CHBA-Victoria Blog

NEW CENSUS REVEALS GROWTH LINKED TO NEW HOUSING

2012-02-08T14:54:00.000-08:00

It comes as no surprise that Langford leads all local municipalities in population growth according to Stats Canada's latest census report http://www.statcan.gc.ca/daily-quotidien/120208/dq120208a-eng.htm

Langford's population increased by 6,769 from 2006 to 2011.

Most other municipalities showed marginal increases:
Victoria - 1,960
Saanich - 1,487
North Saanich - 266
Central Saanich - 191
Oak Bay - 107

The populations of Sidney and Esquimalt actually decreased.

Langford's development processes are the most efficient in the region and the city tends to welcome business and growth.

On the other hand, many other municipalities prefer traditional low-density community plans combined with inefficient, costly processes that discourage new development.

The census numbers speak for themselves.

New housing provides new arrivals with a place to live, and higher density supported by efficient development processes improve affordability.

Langford is leading the way in both housing starts and population growth.

HST+TAX UNCERTAINTY HAMMER SINGLE FAMILY STARTS

2012-02-08T11:03:00.000-08:00

CMHC's latest numbers show a -46% decline in single family housing starts in Greater Victoria compared with the same time last year. On the other hand, multi-family starts are up +143%. The upper price point for the HST rebate is $525,000 so condos are less impacted by the HST than new homes. http://www.chbavictoria.com/center/CMHC/housing%20starts%20for%20Jan.2012.pdf

Last year's referendum which went against the HST created tax uncertainty for consumers. They are waiting for the tax to be removed by the BC govt before moviung forward on new single family home purchases. Despite the fact that the decline has resulted in a buyer's market, where it now costs less to build a house with the HST, than it cost to build in 2007 without the HST.

The BC govt has an opportunity to provide relief by raising the HST rebate threshold, removing the Property Transfer Tax during the transition period, and other solutions. This should be part of the new budget to be announced on Feb 21, providing consumers with the confidence to move our economy forward.

CRYSTAL BALL PREDICTS FLAT MARKET - BUT WATCH FEB 21

2012-02-07T11:28:00.000-08:00

The speakers were unanimous predicting a flat housing market for 2012 at CHBA-Victoria's Crystal Ball Housing Forecast Monday night (Feb 6) at the Royal Colwood Golf Club.

However, we believe the existing low mortgage interest rates and an unemployment rate of about 6% in Victoria should be delivering a stronger market. We should not be mired the lowest single family housing starts in a decade. In fact, in 2011 every community in BC experienced double-digit declines in single family starts compared with 2010.

The primary reason for this is a made-in-BC problem called the HST. Many consumers are unclear about how the HST and the rebate formula are applied. As a result, BC's housing market remains challenged.

The decline in sales and prices means consumers can build a new home for less in today's market, than if they had built the same house during the boom several years ago - even with the HST applied.

There have been two buyers' markets in the past decade. The first was during the global financial crisis in 2009 and the second is now during the HST. The Crystal Ball forecasters predict a continued flat market in 2012.

However, if the BC govt provides HST relief for new construction as part of their upcoming budget on Feb 21, we believe that will lead to a significantly stronger housing market in 2012.

ECOENERGY BENEFITS CONSUMERS, CLIMATE

2012-02-07T10:45:00.000-08:00

The federal government is terminating the EcoEnergy Retrofit – Homes program after spending less than half of the original $400 million allocation. This was part of Canada’s Canada's Economic Action Plan which generated both jobs and greater energy efficiency in existing housing stock.

In the meantime, the government is focusing on making new homes more energy efficient through the National Building Code. Yet, new homes are already very energy efficient evidenced by a 30% increase in new housing contributing only an additional 1% in green house gases (GHG).

On the other hand, a study by Canada Mortgage and Housing shows older homes to be significant producers of GHG’s. Before renovations, data for older homes indicated between 10.6 and 43.8 air changes per hour with EnerGuide ratings between 55 and 18.

After renovations, air changes were reduced to 3.5 to 7.8 per hour and EnerGuide ratings improved to between 74 and 81. The annual energy saving to homeowners was between $1,460 and $1,813.

If the federal government is serious about reducing GHG’s, the EcoEnergy program should be restored. Renovations reduce demand for energy and save families money.

The previous Home Renovation Tax Credit program made similar contributions, including battling the underground economy. Renovation rebate/tax credit programs produce a paper trail, which discourage illegal contractors. This, in turn, increases tax revenue for government.

Plus, in our community of older homes and very high land costs, renovation programs contribute to housing affordability. They upgrade Victoria’s existing housing stock, increase comfort, and reduce energy costs for purchasers.

Rather than prematurely terminating programs, the federal government should be increasing renovation rebates and tax credits to upgrade Canada’s older homes, improve energy efficiency, create jobs, and discourage the underground economy.

A good start would be reinstating the EcoEnergy Retrofit-Homes program. Contact the Honourable Joe Oliver, Minister of Natural Resources at joe.oliver@parl.gc.ca

BUYER’S MARKET IS SILVER LINING

2012-02-01T11:34:00.000-08:00

According to CMHC’s recent Housing Outlook Conference, Victoria is a buyer’s market for housing.

One of the reasons is tax uncertainty created by the HST and transition back to the PST. As a result, single family housing starts are the lowest in a decade.

Last year, 609 single family homes were built. Previously, the lowest number was 629 homes in 2001, followed by 635 starts during the 2008/09 global meltdown.

Greater Victoria is not the only region suffering declines. Virtually every BC community experienced double-digit declines in new single family homes, resulting in significant job losses. The silver lining in this very dark cloud is a buyer’s market has emerged.

According to Stats Canada’s New Housing Price Index, prices in Victoria have declined about 12% since 2007. This outweighs added HST costs, especially when the rebate is included. A new home built in 2007, without the HST, would cost more than an equivalent new home in today's market with the HST.

If you are considering a new home purchase, keep in mind the HST is only one factor. The cost of a mortgage, land, materials and labour are also very important.

When the HST is removed, pent-up demand may increase some of these other costs. In addition, consumers will lose the HST rebate, up to $26,250.

Also, pay attention to CMHC’s monthly reports on single family housing starts. Despite a very tough year, the past three months have shown small increases. It is likely consumers are starting to realize they are in a buyer’s market, despite the HST.

If demand continues and prices rise, the increase in labour and material costs may be greater than any savings realized by waiting for removal of the HST.

Talk to a CHBA builder about building/buying a new home in today’s market with the HST. You might be surprised.

Visit us at http://www.chbavictoria.com/ and http://www.careawards.com/

CRYSTAL BALL HOUSING FORECAST- MONDAY FEB 6

2012-01-25T11:05:00.000-08:00

CHBA Crystal Ball Housing Forecast

Monday, February 6

CHBA-Victoria holds its 2012 Crystal Ball Housing Forecast on Monday, February 6, 2012 at the Royal Colwood Golf Club, 629 Goldstream Ave.

What is the projection for housing starts and sales in Greater Victoria and BC? What will be the impact of the HST, interest rates, and construction costs? Find out the answers to these questions and more.

MC: Lee King, Corporate Representative, Canada Mortgage and Housing Corporation
Speakers:
Mayor Carol Hamilton, City of Colwood
Cameron Muir, Chief Economist, BC Real Estate Association
Carol Crabb, President, Victoria Real Estate Board
Travis Archibald, Senior Market Analyst, Canada Mortgage and Housing Corporation

Time:
6:00 pm – reception
7:00 pm – dinner
8:00 pm – presentations
CHBA and VREB members - $50 plus HST
Non-members - $75 plus HST
(prices include dinner)

Book a seat at info@chbavictoria.com

RESTRICTIVE LAND USE POLICIES REDUCE AFFORDABILITY

2012-01-24T15:19:00.000-08:00

A recent editorial by CFAX 1070 News Director Murray Langdon hit the nail on the head.

http://www.cfax1070.com/index.php?option=com_content&view=article&id=4683%3Amurray-langdons-comment&catid=52%3Aeditorials&Itemid=115

Greater Victoria's high housing costs are forcing young families to relocate. This is due to restrictive land use policies in our region implemented by 13 municipalities, all with their own community plans. Why do we have 13 municipalities?

The BC govt has a unique policy in Canada called "self-determination for municipalities." BC has legislation that prevents forced amalgamations by the minister responsible for municipalities. See Section 279 of the Community Charter - No forced amalgamations

http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/03026_09

In other provinces, the minister can force an amalgamation if it is deemed to be in the best interests of the community. BC's legislation should be similar.

Housing affordability can be better addressed when we are able to create a community plan that reflects the needs of the region, including housing affordability, transportation, and infrastructure.

EXCELLENT CHBA WEBINAR ON CHANGES TO NATIONAL BUILDING CODE

2012-01-24T14:08:00.000-08:00

CHBA held an excellent webinar today on the proposed energy efficiency changes to the National Building Code. The webinar slides are at

http://www.chba.ca/uploads/trc/webinar/webinar%20presentation%20-%20final.pdf

The strong considerations for the changes included cost/benefit (affordability), constructability and achieving a reasonable national standard. They emphasized the importance of maintaining a national standard for many reasons such as consistency for manufacturers. In turn, this helps create jobs.

BC should adopt this national standard rather than continue to pursue its own path such as mandatory EnerGuide80. BC signed a national Memorandum of Understanding to participate in, and abide by, a national code. Our elected representatives agreed to “enact the National Building Code as the core document for building regulations in each province and territory with as few amendments as possible.”

All provincial Building Codes should meet the criteria of affordability, constructability and a consistent national standard.

BC's proposed mandatory EnerGuide80 does not meet these criteria.

CRYSTAL BALL HOUSING FORECAST POSTPONED

2012-01-18T08:51:00.000-08:00

The Crystal Ball Housing Forecast at Royal Colwood Golf Club is postponed due to snow. We hope to reschedule for early Feb. We apologize for any inconvenience.

BUILDING CODE REVIEWS ENERGY STANDARDS

2012-01-17T09:38:00.000-08:00

National standards are important to Canadians and a foundation of the country. A case in point is our National Building Code (NBC).

Canada’s NBC ensures research and due diligence is undertaken to create uniform regulations and “enhance public health and safety.”

A review of energy efficiency proposals for housing is underway at http://www.nationalcodes.nrc.gc.ca/eng/public_review/2012_1/introduction.shtml

The introduction to the changes makes some interesting points. Their intent was to achieve an Energuide Rating System (ERS) target of 80. However, they discovered:

“When the proposed requirements were validated, it was apparent to the technical committees that the current proposals achieved significant energy reductions even though they did not reach a rating of 80 in the ERS. When discussing requirements to achieve a performance level of ERS 80 on average across Canada, the technical committees were concerned about cost, enforcement and constructability issues.”

“The CCBFC Executive Committee agreed that the proposed requirements would achieve significant progress towards energy efficient construction while staying within the bounds of constructability. The energy reduction achieved through implementation of these requirements should avoid unintended consequences on other minimum code requirements that contribute to the acceptable performance of the house as a system.”

In other words, mandatory Energuide80 encountered challenges in terms of cost, constructability, enforceability, and unintended consequences. Better to achieve “significant progress” and stay within the bounds of constructability.

Last year, our Builders’ Council arrived at a similar conclusion.

The BC govt has been exploring mandatory Energuide80 for the BC Building Code and should pay close attention to these findings.

Unilateral provincial building standards erode our commitment to the NBC while increasing the risk of unintended consequences.

New housing has already achieved GHG emission targets established by the Kyoto Accord. Between 1990 and 2008, Canadian housing grew by 33%, while its GHG emissions grew by less than 1%.

Additional achievements in this field must adhere to the NBC and due diligence including cost, constructability, enforcement and special attention to unintended consequences.

TIMES COLONIST NEWS STORY SAYS IT ALL

2012-01-11T15:03:00.000-08:00

The following news story by Darron Kloster on the front page of today's Times Colonist pretty much says it all.

http://www.timescolonist.com/business/Single+family+housing+starts+sink+decade/5977407/story.html

Builders have said for the past year that the HST, referendum, and transition period back to the PST have hit the home building industry hard. This issue has cost jobs and much of it was unnecessary.

The BC govt already receives revenue of about $1 billion through the Property Transfer Tax, and adding the HST to new housing was just another way to generate more revenue from an already tax-burdened industry.

A decade low in new housing starts could have been avoided with some understanding of the new housing industry, consumers, and mitigation of the HST's impact.

The solution now is to provide an HST rebate to purchasers of all new homes regardless of price or remove the Property Transfer Tax, at least during the transition period.

The new housing industry cannot wait another year, while bearing the brunt of tax uncertainty created by the HST.

YEAR-END HOUSING STARTS IN VICTORIA

2012-01-10T16:28:00.000-08:00

The final tally for the year's (2011) housing starts was released today by CMHC. Total housing starts in Victoria were down -22% from 2118 units in 2010 to 1,642 in 2011.

Single family housing starts were down -26% at 609 units. That's the lowest number in a decade. We posted 629 units in 2001, followed by 635 during the 2008/09 global meltdown.

With the existing low interest rates and reasonable unemployment rate, the primary cause for the low starts particularly in single family is likely the HST and the tax uncertainty created by the referendum, and the transition period back to the PST.

The BC govt can mitigate this problem by removing the Property Transfer Tax on new housing during the transition period or raise the HST rebate threshold to include all new housing.

Slow construction, sales, and declining prices have created a buyer's market in Victoria. When the HST issue is resolved, we will likely see pent-up demand and prices responding to that demand.

Presently, lower prices combined with the HST rebate have created very good value in new housing.

The latest CMHC data on housing starts can be found at the link below:

http://www.chbavictoria.com/center/CMHC/CMHC%20Housing%20Starts%202011%20Vic.pdf

CRYSTAL BALL HOUSING FORECAST

2012-01-03T13:08:00.000-08:00

CHBA-Victoria holds its annual Crystal Ball economic forecast on Wednesday, January 18 at the Royal Colwood Golf Club. The focus is always on housing, which promotes employment in our region and contributes to a healthy economy.

The Crystal Ball MC duties will be ably handled by Lee King, Corporate Representative, Canada Mortgage and Housing. Economic forecasters in order of appearance will be:

Mayor Carol Hamilton, City of Colwood
Cameron Muir, Chief Economist, BC Real Estate Association
Carol Crabb President, Victoria Real Estate Board
Travis Archibald, Senior Market Analyst, CMHC

The forecasters will give their thoughts on the upcoming year, particularly in light of housing sales and starts experienced during the past 12 months.

So far, we have enjoyed low mortgage interest rates and reasonable unemployment rates in a recovering global economy. However, we have also witnessed a significant decline in single family home construction during the past year.

Why would this take place when economic fundamentals like low mortgage rates appear reasonably strong?

One reason is uncertainty in the marketplace, due mostly to the HST and transition back to the PST. This has created a decline in demand and housing prices resulting in a buyer’s market.

How will all of these economic considerations impact housing in 2012? Will an emerging buyer’s market restore consumer confidence? Will single family housing starts begin to increase despite the HST transition?

Don’t be the last to find out. Attend CHBA-Victoria’s Crystal Ball Housing Forecast on Jan. 18 and hear what the experts have to say.

