Profile Winter 2012

pro f il e 3 w inte r 2 012



c o n te n t sWINTER 2012 • VOLUME 19 • ISSUE 1

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ASSOCIATION INFORMATION 7 Message from the President, CHBA — Calgary Region 9 Message from the CEO, CHBA — Calgary Region11 Message from the President, CHBA — Alberta13 What’s new at City Hall?18 Members19 Events

FOUNDATION NEWS14 Help build new horizons

ASSOCIATION EVENTS16 Caught on camera23 9,000+ Consumer Directories

are in the hands of potential customers

COVER FEATURE20 Building on the momentum

FEATURE24 Working together

INDUSTRY NEWS26 The greying of Canada27 Provincial certification28 Safety Response Unit (SRU)

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CANADIAN HOME BUILDERS’ ASSOCIATION — CALGARY REGION represents professionals in the housing industry. CHBA — Calgary Region has been in existence for over 60 years and is a network of professionals that manages industry issues to provide value to our members.

100-7326 10 St. N.E., Calgary, AB, T2E 8W1Tel: 403.235.1911; Fax: 403.248.1272E-mail: [email protected]: www.chbacalgary.com

Donna K. Moore | Chief Executive Officer [email protected]

Val Veldhuyzen | Director, Finance and [email protected]

Amie Blanchette | Director, Government [email protected]

David Bears | Director, [email protected]

Kathy McCormick | Director, [email protected]

Habiba Gulnaz-Khalid | Accounting [email protected]

Kelsey Williams | Event [email protected]

Alix Wallace | Administrative [email protected]

Laura Wong | Administrative [email protected]

Laura Feszczyn | [email protected]

PUBLISHED BY Source Media Group Corp. 207, 5809 Macleod Trail S.W., Calgary, AB T2H 0J9. Tel 403.532.3101, Toll free 1.888.932.3101 Fax 403.532.3109 email: [email protected]: www.sourcemediagroup.ca

ASSOCIATE PUBLISHER | Jim Zang ART DIRECTOR | Jean Faye RodriguezGRAPHIC DESIGNER | Megan Sereda PRODUCTION CO-ORDINATOR | Christy PriceACCOUNTING | Donna Roberts

ADvERTISING SALES | Lynn [email protected]

Copyright 2012 by Source Media Group Corp. Material cannot be reprinted in whole or in part without the expresssed written persmission of the publishers. Source Media Group agrees to advertise on behalf of the advertiser without responsibility for claims or misinformation made by the advertiser and acts only as an advertising medium. Source Media Group reserves the right to refuse any advertising at its sole discretion.

Profile is published quarterly per annum and is distributed to every member of the Canadian Home Builers’ Association — Calgary Region.

RETURN UNDELIVERABLE CANADIAN ADDRESSES to Source Media Group Corp., 207 - 5809 Macleod Trail S.W., Calgary, AB T2H 0J9. Publication Agreement # 41072011

We’d love to hear from you…Letters to the editor, article suggestions, columns, topics and opinions are all welcome and encouraged! Please nail us a notice, saw us a yarn, measure us a metre of your thoughts. We’ll print the best ones in the next issue.

Contact Kathy McCormick, Director, Communications at 403.730.4255 or [email protected]

Cover photography by Don Molyneaux


We live our lives and conduct our business in the best province in Canada and in one of the greatest cities within the province.

The oil sector, an important barometer, is strong, air travel and retail sales are up, mortgage rates are still low, labour supply is still in balance with job creation, the com-mercial sector is showing signs of strength, banks and investment advisors are indicating gains in both the DOW and TSX, and positive net migration is forecast for 2012. CMHC is suggesting 10,300 total starts in 2012, up from 9,292 in 2011, 9,262 in 2010 and 6,318 in 2009. All of these are indicators that our provincial economy is becoming more robust and definitely an improvement from the past three years.

Rental vacancies are lower than in past years and if the trend continues and landlords raise rental rates, we may see a movement of first home buyers into the market — which would be welcomed, as this particular segment of the market was very weak this past year.

Albeit, there are positive signs of a stronger economy for 2012 and slow, steady growth in the housing sector, CHBA — Calgary Region will continue to be a watchdog for affordability and availability of homes in an effort to help protect homeowners. There will be challenges ahead with the revamping of the Municipal Government Act (MGA) through the provincial government and the local municipal changes that include the interpretation of the new Framework for Growth and Change and the possible redevelopment levy. The recent building

permit fee increase, while understandable in a business sense, is just one example of increased housing costs that the industry is facing.

