Blog – Vanhomesales

CMHC sees steady housing market ahead

March 30, 2012 By Gino Pezzani Leave a Comment

Canada Mortgage and Housing Corp. is predicting the Canadian housing market will remain fairly stable this year and next.

OTTAWA — Canada Mortgage and Housing Corp. is predicting the Canadian housing market will remain fairly stable this year and next, with little change from 2011 in prices, new home construction and sales of existing homes.

The national housing agency said Monday in its first-quarter 2012 report that the foreseen stability stems from an economy that appears set to expand at only a moderate pace over the next two years. The Bank of Canada’s key overnight rate — which affects mortgages tied to prime rates — will likely remain low until mid-2013, which should also act to keep activity on an even keel.

“With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011,” CMHC deputy economist Mathieu Laberge said in a statement.

Low mortgage rates and high demand have driven housing prices sharply higher in large urban centres such as Toronto and Vancouver, leading many experts to warn that a housing bubble could burst when rates finally do rise.

Despite those warnings and alarms from top government officials that Canadians are taking on too much debt overall, the housing market has seen little change over the past few years, with price growth slowing but not retreating in most areas.

The CMHC says it expects the average house price in Canada to hit $368,900 for 2012, with a projected range between $330,000 and $410,000, according to data from the Canadian Real Estate Association’s MLS service.

For 2013, that number rises to $379,000, with a range between $335,000 and $430,000.

“The moderate increases in the average MLS price are consistent with the balanced market conditions that occurred in 2011, and that are expected to continue in 2012 and 2013,” CMHC said.

Housing starts are expected to be around 190,000 units this year and 193,800 units in 2013, while existing home sales are expected at about 457,300 units in 2012 and moving a little higher to 468,200 units in 2013.

The CMHC predicted that housing starts will be in the range of 164,000 to 212,700 units in 2012, and between 168,900 to 219,300 units in 2013. Existing home sales are expected in a range from 406,000 to 504,500 units in 2012, rising to 417,600 to 517,400 units in 2013.

Western Canada is expected to see strong growth in new housing starts, with Alberta leading the way with a 13.2 per cent increase. However, the agency said it expects housing starts in Saskatchewan to contract by about 2.7 per cent in 2013.

In Eastern Canada, all provinces are expected to see a contraction in housing starts for 2012, with “modest growth” returning to Quebec and Ontario in 2013.

The agency noted that the fate of an economic recovery in the United States, Canada’s largest single trading partner, could have an immediate affect on Canada’s housing industry —

“Some upsides include the potential that the U.S. could recover more quickly than anticipated, which would be positive for U.S. employment and economic growth,” CMHC said.

“In turn, this could boost employment growth in Canada and thus lead to a stronger than expected housing market.”

Conversely, if the U.S. recovery hits a snag and emerging economies see their growth slow while Europe suffers a slowdown, that could lead to slower employment growth in Canada and place a chilling effect on the demand for housing.

The Canadian Press

Keith Beaty / Toronto Star

Filed Under: Uncategorized

Light Is For The Living

March 14, 2012 By Gino Pezzani Leave a Comment

Professor Van Helsing approaches the home with trepidation – the lone light is from the moon and even that scarcely illuminates the entry way. He wonders what horrors are hidden in the shadows…

A potential buyer for Count Dracula’s castle might also question what is tucked in the dark corners and hallways of the eerie abode.

Bram Stoker, the author of Dracula, and old Hollywood horror-movie directors understood the impact proper lighting has on a situation. A multitude of horrible, dirty, dangerous, unsightly, disgusting surprises can be lurking about, waiting for the most opportune time to make their presence known.

But while Van Helsing overcame his fears and entered the castle despite them, potential homebuyers may not make it past the unlit foyer, no matter how attractive it is. If buyers can’t SEE it, they can’t love it. Even worse, they can fear the unseen (and quite possibly insignificant) qualities, and become uneasy in a home that may be just perfect for them.

Lighting can be a relatively inexpensive but effective way to highlight the positive qualities of your home or downplay areas that are less attractive.