For more information and to book a seat, contact info@chbavictoria.com.

Visit us at http://www.chbavictoria.com/ and http://www.careawards.com/. Join us on Facebook and Twitter.

BUYER’S MARKET IS SILVER LINING

2011-12-14T10:03:00.000-08:00

According to CMHC’s recent Housing Outlook Conference, Victoria is a buyer’s market for housing.

One of the reasons is tax uncertainty created by the HST and transition back to the PST. As a result, single family housing starts are the lowest in ten years.

So far, 576 single family homes have been built in 2011. Previously, the lowest number was 629 starts in 2001, followed by 635 starts during the 2008/09 global meltdown.

It's likely our region will fall between 616 and 626 new single family homes by year end, resulting in significant job losses. The silver lining in this very dark cloud is a buyer’s market has emerged.

According to Stats Canada’s New Housing Price Index, prices have declined about 12% since 2007. This outweighs added HST costs, especially when the rebate is included. A new home built in 2007, without the HST, would cost more than an equivalent new home in today's market with the HST.

If you are considering a new home purchase, keep in mind the HST is only one factor. The cost of a mortgage, land, materials and labour are also very important.

When the HST is removed, pent-up demand may increase some of these other costs. In addition, consumers will lose the HST rebate, up to $26,250.

Also, pay attention to CMHC’s monthly reports on single family housing starts. Despite a very tough year, the past three months have shown small increases. It is likely consumers are starting to realize they are in a buyer’s market, despite the HST.

If demand continues and prices rise, the increase in labour and material costs may be greater than any savings realized by waiting for removal of the HST.

HOUSEHOLD DEBT ON THE RISE

2011-12-13T14:32:00.000-08:00

Household debt in Canada rose to a new high according to Statistics Canada. The ratio of debt to personal income is now 152.98%, mostly due to mortgage debt. http://www.theglobeandmail.com/report-on-business/top-business-stories/debt-ratio-nearing-level-that-got-americans-into-trouble/article2269618/

A large part of the reason is three levels of government using new homebuyers’ mortgages as cash machines to pay for services, infrastructure and programs. New homes are subjected to tax pyramiding in the form of HST, Property Transfer Tax, Development Cost Charges, permit fees, and levies for community amenities.

These programs are part of the community’s social responsibility, and should be paid for through the general tax base, including income tax and property taxes. However, rather than raise voters’ taxes, elected officials are offloading costs onto new housing developments, not yet occupied by voters.

Most new homebuyers are unaware that up to 19% of their mortgages include taxes and fees that are a responsibility of the general population. Of course, new homebuyers are also part of the general population, and will pay property taxes, so they are taxed multiple times.

Government’s use of mortgages as cash machines to fund services and programs is unsustainable, prevents young families purchasing a home, and erodes our financial security.

How can consumers prevent the offloading of government programs onto their new homes?

Send this blog to your elected representatives at the municipal, provincial and federal levels. Let them know ALL taxpayers are responsible for programs and services used by the community.

SINGLE FAMILY HOUSING DECLINE CREATES BUYER'S MARKET

2011-12-08T15:30:00.000-08:00

According to the latest CMHC Housing Outlook Conference, Greater Victoria is presently in a buyer's market for housing.

The latest data shows single family housing starts in Victoria are one of the lowest in a decade.

As of November, there were 576 single family starts in 2011. The worst year in a decade was 2001 at 629 starts followed by the 2008/09 global meltdown with 635 starts. December numbers will be known in January, but it's likely that number will be 40 - 50 starts, putting Victoria between 616 to 626 for the year.

This is a made-in-BC recession thanks to the HST and the politics around it. The lack of tax certainty has made consumers hesitant to purchase new homes.

However, what many consumers don't realize is the HST has also created a soft market, which is to the buyer's advantage. According to the new house price index, costs have declined about 12%. This outweighs any additional costs incurred by the HST, especially when the rebate is included. Even with the HST added, a new home purchased in 2007 would cost more than an equivalent new home in today's market.

If consumers wait for removal of the HST, they also lose the rebate. It's also likely that pent-up demand will increase housing costs, especially materials and labour.

The HST is one factor for consideration in the purchase of a new home. The cost and availability of a mortgage, land, materials and labour are also very strong considerations.

The past three months have shown some increases in housing starts. This is likely the result of consumers realizing they are in a buyer's market, despite the HST issue. If this continues and prices rise, the costs may be greater than any savings realized by removal of the HST.

TAX CERTAINTY WILL CREATE JOBS

2011-11-30T11:04:00.000-08:00

British Columbia has the ability to create thousands of jobs in every community by mitigating the HST’s impact and restoring consumer confidence.

Presently, the housing industry is building about 26,000 new homes resulting in 78,000 full time jobs. This is skilled, well-paid employment created throughout BC.

Still, we can do better.

In 2007, the industry built 39,000 new homes representing about 117,000 jobs in British Columbia. We have lower lending rates now than we did in 2007, and consumer demand for housing continues.

Considering today’s low mortgage rates, we should be building at least 32,000 new homes, which would create 96,000 jobs in BC. That’s 18,000 more jobs than we are generating this year.

What’s getting in the way?

The main obstacle is uncertainty about the HST. Consumers want to buy new homes, but many are waiting for the transition back to the PST. This uncertainty is a made-in-BC problem, preventing job creation when we need it most.

There are many ways to boost tax certainty and restore consumer confidence. These include providing a full HST rebate for all new homes, or perhaps removing the Property Transfer Tax on new homes during the transition period.

Creative solutions are necessary to restore both confidence and BC’s job creation potential. While the HST may be a challenge, it is a challenge the province has some control over.

Eighteen thousand additional good-paying jobs mean healthier communities and more income tax revenue.

We can get there if tax certainty and confidence are restored.

IMPROVING HOUSING AFFORDABILITY by Cam Hayward, President, CHBA-Victoria

2011-11-16T14:25:00.000-08:00

In my first column as CHBA-Victoria’s new President, I want to thank Past President Lee MacFarlane for his hard work and many accomplishments in 2010/11. During the past year, Lee and the association worked on behalf of consumers to address issues ranging from housing affordability to the BC Building Code. I am pleased to continue his efforts and those of CHBA-Victoria’s Past Presidents.

Improved housing affordability in our community can be achieved if elected officials resist treating new housing as a cash machine. One example is triple taxation by the Property Transfer Tax. The PTT is paid each time to the BC govt when land is transferred from land owner to developer, developer to builder, and builder to new home buyer. This adds thousands of dollars to the cost of developing new homes, costs which are paid by the consumer. The PTT should be removed from development phases to reduce the cost.

In addition, to restore consumer confidence, the HST on new homes should be transitioned back to the GST/PST as soon as possible. Also, the GST New Home Rebate should be indexed to inflation. In 1991, the GST rebate applied to 90% of new homes sold in Greater Victoria. Today, due to erosion by inflation, the rebate applies to less than 10% of new homes.

One of the most effective ways to assist affordability would be the amalgamation of Greater Victoria’s 13 Mayors, administrations and councils into one or two municipalities. This would create better planning, improved transportation, and uniform rules for development, permit, and code regulations, to name a few benefits.

It is estimated government taxes and fees represent 20% of the cost of a new home. In our community, that represents $100,000 on a $500,000 home. When the $100,000 is added to a mortgage, new home buyers pay double due to interest, or about $200,000 over a 25 year term.

Improving affordability is not complicated, but it does require an understanding of the impact of taxes and bureaucracy on housing. One way to achieve better understanding is to make elected officials and the public aware of the issues above, and that is what I will continue to do in this column.

For more information, visit us on Twitter, Facebook, and read our blog at www.chbavictoria.com CHBA members’ award winning homes at www.careawards.com

CHBA-VICTORIA ANNOUNCES NEW BOARD OF DIRECTORS

2011-11-10T13:44:00.000-08:00

CHBA-Victoria’s 2011/12 Board of Directors was sworn in at its Annual General Meeting held November 9 at the Royal Colwood Golf Club.

The new Board is represented by:
President: Cam Hayward, Windcrest Homes Ltd.
Past-President: Lee MacFarlane, AV Energy Ltd.
First Vice-President and Builders’ Council Chair: Wilf Gorter, Gorter Construction Ltd.
Second Vice-President: Bill Patterson, Città Group
Treasurer: Clinton Wark, CareVest Capital Inc.
Suppliers’ Council Chair and Director: Daria Bunting, Edgar and Miner Floor Coverings Ltd.

Directors:
Daria Bunting, Edgar and Miner Floor Coverings Ltd.
Maurizio Conforti, Conforti Homes Ltd.
Mike Dunsmuir, Step One Design
Stephen Hughes, Home Check
Terry Johal, Terry Johal Developments Ltd.
Jenny Martin, Jenny Martin Design
Mike McDougall, Mclaren Lighting
Tim Schauerte, James’ Joinery Ltd.

The Annual President’s Awards were presented to:
President’s Award – Cam Hayward, Windcrest Homes Ltd.
Jerry Hepburn Memorial Award – Bob Harris, R.N. Harris Homes Ltd.
Sponsors Appreciation Award – McLaren Properties and Residential Construction Industry Training Organization (RCITO)
Service Award - Wilf Gorter, Gorter Construction Ltd; Ines Hanl, The Sky is the Limit Design; Jenny Martin, Jenny Martin Design; Bill Patterson, Città Group; Gordon English, Genco Construction Ltd; Ron Egli, Ron Egli Construction and Design Ltd.
Ocean Construction Award – Times Colonist
Marilyn Ann Lee Award – Ron Bickford, Rob-Ron Developments Ltd.

The Executive Achievement Award was presented by Past President Ron Egli to outgoing President Lee MacFarlane for his work on education and training, consumer advocacy and housing affordability.

The 2011 AGM and New Product Showcase was sponsored by Canada Mortgage and Housing Corporation, and featured a presentation by Allan Dobie on energy efficiency and housing affordability.

FINAL THOUGHTS STARTING WITH “A” by Lee MacFarlane, President

2011-11-09T11:44:00.000-08:00

In my final column as President of CHBA-Victoria, I would like to raise the “A” word – Amalgamation.

It is municipal election time, and our small region of 340,000 is electing 13 mayors and almost 100 councilors, overseeing 13 planning depts.

This seems to defy logic if we support good regional planning, consistent regulatory standards, and a strong voice to secure govt funding of major infrastructure projects.

Fewer municipalities mean better regional planning to identify areas for high density, protect environmentally sensitive areas, and create better infrastructure for our population.

Fewer municipal administrations create more consistent Building Code interpretations and processes, which now vary from 6 to 8 weeks for a building permit in one municipality to only 3 days or less in another municipality.

Also, small municipalities don’t carry the weight necessary to impact funding decisions in Ottawa. We will need funding for affordable housing and improved infrastructure in our near future.

For example, one third of Canada’s population will be retiring during the next fifteen years. Greater Victoria is a primary destination, requiring facilities to support the influx of baby boomers, including more efficient transportation systems.

In 1980, Calgary began building their Light Rail Transit system with a population similar to Greater Victoria’s today. Calgary now has a population of about one million people, and they’re patting themselves on the back for having the foresight to build the LRT.

The LRT was possible because Calgary has a ward system - a form of municipal unification. Small communities exist as part of a single municipal council, where their representatives must work together on issues impacting the region.

Now is the time for Greater Victoria residents and municipal candidates to include responsible regional planning in the campaign discussion, starting with reducing the number of municipal administrations.

Thank you for reading, and for your support during the past year. Welcome and best wishes to Cam Hayward, President-elect, CHBA-Victoria.

GOOD NEWS AND BAD NEWS

2011-11-02T09:29:00.000-07:00

First, the bad news. Single family home building has posted double digit declines throughout BC. The following statistics from CMHC represent the reduction in single family housing starts in 2011 compared with 2010.

Vancouver -23%
Victoria -31%
Abbotsford -31%
Kelowna -16%
Chilliwack -44%
Kamloops -39%
Nanaimo -40%
Prince George -25%
Vernon -39%

The HST, referendum, and transition have hammered new single family housing resulting in thousands of lost jobs in BC. The govt could create jobs in every community by removing the rebate threshold and restoring tax certainty during the transition back to the PST.

Now here’s the good news for new homebuyers.

Price reductions accompany soft markets. According to the New Housing Price Index, (Stats Can), new home prices declined -12% from 2007 to August 2011 in Greater Victoria. This represents a reduction of $72,000 on a $600,000 new home priced in 2007. Plus purchasers receive the HST rebate up to $26,250.

There have been similar reductions in the Construction Price Index for those considering building or a renovation.

Add historically low interest rates, and it appears conditions for purchasing a new home or renovating are much better than popular belief. The HST is dominating consumer decision-making rather than facts.

If you are considering a new home, do your research and assess the conditions objectively. Talk to professional home builders and renovators about the market.

While the HST has created challenging times for builders, the same is not necessarily true for consumers considering a new home or renovation.

For a list of CHBA builders and renovators, visit http://www.chbavictoria.com/.

WE’RE NOT SO DIFFERENT

2011-10-25T16:52:00.000-07:00

The Victoria Real Estate Board recently held a Saanich All-Candidates forum where issues ranging from secondary suites to planning for LRT were addressed by those seeking office.

The candidates seemed sincere in their desire to participate in the development of their community, but sometimes it takes more. Knowledge and understanding of your community’s challenges are also critical to being an effective representative.

For example, the question asked by the Canadian Home Builders’ Association was, “Will the candidates review concerns that Saanich takes four times longer to process half the number of building permits processed in Langford?”

Many of the candidates dismissed the issue with the response, “Saanich is different than Langford.” In fact, some of the candidates confused building permits with development/rezoning applications. Regardless, the feeling among most was there’s no problem.

However, candidates Rob Wickson and Leif Wergeland, recognized the issue as one of administrative efficiency. Wickson is a former Victoria and BC Chamber President and understood, “Time is money.”

Wergeland suggested everyone should go through the building permit process for a good look at what builders and their clients experience. To their credit, both Wergeland and Wickson were open to improving Saanich’s administrative processes. Voters deserve open and forward thinking candidates if we are going to successfully plan for the future.

Candidates promoting differences among us isn’t a solution for future challenges. It is not reasonable to accept that a building permit in Saanich takes 4 to 6 weeks, yet the same permit takes only 3 to 4 days in Langford, 15 minutes away.

Add differences in our region’s building code interpretations, inspections, policing, planning, and it seems we’re manufacturing differences rather than emphasizing similarities.

The fact is, we are not so different in this community of 340,000, and it’s time our elected representatives recognized this.

At the very least, candidates should address the issues at election time, administrative and otherwise, rather than using language intended to separate us.

HOUSING CREATES JOBS IN BC

2011-10-12T10:14:00.000-07:00

The BC govt’s Budget Consultation is underway at www.leg.bc.ca/budgetconsultations and now is the time for the public to participate and support job creation in our community. The consultation deadline is October 14.

One of the questions asked in the consultation survey is: “How do we create the jobs future generations will depend on?”

The answer is clear – housing creates jobs.

New home construction and renovations create jobs in every community throughout British Columbia. It is an industry requiring skills and training, which young people can acquire at local educational institutions like Camosun College.

