the greater Toronto Apartment Association.All clothing items were picked up by The Scott Mission andtransported to their Spadina Avenue clothing distributionlocation.

The Scott Mission was thrilled with the volume of clothingdonated much of which will help through the tough winterseason.

The Greater Toronto Apartment Association would like tothank the following companies that participated in thisyear’s drive.

THANKS AGAIN EVERYONE! WHAT GREAT SPIRIT!

TANDEM GROUP

MORGUARD RESIDENTIAL

HYDE PARK PROPERTIES

SCHICKEDANZ BROTHERS

CONCERT REALTY SERVICES

35 WALMER ROAD CONSTRUCTION

DEVONSHIRE PROPERTIES

YARDI SYSTEMS INC.

BERKLEY PROPERTY MANAGEMENT

GOLD SEAL MANAGEMENT

DMI PROPERTY MANAGEMENT

COINAMATIC CANADA INC.

BRIARLANE RENTAL PR4OPERTY MANAGEMENT

DENWIN INVESTMENTS

MYRIAD PROPERTY MANAGEMENT

GREENWIN PROPERTY MANAGEMENT

WILSTON PROPERTIES

WJ PROPERTIES

STERLING KARAMAR

ROGERS – MAJOR CONSUMER ACCOUNTS

G T A A

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 3 53 4 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

G T A A

Page 19: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

BUILDING ENVELOPE CHECKLISTFOR PROPERTY MANAGERSKEVIN DAY AND SAM EVANGELISTA

HOW LONG DO BUILDING ENVELOPES LAST?More often than not, property managers get varied opinionsfrom their consultants about how long their building envelopesystems should last. Figure 1 illustrates with the orange plotline the ideal performance cycle, versus the red plot lineindicating an ongoing problem. The two key parameters tomanaging your building envelope are money and time, butyou cannot do either without having knowledge of whatyour envelope is made of… To gain this knowledge, you needa checklist.

Figure 1: Ideal Service Life – Orange LineProblematic Service Life – Red Line

WHAT TIME CAN BE BOUGHT?Let’s start with the ultimate outcome in mind when addressingbuilding envelope problems… Ongoing problems do notalways require immediate system replacement – providedthe shortcomings are monitored in connection withmaintenance and strategic repairs. Deferring replacementwith strategic repairs enables better cash-flow and should beconsidered whenever possible. In assessing whether time canbe bought, or otherwise, considerations must include:

Evaluation of the risk of water penetration, and the extentand nature of damage; risks must be properly assessed; and

If there is mould, make sure it is isolated from the occupiedspaces – this can include indoor air quality (IAQ) testing;and

The capital plan (reserve fund) must be structured toreflect whether or not the building envelope componentsare at a satisfactory or marginal performance level.

When dealing with building envelope issues, a buildingmanager will get the best value from their consultants wheninsisting on:

1 Getting the full range of solutions explained, and get theassociated risks well qualified;

2 Ensuring practicality and logistics deal with both the causeand symptoms of problems;

3 Don’t rule out the opportunity to try small scale repairsand then monitor the performance; and

4 Full scale remediation should be viewed as a last resort.

A BUILDING ENVELOP CHECKLIST FOR PROPERTY MANAGERS…A building management team doesn’t need to know thepeculiarities and idiosyncrasies of their various buildingenvelope components, but do need to know three simplethings:

1. What building envelope systems are in place?

2. What is their general condition?

3. What allocation has been made for maintenance, repair and/or replacement?

Here’s the best plan of attack for managers to manage theirbuilding envelopes:

Go back and re-read the financial plans

List out the age of all primary building components,make sure a budget figure is assigned to each

Benchmark remaining service life against norms

Look for items that are missing

Question the budget amounts assigned

Budget for interim maintenance programs betweengeneral renewals (this may be carried in operationexpenditures, or could be in the capital plan)

Ask your consultants “What are all our options?”

G T A A

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 3 73 6 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

G T A A

Walk the building yourself – don’t be shy!

Call for help when you’re unsure of what you see

Investigating a small problem could be a simple fix,ignoring it could be a more expensive/complicatedfix

Keep good records - CRITICAL!

Record all maintenance activities and costs, andcapture this information in concert with thefinancial plan

Maintain a database of warranties (e.g., insulatedglazing units, roofing, etc.)

For leakage problems, keep track of:

Locations

Times/dates

Weather conditions

Take photos, make sketches

Don’t forget to get access to the space above, lookfor open windows, damaged finishes, etc.