The most desirable and inexpensive lighting is natural sunlight. The easiest way to capitalize on this natural resource is to show your home during the daytime when the sun is shining brightly, throwing open blinds or shades, decluttering windowsills, and washing panes to allow light inside. This is also a good time to move Aunt Gerties’s antique walnut wardrobe away from the window. To do its job, light needs to enter a room unhindered.

Unless your window overlooks a neighbor’s collection of rusting cars or a grimy, graffiti-ridden wall of the building next door, it’s good to keep curtains open when showing your home. It makes the room look bigger and more inviting. If the view is less than attractive, hang sheer curtains over the window that will allow some light in while subtly distracting the buyer’s attention from the unsightly scene.

Do shades or domes have dead insects or dust in them? Clean them and see how much brighter the room looks. Are there scratches, dents, dings or tarnish on fixtures? If they can’t be buffed or cleaned, consider replacing them.

If fixtures need to be replaced, consider your target buyer and the style of your home when choosing the replacements. For example, if the architecture and furnishings of your home are traditional, modern-style fixtures of polished gunmetal would look inappropriate. Or if you’re targeting younger buyers, the original circa 1970 pea green mod-style hanging lamp may need to go.

Lighting can minimize a room’s idiosyncrasies, creating optical illusions that make a room seem wider, a ceiling higher or hallway longer. Long, narrow hallways, common in today’s condominiums, can be transformed from wasted space to an art gallery with the addition of track lighting to illuminate artistic treasures. Is there a room that feels like the ceiling and floor are gradually closing in on you? By avoiding hanging fixtures and using those that throw light up a wall, such as floor can lights, one can make ceilings feel higher.

But if your ceiling has cracks or other blemishes, light that flows down to the floor moves the eye in that direction, distracting a potential buyer’s attention away from a negative feature. On the other hand, bowing walls of older homes require lighting that moves straight from floor to ceiling without hitting the wall. Here, the lamps or fixtures must be placed away from the wall and face the ceiling.

Often one can take fixtures already used in the home and move them to more appropriate areas. Life’s little horrors, real or imaginary, tend to disappear when rooms are lit properly.

Have a particularly small room? A mirrored wall will look double the size that it did when it was only painted. If the mirrored wall is across from a window, the natural light will be reflected and the room will seem brighter.

It’s important to remember that it isn’t enough to just have the proper light fixtures. You need to use them. Even during the day, lights should be on in every room of the home, including hallways, closets, bathrooms, on the stove, in the oven and under hanging cabinets. At night, be prepared for an evening buyer drive-by with lamps illuminated in rooms with windows that face the street. After all, folks need to know that Dracula isn’t lurking in the shadows.

If the home is dark with few or very narrow windows, take heart. A trip to your local home improvement store can lighten things up quickly. Even naturally lit homes can benefit from the addition of appropriate electric lighting.

Begin by slowly walking through your home, taking special care to flip all switches and look at each light fixture and lamp. Are there burnt-out bulbs that need to be replaced? Keep a list of all the size bulbs you need to purchase.

Filed Under: March 2012 Newsletter, Tips for Sellers

Stigmatized Properties

March 13, 2012 By Gino Pezzani Leave a Comment

A potential buyer may be quite happy with the physical condition and the location of a residential property, but they may avoid purchasing the property because of concerns regarding an event or circumstance occurring in or near the property. Examples include a property next door to a residence occupied by a convicted pedophile, or a reputed gang member. The property could be known as a haunted house. Other examples include a murder or suicide in the home, or the home was subject to a drive-by shooting or used as part of an illegal operation such as a brothel.

Even though the “stigmatizing event” does not directly affect the appearance or use of the property, it has such a negative psychological effect on the potential buyer that they decide not to purchase the property. The property becomes known as a “stigmatized property” or a “psychologically impacted property”, potentially making it much more difficult to sell and ultimately adversely affecting its market value.

