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Ron Rapp, CEO | Twitter: @HAVANofficial
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INDUSTRY News
THE INK WAS BARELY DRY ...
Last week I referenced the housing policies being presented by the principal parties. Well, the MMB was barely posted when Andrew Scheer, Leader of the Conservatives, announced some very significant additions to the Conservative Housing platform.
In something of a surprise Scheer announced that he would be seeking to overhaul or even scrap the B20 Mortgage Stress T
est, reinstate the opportunity for a 30 year mortgage amortization, provide Federal Lands for housing development, and an inquiry in to money laundering in real estate. Andrew Scheer stated:
"A new Conservative government will fix the stress test to make sure first-time homebuyers can get access to a mortgage ...
It is important that we have strong regulations around the financial sector to ensure that our housing industry and our mortgage industry is strong and robust, but we believe that for first-time home buyers a 30-year amortization period is appropriate. Young first-time home buyers often have their highest earning years ahead of them. And so, as they get promoted and as their incomes go up, they'll be able to carry the mortgages that they've gotten into."
This announcement dovetails almost verbatim with the key "asks" which the HBA's nationally, provincially ,and locally have been promoting since the beginning of the year and expressed in the "Key to Home Ownership" proposal published by CHBA
and is roundly supported by the Association.
CHBA CEO Kevin Lee commented:
"Measures such as fixing the mortgage stress test and increasing amortization periods on insured mortgages to 30 years for first-time homebuyers and making use of federal lands to increase housing supply are recommendations that CHBA has asked every federal party to adopt. We are glad to see that parties are listening. Today's announcement aligns with our Association's recommendations that every federal party introduce smart and sensible housing policy measures to improve housing affordability for all, especially well-qualified first-time buyers that have been locked out of homeownership in recent years. These three measures answer the call for unlocking the door to homeownership."
The NDP is the only other party offering to re-examine the B20 Stress Test, and the Liberals are sticking with their program of first-time buyer subsidies that are actually taking up to 10% of the equity of the home, and this week PM Justin Trudeau announced a Federal program that would make up to $40,000 per home in interest free loans available to make homes more resilient to extreme weather.
CHBA comments:
Shared equity mortgages are a measure that the Association supports for those requiring a hand-up, such as the Liberal's First-Time Home Buyer Incentive. While shared equity mortgages are appropriate for some as a complement to mortgage rule adjustments, modifying the stress test smartly and providing 30-year amortizations for well-qualified first-time buyers are the best approaches to unlock the door to homeownership without causing undue risk to the financial system
.
CBC's comprehensive summary comparison of the platforms of all the parties on the many issues, including but not limited to housing, which we as voters are concerned with, is posted here again for your convenience.
A GATHERING OF MINDS ...
The annual Union of BC Municipalities (UCBM) conference took place this past week in Vancouver and was attended by municipal and provincial politicians and staff from every area of the province.
HAVAN and CHBA-BC were both on hand with HAVAN hosting a booth courtesy of CHBA-BC at the 2-day trade show portion. HAVAN was represented by GR Director Mark Sakai, and GR Coordinator Jay Chanda who were engaging with the delegates on a wide range of issues and were acting as ambassadors to showcase the HAVAN brand.
Every year the UBCM conference becomes a forum for the province to announce major initiatives or policies related to municipal affairs and or housing in BC.
The most significant this year was the announcement and release of the Development Approvals Process Review (DAPR) report by Minister Selina Robinson. In response to issues of supply and affordability raised in the context of the ongoing housing crisis, it was recognized by all stakeholders that there is opportunity to affect change and improvements to current municipal and provincial approvals processes that over time have become extremely lengthy, and uncertain in the predictability of outcomes. The extended time frames for approvals have adverse effects on the ability of industry to meet housing demands, and land costs both of which negatively affect affordability.
The DAPR report was contributed to by a broad scope of real estate industry stakeholders from both the public and private sector and identifies a series of challenges inherent in the current development approvals and review process that were identified on all sides of the of the issue. The consulting contributors focused on six significant factors and the challenges within them and proposed potential best practices and or alternatives to address those challenges. The six factors are:
- Local government application processes, including process variations across local government approvals, and developer applications.
- Local government approval processes, including delegation of authority on land use permits, and the requirement and processes associated with public input.
- Development finance tools, including the scope and use of development cost charges and community amenity contributions.
- Subdivision, including the role of approving officers, the use of preliminary layout approvals, and requirements for parkland dedication.
- Provincial referrals and regulatory requirements, including referrals to, approvals from, and permits authorized by provincial ministries, Crown corporations and major utilities.
- Other overarching themes, including opportunities to improve broad understanding of the development approvals process through training, guides and resources, and cross-jurisdictional
While the whole report bears reading to refer to the statistics and regional differences, the nature of the challenges identified appeared to be present to a greater or lessor degree across the province, and are summarized in Appendix B and C, together with applicable remedies, and are ranked in terms of actionable priority.
This document is a huge step forward in an effort to expedite development approvals and permits. It is going to require continued consultation with all stakeholders to affect the recommended changes and it will no doubt require additional study and time to covert those recommendations into action. Yet this is a watershed moment for industry and government to work together and affect changes that will make the development process much more efficient, effective, and timely in order to re-establish a reasonable degree of predictability and stability to the real estate sector.