Look for opportunities to combine work:

Weatherstripping replacement and operablewindow and hardware repairs

Sealant replacement and cladding maintenance

Window replacement and interior air sealing

PARTING THOUGHTS…Think about these during your next managementmeeting when the building envelope systems are beingdiscussed:

Building envelope systems all require different levelsof maintenance - seek to understand them, and gethelp when you need it;

Use consultants when you’re in over your head, butpush them to provide good value, and have themidentify options/benefits/risks, concise reporting withless jargon); and

Remember that proactive maintenance can reduce lifecycle costs and defer the need for costly replacements -do your part for the environment…

KEVIN DAY IS A BUILDING SCIENCE SPECIALIST WITHHALSALL – HIS PASSIONATELY SHARES KNOWLEDGE ANDPROACTIVELY ADDRESSES THE CHALLENGES OF MANAGINGBUILDING ENVELOPE SYSTEMS.

SAM EVANGELISTA IS HALSALL’S TORONTO REGIONALMANAGER – HIS GOAL IS TO ASSURE HALSALL’S CLIENTSGET SOLID ADVICE IN MANAGING THEIR BUILDINGS.

THEY CAN BE REACHED AT [email protected] AND [email protected].

Page 20: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

Tapestry at Village Gate West – CHANGING THE FACE OF RETIREMENT LIVING

Opening in spring 2008, Tapestry at Village Gate West hasbeen cleverly designed to promote fun, activity, wellness,

elegance and a maintenance-free lifestyle choice for today’sactive senior.

Located at 5129 Dundas Street West in Toronto and designedfor a new generation of seniors, the 11-storey concrete high-rise will include 168 rental suites and over 3,400 square feetof rental space in the established historic Islington Village.Similar to a luxury resort, Tapestry at Village Gate Westrepresents high-end quality living for seniors who valuetheir independence and want to pursue a fun and activelifestyle.

Community features include an elegant full-servicerestaurant and pub, concierge services, indoor swimming

pool, salon/spa, internet café and transportation services.“Tapestry at Village Gate West provides a new standard for whatretirement should look like,” notes Cathy Wallbank, generalmanager. “This community is designed for people who want toenjoy life, remain independent and have fun.”

Future residents at Tapestry at Village Gate West will alsoenjoy Leisure Care’s signature programs. With PrimeFit,™residents work with a certified personal trainer to create acustomized workout plan to keep them in top physicalshape. The Brain Fitness Program from Posit Science™ isanother extremely popular program that helps strengthenthe memory and keeps older minds vibrant. If residents feellike traveling, they contact Travel by Leisure Care, anaward-winning, full-service travel agency available in allLeisure Care communities.

G T A A

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 3 93 8 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

G T A A

“We also offer a full menu of assisted living/personalized Healthand Wellness Services if residents require,” added Cathy.

Spacious suites feature full kitchens with four burner rangeand front controls, refrigerator, dishwasher and maplecabinetry. All suites have individual climate control heatingand air conditioning, and many with balconies. Diningexperiences, weekly in-suite housekeeping, expanded cabletelevision, utilities, Town Car and complimentary laundryfacilities are just some of the other features that are alsoincluded.

With the impending opening of this new resort inspiredsenior living community, Tapestry will continue todemonstrate its commitment to providing amenities and

services that exceed traditional retirement living and buildfor a new generation of seniors.

TAPESTRY AT VILLAGE GATE WEST CO-OWNERSCommitted to redefining seniors living communities acrossCanada, Concert is developing and co-owns Tapestry atVillage Gate West with the Ontario Municipal EmployeesRetirement System (OMERS) and Sun Life Financial. Tapestryat Village Gate West will exemplify the commitment to meetthe needs of today’s seniors. Concert has also entered into anexclusive operating arrangement with Leisure Care RetirementCommunities. Leisure Care currently operates Concert’saward-winning seniors living community, The O’Keefelocated in Vancouver, BC.

Page 21: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

CONGRATULATIONS TO GLORIA AND HER TEAM FOR THE NEXT YEAR!

ANNUAL MEETING & DINNER FESTIVE FALL AFFAIRWith the room decked out in pumpkins and fall seasonal

decorations, 450 members of the Greater TorontoApartment Association attended the Annual Meeting andDinner on October 24, 2007.

Special guest speaker the Hon. Steve Mahoney, Chair,Workplace Safety & Insurance Board of Ontario brought aserious message about workplace safety and his view that“there are really no accidents.”

The annual Sam Grossman Award of Excellence was presentedto Evelyn Visconti of Tandem Group who has worked for morethan three decades in the property management field and wasrecognized for her contribution to the industry as well as theassociation.

A special presentation was made to outgoing Chair PaulSmith for the past two years of contribution. Awards for theMillennium Members of the association were also presented.

Events like this do not happen without the tremendoussupport of our sponsors for the evening each of whom wasrecognized this year on the big screens.

Thank you to all who attended and see you next year!