Clearly, the significance of the stigmatizing event will vary with a Buyer’s values, perceptions, beliefs, age, religion, ethnic background, gender and other concerns personal to that Buyer. Some events are so heinous that everyone will know through the media and be so horrified that they would never dream of buying the affected home. In other cases, such as a reputed haunted house, you may find some people may really be shaking in their boots while others (especially in olde England) may see reported ghost sightings as part of the property’s distinct charm, simply shrug their shoulders and hope the notoriety increases the home’s value. As it can be so subjective, it is impossible to determine all the possible events or circumstances that can cause a property to be stigmatized. This makes it very hard to set rules on what possible stigma should be disclosed. One can also ask why should a seller disclose possible stigmatizing events and risk devaluing their main asset when it may not have any effect whatsoever on the buyer’s decision to purchase or not. Therefore, in common law jurisdictions like BC and Ontario, there are no legislation that defines or deals with stigmatized properties.

As a sidebar, in close to half of the American states there is law requiring some form of disclosure of property stigma, as there is in Quebec. California was the pioneer, as often seems to be the case. California was the first state to pass a law defining the disclosure responsibility of an owner and a real estate agent when selling stigmatized property. For example, the law requires an agent to disclose the fact of a murder on the property for a period of three years after the event.

What can buyers do to protect themselves in BC with respect to stigmatized properties?

In British Columbia, people who are selling their home (“Sellers”), and the agents who represent them, must disclose all known material latent defects. A latent defect is essentially a material defect that is not generally visible during a reasonable inspection but renders the property unfit for habitation or is dangerous or potentially dangerous to the occupants. It is generally associated with a hidden physical defect with the property such as a big crack in the foundation that has been covered up with flooring, faulty wiring covered by drywall or poorly insulated plumbing that leads to pipes freezing and bursting in winter. It has also been held that a latent defect can cover environmental issues such as leaking corroded underground oil tanks and radioactive materials being stored near the property.

Although Sellers are required to disclose all known material latent defects (on the Property Disclosure Statement), they are not required to disclose the existence of all possible stigmas that might be a concern with potential buyers. The doctrine of caveat emptor (buyer beware) still very much applies in BC. This means that buyers in BC have to make their own inquiries for possible stigmas. Of course, they can ask their agent to directly inquire with the seller’s agent. Usually though a seller will either not know or will not want to incur any potential liability and will decline to answer the question directly and advise the buyer to undertake their own investigations. Sometimes, a seller may choose to answer the question and in that case the seller, and the seller’s agent, must exercise reasonable care to ensure the accuracy of their answer. Otherwise, if the seller does not disclose anything, it will be up to the buyer to check other available sources. For example, if a buyer has a concern in respect of criminal activities or convicted felons in or near the property, a buyer should inquire at the local police service, research local newspaper websites, and talk with the neighbors around the property. If there is a suspicion that the properly is reputedly haunted, there may be certain websites which have a list of local homes that are apparently haunted.

Agents should note though that, in a limited dual agent situation, if a buyer has notified the brokerage through the agent representing the buyer of their concern about a certain stigma and the brokerage, through the agent representing the seller, is aware of the existence of such a stigma, the brokerage must disclose that information to the buyer.

Can a stigma become a material latent defect that must be disclosed to the buyer by the seller?

In a BC case in 2003, the buyers refused to complete on a purchase of a lake front property in Kelowna after finding out from a neighbor that the adjoining property that was next to a public park was being used in the summer as a nude beach. The sellers sued the buyers for the down payment of $100,000. The trial judge ruled in favour of the sellers and said that the sellers’ nondisclosure of the use of the nearby beach did not amount to a latent defect and did not entitle the buyers to escape their obligations under the contract. The trial judge said, “The presence of nude bodies next door or parading in front of one’s house may or may not be a defect. This requires a subjective test. To allow defects to be determined by individual preferences would open the floodgates of litigation by remorseful purchasers and create an impossible standard of disclosure for vendors. In this case, the alleged defect was occurring outside the boundaries of the property purchased. The presence of a nude beach next door to the subject property is not a defect, latent or patent. There is no duty on the vendor to disclose the existence of the nude beach.” The buyers were ordered to pay the $100,000 down payment to the sellers. The BC Court of Appeal dismissed the Buyer’s appeal and upheld the trial judge’s decision. As the trial judge alludes to in his judgment, to allow the presence of a nude beach to become a latent defect would start a slippery slope that is very hard to stop and could force sellers to disclose anything and everything to avoid claims of misrepresentation. Presumably the term slippery slope had nothing to do with suntan lotion from the nude beach enthusiasts.