HAVAN encourages Minister Robinson to maintain the momentum and move to begin the process of turning recommendations to actions as soon as possible. The Ontario government recently undertook a similar review/action evaluation of their development approvals and permitting processes province wide and introduced major changes in a very timely manner that have played a significant part in their market recovery.
MORE TRENDS ...
- 46,463 new registered homes
- 35,086 new homes in multi's
- 11,377 new single-family homes
- 7,334 purpose-built rentals
- 7,916 licensed residential builders
- 29% of builders see an increase in activity
- 43% of new home buyers want a single detached home
- 85% of new homeowners are satisfied with the construction of their home
This comprehensive report covers many other issues and factors as they are represented across the many region of the province.
SPECULATE ON THIS ...
Six residential homeowners have come together to file a lawsuit against the BC Government's Speculation and Vacancy Tax. These are not wealthy speculators who are crying poor, but rather residents and Canadians living abroad, many of whom are retired with limited incomes, and spend time between residences both in an out of the country. The homeowners are seeking an injunction and are suggesting that the tax is unconstitutional, infringes on their Charter Rights, and is beyond the power of the provincial government.
The homeowners are "wealthy on paper" but cash poor, and despite some of these homes being in their family for generations and not being speculators, they cannot afford the thousands of dollars of extra taxes on top of the existing tax burden with their limited retirement incomes. Owners say that renting out their homes to strangers while they are away, full of their possessions and memorabilia, is not an option.
Homeowners and second property owners are suffering the burden of these additional taxes despite not being a part of any speculative ventures. They have been caught up in the web of unintentional consequences of a tax policy that is being applied on a much broader basis than the intended targets.
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HAVAN Events
MEMBER CONNECTIONS
Upcoming member events and notices
are included in
Renée's weekly update
. Remember, your employees can help to leverage your membership too. Share this weekly update with your staff - they receive member rates at all our events and education sessions.
Greg will share experiences from all aspects of the development process: as a City Planner, Mayor and work in the private sector on the discussion of regional growth. This unique insight will shed light on the current development landscape in Metro Vancouver and provide the audience with ideas and strategies on how to succeed. The presentation will be followed by HAVAN's Annual Election Meeting and speech from incoming Board Chair, Mark Cooper,
Shakespeare Homes and Renovations Inc.
DATE:
This Wednesday, Oct 2nd, 5:30pm - 8:30pm
LOCATION: Riverway Clubhouse (9001 Bill Fox Way, Burnaby)
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HAVAN Education
LOOKING FOR INDUSTRY COURSES? TELL US WHAT YOU NEED!
IN-CLASSROOM COURSES: Member Rates apply to your staff too!
Stay up-to-date on the latest course offerings by reading your
HAVAN Education Update
, delivered to your inbox every Thursday.
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DATE:
TUES OCT 15
TIMES: 9am - 10:30 a.m. or 3- 4:30 p.m.
Arthur Lo of Insightful Healthy Homes will lead the tour of Insightful House, which is a Living Building Challenge project - the only one in B.C. and one of only a handful in North America. Live building site, limited space. Book early.
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TIME: 8AM - 11AM
Location: Cosentino Centre Vancouver. 8603 Glenlyon Pkwy. Burnaby
Learn estimation best practices, common bid errors, and how to better price your bids.
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Date: Thurs Oct 31
Time: 7:30am - 9:30am
Location: Trev Deeley (1875 Boundary Road Vancouver)
Featuring a panel of speakers sharing strategies to reduce construction waste in the Metro Vancouver region, attendees will learn about current and upcoming waste regulations, cost-comparable removal solutions such as upcycling and deconstruction to responsibly removing demolition materials and opportunities in the green economy to utilize sustainable products to lessen the impact of construction waste.
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Member News & HAVAN Heroes
Got News?
Take advantage of our audience and leverage your membership via HAVAN's channels. We're always on the lookout to highlight members connecting with and supporting the communities where you build. In our eyes, you are real HAVAN Heroes. Send your press releases to dawn@havan.ca and we'll help share, tweet and re-purpose your news. @HAVANofficial
VERSA PLATINUM RAISES HOLDS PARTY FOR SICK CHILDREN
Heroes come in all shapes and sizes, and HAVAN member Versa Platinum held a very cool party in support of BC Children's Hospital with their attendees and community raising
$30,000.
Check out the video. Now that's a HAVAN HERO! Thanks, Versa.
CONGRATULATIONS TO BIV's TOP 40 UNDER 40: HAVAN MEMBERS
- Darian Kovacs, Founding Partner, Jelly Digital Marketing & PR
- Ashley Smith, President, Real Estate Board of Greater Vancouver
- Jasmean Toor, Vice President, Real Estate Finance, Edgar Development
- Erin Walker, Director of Strategy and Program Management Office, TELUS Security and Automation, TELUS
- Reshma Chaskar Mehta, SHK Law
RESTORING HONEST JOURNALISM FUNDRAISING DINNER WITH EPOCH TIMES
An evening of speeches on Hong Kong's future, food and drink, silent auction, book exhibition and traditional Chinese cultural performance.
Details.
LEARN WHILE YOU TRAVEL WITH MURRAY FRANK
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Committee News
UPCOMING COMMITTEE MEETINGS
For a complete list of committees, and contacts, click
here.
Meetings this week
Marketing Communication Committee: Thursday, October 3, 8:30a - 10:30a @ HAVAN office. Contact Dawn@havan.ca
For a complete list of upcoming committee meetings, please refer to the
Sunday Connections email.
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