We will be attentive to the outcome of the pending provincial election and the impact it may have on our industry, and we will continue to maintain and build relationships with all lev-els of government. The recent Economic Forecast Dinner meeting is one such example as Mayor Naheed Nenshi was one of the keynote speakers for the second year in a row. CHBA — Calgary Region will remain active in discussions to help shape government policy and continue to be a voice for the Association.

Over the past few years as we saw our world change from a boom to a bust, I used the lyrics of one of the great songs of Kenny Rogers, The Gambler, in my business operations with success: “You got to know when to hold ’em, know when to fold ’em; know when to walk away, and know when to run.” That same mantra continues today. We live in a world filled with opportunity to gain access to global events that we did not have 20 years ago, and the daily onslaught of information can become overwhelming and influence our ability to make prudent business decisions in our localized areas.

Although we need to be aware of the global events that surround us, I believe dedicated focus on our own areas of expertise will help us thrive in 2012. Control what you can and leave the rest to those that think they can.

May 2012 be a prosperous year and one filled with health and happiness.

Happy New Year everyone!

President’s message | ASSOCIATION INFORMATION

While the uncertainty of the global economy continues to swirl around us let us count our blessings as we enter a New Year. How fortunate we are to be in one of the pre-eminent entrepreneurial playgrounds in the world and optimism is gaining momentum despite the ambiguity of the global economic stage.

By Carol Oxtobypresident, Canadian Home Buiders’ Association — Calgary region



We look forward with optimism toward a stronger year for the region’s housing indus-try in 2012. At the same time we continue to focus our attention on ensuring our members have the best possible business environment, and that they have access to the information, tools and opportunities that will help them grow and prosper.

Providing you with great value for your continued support remains at the top of our strategic goals, and I am pleased to say that we have increased our menu of membership benefits substantially over the past year.

The biggest boost to our package of services has come in the form of communication — communicating key information that will help you make informed business decisions. Each week you will find new articles posted on our web site at www.chbacalary.com discussing

policy and political issues, association meeting topics and speakers, news from other sources that is of interest to the residential construction industry, as well as news about what members are doing in the community. Our Market Trends contain more information and facts on the local economic picture.

We have become

engaged in social media — follow us on Facebook, LinkedIn and Twitter, or sign up for RSS Feeds.

Our communication team of Kathy McCormick and Alix Wallace are waiting for your news, too — don’t be shy. Tell us about your latest big thing!

One of the most innovative web sites, www.votecalgary.ca, has been re-launched targeting industry issues on the po-litical front and providing a platform for informed dialogue and industry opinion — telling our story to those outside our industry.

Our goal is to make it easier for you to get the information you need and in the form you want it. I hope that you will take a few moments to visit these websites this year and let us know what you think.

Our first Con-sumer Directory was published in January and over 9,000 cop-ies were handed out at our recent Hom-Expo Show — giving Calgarians a tool for finding the services of our members at a glance in their own homes.

Revamped electronic newsletters, builder bulletins and the new-look of Profile magazine round out our enhanced communication tool kit.

Get engaged! Get informed! Make a difference!

ceo’s message | ASSOCIATION INFORMATION

As we begin a new year together at CHBA — Calgary Region I take much pride in the fact that we ended 2011 strong and vibrant with more members and additional benefits and services to help you be successful in your business.

By Donna Moore Ceo, Canadian Home Buiders’ Association — Calgary region


Minister Griffiths has been directed to lead a full review of the MGA that is expected to take four to six years. The existing legislation will be reviewed in phases, starting with a focus on local governance and then moving on to assessment/taxation and planning. It will be important to have strong communication between the local and provincial HBAs as we present solutions to the provincial government that emphasize key ideas such as accountability, consistency, transparency, and the one-taxpayer principle.

In a recent meeting with the minister, we were clear that homebuilders are passionate about building the innovative, affordable and family-friendly communities of tomorrow and very much would like to be at the table early on in these discussions. We also refer-enced our relationship with UDI Alberta and look forward to working with them as these discussions continue. For his part, Minister Griffiths reiterated his passion for communi-ty-building, as well as his position that there is only one taxpayer. He was clear that any new taxation or other powers would need to be used appropriately.

Housing affordability, which has been identified as a provincial priority, must be protected in any new arrangement with cities. New homes are a common target for increased taxes and fees, driving up the cost of both new and existing housing. It is very

important that we stand and be heard on this issue because those who are impacted have no voice. We must ensure that government sees the connection between these individu-als and issues such as competitiveness.