A far more damaging psychological event is unfolding at the time of writing this article. In a recent Ontario case a lawyer is arguing that the stigma of having a neighbor who has been convicted of possessing child pornography amounts to a latent defect. In this case, a couple, with two young children, bought a home in June 2010 but found out only after completion that a man convicted of possessing child pornography was living across the street. The couple believes that it was not safe to move in. The couple is suing the sellers and the sellers’ realtors arguing that they should have disclosed this information which the couple learned was common knowledge in the neighborhood. The lawyer states that the presence of this neighbor is a latent defect in that it was not apparent upon a reasonable inspection, but one the seller knew about, and renders the home uninhabitable. This latent defect argument in relation to a convicted criminal in the neighborhood enters uncharted territory. The defence to such a claim is that, although socially and morally it is a good idea to disclose, the current law does not require disclosure and that it is really stretching the law to include this event as a latent defect. Of course nobody wants to live near a sex offender but the court must answer the question of whether the effect of having a neighbor with a child pornography conviction is too subjective to be considered a latent defect of your property. The case is still ongoing and a settlement may be reached before a court decision is made. Some have argued that if there was an accessible public sex offender list in Canada, buyers could check themselves without having to go through the stress of a court case and arguing what should have disclosed by sellers. However, as it would be very hard to keep such a list up to date with people moving and changing addresses, would buyers really be able to completely rely on such a list?

In another Ontario case, a couple with three children bought a home next door to a father and son who had both been convicted of possessing child pornography. The couple subsequently decided to sell the home, disclosed the presence of the father and son next door and state that as a result it took nearly a year to sell and they sold it at $30,000 less than what they paid. The couple sued the vendors, who were real estate agents selling their own property. As a result, the lawyer for the couple is relying on the disclosure requirements under the Ontario Real Estate and Business Brokers Act rather than the latent defect argument although that argument would probably have been advanced if the vendors were not realtors. That Act is similar to the legislation in BC under the Real Estate Services Act and Real Estate Council Rules in that it requires all realtors divesting themselves of an interest in real estate to advise all parties involved in writing that they are realtors who have an interest in the transaction and to provide full disclosure of all facts within their knowledge which affect or will affect the value of the property they are selling. The case is still to be decided.

In the future, even if the argument that certain stigmas can amount to latent defects fails, it may be suggested that more questions should be listed in the General Section of the Property Disclosure Statement to go along with the marijuana grow operation and the material latent defects questions. These questions could directly address serious particular stigmas such as “Has there ever been a murder on the property?” Again though, a seller may not know the full history of the property or may just refuse to complete the Property Disclosure Statement. In any event, it would not absolve the buyer from making their own inquiries.

Conclusion

In British Columbia there is currently no legal requirement for sellers, or the agents representing them, to disclose possible stigmas in respect of a property such as if a murder, suicide, gang shooting or ghost sighting may have occurred in or near the property. Sellers should be very careful with their replies if they decide to directly answer questions from buyers in respect of possible stigmatizing events or circumstances concerning their property and obtain independent legal advice if unsure. Buyers, if they have suspicions about a possible event or circumstance that may have occurred in or near the property, should be very diligent in their inquiries, checking with the seller through their agent, the police, neighbors, newspapers, and websites and leaving no stone unturned. Realtors should be very careful when acting for their clients and make sure that they observe their own professional disclosure requirements set by the Real Estate Council, especially in a limited dual agent situation and when selling property they own themselves.

Copyright © 2012 by Spagnuolo & Company Real Estate Lawyers. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.

Phone: 604-527-4242
Toll Free Phone: 1-888-873-2829
Fax: 604-527-8976
Toll Free Fax: 1-888-414-8976
Toll Free within BC: 310-HOME
Email: realestate[at]bcrealestatelawyers.com

Filed Under: March 2012 Newsletter, Tips for Buyers, Tips for Sellers

Government announces new HST/PST housing transitional rules

February 20, 2012 By Gino Pezzani Leave a Comment

VICTORIA – New housing transition measures give certainty to an important economic sector and help to keep taxes equitable throughout the transition as the province returns to the PST, Finance Minister Kevin Falcon announced.