Greater Victoria’s residential construction industry should produce about 2000 new homes annually creating about 6,000 jobs. However, due to the HST and the referendum, housing starts have declined this year by about 25% for multi-family construction and 31% for single family. This represents a loss of 1,500 skilled jobs in our region.

Lengthy tax transition changes like the HST to PST have created an atmosphere of uncertainty for consumers. Uncertainty puts a freeze on consumer and investor spending, which creates job losses.

A strong economy requires confidence and the govt can help restore confidence by implementing measures to buffer the impact of the HST to PST transition.

Create jobs in BC by expediting the change from HST to PST, and offer a transition rebate on all new homes, regardless of price. Other helpful initiatives include a tax credit to encourage renovations and removal of the property transfer tax, at least during the transition period.

The formula for creating good skilled jobs is not complicated. The existing low interest rates increase affordability and give people the confidence to buy homes if the tax rules are clear and fair. The resulting demand for homes will create jobs.

Premier Christy Clark and her government can create that environment by expediting the HST to PST, and buffering the impact on those purchasing a new home during the transition.

The result will be restoration of consumer confidence and more skilled jobs in communities throughout BC.

For more info, go to http://www.chbavictoria.com/ and http://www.careawards.com/

Victoria loses 1,900 jobs in September

2011-10-08T22:36:00.000-07:00

“What’s really needed now is a kickstart in the housing industry. The B.C. government has to wake up and realize new housing creates jobs in every community throughout the province. If they are looking to create jobs that’s how to do it.”

Read more: http://www.timescolonist.com/business/Victoria+loses+jobs+September+sign+economic+uncertainty/5519203/story.html#ixzz1aGAvSE2i

PROJECT OF THE YEAR IS THE PEOPLE’S CHOICE AT 2011 CARE AWARDS

2011-09-18T13:31:00.000-07:00

Windward Oaks, a Maclure-style, ocean-front home by M. Knight Construction Ltd. was the judges’ favourite and the people’s choice at the 2011 CARE Awards (Construction Achievements and Renovations of Excellence), attended by 300 builders trades and suppliers at the Fairmont Empress Hotel the evening of Friday, Sept 16.

Windward Oaks won seven Gold CARE Awards including Project of the Year – Single Family, in addition to the People’s Choice Award. The People’s Choice Award is chosen by consumers casting ballots for their favourite CARE Awards project on display during the summer at Mayfair Shopping Centre, Hillside Centre, and online at http://www.careawards.com/.

Project of the Year- Multi-Family/Mixed/Use Commercial was won by Thornbridge at Longwood, a development by InSight Holdings Ltd. which also won Best Multi-Family/Townhouse Project and Best Overall Marketing Campaign.

“This year’s CARE Awards marks the 20th anniversary of celebrating excellence in home building on Vancouver Island,” says Ron Egli, Chair of the 2011 CARE Awards. “Congratulations to all of the Gold winners and Finalists for again displaying outstanding innovation and workmanship.”

Other multiple CARE Award winners include Città Group, Jenny Martin Design, Swiftsure Woodworkers Ltd., Verity Developments Ltd, smithdesigns, Icon Developments Ltd, Method Built Homes, and The Sky is the Limit Design.

Built Green™ BC Builder of the Year was awarded to Verity Developments Ltd. for their work on environment-friendly housing, and the Lifetime Achievement Award went to Pat Caporale, Caporale Construction Ltd. for his efforts to promote housing affordability and education and training. Ines Hanl, The Sky is the Limit Design won the "Building Better Futures" Community Award for her volunteer work to create a Multi-Sensory Studio for children with critical illnesses at the Victoria Conservatory of Music.

“The CARE Awards is an opportunity to celebrate housing in our community, including professionalism, creative design, and sustainability,” says Casey Edge, Executive Officer, CHBA-Victoria. “I invite the public to visit www.careawards.com and view these winning projects.”

The Gold CARE Award winners are, in the opinion of the judges, the very best projects incorporating specific criteria including unique design, function, creative use of space, compatibility with the environment, energy efficiency, effective land use, and cost. For more information on home building professionalism, go to www.chbavictoria.com and http://www.chbacvi.com./

The Canadian Home Builders’ Associations of Vancouver Island thank the following 2011 CARE Awards Sponsors:

GOLD Coast Capital Savings; FortisBC; McLaren Properties Ltd.; National Home Warranty Group Inc.

SILVER BC Construction Safety Alliance; Residential Construction Industry Training Organization; Travelers Guarantee Company of Canada; Victoria Real Estate Board

MEDIA CTV; Shaw Communications; Times Colonist; Western Living Magazine

CATEGORY BC Hydro Power Smart

Gold Winners of the 2011 Care Awards

Best Single Family Detached Custom Home Under 2,500 sq. ft.
Rayn Properties Ltd. - 155 Levista

Best Single Family Detached Custom Home 2,500 - 4,000 sq. ft.
Icon Developments Ltd. - Rainforest

Best Single Family Detached Custom Home Over 4,000 sq. ft.
Method Built Homes - Eagles Nest

Best Single Family Detached Spec Home Under 2,500 sq. ft.
Limona Construction - The Plateau

Best Single Family Detached Home $1,000,000 - $1,500,000
Città Group - Eden

Best Single Family Detached Home $1,500,000 - $2,500,000
R. Parsons Construction Ltd. - Island Retreat

Best Single Family Detached Home Over $2,500,000
M. Knight Construction Ltd. - Windward Oaks

Best New Subdivision
Verity Developments Ltd. and Westhills Land Corp. - Lakeview Ridge

Best Multi-Family / Townhouse Project
InSight Holdings Ltd. - Thornbridge at Longwood

Best Outdoor Living Space Under $50,000
Città Group - Eden

Best Outdoor Living Space Over $50,000
M. Knight Construction Ltd. - Windward Oaks

Best Home Design
M. Knight Construction Ltd. - Windward Oaks

Best Residential Renovation or Restoration Under $125,000
The Sky Is The Limit - A Royal View

Best Residential Renovation or Restoration $125,000 - $300,000
ConstructoGroup - Esquimalt Second Floor Addition

Best Residential Renovation or Restoration Over $300,000
T.S. Williams Construction Ltd. - Pebble Beach

Best Kitchen Under 225 sq. ft.
Method Built Homes - Eagles Nest

Best Kitchen 225 - 250 sq. ft.
Swiftsure Woodworkers Ltd. and Jenny Martin Design - Arioso

Best Kitchen 250 - 450 sq. ft.
JC Scott Design Associates - The Beach House

Best Kitchen Over 450 sq. ft.
Jenny Martin Design - Broadview

Best Bathroom Under 125 sq. ft.
The Sky Is The Limit - Angled Vision (Ensuite)

Best Bathroom 125 - 175 sq. ft.
smithdesigns - Island Acreage

Best Bathroom Over 175 sq. ft.
Jenny Martin Design and Swiftsure Woodworkers Ltd. - Arioso

Best Master Suite Under 800 sq. ft.
Città Group - Eden

Best Master Suite Over 800 sq. ft.
M. Knight Construction Ltd. and Swiftsure Woodworkers Ltd. - Windward Oaks

Best Media Room
M. Knight Construction Ltd. - Windward Oaks

Best Interior – Residential Under 1,500 sq. ft.
smithdesigns - Urban Retreat

Best Interior – Residential 1,500 – 2,500 sq. ft.
Jenny Martin Design - Arioso

Best Interior – Residential 2,500 - 6,000 sq. ft.
Abstract Developments Inc. - Silverstone

Best Interior – Residential Over 6,000 sq. ft.
Jenny Martin Design - Broadview

Best Custom Millwork Under 4,000 sq. ft.
Gary Sandhu Developments Ltd. - Players Drive

Best Custom Millwork 4,000 - 7,000 sq. ft.
Città Group - Eden

Best Custom Millwork Over 7,000 sq. ft.
M. Knight Construction Ltd. - Windward Oaks

Best Commercial Project
B Cubed Construction Ltd. - Garagemahal

Customer Service
Verity Developments Ltd.

Best Sales Centre or Showroom
The OneTouch House Showroom

Best Website
Totangi Properties Ltd. - Woodland Creek

Best Overall Marketing Campaign
InSight Holdings Ltd. - Thornbridge at Longwood

Award for Outdoor Environmental Achievement
Palladian Developments Inc. and C.A. Design-studio - Qualicum Landing

Award for Indoor Environmental Achievement and Energy Efficiency
Icon Developments Ltd. - Rainforest

Built Green™ BC Builder of the Year
Verity Developments Ltd.

CARE Awards Project of the Year – Single Family
M. Knight Construction Ltd. - Windward Oaks

CARE Awards Project of the Year – Multi-Family / Mixed Use / Commercial
InSight Holdings Ltd. - Thornbridge at Longwood

People's Choice Award
M. Knight Construction Ltd. - Windward Oaks

Lifetime Achievement Award
Pat Caporale, Caporale Construction Ltd.

"Building Better Futures" Community Award
Ines Hanl, The Sky is the Limit

Heritage Project Award
The Sky Is The Limit and Gorter Construction Ltd.
Herman Rebneris Student Carpentry Award
Jake Douglas, Belmont Secondary School

Best Apprentice
Cyr Becker, Città Group

VICTORIA PLAN COSTS HOMEBUYERS

2011-09-14T09:40:00.000-07:00

A draft plan being considered this week by Victoria’s City Council could significantly increase the cost of housing.

The plan requires developers of high density projects provide 75% of the “lift” or land value to the City of Victoria. Project soft costs represent about 25%, so there’s little remaining for the development.

This policy will increase costs for new homebuyers. The cost of the tax will be absorbed by the price of the units, so purchasers’ mortgages will pay for the City’s fee.

When taxes are added to mortgages, purchasers pay almost double the cost. For example, up to 20% of a new home is taxes. The average price of a home in Victoria is about $600,000, so purchasers pay $120,000 in taxes and fees. The payment is closer to $230,000 when applied to a mortgage at 6% over 25 years.

It’s no wonder household debt in Canada rose to a new high this year, mostly due to mortgage debt. Governments continue treating mortgages as sources of revenue.

Good planning principles suggest Victoria’s core is suitable for higher density projects. These projects will improve downtown and transit use, create jobs, and increase the property tax base for the City of Victoria.

Through property taxes, the City will financially benefit, without taking any risk inherent in development. The capital and risk required are significant, factoring in the economy, interest rates, labour and material costs, and consumer demand.

The City’s proposed plan will likely discourage development, increase housing costs, and undermine good planning principles. In 2011, 29% fewer new homes have been built compared to last year, so this plan further undermines new house construction.

In fairness, the plan does offer medium density projects appropriate land value, but this should be extended to high density projects as well.

On Thursday, Sept 15, 7:30 pm, Victoria’s draft downtown core area plan will go to a public hearing, and future homebuyers will want their voices heard.

BC EXTINGUISHES THE HST

2011-08-31T08:34:00.000-07:00

British Columbians recently extinguished the HST by a vote of 54.73% to 45.27%. It was not an easy decision.

There are benefits and efficiencies to harmonizing taxes, however extensive consultation with the public and those most impacted is essential.

Even if the BC govt had not decided before the 2009 election to implement the HST, it was important to engage in a consultation with the public after the election. This wasn’t done, and the result was the HST’s defeat by referendum.

The provincial portion of the HST was another new tax on housing, in addition to the federal GST, BC’s Property Transfer Tax, municipal DCC’s, permit fees, and a myriad of funds for civic amenities.

Greater Victoria has some of the highest priced housing in North America. Adding the HST put new homes further out of reach for consumers, and made new homes less price competitive with existing homes. This is not a good formula for creating skilled jobs in our community.

The HST housing rebate was not indexed to inflation and the value would be eroded over time, similar to the GST New Housing Rebate. Also, the renovation sector reports the HST boosted the demand for cash deals, increasing the underground economy and making legitimate contractors uncompetitive.

The HST and referendum put a chill in Greater Victoria’s housing sector. Housing starts in Greater Victoria declined by 26% overall, and single family homes decreased by 39%.

According to govt officials, it will take 18 months to reinstate the PST. While it is important to ensure it is done efficiently and correctly, there is a concern homebuyers may postpone their purchasing decisions for 18 months, despite the fact that we are presently in a softened buyer’s market.

Premier Christy Clark has said her priority is job creation. This is best accomplished by introducing an administratively efficient and effective PST as soon as possible. The result will be more new home construction and jobs in communities throughout BC.

NEW HOMES NEED VOTERS

2011-08-17T09:54:00.000-07:00

What would you do if a govt official knocked on your door, and ordered you to spend $8,379 to increase your home’s energy efficiency? Despite the fact your home is the most energy efficient on the street and compliant with Kyoto Accord standards.

What if the official appeared yearly, and in addition to property taxes, required you to spend thousands of dollars on home upgrades and new contributions to govt?

Most would say they can’t afford it, yet this is how provincial and municipal governments treat new homes in BC.

New homes are treated this way because they’re not occupied by voters, like existing homes. There is less risk of voter backlash for elected officials adding new taxes and regulations to new housing.

Here is an example. The govt’s proposed mandatory Energuide80, prior to new National Energy Code standards, will add a minimum $8,379 to the cost of new homes. Double this cost when amortized over 25 years on a consumer’s mortgage.

It’s unnecessary. New homes are very energy efficient, about 4 times more efficient than older homes, and meet Kyoto Accord standards. Energuide80 and better are available through voluntary programs like Built Green.

Plus, taxes and fees like HST, DCC’s, PTT, and amenities represent up to 20% of a new home’s cost. That’s about $120,000 in Greater Victoria. Double this over the life of a mortgage.

Average homeowners can’t bear the costs of annual regulatory changes and new fees added to their homes, so why does govt think new homebuyers can afford it?

New home construction is one of the few skilled manufacturing industries remaining in communities across Canada, and should be valued and nurtured rather than treated as a cash machine and lab experiment by govt officials.

All of us depend on a strong and affordable housing industry to train youth, create employment, and build communities for families.

Let elected officials know you value affordable new homes as much as you value affordability in your own home.

Visit us at www.chbavictoria.com and www.careawards.com

Buyers Market Alert

2011-08-03T09:41:00.000-07:00

As a follow-up to the last post on buying a home, Victoria's average house prices dropped again in July to $581,117 from $629,292 in June. This is due, at least in part, to the HST referendum creating uncertainty in the marketplace. When the referendum issue is settled in the next month or so, we can expect to see greater market certainty and therefore increased demand. (Providing unemployment rates and interest rates remain relatively stable.)

http://www.timescolonist.com/business/Victoria+housing+tilts+toward+buyers/5197851/story.html

THINKING OF BUYING A NEW HOME?

2011-07-13T09:16:00.000-07:00

Thinking of buying a new home? Consider the following.

First, it’s important to note the West Coast is a great place to live, and buying a home is a long-term investment in your community. Price fluctuations shouldn’t significantly influence a long-term perspective.

While prices may soften in Greater Victoria’s housing market, historically we haven’t experienced price crashes taking place in some other cities.

There are a number of factors to consider when determining a good time to buy. The interest rate is always an important consideration, and presently we continue to experience low interest rates of 3% - 5%.