While this review is likely to take some time and be subject to the occasional bump in the road, the relationships that members and staff have built across Alberta at the provincial and local level will allow us to take part from the beginning. By coordinating our local and provincial efforts, we can articulate strongly supported and positive solutions to the government that lead to strong and well-informed policy. Some of the work on this issue will be done by the CHBA — Alberta Government Relations Committee, which has identified the MGA review as a priority, and will be assessing the background information and conducting strategy discussion on how best to approach the issue while aligning with CHBA — Alberta’s strategic priorities.

CHBA — Alberta intends to treat this discussion of the MGA and adjustments to municipal funding structures as an oppor-tunity to get things right when it comes to provincial policy toward municipalities. We can do this by using our provincial and local resources to have a full discussion of the issue and by taking part in providing positive solutions to the minister and the premier.

Provincial policy toward municipalities

cHBa — alBerta | ASSOCIATION INFORMATION

As winter begins in earnest, there is plenty of conversation taking place in the new Redford government regarding policy options when it comes to municipalities. Both the Premier and Municipal Affairs Minister Doug Griffiths are clear that the existing arrangement to provide funding for municipalities is not working and that the primary legislation concerning municipalities, the Municipal Government Act (MGA), is outdated and in need of an overhaul.

By Sandra Young president, Canadian Home Builders’ Association — Alberta



Let me give you a summary of some of the key issues we are working on currently:

Framework for Growth and ChangeThis policy will undoubtedly change the way we build. It’s that significant. The Framework for Growth and Change will include ranking criteria in order to guide council decisions on growth and land use to better align with the city’s financial capacity, as well as taking into account other factors like access to transit and social services. This process is being touted as a way to ensure decisions on new growth are made within a framework that allows for a “robust, consistent, repeatable, accountable, and transparent process”. While I think we can all agree these are laudable goals, we also know the devil is always in the details.

Administration has been tasked to go back to the stakeholders to determine the appropriate weighting for each of the criteria within an overall ranking system. CHBA — Calgary Region will continue to be actively involved in this process and you can expect to see information updates as the work progresses. A report is due back to council in April 2012 with final recommendations.

Redevelopment LevyIssues such as transportation and mobility costs, parks and recreation, water services, and other costs have been discussed in relation to new growth within the established area. It’s become clear that new development in these areas cannot, nor should they be expected to, shoulder all the costs required to upgrade infrastructure or construct new facilities. That said, we continue to put forward the case that single-family or semi-detached homes do not put undue strain on existing infrastructure and should not be considered as part of this levy.

Larger scale multi-family developments along Plan-It-identified nodes and corridors are the most likely to be significantly impacted but it also hinges on what kind of calculation will be used to determine the contribution (levies on individual units, square footage, type of use, etc). Expect to hear a lot more on this subject as consultation continues.

Miscellaneous Policy and ProcessThere really are too many to list and each of them can or will have a tremendous impact on one or more sectors of our Industry. Here’s just a few; The Mayor’s Cut Red Tape initiative, the push towards Objective Standards (form-based code) through various policy exercise and pilot projects, a proposed private Tree Bylaw, new public tree Street Standards that may impact product mix through reduced driveway options, Land Use Bylaw changes and more! Again, expect to hear more about these as they take centre stage throughout 2012.

If you are interested in learning more about any of these issues, or better yet, if you would like to know how you can get involved, I strongly encourage you to drop me a line or pick up the phone. I look forward to hearing from you!

What’s new at City Hall?

cHBa — c algary region | ASSOCIATION INFORMATION

It’s the number one question I get asked by our members at CHBA — Calgary Region events and I always enjoy the chance to talk about our advocacy efforts on your behalf. Of course, you may find yourself sorry that you asked as I am quite passionate on the subject and have been known to ramble on a bit when I get going!

By Amie Blanchette Director, Government Affairs, CHBA — Calgary region


By Alix WallaceAdministrative Assistant, CHBA — Calgary region

“This project will hit home with everyone because a large number of children are the ones who will benefit the most,” says Ann Donald, newly-elected president of the Calgary Home Builders Foundation.

Easter Seals Camp Horizon is a one-of-a kind camp located on 25 hectares (62 acres) where campers of all abilities traverse tree-top rope courses, swing on a giant swings, rock climb, and challenge themselves in ways they never imagined possible. They leave camp each summer empowered through self confidence and with the knowledge that for them, anything is possible.