B.C. will return to the PST on April 1, 2013, meeting the Province’s commitment to return to the PST as quickly and responsibly as possible, while ensuring businesses can plan their training and systems switch-over effectively to apply the sales tax correctly.

Government is announcing new relief measures that will benefit purchasers and builders of new homes. The B.C. new housing rebate threshold will be increased to $850,000, effective April 1, 2012, meaning more than 90 per cent of newly built homes will now be eligible for a provincial HST rebate of up to $42,500. It is important to note that the HST does not apply to resale housing.

In addition, to help support workers and communities in B.C. that depend on residential recreational development, purchasers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012.

The housing transition rules help ensure when people buy a newly constructed home under the PST, whether built entirely under the HST, entirely under the PST, or partly under HST and partly under the PST, they will all pay a consistent and equitable amount of tax.

Specifically:

B.C.’s portion of the HST will continue to apply before April 1, 2013. Purchasers will be eligible for the new higher B.C. HST new housing rebate, of up to $42,500, and builders will continue to claim input tax credits.
B.C.’s portion of the HST will no longer apply to newly built homes where construction begins on or after April 1, 2013. Builders will once again pay seven per cent PST on their building materials. On average, about two per cent of the home’s final price will again be embedded PST.
For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price. This ensures equitable treatment among purchasers and will help mitigate distortive market behaviour. Builders will receive temporary housing transition rebates to offset PST on materials to help prevent double-taxation on homebuyers.

The transition rules outlined today provide certainty for new-home construction and sales, particularly during the transition period.

For goods and services that will be subject to PST, PST will generally apply where tax becomes payable on or after April 1, 2013. Detailed general transitional rules for goods and services will be available with the full PST legislation introduced in the legislature this spring.

The provincial changes are subject to the approval of the legislature.

Quick Facts:

Raising the B.C. HST rebate threshold to $850,000 is expected to save purchasers about $60 million in 2012-13. The maximum value rises to $42,500 from $26,250, a 60 per cent increase.
More than 90 per cent of newly built homes sold in B.C. are below the new higher rebate threshold.
Average amount of embedded sales tax in newly built homes under PST: two per cent.
Tax paid by purchasers on an $850,000-newly built home after HST rebate: two per cent.
Tax rate on a newly built home during transition: two per cent.
The temporary housing transition measures will be in place for two years, until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.
The temporary housing transition tax and the temporary housing transition rebates will be administered by the Canada Revenue Agency on behalf of B.C. The Province is administering the grant for new secondary vacation and recreational homes.

http://www.pstinbc.ca

For more information, please contact: Gino Pezzani

Filed Under: Tips for Buyers

What do Vancouver Homebuyers Want?

February 12, 2012 By Gino Pezzani Leave a Comment

In the hot, competitive Vancouver housing market, it helps to know what your target market is after- and to make sure that you are delivering on it.

Is there such a thing as a “dream house”? Homebuyers realize that perhaps some concessions need to be made in order to get what they want. A recent survey sponsored by REW.ca suggests that there are certain elements that buyers in Vancouver’s Lower Mainland are willing to compromise on.

Topping the list as the most important factor- as well as one that they were least willing to compromise on was a “livability factor.” The survey found that “Close” is the word that sums up what respondents want in a location, with 41% of home buyers and sellers selecting “close to amenities” and 33% saying “close to family/friends”. “Close to work/lessened commute time” came third, with acceptable commute times averaging 30 minutes.”

Many also indicated that the style of their home was an influencing factor, but many (44%) indicated that this was something that they would be willing to compromise on.

“What this tells us is that people in Vancouver Lower Mainland communities want a certain style of home but in reality they are willing to compromise on this for liveability factors such as living close to amenities with lower commute times,” says Ian Martin, General Manager, REW.ca.

When asked what factors, other than liveability, helped homebuyers select location, respondents said being close to amenities such as shops, grocery stores, medical facilities (41%); close to family/friends (33%); close to work/lessened commute time (22%); close to public transit (19%); safety/less crime (16%. 15% of respondents said that they favoured being close to parks and green space and/or water.