What about the HST’s additional costs?

In June 2010, prior to the HST, the average cost of a single family home was $649,280. In June 2011 the average price was $629,292. That’s a difference of $19,988.

The additional HST for a new home priced at $629,292 in today’s market, after the rebate, is about $5,214, so the price reduction over the past year still represents a significant saving.

Why the reduction?

In June 2010, the housing market was hotter. In 2011, housing starts are down about 35% in Greater Victoria. A large part of the reason is uncertainty in the housing market created by the HST referendum.

Consumers, businesses, investors dislike uncertainty, which is reflected in the marketplace. However, much of the uncertainty should end with the HST referendum vote. The results should be known by early September.

Whichever way the HST vote goes, there should be greater certainty for consumers, businesses and investors. With greater certainty, we can anticipate increased demand, and demand often fuels higher interest rates and higher prices.

If you are considering a new home purchase, factor in all of the considerations including interest rates, housing prices, and demand.

Do your research and make an informed decision. If you make a decision to buy, contact a professional builder.

Visit us at www.chbavictoria.com and www.careawards.com

GOVT ADDS TO HOUSING DEBT

2011-06-22T09:18:00.000-07:00

Household debt in Canada rose to a new high in the first quarter of this year, according to Statistics Canada. The ratio of debt to personal income was 147.3%, mostly due to mortgage debt.

A large part of the reason is three levels of government using new homebuyers’ mortgages as cash machines to pay for services, infrastructure and programs. New homes are subjected to tax pyramiding in the form of HST, Property Transfer Tax, Development Cost Charges, permit fees, and levies for amenities and social programs like affordable housing.

These programs are part of the community’s social responsibility, and should be paid for through the general tax base, including income tax and property taxes. However, rather than raise voters’ taxes, elected officials are offloading costs onto new housing developments, not yet occupied by voters.

Most new homebuyers are unaware that up to 19% of their mortgages include taxes and fees that are a responsibility of the general population. Of course, new homebuyers are also part of the general population, and will pay property taxes, so they are taxed multiple times.

Since the average cost of a new home in our community is about $650,000, the cost to a new homebuyer can be $123,000. What comes out of their pockets at 6% over 25 years is closer to $230,000. So it’s no wonder the ratio of debt to personal income continues to increase.

How can consumers prevent the offloading of government programs onto their new homes?

Send this column to your elected representatives at the municipal, provincial and federal levels. Let them know ALL taxpayers are responsible for programs and services used by the community.

Government’s use of mortgages as cash machines to fund services and programs is unsustainable, prevents young families purchasing a home, and erodes our financial security.

HST AND HOUSING

2011-06-15T09:37:00.000-07:00

With all of the debate about the HST, the impact on new homes and renovations has been overlooked. For example:

• The HST is a consumption tax, appropriate perhaps on a bottle of pop, but inappropriate on land and housing. The provincial government already charges Property Transfer Taxes generating about one billion dollars annually – paid by consumers. This doesn’t include federal and municipal taxes and fees.

• The rebate threshold is below the average price of a new home in our region. The HST makes new housing less competitive with existing homes.

• The HST rebate must be indexed to inflation, otherwise the value will be eroded, similar to the GST rebate introduced in 1990. At that time, 90% of new homebuyers qualified for the full rebate. Today, less than 10% qualify.

• Consumption taxes on big ticket items like housing increase the underground economy. The HST was introduced in Atlantic Canada in 1997, and several years later it was estimated 25% of new homes and 36% of renovations were by illegal contractors, due in part to HST avoidance.

• BC has no renovation rebate to counter the underground economy. A rebate is essential to encourage consumers to acquire receipts and discourage the underground economy.

• The HST is not a cure-all for BC’s economy. The Conference Board of Canada recently announced the top 3 cities in GDP growth are Saskatoon, Calgary, and Regina. Saskatchewan has the PST and Alberta has no provincial tax. Victoria, with the HST, was rated #11.

New housing and renovations represent one of the few remaining manufacturing industries existing in every community in BC. The government should be finding ways to encourage this important sector to create more skilled, well-paid jobs throughout the province.

There are benefits to harmonizing taxes, however it must be done to increase efficiency and create value to the public. Harmonization should not be used to add another inappropriate tax to an already heavily taxed sector like new housing.

NATIONAL STANDARDS IMPORTANT TO CANADIANS

2011-06-08T09:05:00.000-07:00

National standards are important to Canadians and a foundation of the country. A case in point is our National Building Code.

Canada’s National Building Code helps ensure research and due diligence is undertaken to create uniform regulations and “enhance public health and safety.”

Canada’s provinces, including British Columbia, signed a national Memorandum of Understanding to participate in, and abide by, a national code. Our elected representatives agreed to “enact the National Building Code as the core document for building regulations in each province and territory with as few amendments as possible.”

However, an alarming erosion of our national standards is taking place. The BC government is moving ahead with new energy efficiency regulations prior to a new National Energy Code, which is due in the next year or two.

BC’s decision to pursue its own energy standard is contrary to our commitment to a national building standard. This not only erodes standards, but also increases the risk of unintended consequences. Energy efficiency is building science, requiring critical research and due diligence to protect public health and safety.

Is there a need to fast-track increased energy efficiency in new homes, prior to the National Energy Code? Not at all.

New housing is one of the few sectors where Canada achieved GHG emission targets agreed to in the Kyoto Accord. Between 1990 and 2008, Canadian housing grew by one third, while greenhouse gas emissions grew by less than 1%. There is no good reason to abandon our commitment to a national building standard.

It is in the interests of all Canadians to participate in national standards like the upcoming National Energy Code supported by research and due diligence. The BC government signed an agreement to support national standards, and should abide by its commitment to Canada.

Through our national office, CHBA members across Canada support and participate in the National Building Code and the due process of establishing national standards.

FACTS ABOUT THE HST

2011-05-26T14:16:00.000-07:00

Here are some interesting facts about the HST.

In 1991, Saskatchewan voters killed the proposed HST. http://www.thehstblog.com/tags/saskatchewan/
They presently have 5% PST and 5% GST.

Recently, the Conference Board of Canada predicted the top 3 cities in GDP growth are Saskatoon #1 at 4.1%; Calgary #2 at 3.4%; and Regina #3 at 3.1%.

Victoria, with the HST, is ranked last #13 at 1.7%.

In addition, Atlantic Canada introduced the HST in 1997 and in 2004 it was estimated 25% of new homes and 36% of renovations were by illegal contractors, due in part to avoidance of the HST. A rebate program is essential to encourage consumers to get receipts which discourages the underground economy.

The HST rebate for new housing must be indexed to inflation. CHBA has been advocating for indexation of the GST New Home Rebate since it was introduced in 1991. It was argued the GST was better for the economy. At that time, 90% of new homebuyers qualified for the full rebate. Today, less than 10% qualify for the full rebate.

Over time, inflation erodes the value of these rebates, housing becomes less affordable, and the consumer tax becomes a cash cow for govt. A case in point is the Property Transfer Tax, which the BC govt agrees is an unfair tax, but they will not remove because they depend on the revenue. The PTT on development should be removed before this additional HST is added.

If rebates are not indexed to inflation, their benefit is eventually lost and consumers end up paying much more.

There are benefits to harmonizing taxes, however there are also unintended consequences like a burgeoning underground economy and erosion of benefits to consumers. These issues must be addressed before consumers can be expected to support a change from a PST to HST.

HST CUT DOESN'T ADDRESS FUTURE CHALLENGES

2011-05-25T12:29:00.000-07:00

While the HST rate cut of 1% in 2012 and another 1% in 2014 is a benefit, the changes don't address the issue of inflation eroding the rebate on new housing, nor does it address the impact on renos and the underground economy, nor the fact that new housing is already unjustifiably triple-taxed via the Property Transfer Tax on the development of a single home.

So the changes represent less pain for new homebuyers and the industry, but pain continues nonetheless.

DRAFT OCP DENSITY LACKS AFFORDABILITY

2011-05-25T10:02:00.000-07:00

Housing affordability is an important issue and required to be included in the Official Community Plans of municipalities and regional districts.

The Local Government Act says in section 877 (2) “An official community plan must include housing policies of the local government respecting affordable housing, rental housing and special needs housing.”

This means affordable housing must be reflected in the OCP’s “housing policies,” and not simply in the document’s language.

However, there is a disturbing trend of OCPs outlining goals of affordability and diversity, yet unsupported in the density policies. A case in point is the draft OCP for South Cowichan.

The OCP’s goals include “encourage diversity and provide for a mix of lifestyles;” “encourage the provision of a broad range of housing types and tenures, including affordable, rental and special needs housing;” and “maximize the efficiency of land use and preserve the agricultural, forestry and wilderness land base outside of the village containment boundaries.”

However, the sole multi-family designated area in Cobble Hill Village was removed in the draft OCP without replacement. In addition, a rezoning to multi-family is only considered at a maximum of 20 units per hectare. This density is more single family than multi-family.

Approximately 50 – 60 units per hectare would more accurately represent multi-family and affordability. Density of 20 units is not considered affordable now, and will be even less so in the future.

The OCP’s emphasis on single family zoning and large lots are incompatible with its affordability objectives. People reading the draft OCP and attending the public hearing may be unfamiliar with housing market realities and wrongly assume the goals of affordability and diversity are achievable.

In addition, regional districts no longer require the Minister’s signature to approve the OCP, so there is little provincial oversight to ensure affordability criteria are being met.

The BC govt should cancel the signature exemption policy, and ensure draft OCP’s require consultation with industry resulting in density policies supported by market realities.

This will help achieve more housing affordability, which is everyone’s goal.

NEW HOUSING ALREADY KYOTO COMPLIANT

2011-05-13T13:55:00.000-07:00

In the last post, we discussed the importance of cost/benefit analysis to justify the constant changes to new housing by govt, and the increasing costs to consumers. These include changes to the building code, taxes like the HST, permit fees, and amenity wish-lists.

The most recent challenge is mandatory Energuide80 equivalency on new housing in BC, ahead of a standardized national energy code in the National Building Code. The costs will be about $15,000 per home, which when amortized on a mortgage will be about double - $30,000.

We know the cost, but what is the benefit?

Most energy loss in houses comes from existing older homes, where air changes range from 10 to 40 per hour. In contrast, air changes in new homes are 3 to 4 per hour. Energuide80 will reduce this by about 1 air change per hour.

In fact, the new housing sector is one of the few industry areas where Canada has achieved the GHG emission targets agreed to in the Kyoto Accord.

From 1990 to 2006, residential housing grew by 33.6%, while residential energy use increased by only 4.8%. GHG emissions from Canadian homes decreased by 8.1% over the same period.

Canada’s new housing sector was energy efficient long before BC’s green building code and proposed Energuide80, which increases housing costs in an already energy efficient industry, proven by our GHG data.

CHBA market programs including Built Green and R2000 have accomplished the goal of providing affordable energy efficient housing to meet our international commitments.

The BC govt’s mandatory Energuide80 for new homes does not pass the cost/benefit test. This initiative will cost all new home buyers more and offer little benefit, as well as prevent many consumers from qualifying for a mortgage.

The cost of housing in our region is among the highest in North America, and cost/benefit should be applied to every municipal, provincial and federal initiative that impacts new housing.

COST/BENEFIT CRITICAL FOR AFFORDABILITY

2011-05-13T13:50:00.000-07:00

Recently, we described housing issues requiring a review by the BC government. These include multiple interpretations of the building code, delays in permit approvals, increases to DCC’s and amenity wish-lists, and the list goes on.

However, if new housing’s greatest challenge could be summed up in three words, those words would be “cost/benefit analysis.”

Every consumer understands the concept of diminishing returns. When they spend their hard-earned dollars on a service or product, they expect maximum value. As the cost of the product increases, the value diminishes, which is why cost/benefit analysis is so important.

What would happen if multiple authorities had the power to alter a service or product without considering the cost/benefit? You would have the new housing industry in BC.

Three levels of government significantly influence the cost of housing, and they rarely consider the cost/benefit. For example, the BC govt has increased housing costs to accommodate everything from new toilets to solar-ready panels.

They are now pushing mandatory Energuide80 equivalency on new housing, ahead of the National Building Code. Most energy loss in houses comes from existing older homes, where air changes range from 10 to 40 changes per hour.

The new Energuide80 initiative will reduce air changes in new homes from 3 or 4 to perhaps 2 air changes per hour. The cost to the new home purchaser is estimated to be about $15,000 for mandatory Energuide80, in addition to many other new regulations. These don’t include local municipalities’ increases to DCC’s, permit fees, and charges for local amenities.

And we haven't even touched on multiple Property Transfer Taxes on lot development and the HST. All of these costs are being applied to new homes with little consideration of the benefit and affordability for new home buyers.

Christy Clark has promised her new government will listen and put families first. Now is the time for action by launching a review that will consider the cost/benefit when making changes to new housing.

GREATER VICTORIA HOUSING STARTS DOWN 47%

2011-05-09T11:14:00.000-07:00

Today's report from CMHC reveals a 47% decline in Greater Victoria housing starts compared with the first four months of last year. If this pattern continues, we can expect a loss of 3000 jobs in the residential construction industry compared with last year. Much of this is attributable to the handling of the HST.

If the HST is defeated in the referendum, we will likely see an increase in housing starts. If the HST is not defeated, the remainder of the year is anybody's guess. The HST significantly increases average new housing costs in our region and affordability is reduced. The tax also increases the underground economy and makes new homes less competitive with existing homes on the market, which are not subject to the tax other than transaction fees.

The government claims the HST will increase jobs and make BC more competitive. In reality, the HST has reduced employment and made new housing less competitive.

HST HINDERS NEW HOUSING IN VICTORIA

2011-05-06T14:43:00.000-07:00

The Conference Board of Canada has released a report outlining what the new housing industry in Greater Victoria has been experiencing - slow growth at least partly due to the HST.

As a result,

•Lower construction output and weak services activity will limit Victoria’s GDP growth to 1.7 per cent in 2011.

•Vancouver’s GDP growth will ease to 2.4 per cent this year, pulled down by falling construction output.

However, in communities without the HST:
•Strong construction activity will help Regina’s economy expand by 3.1 per cent in 2011.

•Strength in construction, manufacturing, and services will propel Saskatoon’s GDP growth by 4.1 per cent this year.

The Conference Board of Canada's projected growth of GDP in 13 Canadian cities:

Saskatoon 4.1
Calgary 3.4
Regina 3.1
Edmonton 3.1
Toronto 2.8
Hamilton 2.5
Halifax 2.5
Vancouver 2.4
Québec City 2.3
Ottawa-Gatineau 2.2
Montréal 2.1
Winnipeg 2.0
Victoria 1.7

The full story is available in the Times Colonist

http://www.timescolonist.com/story_print.html?id=4738299&sponsor=

The Conference Board of Canada is at http://www.conferenceboard.ca/

HST REPORT LACKING IN UNDERGROUND ECONOMY ANALYSIS

2011-05-04T15:43:00.000-07:00

The Panel's Report on the HST has been released and there is no analysis of the HST's impact on the underground economy. http://www.hstinbc.ca/media/ItsYour%20DecisionHSTGSTPST.pdf

Sales taxes are notorious for encouraging underground economies throughout the world, including Atlantic Canada where the HST was introduced in 1997. It is estimated the underground economy represents 25% of new housing and 36% of renovations in that region.