G T A A - A G M

D E C E M B E R 2 0 0 7 V O L . 6 N O. 3 B U I L D I N G B L O C K S 4 14 0 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

ANNUAL MEETING ELECTS NEW BOARDMembers of the Greater Toronto Apartment Association

elected seven directors to the Board who will serve for a three year term. Six directors seeking re-election were re-elected to the Board with one new director – Roger Palmer ofMorguard – also elected. The 2007-2008 Board is as follows:

Cora Armstrong – Schickedanz BrothersJack Beaton – Sterling KaramarTom Deutsch – Gold Deal ManagementDebra Fine – Barrister & SolicitorPerry Fryers – WJ PropertiesYehudi Hendler – YL Hendler Ltd.Rob Herman – Pace Property ManagementAndrew Kelly – Tandem ManagementMark Kenney – CAPREITEvan Kirsh – GWL Realty Advisors/Vertica Property ServicesRuth Lazare – Greenwin Property ManagementAnnette Mincer – Direct PropertiesIvan Murgic – Greenwin Property ManagementRoger Palmer – Morguard ResidentialMitch Rasmussen – Lawrence ConstructionJordan Rose – Glen CorporationGloria Salomon – Preston GroupPaul Smith – DMS Property Management

Martin Tovey – Minto ManagementSteve Weinrieb – Park Property ManagementMartin Zegray – Realstar Management

Further, at the first meeting of the new Board on November14, 2007, member of the Executive were also elected.

Gloria Salomon, ChairPerry Fryers, First Vice-ChairIvan Murgic, Second Vice-ChairMitch Rasmussen, Secretary

Yehudi Hendler, TreasurerMartin Tovey, DirectorMartin Zegray, DirectorTom Deutsch, Director

G T A A - A G M

Page 22: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

Vendor Integration:Everybody’s Talkin’

JOEL NELSON

Creating business excellence in the real estate industryrequires everyone involved to operate in sync. Integration

is in high demand: Just consider the number of transactionscomprising the residential process, including those involvingapplicant screening, as well as rent and utilities payments,maintenance, and other ongoing business; third-party servicecompanies that perform these functions are becomingincreasingly important elements of the residential real estatebusiness. This degree of interaction makes establishing andupholding industry-wide data exchange standards amongthe owner, tenant, and solution-provider stakeholders moreimportant than ever.

The most important benefit of third-party integration is theclient satisfaction that comes from efficient, transparentoperations. By interfacing seamlessly with their vendors,clients reduce redundant data-entry and therefore have lessopportunity to make keying errors. Moreover, the streamliningof processes allows more time to focus on their asset andproperty management core competencies.

The prospect of uniting hundreds of vendors performingdozens of functions under a common set of standardsinitially appears daunting. But the problem isn’t lack oftechnology; rather, the challenge arises from integratingdisparate databases and programming standards into acoherent, efficient single unit. Fortunately, the MultifamilyInformation and Transactions Standards, or MITS, recognizeshow important fully integrated property managementsystems are to enabling clients to integrate with peripheralservice providers. MITS, a collaborative effort of theapartment industry, has made the incorporation of commonindustry standards a lead priority and leads the effort towardestablishing data protocol. Moreover, the number ofcompanies using MITS as a key part of their softwareintegration is growing.

One example of vendor interaction is the MITS-compliantYardi Voyager Residential™ software system. Designed as afully-integrated, browser-based system for multifamily real

estate management, Voyager Residential combines accountingand property management data into a single database,enabling comprehensive, up-to-the-minute reports via theInternet. Voyager’s transparent system lets property ownersand managers maximize efficiencies, streamline theirworkflow, and improve communication within their differentprocesses. Such real-time pooling of data into one coherentview is truly a network-centric vision for real estate, onethat’s light-years from traditional applications that simplyprovide data exchanges between tenants and owners.

The common standards effort received a high-visibility boostin May, when 100 providers of varying services joined togetherat an inaugural vendor integration conference in SantaBarbara, California. The gathering featured a demonstrationof Yardi’s innovative Interface Program, designed to let YardiVoyager clients exchange important information amongapplications without having to re-key identical data intomultiple systems. Yardi will hold additional conferences andworkshops to advance this effort, and its website containsa section that allows both vendors and clients to requestinformation and submit their interest in the Interfaceprogram for their specific integration needs.

Fortunately, solutions are close at hand with advancedapplications. Enterprise management systems offer MITScompliant XML data exchanges between vendors in severalareas, including applicant screening, billing and payments,and Internet Listing. Lead tracking systems that track allevents, from initial visit to application to the move-in, areunder development; and the most mature of these interfacesto date address the applicant screening process, includingcredit checks.

With the conference successfully concluded, Yardi continuesto work with such vendors as CBC/AmRent, Kroll FactualData, and many others. Seamless integration has become areality and common data exchange standards will continueto emerge—and the residential real estate industry will bestrengthened as a result.

G T A A

4 2 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

Page 23: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured
Page 24: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured

4 6 B U I L D I N G B L O C K S V O L . 6 N O. 3 D E C E M B E R 2 0 0 7

Page 25: VOL. 6 NO. 3 DECEMBER 2007 GREATER TORONTO APARTMENT ... · rental property has ever benefited from a CMHC-insured mortgage loan, if it’s currently encumbered with an uninsured