Assuming that price was no object, factors that influenced homebuyers on selecting homes themselves, included the size of the home, style and number of bedrooms

Filed Under: February 2012 Newsletter, Tips for Buyers, Tips for Sellers

How Do Sellers Price Their Homes And How Much Should I Offer?

February 12, 2012 By Gino Pezzani Leave a Comment

We’re often asked by our clients, “How much under the listing price should we offer?” This is an excellent question. The answer is difficult. There are four basic ways that sellers price their homes.

1. Ridiculously Overpriced!

These sellers have listened to a real estate consultant over-inflate the value of their home in an effort to obtain the listing. There’s a natural tendency on the part of sellers to list with the real estate consultant who gives them the highest promise. Some real estate agents give the seller a high “value” in an effort to obtain the listing.

These homes can be 10 to 20% overpriced. These sellers may need a “dose of reality” for a few months before they begin to realize that their home is way overpriced as compared to others in the area.

The longer an overpriced home is for sale, the more likely we can get the seller to face reality and sell at a fair price.

2. A Little Overpriced…

Perhaps 75% of all homes for sale are priced in this range.

These sellers fall into two categories:

Those who feel their home is worth every penny of their asking price.
Those who want to leave a little “negotiating” room. These homes can be four to 10% overpriced.

3. Priced At Fair Market Value…

These sellers have carefully and realistically studied other homes for sale. They’ve priced their homes very competitively. These homes usually sell within four weeks at or very near the listed price.
In an active market, timing is everything.
In the good old days, you might have the luxury of viewing a home several times – even dragging your relatives to see it – before you actually made an offer.
“He/she who hesitates is lost” aptly explains buyers who dally when making a buying decision today.

4. Priced Below Fair Market Value…

These homes are priced below value. Perhaps the seller wants a fast sale. Perhaps the real estate consultant recommended too low a price. These homes usually sell within seven to 10 days, at or above the listed price. There usually are competing offers in this situation, and you may need to make your first offer your best offer.

Filed Under: February 2012 Newsletter, Tips for Buyers, Tips for Sellers

Condo Document Alert

February 12, 2012 By Gino Pezzani Leave a Comment

The majority of all new housing starts involve strata properties. In a dozen municipalities, strata properties now make up more than half of all taxable properties.

In December 2011, the provincial government changed several important strata requirements. Whether a licensee markets strata properties or manages them, the licensee needs to know about these developments. The changes mainly concern depreciation reports and contributions to a strata corporation’s contingency reserve fund (CRF). Some changes are immediate, while others come into effect at different times over the next two years. This is a summary of the changes that most concern licensees.

Depreciation Reports

A strata corporation’s depreciation report estimates the life expectancy of major items and the ultimate cost of their repair or replacement. Effective December 13, 2011, every strata corporation must periodically obtain a depreciation report, unless otherwise exempted. A strata corporation whose strata plan contains less than five strata lots is excused from this requirement. So too, where a strata corporation by 3/4 vote waives the requirement for a depreciation report, the corporation may defer compliance with this requirement for up to 18 months.

With some exceptions, a strata corporation has two years (in most cases, until December 13, 2013) to obtain the mandatory depreciation report. After that, a strata corporation must update its depreciation report every three years, unless exempted. Only a qualified person may prepare the report, which must involve an onsite inspection. The report must project the anticipated costs of maintenance, repair and replacement of major building components over the next 30 years. The depreciation report must also contain certain information, including a financial forecast that offers at least three cash-flow funding models for the CRF.

Strata Records

Effective December 13, 2011, a strata corporation must keep among its records any depreciation report obtained by the strata corporation. The strata corporation must also keep any reports respecting the repair or maintenance of major items in the strata corporation, including engineers’ reports, risk management reports, sanitation reports and reports respecting any items for which information is mandatory in a depreciation report.

Effective March 1, 2012, whenever a strata corporation issues an Information Certificate (Form B), the corporation must attach to it, among other things, the corporation’s most recent depreciation report.