One solution for renovations is a permanent renovation rebate/tax credit that encourages consumers to ask for receipts. This will discourage illegal contractors and improve revenue for government through both increased sales tax and income tax.

New housing requires an increased rebate/threshold to reflect the real cost of building a new home or other creative solutions such as removal of the HST on land and/or removal of multiple Property Transfer Taxes on the development of land for housing.

In addition, all rebates/tax credits must be indexed to inflation to prevent erosion. The GST New Home Rebate applied to 90% of new buyers in 1990, and now less than 10% qualify for the full rebate due to inflation.

While the report claims housing starts have kept pace with national figures, the reality is housing starts are down 49% in Greater Victoria compared with the same period last year.

HOUSING ISSUES FOR THE FEDERAL ELECTION

2011-04-27T16:03:00.000-07:00

Housing Affordability and Choice for Canadians:

Beyond Recovery… into Durable Prosperity
Policy Statement by the Canadian Home Builders' Association for the May 2, 2011 Federal Election Campaign

Introduction
Since federal election of October 14, 2008, the world has been through a wrenching international financial crisis, followed by “The Great Recession”. While Canada has fared better than most other countries, it has certainly not been immune to the sweeping changes taking place in both economic foundations and performance.

Our recovery remains fragile, and global conditions remain unsettled to say the least, with both a major recent natural and economic disaster in Japan and political change across the Middle East and North Africa. A number of European economies remain shaky and debt defaults are in prospect.

Several key lessons have been learned from the past two years and are essential to guide us into the future:

Housing is a tremendously important sector of the Canadian economy, and a reliable generator of jobs, investment and economic prosperity. It is a steady bulwark in times of uncertainty, to which governments turn again and again.
The federal government’s vital housing policy role has been confirmed in spades. Clearly, without a firm hand and a range of effective housing measures to apply, the situation in Canada could have been much worse, not only for many existing home owners and new home buyers, but for the economy as a whole.
The relative strength of housing during the Great Recession should not be misread by governments, however. For well over a year, Canada’s housing recovery has depended heavily on very low interest rates. Homes are not really more affordable – they are just cheaper to finance. The actual cost of delivering a new home has not come down – it has been rising. Governments -- including the federal government -- have been treating new homes as ATM machines, adding to rising costs through mounting taxes, fees, levies and charges, some of which, such as the GST and HST, are taxes on taxes.
Making a successful transition from fragile recovery to durable prosperity is going to require federal government policies and actions just as effective as those that facilitated the housing industry contribution toward economic recovery over the past eighteen months.

In this context, the CHBA has three specific and inter-related recommendations to make to federal parties and candidates.

They are:

Adopt a single threshold/full rebate approach for the GST New Housing Rebate across Canada, and commit to review and adjust this threshold over time in relation to new housing prices.
Introduce a permanent 2.5% GST Home Renovation Tax Rebate available to all homeowners.
Vigorously tackle the underground “cash” economy, both raising government revenues and protecting consumers.

Government-Imposed Costs: A Critical and Growing Problem

When the Goods and Services Tax (GST) was introduced in 1991, the federal government provided a full GST rebate on new homes selling for $350,000 or less. They did this, in their own words, “to protect housing affordability”. Today, that 1991 new home that sold for $350,000 costs $550,000.

Across Canada, government-imposed costs on a new home range as high as 19% of the average selling price, and continue to rise, as municipalities increase their taxes, fees, charges and levies. The introduction of the Harmonized Sales Tax in Ontario and B.C. add to this burden for homes priced above the rebate threshold.

What does this mean to families who buy a new home priced at the level where housing affordability, by the government’s own measure, needs to be protected? For a $550,000 home, government-imposed costs, including tax on other taxes, could cost a family $104,000 in total.

If 95 percent of this amount is financed through their mortgage, $630 will be added to their monthly payment – a total of over $190,000 over the life of their loan. That is money that cannot be invested in their children’s education, put aside towards retirement, invested in a business, or used to purchase other goods and services that generate employment and wealth in Canada.

When the CHBA talks about government-imposed costs eroding housing affordability and choice, this is what the Association means. It is a very real, and very serious, problem.

New Approach to the GST New Housing Rebate

Thresholds for the GST New Housing Rebate have been frozen for the last 19 years. To reflect this and to take into account the new reality that 7 of 10 provinces now have a form of Harmonized Sales Tax (HST), the CHBA proposes that the federal government adopt the rebate model for new housing implemented by the provincial governments of Ontario and British Columbia under tax harmonization.

This model is designed to protect housing affordability through one price threshold. Below the threshold, housing would be taxed at a lower rate. The amount of the rebate at the price threshold would be available to all housing priced above the threshold. Such a model would benefit consumers right across Canada, not only in those jurisdictions with the HST in place.

Home Renovation Tax Rebate of 2.5 Percent

Across Canada, homeowners who undertake renovations pay an unfair level of sales tax under GST and, in those provinces where it is in place, under HST. This unfair level of taxation adds significantly to the cost faced by Canadians when they invest in maintaining or enhancing their homes. It also fuels a large and growing underground “cash” economy that undermines housing quality, harms legitimate tax-paying contractors, and costs federal and provincial governments billions of dollars each year in lost revenues.

Prior to the introduction of the GST, the 9% Federal Sales Tax (FST) applied to only the materials portion of home renovation expenditures. As FST was applied at “the factory gate” rather than on the full retail price of products, it represented approximately 2.5% of the delivered cost of a contracted home renovation. The current GST taxes the same project at 5% – twice the previous amount. In provinces where HST is in place, the tax burden is much greater.

The federal government should introduce a permanent Home Renovation Tax Rebate equal to 2.5% of the total cost of a home renovation. This will restore fairness to how home renovations are taxed by the federal government. In addition, it will help significantly to address the ever-increasing problem of underground “cash” operators in the home renovation sector.

The temporary Home Renovation Tax Credit (HRTC), implemented as part of the federal government’s Economic Action Plan, proved very successful. Clearly, consumers have shown that they are very receptive to action by the federal government to reduce the cost of home renovations.

Vigorous Action to Tackle the Underground “Cash” Economy

An essential element of Canada’s economic recovery and reducing government deficits is to ensure that those who should be paying taxes are doing so. Governments at all levels are losing billions of dollars annually through the activities of underground cash operators in the residential renovation sector especially. For example, the Ontario Construction Secretariat estimated in 2010 that average annual government revenue losses from underground activity in the residential sector ranged from $1.4 to $2.4 billion in that province alone.

The main Canada Revenue Agency (CRA) response has been the “Contract Payment Reporting System” (CPRS). An evaluation of the CPRS by the Agency itself concluded that it is “not effective in that segment of the underground economy where transactions are purposefully hidden by both the contractor and sub-contractor to circumvent tax laws and other legal obligations (commonly known as the ‘cash’ economy).”

Underground operators, by definition, operate in cash only, outside the legitimate economy. The CPRS simply makes such cash-only operators even more careful about the ways in which they conduct their activities. It is an extraordinary and unacceptable fact that home owners who employ tax-paying contractors are being punished by a tax regime that encourages underground “cash” deals.

The CPRS should be replaced with an effective approach to the underground cash economy. There are models from other countries that are much more effective in reducing underground activity. These should be examined for application in Canada.

To complement such an approach, all firms and individuals in the construction industry should be required to register for a Business Number, even if they wish to take advantage of the GST exemption for companies which operate below the $30,000 annual sales threshold.

The proposed permanent Home Renovation Tax Rebate would complement these efforts, and bring a much larger proportion of renovation projects “above ground”.

Who We Are, and What We Do

The Canadian Home Builders’ Association (CHBA) is Canada’s national organization representing the residential construction industry -- new home builders, renovators, and developers. The CHBA membership of over 8,000 companies also includes manufacturers, suppliers, trades, lenders, and other professionals. Our Association has two main goals: to promote housing affordability and choice; and to build vibrant, prosperous and healthy communities. For home buyers and renters, we support continuous improvement in housing affordability and choice. For families and communities, we want clean air, clean water, clean
land, and efficient transportation systems.

CHANGES TO NATIONAL BUILDING CODE ONLINE

2011-04-04T15:05:00.000-07:00

The changes for the National Building Code are now online in presentation format at http://www.codesnationaux.ca/eng/presentations/2010_codes_presentations.shtml

Pay special attention to "Section 5. Lateral Load Resistance" which outlines new bracing requirements in Part 9 Buildings, and will come into effect in BC in 2012. We will cover this at our Suppliers Dinner/Auction on Wednesday April 13 at Royal Colwood Golf Club. The guest speaker is Murray Frank, Home Constructive Solutions. Bring your questions to our dinner and don't get caught off guard by this signficant change to building homes.

The following subjects are covered:

 Combustible Penetrations and Plenum Cables (NBC 2010, Parts 3 and 9)

 Dangerous Goods, Flammable and Combustible Liquids and Hazardous Activities (NFC 2010)

 Fire Alarms and Exit Signs (NBC 2010, Parts 3 and 9, and NFC 2010)

 HVAC and Plumbing (NBC 2010, Part 6 and NPC 2010)

 Lateral Load Resistance (NBC 2010, Part 9)

 Part 9 Changes (NBC 2010, Part 9)

 Radon (NBC 2010, Parts 5, 6 and 9)

 Residential Care (NBC 2010, Part 3)

 Secondary Suites (NBC 2010, Part 9)

 Spatial Separations (NBC 2010, Parts 3 and 9)

 Stairs (NBC 2010, Parts 3 and 9)

 Structural Loads (NBC 2010, Parts 4 and 5)

 Windows, Doors, Skylights and Sealants (NBC 2010, Parts 5 and 9).

HOUSING ISSUES FOR ELECTION CANDIDATES

2011-03-30T09:47:00.000-07:00

The announcement of a federal election offers an opportunity to review taxes on housing, including the GST New Housing Rebate, and renovation tax credits.

In 1991, 95% of Victoria’s new homebuyers qualified for the full GST rebate. Since then, inflation has eroded the rebate to where 95% of new homebuyers no longer qualify for the full rebate. The average price of a new home in our region is more than $600,000, and the rebate cut-off is $450,000.

This erodes the intent and integrity of the rebate program, which is to improve housing affordability. It also reduces the industry’s ability to create employment.

The solution is to index the rebate program to the rate of inflation, ensuring housing affordability programs maintain their value.

In addition, candidates should support a permanent 2.5% Home Renovation Tax Credit. Reno tax credits encourage consumers to demand receipts from renovators, which hampers the activities of “cash” operators relying on undocumented transactions.

How is this important to Canadians? The underground economy represents billions of dollars in lost tax revenue, adding pressure on taxpaying Canadians to pay for government services. Underground operators must pay their fair share. That’s why, in addition to an HRTC program, all businesses, regardless of their annual sales, should be required to register for a Business Number in Canada.

Extension of the existing ecoENERGY retro-fit program, offering rebates for energy efficient renovations, now depends on support from a new government. This program increased energy efficiency in older homes, the biggest green-house gas offenders, while creating jobs and discouraging the underground economy through the demand for receipts.

Show this blog to the candidates in your riding and ask if they support:

• Indexing the GST New Housing Rebate for inflation

• A permanent Home Renovation Tax Credit of 2.5%

• Business Number registration for all businesses

• Extension of the ecoEnergy Program

These solutions help protect consumers against increasing costs, illegal contractors, and rising GHG emissions.

CHBA-Victoria's March Newsletter

2011-03-28T16:08:00.000-07:00

Here's the latest newsletter from CHBA-Victoria:

• Suppliers Dinner and Auction/presentation by Murray Frank

• Sponsorship Auction on Twitter
• 2011 CARE Awards Call for Entry
• 10 New CHBA Members and 5 Applications
• Builders’ Council – April 20
• Young Life Home Tour
• Education and Training

SUPPLIERS DINNER AND AUCTION
CHBA-Victoria members receive their annual free dinner (one per member company) at CHBA-Victoria's Suppliers Dinner and Auction, featuring a presentation by Murray Frank on new seismic and building envelope design requirements for the 2012 BC Building Code.

Wednesday, April 13, 2011
Royal Colwood Golf Club
629 Goldstream Avenue

Agenda:
5:30 pm – reception and silent auction
7:00 pm – dinner
7:30 – live auction
8:15 pm – Murray Frank presentation

CHBA Members (after 1 free) : $35 plus HST
Non-members: $50 plus HST

Some of the items up for auction include:

• A week’s stay at the Casa Blanca beach house in Costa Rica courtesy HomeCheck (Accommodation only, for travel in 2011) http://www.rentcasablanca.info/
• Two tickets to a BC Lions game, plus hotel, dinner and ferry courtesy SeaFirst Insurance
• Two nights and dinner at the Victoria Marriott courtesy Concert Properties
• Thousands of dollars in advertising courtesy Times Colonist, Western Living, CFAX, The Ocean 98, Business Examiner
• Two CARE Award tickets and overnight at the Fairmont Empress Hotel
• Apple i-Pad courtesy Java Design
• Kitchen Aid Standmixer courtesy Trail Appliances
• Foursome at Olympic View courtesy Olympic View Golf Club
• Foursome at Colwood Golf Club, courtesy Colwood Golf Club
And lots more…get your free dinner, hear the latest on the 2012 Building Code, and bid on a great vacation, day of golf, i-Pad, or advertising to market your business.

Members must register in advance to be eligible for their free dinner. Call Debra at 250.383.5044 or email info@chbavictoria.com to reserve a seat.

SPONSORSHIP AUCTION ON FACEBOOK/TWITTER – Starts at $100
Get your company logo in front of CHBA-Victoria builders, renovators, trades and suppliers at the Suppliers Dinner and Auction. There are 2 sponsorships available. The sponsorships are available by participating in our Facebook/Twitter auction. Bidding starts at only $100 and closes at 12 midnight on Thursday, March 31. The top 2 bidders win the following sponsorships at the auction:
Logo on:
- Sign at registration desk
- Auction Program cover
- Powerpoint throughout dinner
- Tent cards placed on dinner tables
- CHBA – Victoria website
- Email notices sent until event
Plus:
- Table for product display
- Opportunity to place brochure at dinner

Send your bid to info@chbavictoria.com There will be periodic updates on bids posted on our Facebook and Twitter sites. Links on http://www.chbavictoria.com/ You must be on Facebook or Twitter to see the updates. Bid now and bid often!

2011 CARE AWARDS CALL FOR ENTRY
The Call for Entry for the 2011 CARE Awards of Vancouver Island is now available online at http://www.chbavictoria.com/

It’s our 20th Anniversary of celebrating excellence in residential construction, and we’re looking forward to a spectacular event on September 16 at the Fairmont Empress Hotel. Please read the entry criteria carefully and get started on your entries early. The CARE Awards Committee has made a few changes, including new categories such as Best Home Design, Best Condominium (Single Unit) Renovation, and Best Media Room. The entry deadline is 4:00 pm on Monday, June 13, 2011.