In addition, effective, January 1, 2014 the Information Certificate (Form B) will change. At that point, the Form B will require a strata corporation to disclose if there is any parking stall or storage locker allocated to the strata lot and if so, whether the parking stall or storage locker is a separate strata lot, part of a strata lot, or part of the common property.

Funding the CRF

In the past, the Strata Property Act imposed a CRF ceiling. In simple terms, once a strata corporation’s CRF exceeded the amount of the previous year’s operating budget, the law prohibited further CRF contributions, unless the eligible voters by 3/4 vote decided otherwise. Effective December 13, 2011, the CRF cap disappeared. Now, so long as the strata corporation has the statutory minimum amount in its CRF, the corporation may approve further contributions as part of the ordinary budget approval process after considering the depreciation report, if any.

This is only a summary of these important changes; the new requirements for depreciation reports, for example, are reasonably complex. A licensee can view the legislation at: www.housing.gov.bc.ca/strata/regs/OIC-SPA.pdf. Every listing licensee and buyer’s agent should immediately add to their list of requisite documents any depreciation report, as well as the related documents listed above. Every strata property manager may learn the specifics of these changes by attending those industry events where these developments will undoubtedly be discussed in detail.

Mike Mangan
B.A., LL.B.

Filed Under: February 2012 Newsletter, Tips for Buyers, Tips for Sellers

Cambie Corridor Plans Puts Vancouverism To The Test

February 12, 2012 By Gino Pezzani Leave a Comment

For all its charms – its seaside and mountain views, greenery and fresh air – Vancouver remains a decidedly suburban city. It’s traditionally been much more about CPR land transformed into residential enclaves than the right blend of high-density, mixed use and transit access that defines urbanism.

But with the high cost of housing and dwindling supply, a growing and aging population and an exodus of youth who can’t afford to live in the city, the game plan is changing.

While there have been other arbiters of civic sea change, the most exciting game changer in recent years has been the Canada Line that has spurred densification of the Cambie Corridor.

The unassuming north-south corridor, largely composed of single-family bungalows – now worth an average of $1.5-million – has always been a rather sleepy, suburban feeling enclave, where young families and empty nesters resided. But now both of those groups have changing housing needs that are being addressed by two groundbreaking developments – a mixed-use project on the site of the Oakridge Shopping Mall at 41st and Cambie and the new Marine Gateway project at the southern tip of the corridor.

The increase in density and new transit access have contributed to a dramatic rise in real estate prices, with some homes around the Oakridge area recently tripling in price. But while some long-term residents have expressed concern about rapid change in their neighbourhood, others are excited by the possibilities it will bring for more affordable housing and more urban amenities. The Cambie Corridor plan allows buildings up to 12 storeys in height, with allowances for greater height around the Oakridge Mall and at the southern end of Cambie Street near Marine Drive.

Patrick Condon, a planner and professor of landscape architecture at UBC and author of Seven Rules for Sustainable Communities, says that densification of the Cambie Corridor will help address the city’s “urgent housing needs.”

He contends that the city’s plan for the corridor, which aims to bring 15,000 more people to the area, is “the best of its kind in North America.”

“It’s the first corridor plan I’ve ever seen that focuses so much on what the buildings are going to look like rather than being just a zoning plan.”

Mr. Condon supports the largely mid-rise development plan that does not concentrate density exclusively around stations, saying “a more evenly distributed density is best as it supports a finer grain commercial activity and in many ways leads to a more sustainable city.”

Mr. Condon, who worked with students to produce a comprehensive masterplan of what Vancouver will look like by the year 2050, notes that in less than 40 years, 25 per cent of the population will be over age 65, a “ 250 per cent increase over what it is now.”

The plans for higher density housing along the Cambie Corridor, he contends, will benefit the “over-65s” who will be “increasingly mobility impaired and the ones who will be the largest group needing housing.”

He maintains that “it’s logical to put housing close to services and ways of getting around – unless you want the elderly to be imprisoned within their buildings or complexes – which is true in many parts of North America but hopefully not true here.”

At the same time, he says, the new housing will benefit young people and young families. “There were many young people at the public hearings,” he relates, “saying ‘yes, I need housing and I need it to be affordable and I need it to be in Vancouver – and if I can’t get it I will be forced to move to Maple Ridge – where I don’t want to go.’”