The CARE Awards brand represents professionalism and excellence in housing and is eagerly anticipated by consumers. It is a benefit available only to members of the Canadian Home Builders’ Association, so take advantage of this opportunity.

NEW MEMBERS AND APPLICATIONS
CHBA – Victoria continues to experience strong membership growth. We welcome the following new members.

Victoria Speciality Hardware Ltd.– Bob and Sue Emslie
Flo Form Countertops – Rod Bieller
Edgar and Miner Carpet and Draperies Ltd. – Daria Bunting
Award Winning Kitchens and Baths - Glen Undseth and Mick Coles
HomeCheck – Steve Hughes
Step One Design – Mike Dunsmuir
Gary Sandhu Developments Ltd. - Pargat Sandhu
Frontier Stone Export Ltd. - Patti Dewhurst and Ricardo Wieland
Windows West – Richard Kiers and Zig Hanajk
Totangi Properties Ltd. – Blair Robertson

New applications from:

Accutemp Refrigeration, Air Conditioning, and Heating Ltd. – Cory Montgomery and Martin Hunter
Island Outlook Dev. Ltd. – Jesse Baidwan
Telus Communications – Rayanne Yager and Jay Garneau
Method Built Homes – Rajinder Sahota
Hobson Woodworks – Geoff Hobson

Thank you for your continued support. Please do business with CHBA members!

2011 HOME & GARDEN SHOW WRAP UP

Great feedback from exhibitors and consumers at our 2011 Home and Garden Show! Bryan Baeumler, the new Design Centre, and designer presentations were a big hit! A special thank you to Ines Hanl, Jenny Martin, J.C. Scott, Stephen Hughes, Jeff De Jong, Reuben Butterfield and Landeca.

Our sponsors, Coast Capital Savings, FortisBC, Times Colonist, and Western Living Magazine are tremendous supporters of CHBA-Victoria. Talk to their representatives about how they can assist YOU and your business.

BUILDERS’ COUNCIL – NEXT MEETING APRIL 20

• Michael Baxter will provide an update on improvements to the Building Permit process in Colwood.

• Review Stormwater bylaw/Rain Garden proposal and costs in Saanich. Go to: http://www.saanich.ca/living/natural/stormwater.html

• Review OCP changes in South Cowichan. Go to http://www.cvrd.bc.ca/index.aspx?nid=982

YOUNG LIFE HOME TOUR

The Young Life Home Design and Renovation Tour is April 16 & 17, from 11:00 am - 4:00 pm. Some CHBA members are taking part. Tickets are $25 at Lumberworld, and Cloverdale Paint. For more info go to http://www.younglife.ca/victoriahometour

EDUCATION AND TRAINING

A Built Green course is scheduled for May 26 and 27 in Victoria. To register go to http://www.chbabc.org/

Also, there have been changes to the Built Green membership criteria starting January 1. Go to http://www.builtgreencanada.ca/ for more info.

Budget a Responsible Effort

2011-03-23T13:35:00.000-07:00

The recent federal budget is a responsible effort, addressing an array of issues, including extending the energy retrofit program, which reduces both illegal contractors and green house gasses. Plus this program employs Canadians in every community across the country.

The underground economy in Canada is estimated at $200 billion. The cost of the retro fit program is $400 million. Reno tax credit programs encourage consumers to get receipts causing illegal contractors to declare revenue on services and income. This generates more revenue for governments.

In addition, the biggest GHG offenders are older homes generating 20 air changes per hour versus a new home generating 2 - 3 air changes per hour. So if we are serious about improving energy efficiency and the the environment, and dealing with the underground economy, then renovation tax credits should be a no-brainer, and supported by all of the political parties.

It's hard to understand what objections the opposition parties would have about this budget and this important tax credit.

Home Renovation Tax Credit Effective

2011-03-22T10:02:00.000-07:00

A commentary appeared in Friday's T-C about a study Called "Harper's Tax Boutique" by the Fronter Centre for Public Policy http://www.fcpp.org/

The commentary headline was “Wasteful Tax Credits are Costing us All” and outlined how tax credits are ineffective.

However, not all tax credits are created equally, nor do they offer the same benefits. For example, the impact of the Home Renovation Tax Credit was not analyzed, although it is mentioned in the “Harper’s Tax Boutique” study.

In fact, according to the TD Bank Financial Group, the HRTC increased renovation activity by $4.3 billion in 2009/10 representing a 0.3% boost to Canada’s GDP. This tax credit incentive was important during uncertain economic times following a global financial crisis.

In addition, renovations in BC represent a $7 billion industry, where estimates of underground economic activity range from 15% to 36%. An effective tax credit program like the HRTC encourages receipts, generating previously lost sales tax and income tax revenue to the government. An HRTC also promotes energy retrofits in older homes, the biggest green house gas offenders in the housing sector.

A permanent HRTC may be the most effective way to address a burgeoning underground economy, GHG emissions, and tax increases like the HST.

WISE TO DELAY NEW BC BUILDING CODE

2011-03-15T11:16:00.000-07:00

In the last post, we outlined some of the housing issues faced by builders and consumers in BC. These range from the spiraling cost of municipal amenity wish-lists to new provincial regulations unsupported by diligence and cost/benefit analysis.

Our concerns included BC’s plans to increase energy efficiency in homes prior to the new energy code being produced for the National Building Code. BC’s independent initiative undermined a uniform national code and the diligence necessary to set new standards. Alberta had already wisely postponed their new energy standards pending the new national energy code.

However, on Thursday, the BC government changed course and announced a delay of the new BC Building Code from 2011 to the spring of 2012 with an effective date in the fall of 2012. Their reasons included additional analysis and further consultation with industry on the implications of increasing energy efficiency. Also mentioned were new seismic design requirements for residential home construction, an important change in our region that requires diligence and clarity to get it right.

The news release says, “Industry and other stakeholders will have the necessary time to consider the code changes and develop education and training opportunities for their members so they may become familiar with the new building code provisions.”

This is good news for both builders and consumers, and an indication that the BC government is listening, as promised by new Premier Christy Clark.

CHBA members are willing and able to provide the experience and expertise to address any issues in the residential construction industry. In fact, CHBA-Victoria’s Builders’ Council has been very involved in working with national code reps to design the new seismic regulations for houses.

We welcome the news of an extended consultation and code due diligence to create homes that are energy efficient, safe, and affordable for British Columbians.

Visit us at www.chbavictoria.com and www.careawards.com

CHRISTY CLARK SHOULD REVIEW HOUSING

2011-03-09T13:50:00.000-08:00

The Canadian Home Builders’ Association is a non-profit organization dedicated to education, professionalism, consumer awareness, and housing affordability.

A thorough review of housing affordability in BC should be a priority for Premier-designate Christy Clark. New homebuyers are paying for new regulations ranging from municipal amenity wish-lists to new provincial regulations unsupported by diligence and cost/benefit analysis.

Here are some of the problems:

• Building permit approvals range from several days to 10 weeks depending on the municipality.

• Inspection criteria vary significantly despite a single BC Building Code.

• Municipalities are financing public amenities via the mortgages of new homebuyers.

• BC is increasing energy efficiency in homes prior to the new energy code being produced for the National Building Code. BC is undermining a uniform national code and ignoring the due diligence necessary to set new standards. Alberta has wisely postponed their new energy standards pending the new national energy code.

• WorkSafeBC’s expensive new requirements for renovations offer no data/research or cost/benefit on the impact of asbestos in renos.

• WorkSafeBC back-charges builders tens of thousands of dollars based on unclear definitions of independent contractor vs labour contractor.

• BC municipalities’ pursuit of inclusive zoning is adding enormous expense to the mortgages of new homebuyers. Ontario protected the mortgages by refusing to grant inclusive zoning to municipalities, and instead offered legal suites to expand housing options.

These are just a few of the many costs added to homebuyers’ mortgages, in addition to HST, Property Transfer Taxes, and Development Cost Charges. It’s no wonder housing is beyond the reach of so many.

British Columbians need a thorough review of regulatory costs added by municipalities and BC organizations including BC Building Standards, Energy and Mines, WorkSafeBC, and other regulatory bodies imposing costly regulations.

This review could be a joint effort including consumers, builders, and Naomi Yamamoto, BC’s Minister of State for Building Code. In a recent chat with the new Minister, she acknowledged new regulations must be tempered with affordability. That’s a good start.

Christy Clark has promised her new government will listen and put families first. Now is the time for action by launching a review that will make real changes on behalf of consumers and housing affordability.

Visit us at www.chbavictoria.com and www.careawards.com

Thank you for a great Home and Garden Show

2011-02-22T14:08:00.000-08:00

Thank you to all of our exhibitors, sponsors and volunteers for a great Home and Garden Show last weekend. Special mention to Bryan Baeumler, Ines Hanl, Jenny Martin, JC Scott, Jeff de Jong, Yukiyasu Kato, Coast Capital Savings, Terasen Gas, Times Colonist, /A\ News, Western Living Magazine, Illuminations Lighting Solutions, Speciality Hardware, Hotel Grand Pacific, SOFMC, Showtime, and of course all of our valued show visitors! See you next year with new home design and improvement ideas for 2012!

cheers,

Casey

Avoid Do-It-Yourself Disaster

2010-12-20T12:32:00.000-08:00

Bryan Baeumler, award-winning host of HGTV’s Disaster DIY, is appearing at the Canadian Home Builders’ Association’s Home and Garden Show, Feb. 18 – 20, Save-On-Foods Memorial Centre.

Bryan won a Gemini Award for his ability to inspire and entertain both troubled homeowners and viewers alike. He will bring that same expertise and humour to his presentations at CHBA’s Home and Garden Show on Saturday, Feb 19 and Sunday Feb 20, both shows at 1:00 pm.

Consumers will enjoy presentations on creating beautiful kitchens, bathrooms and living areas by
CARE Award-winning (http://www.careawards.com/) designers, including Ines Hanl, The Sky is the Limit Design and Jenny Martin, Jenny Martin Design. The designers are available for advice at the show’s Design Centre, featuring the latest products by Illuminations Lighting Solutions, Victoria Speciality Hardware and Kitchen Craft Cabinetry.

Jeff de Jong, Master Gardener and host of CFAX’s Gardening 101 will provide presentations and advice on Gardening All Year in Victoria. Five garden displays will be located throughout the show courtesy RHo Solutions and Landeca Services. The Zen Floral Studio will offer presentations on Japanese Flower Arranging also known as Ikebana, on Friday, Saturday and Sunday.

A powerpoint presentation on the Twelve Cubed House, (http://www.twelve3.ca/) will give visitors an idea of the efficiency and sustainability of garden-suite living, complementing information at the show on the City of Victoria’s new Garden Suite Zoning and Guidelines.

A New Homebuyer and Renovation Seminar will offer expert advice on hiring a builder or renovator, contracts, home inspections, mortgages, and legal issues. CHBA’s “Get it in Writing” building and renovation contracts will be available to consumers at discounted Home Show prices.

Plus, CHBA’s Built Green Builders will be on hand to answer questions about environment-friendly home construction. The Home and Garden Show features more than 100 exhibitors offering advice on design, flooring, cabinets, lighting, decks, windows, roofs, renovations, and new home construction.

Home and Garden Show times: Friday, Feb 18, 12 noon - 8 pm; Saturday, Feb 19, 10 am - 6 pm; and Sunday, Feb 20, 10 am – 4 pm. Admission - $8; Seniors and Students - $6; Children 12 and under – free. For more information, go to http://www.chbavictoria.com./

CHBA thanks the Home and Garden Show’s generous sponsors: Coast Capital Savings, FortisBC/Terasen Gas, Times Colonist, /A\ News, Western Living Magazine, and the Hotel Grand Pacific.

Start HST Referendum Process Now

2010-12-10T14:27:00.000-08:00

The HST Referendum in September 2011 creates uncertainty for consumers who are holding back on new home purchases and renovations. This is well outlined in a story today by Carla Wilson in the Times Colonist - http://www.timescolonist.com/business/blamed+slow+building+prices/3956857/story.html

Liberal leadership contenders are advocating moving up the date for the referendum, so why wait until one of them gets elected in February and then wait another three months putting the referendum process in place? Get started putting the HST Referendum in place now so the vote can be held in March. This will also create more financial certainty for the new budget. BC politics is playing far too big a role in our economy and creating disincentives for consumers and investors.

It is time for the politicians to step up and make the decisions that will assist the economy, not hinder it.

- Casey

Single Family Starts and the HST Referendum

2010-12-08T12:47:00.000-08:00

Today's CMHC housing starts data reveal a 57% reduction in Greater Victoria’s single family housing starts in November 2010 (40) compared with single family starts in November 2009 (94).

Holding the HST referendum in Sept 2011 has created economic uncertainty for consumers and significantly impacted the home building industry, and therefore employment in our community.

The referendum or a free vote in the legislature should be held as soon as possible, especially before spring, which is our busiest time.

- Casey

Letter to Editor appearing in today's T-C

2010-11-26T14:22:00.000-08:00

http://www.timescolonist.com/opinion/letters/Move+date+vote/3886929/story.html
Move up the date of the HST vote

By Casey Edge, Times Colonist November 26, 2010 Re: "Earlier HST vote the best option," editorial, Nov. 24.

The editorial hit the nail on the head. Builders and renovators are feeling the economic impact as consumers delay their purchases pending the HST referendum's outcome in September 2011. There is no useful purpose served by a September referendum.

In fact, Liberal leadership candidates are announcing support for an earlier HST referendum, and they have good reason. Spring is when most people embark on home purchases and renovations, and thousands of jobs in communities throughout B.C. depend on this activity.

As the editorial says, the referendum should take place "before the start of the next budget year on March 31." In addition to improving economic certainty and consumer confidence, an earlier date will create better fiscal planning for the government.

Premier Gordon Campbell and his government should strongly consider this, and hold the referendum prior to March 31.

Casey Edge, Executive Officer
Canadian Home Builders' Association - Victoria

Referendum and Community Giving

2010-11-24T13:50:00.000-08:00

A great editorial today in the Times Colonist suppporting an early referendum.

http://www.timescolonist.com/opinion/Times+Colonist+editorial+Earlier+vote+best+option/3876069/story.html

The HST has become a political football by all parties and various groups resulting in a petition, referendum, recall and on it goes. British Columbia needs needs business certainty and consumer confidence.

Liberal leadership hopeful Moira Stilwell has already said her firest action as Premier would be to move up the referendum from the Sept 2011 date. That would be an excellent first step!

Also, help give back to the community through the various fundraisers presently underway. For more info, check out CHBA-Victoria President Lee MacFarlane's column today in the T-C or go to our website at http://www.chbavictoria.com/ under the heading 'Tis the Season.

cheers,

Casey

Report on the Budget 2011 Consultations

2010-11-16T11:56:00.000-08:00

The new Report on the Budget 2011 Consultations by the Select Standing Committee on Finance and Government Services is at:
http://www.leg.bc.ca/cmt/39thparl/session-2/fgs/reports/PDF/Rpt-FGS-39-2-1stRpt-Budget2011Consultations-2010-NOV-12.pdf

The Finance Committee recommends that the provincial government:

54. Index the HST new-home rebate threshold.

56. Consider a permanent tax credit of 2% on all home renovations and 4% on Built Green BC renovations to promote energy efficiency in retrofits and create LiveSmart incentives for landlords and tenants.