The alternative to high density mixed use housing developments he says, “is an older city where we will have fewer and fewer young people able to afford to live here – making it impossible for younger families to exist. How can someone take a job at less than $40,000 a year and pay more than half a million for a very simple place to live?” The equation is simple, he says, higher density housing means more affordable housing.

He thinks the Oakridge Mall area in particular is ideal as it “upgrades what is now an auto oriented shopping mall into an urban, attractive place.”

“I think the idea of barnacling on appendages to shopping centres is a logical and sensible strategy. Without losing the substantial commercial value that’s already in that location – it makes it a more mixed use complex that’s not entirely about driving the car to a parking lot but part of a transit accessible, complete neighbourhood.”

He also thinks that the new development could be “groundbreaking”

“In urban design circles, there’s been talk about changing shopping malls into urban places for decades.” The Oakridge development has all the potential, he says, “to become a demonstration of a successful strategy that could be applied throughout North America.”

Ivanhoe Cambridge, which owns the 28.3-acre parcel that comprises Oakridge shopping centre, secured city council approval in 2007 for a policy plan that forsees 1.8-million square feet of new density. The site already contains 50,000 square feet of residential, and plans are afoot to add 1.2-million square feet of housing.

According to Gordon Wylie, senior director of development at Ivanhoe Cambridge, 50 per cent of the housing will be town homes and midrise development, and 50 per cent will be high rise – with the policy currently allowing for nine towers on site.

As well as the planned 350,000 square feet of new retail and 200,000 square feet of new office space, Mr. Wylie says ample community space – in addition to the existing library, school and seniors centre – will be added to the site.

“Our vision is to create a complete and sustainable community,” he says, adding that the scale and mass of the unique site that remains Vancouver’s “single largest parcel of privately owned land next to a transit hub that can be redeveloped,” could even allow for exploration of district energy supply.

But Mr. Condon is sympathetic to some area residents concerned about rapid change in their neighbourhood.

“Usually residents don’t oppose density per se – they oppose things in their neighbourhood that are unlike their neighbourhood. Sensitive architects understand this.”

For Andrew Grant, president of PCI developments who received unanimous approval from the Urban Design Panel last month, for ambitious plans to build the new Marine Gateway community at Cambie’s southern tip, the key was “maintaining the character of the neighbourhood.”

In this case, Marpole’s “urban village” vibe was accentuated throughout the design of the project built to LEED Gold standards that will incorporate two high rises on top of a three-storey podium, 415 market condos, 46 rental housing units, a separate 240,000-square-foot office building, and a 220,000-square-foot cinema – all perched on top of a Canada Line station.

“From the start,” explains Mr. Grant, “the concept was a high street that ran down the centre of the site. All of our uses will access that – including transit, the office component, the cinema and the housing units. They’ll all come through the centre of the site and maximize concentration of foot traffic through that area – which will be people friendly and conducive to interaction. It will help integrate use and break down scale. Maintaining that neighbourhood feel – through the high street but also through details like architectural finishes – has been an essential part of our design.”

“There’s no doubt,” says Mr. Grant, “that the Canada Line will change the shape of the city. Vancouver is under tremendous pressure for additional housing to meet the demand – and our prices are being pushed up accordingly.”

Since many people can longer afford to own both a car and a home, “people have become less reliant on automobiles – so locating housing and retail and work spaces close to each other and to transit hubs makes sense.”

In many ways, densification of the Cambie Corridor will be a true test of Vancouverism’s – the much lauded high density, car free phenomenon so celebrated in the city’s downtown – mettle. Whether it can be successfully managed in the city’s southern corridors will make the difference between Vancouver remaining suburbia by the sea – or becoming a truly urban model.

DOWNLOAD CAMBIE CORRIDOR PLAN

Editor’s note: Due to an editing error, an earlier online version of this story incorrectly described the Marpole urban village project, which is being built to LEED Gold environmental construction standards. This version has been corrected.

HADANI DITMARS

The Globe and Mail

Filed Under: February 2012 Newsletter