57. Continue to work with the federal government to implement a system to allow for the deferral of the capital gains tax and the recaptured capital cost allowance when a residential income property is sold and the proceeds are reinvested in another residential income property within one year.

We have been advocating these points for some time. For example, indexing the HST rebate will help prevent erosion of the rebate over time, which is what happened to the GST new home rebate. In 1990, the GST new home rebate applied to 90% of new homes in Greater Victoria. Due to inflation, it now applies to less than 10%.

Also, the HST adds significant tax to renovations, and will increase the underground economy. Offering a tax credit on renovations encourages getting proper contracts and receipts and discourages hiring illegal contractors for cash. This offers better protection for consumers and gives them a tax break for making their homes more energy efficient.

Last, one of the reasons new rental housing is rarely built is due to the capital gains tax. The federal govt could encourage rental housing via a capital gains tax rollover from an existing building into a new building built for rental.

Good to see our voice is being heard and appearing on paper. Now what we need is action!

cheers,

Casey

CHBA-VICTORIA ANNOUNCES NEW BOARD OF DIRECTORS

2010-11-12T13:59:00.000-08:00

CHBA-VICTORIA ANNOUNCES NEW BOARD OF DIRECTORS

VICTORIA – CHBA-Victoria’s new Board of Directors was sworn in at its Annual General Meeting held November 10 at the Royal Colwood Golf Club. The new Board is represented by:

President: Lee MacFarlane, AV Energy Ltd.
Past-President: Ron Egli, Ron Egli Construction and Design Ltd.
First Vice-President and Builders’ Council Chair: Cam Hayward, Windcrest Homes Ltd
Second Vice-President: Wilf Gorter, Gorter Construction Ltd.
Treasurer: Robyn Normand, Normco Construction Ltd.
Suppliers’ Council Chair and Director: Mike McDougall, Mclaren Lighting
Mentorship Chair and Director: Patrick Morrison, We Paint Inc.

Directors
Maurizio Conforti, Conforti Homes Ltd.
Jenny Martin, Jenny Martin Design
Mike Miller, Abstract Developments Inc.
Bill Patterson, Citta Group
Tim Schauerte, James’ Joinery Ltd.
Clinton Wark, CareVest Capital Inc.

The Annual President’s Awards were presented to:
Jerry Hepburn Memorial Award - Wayne Davis, Award Builders Ltd.
Sponsors Appreciation Award - National Home Warranty Group Inc.
Mike Kipot Award - Gordon English, Genco Construction Ltd.
Service Award - Mike McDougall, Mclaren Lighting
Ocean Construction Award – Coast Capital Savings
Marilyn Ann Lee Award – Marian Paris, Shaw Communications
President’s Award – Bob Gill, Pacific Concept Developments Ltd.

The Executive Achievement Award was presented by new President Lee MacFarlane to outgoing President Ron Egli for his work to improve home building professionalism, education and training, and the national and provincial building codes. In his last duty as President, Ron Egli announced the CARE Awards’ student award will be called the Herman Rebneris Student Carpentry Award, in memory of Herman Rebneris and his dedication to education and training.

The AGM and New Product Showcase was sponsored by Canada Mortgage and Housing Corporation presenting the EQuilibriumTM Sustainable Housing Demonstration Initiative.

-30-

Herman Rebneris Leaves Legacy of Affordable Housing and Education

2010-10-29T11:40:00.000-07:00

Long-time CHBA member Herman Rebneris, Cottage Grove Contracting passed away this week, leaving a legacy of more affordable housing and improved training opportunities for youth. Herman was known by all in the building community and was a strong voice for those less fortunate as well as education initiatives like the Professional Builders Institute. He received many accolades and awards for his work, including our Lifetime Achievement Award. He will be fondly remembered and greatly missed. Our condolences and thoughts go to his wife Vicki and the Rebneris family.

A memorial will be held at the Union Club, 805 Gordon St. on Monday at 1 p.m., followed by a reception. In lieu of flowers, donations can be made to the CRD Housing Action Team, care of the CRD Housing Secretariat, 625 Fisgard Street, Victoria.

Read more at
http://www.timescolonist.com/business/Victoria+builder+homeless+advocate+dies/3742903/story.html?cid=megadrop_story

This Week in Home Building

2010-10-22T15:37:00.000-07:00

Lots of activity this week - our first New Members Lunch went well. It was great to see new members come out and chat about their interests and reasons for joining the association.

Builders' Council featured a discussion with WorkSafeBC (WCB) officials about interpretations of an independent contractor vs a labour contractor. An independent pays own insurance whereas a labour contractor is covered by the prime. Builders are being blindsided by WCB assessments determining independents are labour contractors, which costs thousands of dollars, adding to the costs of housing. There needs to be more clarity and less interpretation. We will be following up.

Attended a presentation by the City of Victoria on their new Garden Suites Pilot Program. A very good step, however why go through council for a rezoning when the guidelines and the acceptable zones have already been established? It's just an extra hoop and will add thousands of dollars, and time delays, to the process.

We will do presentations on Victoria's Garden Suite Program at our Home and Garden Show, Feb 18 -20 at Save-On-Foods Memorial Centre. The http://www.twelve3.ca/ house will be on display as an great example of what can be accomplished in a small space.

We will also present a First Time Home Buyers Seminar at the show for all of those taking their first step in home ownership. Some of the topics include hiring a contractor, Built Green, financing, HST, and much more.

CHBA's CARE Award-winning designers are getting together to do presentations at the Home and Garden Show and they will have a booth to chat with consumers. This is shaping up to be a terrific show ....and there's lots more to come.

Salmon Kings start their home games next week, Wed. Oct 27, and we are giving away our pair of seasons tickets for individual games to CHBA members. Plus we will hold a CHBA Christmas dinner at the King's Feast and catch a game. Looking forward to it!

I'm cycling to Sidney on Saturday, a hockey game Sunday...and the Canucks will beat the Wild tonight.

Have a great weekend!

Casey

2011 Home and Garden Show

2010-10-18T15:57:00.000-07:00

CHBA-Victoria invites you to participate in the
2011 HOME & GARDEN SHOW

February 18, 19, & 20

Save-On-Foods Memorial Centre

Featuring

Brian Baeumler

Gemini Award-winning host of HGTV’s Disaster DIY

http://www.facebook.com/pages/Disaster-DIY-Bryan-Baeumler/48426557478

And the

Twelve Cubed House

On display at the show!

Garden Suite Living at its Finest

http://www.twelve3.ca/

Plus

CHBA’s CARE Award-Winning Designers

including

Ines Hanl – The Sky is the Limit Design, interior designer for DB-3

Jenny Martin - Jenny Martin Design, interior designer for Arabella

http://www.careawards.com/

Add

Built Green Builders, Garden Experts
and 150 booths - builders, renovators, suppliers and trades

And you have Vancouver Island’s favourite

Home and Garden Show!

To book a booth or sponsor, check out http://www.chbavictoria.com/

or contact info@chbavictoria.com

CHBA-Victoria Supports the PBI

2010-10-08T14:40:00.000-07:00

CHBA-VICTORIA SUPPORTS PROFESSIONAL BUILDERS’ INSTITUTE

VICTORIA – CHBA-Victoria today announced support for the Professional Builders’ Institute, (PBI) announced by the Honourable Rich Coleman, Minister of Housing and Social Development. The PBI will accredit training courses to create minimum education requirements for new home builders.

“The Professional Builder’s Institute is an important step to improving consumer protection, and creating a career path for young people considering a career as a home builder,” says Ron Egli, President, CHBA-Victoria. “Also, as energy efficiency in new homes increases, ongoing education for building envelope issues is essential. The PBI will be an important part of that education process.”

In 2006, minimum education and training requirements were agreed to by the Homeowner Protection Office, industry associations and warranty companies. The result was the Main Task Group Report to the Homeowner Protection Office - Results of a Collaborative Process to Design a Minimum Qualification System for Licenses Under the Homeowner Protection Act. Part of that report included the establishment of an industry-led body to review and accredit courses required in the education and training of builders of 1 – 4 units.

“The PBI will be an important part of ensuring new homes are built with the best information available to builders,” says Casey Edge, Executive Officer, CHBA-Victoria. “Building code changes, new materials and technology, and increased energy efficiency require ongoing education and training, which will ultimately benefit new home buyers.”

“We strongly support this announcement by the Minister of Housing and Social Development,” says Edge.

-30-

Professional Builders' Institute Announcement

2010-10-08T14:38:00.000-07:00

NEW INSTITUTE TO PROTECT HOMEBUYERS ACROSS PROVINCE

VICTORIA – The Professional Builders’ Institute (PBI) has been established to raise the bar of professionalism in the residential construction industry and protect consumers in British Columbia, announced Rich Coleman, Minister of Housing and Social Development.

“The Province, the residential construction industry and consumers are unified in their desire to further enhance the requirements for residential builder licensing,” said Coleman. “Our continued commitment to support improvements in the quality of residential construction helps protect new homebuyers across B.C.”

The PBI was formed by the residential construction industry in collaboration with the Province as a result of recommendations provided by an industry task group. The institute was established in anticipation of further steps being taken to develop a system of minimum education and training requirements as a condition of obtaining and maintaining a residential builder licence.

Created as an independent body comprised of broad representation from the residential construction industry, the PBI will provide services to BC Housing, which is responsible for licensing residential builders following the recent transfer of the Homeowner Protection Office (HPO). Services provided will be related to the anticipated introduction of minimum qualifications for licensed residential builders constructing or selling one- to four-unit residential buildings and will include evaluating: Applications for accreditation of education and training providers and programs. Specific courses offered by accredited providers. The currency of standards, educational benchmarks and continuing professional development requirements.

Stephen Torrence, former executive director of the Construction Safety Network, has been appointed as chief executive officer by the PBI. In mid-October, Torrence will start developing the accreditation processes necessary to support the implementation of minimum qualifications.

“We are pleased that our vision of an industry-led institute for the accreditation of future courses and programs counting toward anticipated minimum qualifications for licensed residential builders is coming about,” said Bob Deeks, chair of the PBI board and president of the Canadian Home Builders’ Association of British Columbia, who will also serve on a steering committee established to review operating costs and collaborate on strategies related to professionalism of the industry.

Representation on the steering committee will include senior members of the PBI and BC Housing. Start up funding for the PBI will come from the Homeowner Protection Office (HPO), a branch of BC Housing, with ongoing operations funded through PBI’s accreditation fees. The HPO will continue to perform its responsibilities established under the Homeowner Protection Act including licensing more than 5,300 residential builders in the province, and research and education benefiting the industry and consumers.

-30-

2010-10-08T14:22:00.000-07:00

Presents

CMHC EQuilibrium Sustainable Housing Demonstration Initiative

@ CHBA-Victoria's

Annual General Meeting and New Product Showcase

Wed, Nov. 10 at 6 pm

Royal Colwood Golf Club

info@chbavictoria.com

2011 Home and Garden Show

2010-09-29T17:35:00.000-07:00

CHBA-Victoria's 2011 Home and Garden Show will be held Feb 18 - 20 at the Save-On-Foods memorial Center. We are working on a great show, and the exhibitor forms should be available by the end of the week. For more info, contact info@chbavictoria.com

cheers,

Casey

2010-09-27T15:45:00.000-07:00

ISLAND HOME-WITH-A-VIEW CAPTURES GOLD

VICTORIA – DB3 - a spectacular Vancouver Island view home by Gorter Construction Ltd. and The Sky Is The Limit Design, captured six Gold CARE Awards at the 2010 CARE Awards (Construction Achievements and Renovations of Excellence), attended by 250 builders trades and suppliers at the Fairmont Empress Hotel the evening of Friday, Sept 24.

DB3’s wins included Project of the Year – Single Family, as well as the 2010 People’s Choice Award. The People’s Choice Award is chosen by hundreds of consumers casting ballots for their favourite CARE Awards project on display during the summer at Mayfair Shopping Centre, Hillside Centre, and online at http://www.careawards.com/.

Project of the Year- Development was won by Parkside, a development by Ocean Place Holdings Ltd./Interior Design Group, which also won the Award for Outdoor Environmental Achievement; Best Commercial Project; Best Interior - Commercial; and Best Project Website.

“The Projects of the Year must impress the judges in multiple categories, so their Gold awards are outstanding achievements,” says Bob Gill, Chair of the 2010 CARE Awards. “All of the Gold winners and Finalists are to be congratulated for their innovation, craftsmanship, and raising the bar in residential construction.”

Other multiple CARE Award winners were Concert Real Estate Corporation; Città Group; Denford Construction Management Ltd.; DMS Homes Ltd; G.E. Miller Builder & Contractor Inc.; Gordon Hemsworth Construction Ltd./KB Design; and Icon Developments Ltd.

Built Green™ BC Builder of the Year was awarded to Verity Developments Ltd. for their work on environment-friendly housing, and the Lifetime Achievement Award went to Wayne Davis, Award Builders Ltd. for his volunteerism and efforts to promote industry professionalism. Coast Capital Savings won the "Building Better Futures" Community Award for seed funding the development of the Flex-Plex Housing Affordability Project and support for housing in the community. Ron Egli, Ron Egli Design and Construction Ltd. won the

Bill Wansbrough Memorial Award for outstanding contribution to the housing industry, including work on the National Building Code.

“The 2010 CARE Awards is a celebration of housing in our community, which includes professionalism, innovative design, and sustainability,” says Casey Edge, Executive Officer, CHBA-Victoria. “I invite the public to visit www.careawards.com and view these beautiful west coast homes.”

The Gold Award winners are, in the opinion of the judges, the very best projects incorporating specific criteria including unique design, function, creative use of space, compatibility with the environment, energy efficiency, effective land use, and cost. For more information on home building professionalism, go to www.chbavictoria.com and www.chbacvi.com.

We thank the following 2010 CARE Awards sponsors for their commitment to this event and their dedication to the residential construction industry:

Gold: Built Green™ BC; Coast Capital Savings; McLaren Properties Ltd.; Terasen Gas

Silver: National Home Warranty Group Inc; Travelers Guarantee Company of Canada;
Victoria Real Estate Board

Media: /A\ Vancouver Island; Shaw Communications; Times Colonist; Western Living Magazine

Bronze: BC Hydro Power Smart

The following are the 2010 CARE Awards Gold winners:

Best Single Family Detached Custom Home Under 3,000 sq. ft.
DMS Homes Ltd. - Delmonte

Best Single Family Detached Custom Home Over 3,000 sq. ft.
Città Group - Aspen House

Best Single Family Detached Spec Home Under 2,500 sq. ft.
Città Group – Lot 4 Oceanwood

Best Single Family Detached Spec Home Over 2,500 sq. ft.
Rayn Properties Ltd. – Twin View

Best Single Family Detached Home $1,000,000 - $2,000,000
Gordon Hemsworth Construction Ltd. / KB Design - Touchstone

Best Single Family Detached Home Over $2,000,000
Gorter Construction Ltd. / The Sky Is The Limit Design – DB 3

Best Planned Neighbourhood
Limona Construction Ltd. – Stonecliffe At The Plateau

Best Outdoor Living Space
Denford Construction Management Ltd. – Berwick Royal Oak Retirement Residence

Best Residential Renovation or Restoration Under $100,000
Gorter Construction Ltd. / The Sky Is The Limit Design - Seaview

Best Residential Renovation or Restoration $100,000 - $200,000
G.E. Miller Builder & Contractor Inc. – Gorge Crystals

Best Residential Renovation or Restoration $200,000 - $500,000
B Cubed Construction Ltd. – Stewart Road Residence

Best Residential Renovation or Restoration Over $500,000
Zebra Design Group – The Ballantyne

Best Kitchen Under 200 sq. ft.
Gorter Construction Ltd. / The Sky Is The Limit Design – DB 3

Best Kitchen 200 - 300 sq. ft.
Coastal Construction / Swiftsure Woodworkers Ltd. – Wild Coast Retreat

Best Kitchen Over 300 sq. ft.
Città Group – Aspen House

Best Bathroom Under 125 sq. ft.
Gorter Construction Ltd. / The Sky Is The Limit Design – DB 3

Best Bathroom Over 125 sq. ft.
Jenny Martin Design - Arabella

Best Master Suite Under 500 sq. ft.
Icon Developments Ltd. – Ayre Residence

Best Master Suite Over 500 sq. ft.
Gordon Hemsworth Construction Ltd. / KB Design - Touchstone

Best Interior – Residential Under 1,000 sq. ft.
DMS Homes Ltd. - Delmonte

Best Interior – Residential 1,000 – 3,600 sq. ft.
Icon Developments Ltd. – Ayre Residence

Best Interior – Residential Over 3,600 sq. ft.
Gorter Construction Ltd. / The Sky Is The Limit Design – DB 3

Best Custom Millwork Under 2,000 sq. ft.
G.E. Miller Builder & Contractor Inc. – Castle Highlands Grand Entrance

Best Custom Millwork Over 2,000 sq. ft.
Gorter Construction Ltd. / The Sky Is The Limit Design – DB 3

Best Commercial Project
Ocean Place Holdings Ltd. / Interior Design Group - Parkside

Best Interior – Commercial
Interior Design Group / Ocean Place Holdings Ltd. - Parkside

Best Condominium / Mixed-Use Development
Denford Construction Management Ltd. - Berwick Royal Oak Retirement Residence

Customer Service - Builder / Renovator / Trade
Concert Real Estate Corporation

Best Sales Centre or Showroom
Concert Real Estate Corporation – 365 Waterfront

Best Project Website
Ocean Place Holdings Ltd. - Parkside

Best Company Website
Interior Design Group

Best Overall Marketing Campaign
Concert Real Estate Corporation – 365 Waterfront

Award for Outdoor Environmental Achievement
Ocean Place Holdings Ltd. / Interior Design Group - Parkside

Award for Indoor Environmental Achievement and Energy Efficiency
Gordon Hemsworth Construction Ltd. – Cole Residence

CARE Awards Project of the Year – Single Family
Gorter Construction Ltd. / The Sky Is The Limit Design – DB 3

CARE Awards Project of the Year – Development
Ocean Place Holdings Ltd. / Interior Design Group - Parkside

Built Green™ BC Builder of the Year
Verity Developments Ltd.

Bill Wansbrough Memorial Award
Ron Egli, Ron Egli Design & Construction Ltd.

"Building Better Futures" Community Award
Coast Capital Savings

Lifetime Achievement Award
Wayne Davis, Award Builders Ltd.

Student Carpentry Award
Charles Thomas, Stellys Secondary School

2010 CARE Awards - Sept 24

2010-09-21T17:34:00.000-07:00

We have a few extra CARE Awards tickets available for Friday, Sept 24, at the Fairmont Empress Hotel, so if you want to see some great projects and attend the Premier Residential Construction Awards Event of the Year, call the CHBA-Victoria office now and we will fit you in.

Our MC's are Al Ferraby, from CFAX and Astrid Braunschmidt from /A\ Vancouver Island, adding to a great celebratory evening! See you at the CARE Awards!

cheers,

Casey

Housing Starts and Board Election

2010-09-10T13:59:00.000-07:00

Interesting week in housing. Lots of media coverage. Housing starts remain steady for August, but numbers bumped up by the condo market. Single family starts actually dropped off from an average 78 to 51. Could be linked to the HST on July 1. The numbers over the next few months will tell the story.

Sept 8 was our Election/Dinner meeting where members elected a new Board of Directors. The swearing-in is at our AGM, Nov 10.

The new Directors are:
Maurizio Conforti – Conforti Homes Ltd.
Jenny Martin – Jenny Martin Design
Mike Miller – Abstract Developments Inc.
Tim Schauerte – James’ Joinery Ltd.
Clint Wark – CareVest Capital Inc.

The following are the new Executive and continuing Directors:
Lee MacFarlane – President
Cam Hayward – First Vice President and Chair, Builders Council
Wilf Gorter – Second Vice President
Ron Egli – Past President
Robyn Normand – Treasurer
Mike McDougall – Suppliers Council Chair and Director
Patrick Morrison – Director
Bill Patterson – Director

Thank you to these members for stepping up to support their association! If you're not a member, join us - the voice of residential construction in Canada.

cheers,

Casey

Have a Great Long Weekend!

2010-09-03T14:09:00.000-07:00

Next week, we have our first CHBA Board and Dinner Meetings since June. Plus, we start CHBA hockey nights and the CARE Awards evening is just around the corner. But first, everyone enjoy a great long weekend, and drive safely!

cheers,

Casey

2010-08-26T15:44:00.000-07:00

Hi All,

The end of summer is upon us, which means we’re getting ready for CARE Awards, hockey and much more!

Book a seat now at CHBA-Victoria’s Dinner Meeting and Election on Wednesday Sept 8, 6 pm at Colwood Golf Club featuring Wendy Smith from Performance Energy Advisors and Doug Overholt, BC Hydro Power Smart.

Sign up for CHBA’s fun, co-ed hockey at Oak Bay Recreation Centre, every second Wednesday from 9:00 pm to 10:30 pm, Sept – May. Cost is $360 for the season. Full equipment required. Developing players welcome. Email info@chbavictoria.com to sign up.

Get your tickets to the 2010 CARE Awards Gala, Friday, Sept. 24 at the Fairmont Empress Hotel. Celebrate Vancouver Island’s outstanding projects and members’ accomplishments. The People’s Choice Award display is at Mayfair Shopping Centre Aug 16 to Sept 12 and at Hillside Centre Sept 13 – 19. Or go to www.careawards.com

Please use the services of our valued 2010 CARE Awards sponsors, they make it all happen:

GOLD - Built Green™ BC; Coast Capital Savings; McLaren Properties Ltd.; Terasen Gas

SILVER - National Home Warranty Group Inc.; Travelers Guarantee Company of Canada; Victoria Real Estate Board

MEDIA - /A\ Vancouver Island; Shaw Cablesystems; Times Colonist; Western Living Magazine

BRONZE - BC Hydro Power Smart

If you haven’t yet renewed your CHBA membership, give us a call. CHBA represents more than 100 builders and renovators working with 100 suppliers and trades to build the best homes in Greater Victoria. CHBA is THE industry advocate for consumer issues, HST, PTT, National and Provincial Building Codes, Professional Builders’ Institute, housing affordability and other industry concerns. But we can’t do it without you! Cash flow issues? Contact us and we’ll work out a payment plan.

Replacing the Dinner Meeting in October will be a "New Members Welcome and Orientation Lunch," date to be announced. We’ll fill you in on how the association works, benefits and opportunities, and you can tell us your expectations. The lunch will be available to anyone with an interest in meeting the Board and staff and learning about the association.

Cheers,

Casey

CHBA-Victoria's T-C column

2010-08-25T10:37:00.000-07:00

Here's CHBA-Victoria's weekly column by Ron Egli appearing in the Times Colonist on Wednesdays in the At Home section:

RENOVATIONS OFFER MOST EFFICIENCY

The Canadian Home Builders’ Association is a non-profit society promoting education and training, professionalism, housing affordability, and consumer awareness.

I recently attended an interesting presentation on energy efficiency in homes by Canada Mortgage and Housing Corporation. They studied the impact of renovations on homes and came up with some startling results.

Before renovations, there were between 10.6 and 43.8 air changes per hour in the homes, with Energuide ratings between 55 and 18. After renovations, air changes fell within 3.5 to 7.8 per hour and Energuide ratings improved to between 74 and 81. The annual energy saving to homeowners was between $1,460 and $1,813.

This study indicates that to significantly reduce green house gases, governments should focus on improving existing homes through programs, such as the Home Renovation Tax Credit, which expired early this year.

Improvements to existing homes reduce demand for energy, cut GHG’s, and save families money. These programs also create employment and create a paper trail which discourages illegal contractors and the underground economy. This, in turn, increases tax revenue for governments.

Instead, governments seem to spend an inordinate amount of energy and resources boosting the efficiency of new homes. This policy offers diminishing returns, since new homes are already very efficient, represent a vastly smaller proportion of the housing stock, and require significant expense to capture a small percentage of energy savings.

For example, CMHC discovered 85% of energy efficiency in a new home can be achieved through better insulation, windows, heating systems, appliances, and passive solar design. The cost is about $18,000.

An additional 10% can be achieved using active solar heating systems for water and indoor heat, at an additional cost of $37,000. Finally, the remaining 5% of energy efficiency can be achieved by installing a solar PV system for electricity at a cost of $54,000. Capturing the last 15% of energy will cost an additional $91,000.

In our community of very high housing costs, let’s add affordability to the equation of energy efficiency in new housing, and let’s start to focus on improving existing homes. A first good step would be reinstatement of the Home Renovation Tax Credit.

For more information, go to www.chbavictoria.com

Sept 8, CHBA-Victoria Dinner Meeting

2010-08-17T15:39:00.000-07:00

Don't miss our Dinner Meeting on Wednesday, September 8

Wendy Smith, a Certified Energy Advisor from Performance Energy Advisors will give a presentation on Energuide performance testing, pre-test planning and solutions, and Built Green and LEED for Homes programs. Doug Overholt from BC Hydro will talk about the new incentive increase from $400 to $1,500 for single family detached homes participating in the Power Smart New Home Program.

Board elections will also be held at this meeting. Contact the CHBA-Victoria office for more information.

Date: Wednesday, Sept 8
Place: Royal Colwood Golf Club - 629 Goldstream Ave
Time: 6:00 pm – reception
         6:45 pm – elections
         7:00 pm – dinner
         8:00 pm – presentations

Cost: members: $35 + HST / Non-members: $45 + HST
Book your seat now, email info@chbavictoria.com or call CHBA-Victoria at 250.383.5044.

People's Choice Award

2010-08-16T11:11:00.000-07:00

Hope you're having a spectacular summer!

The CARE Awards' People's Choice Award display is now at Mayfair Shopping Centre until Sept 12. The display goes to Hillside Centre from Sept 13 to 19.

Check out the beautiful homes and vote for your favourite. Watch for our ads on /A\ British Columbia, Times Colonist, and Western Living.

The CARE Awards could not happen without the support of our industry sponsors:

GOLD - Built Green™ BC; Coast Capital Savings; McLaren Properties Ltd.; Terasen Gas

SILVER - National Home Warranty Group Inc.; Travelers Guarantee Company of Canada; Victoria Real Estate Board

MEDIA - /A\ Vancouver Island; Shaw Cablesystems; Times Colonist; Western Living Magazine

BRONZE - BC Hydro Power Smart

cheers,

Casey

Builder Education and Training

2010-08-13T14:45:00.000-07:00

Education and training is at the heart of professionalism, so take advantage of the many CHBA courses being offered in the Fall.

CHBA EDUCATION AND TRAINING – FALL COURSES IN VICTORIA

Built Green™ Builder Training
Course: September 8 & 9, 2010
Registration Deadline: August 30, 2010

Marketing and Project Sales
Course: September 14, 2010
Registration Deadline: August 17, 2010

Financial Management
Course: September 28, 2010
Registration Deadline: August 24, 2010

BC Building Code – Single Family Dwellings
Course: October 16, 2010
Registration Deadline: September 11, 2010

Business Planning & Management
Course: November 4, 2010
Registration Deadline: September 30, 2010

Project Management & Site Supervision
Course: November 23, 2010
Registration Deadline: October 19, 2010

Construction Law
Course: December 7, 2010
Registration Deadline: November 2, 2010

NOTE: Early registration is necessary for all courses, with the exception of Built Green Training. They involve the advance receipt of assignments by way of email and completion of the online component, as well as the one-day session to review materials and prepare for writing the examination.

Please register directly through CHBA-BC at www.chbabc.org or contact Michelle Ripoli at 1-877-568-9778 or michelle@chbabc.org.

Off to Camp!

2010-08-10T16:25:00.000-07:00

Remember when you went to camp to learn to survive in the wilderness? Well, now there is a camp to learn to survive on the internet. It’s called Social Media Camp and it’s all happening on Oct 3 at the Victoria Conference Centre. Go to http://socialmediacamp.ca/

This is the future of communications and marketing. CHBA-Victoria is on facebook, twitter, and now we have a blog! Go to http://www.chbavictoria.com/ and send us a tweet!

cheers,

Casey

Thank you to our sponsors

2010-08-09T16:19:00.000-07:00

As a non-profit association, where would we be without our sponsors? A special thank you to our 2010 CARE Awards sponsors:

GOLD - Built Green™ BC; Coast Capital Savings; McLaren Properties Ltd.; Terasen Gas

SILVER - National Home Warranty Group Inc.; Travelers Guarantee Company of Canada; Victoria Real Estate Board

MEDIA - /A\ Vancouver Island; Shaw Cablesystems; Times Colonist; Western Living Magazine

BRONZE - BC Hydro Power Smart

Please support these organizations, as they have supported professional home building in our community.

cheers,

Casey

Economic Fundamentals are Strong

2010-08-09T16:03:00.000-07:00

It's good news for the economics of home ownership. The two most important indicators are the unemployment rate and mortgage interest rates.

The unemployment rate has dropped to 5.8%

Mortgage interest rates continue at historical lows - from 2.5% to 5% depending on your terms.

Combine this with the demographic shift of 10 million baby boomers retiring during the next 15 years, and it adds up to a strong housing market for Greater Victoria, Canada's retirement capital.

Of course, no one knows what tomorrow will bring, but it's a good idea to be thinking about it.

cheers,

Casey

Our New Blog

2010-08-06T14:48:00.000-07:00

Technology has redefined "old news" from yesterday to an hour ago. So it's time to get with the times and start a blog...

The 2010 CARE Awards takes place Sept 24 at the Fairmont Empress Hotel. Get your tickets now by contacting cedge@chbavictoria.com

The People's Choice Contest display will be at Mayfair Mall Aug 16, where you can vote for your favourite Finalist and enter to win a stay at http://www.longbeachlodgeresort.com/

Or go to http://www.careawards.com/ and enter online.

There's a lot happening in the home building industry and I plan to comment regularly, so stay tuned!

cheers,

Casey