Each dorm will be 2,925 square-feet and will accommodate 32 campers, their wheelchairs and eight staff to support the campers. Indoor recreation in the dorm

will allow for more programming that is independent of mountain weather

conditions.The current 45-year-old dorms

cannot accommodate the wheelchairs or the caregivers, therefore leaving the campers vulnerable. The caregivers sleep on the floor.

Future modifications in the camp will also include a medical facility to allow for

private medical attention and controlled quarantined spaces to

address the medical needs of the

campers. Additional outdoor recreation areas, camper lounges, a fully commercial kitchen, staff village and respite centre will be constructed in later phases of the project.

But it can’t be done without the help of all CHBA — Calgary Region members. Contributions are needed as either cash, in-kind, or participation on one of the committees involved, ensuring this project is completed to high standards.

Help build new horizons

Easter Seals Camp Horizon, the facility in the Kananaskis that brings the camping experience to disabled and special needs people of all ages, will soon be even more accessible, thanks to Calgary Home Builders Foundation $1 million donation over the next two years.

Calgary Home Builders Foundation will fund the replacement of two dormitories that house disabled campers and their caregivers.

Part of a larger and aggressive $12 million plan to replace aged and outdated facilities at Easter Seals Camp Horizon over the next five years, the total budget of this first initial phase is $4.1 Million and will include demolition and site clearing, construction of two new dormitories, utilities and landscaping, as well as construction of a maintenance building

and other amenities.

Calgary Home Builders Foundation’s latest project

FOUNDATION NEWS | c algary Home Builders foundation

Ann Donald and Jim SmithElisa Neven-Pugh


c algary Home Builders foundation | FOUNDATION NEWSFOUNDATION NEWS | c algary Home Builders foundation

The 2011- 2012 Board of Directors of Calgary Home Builders Foundation has Ann Donald, vice-president, client execu-tive for BFL Canada Insurance Services Inc., as its new president, replacing Jim Smith, senior vice-president of produc-tion and cost control for Shane Homes Ltd., who remains on the board as past president. Glenn Davies of Dannburg Floor Coverings is first vice-president.

Donna Moore, CEO of Canadian Home Builders’ Association – Calgary Region, remains as managing director of CHBF; Randy Kraft, partner at KPMG LLP, is treasurer; and Holly Goulard, president of Keystone Excavating Ltd., is secretary. val veldhuyzen, director of finance and administration for CHBA — Calgary Region, is the staff liaison.

The remaining directors are: A.B.

We need your help to bring camping to those who had never been able to experience the delights of the outdoor lifestyle before. Use the QR Code pictured in this article by scanning it in your smart phone and making a contribution.

Get iNvolved

New Board elected for Calgary Home Builders Foundation

(Sandy) Cameron, A.B. Cameron Professional Corp.; Alixe Cameron, Bennett Jones LLP; Don Davies, Condominium First Mgmt. Services Ltd.; Bob Dubask, Chip Home Income Plan; Larry Farmer; Richard Gotfried, Calgary Economic Development; Monte Kendall, Homes by Avi (Calgary) Inc.; Jim Kerr, Woodland Kitchens Inc.; Bill McFarlane; Gary Mummery; Dale Soloski, All Floors Inc.; Klaus Springer; Dave Thurston, Nuera Platinum (Canada) Ltd.; and Blaine Wickerson, Prestige Railings & Stairs Ltd.

Calgary Home Builders Foundation is the charity of choice of CHBA — Calgary Region. Calgary Home Builders Foundation was incorporated in 1986 with a mandate to help with shelter-related needs in Cal-gary and area. To date, it has raised more than $625,000.


ASSOCIATION EVENTSASSOCIATION EVENTS

By Kathy McCormick, Director, Communications, CHBA — Calgary Region

and Kelsey Williams, Event Coordinator, CHBA — Calgary Region

Caught on cameraCHBA — Calgary Region events combine business with fun

NEW MEMBER ORIENTATIONWe are always happy to welcome our new members to the vibrant organization that represents the residential construction industry in and around Calgary. On November 22, 2011, Donna Moore, CEO, welcomed a few new members to CHBA — Calgary Region with an informative and delicious breakfast meeting. We are looking forward to sharing the projects and events that lie ahead with all of our new members.

IT’S ALL ABOUT THE KIDSOur annual Children’s Christmas Party, organized by our own Associate Board, was an unqualified success — even if some of our little munchkins weren’t about to tell Santa their stories! Imagine a room filled with 73 excited children — including a whopping 15 two-year-olds. Now that’s a buzz of energy. There were 148 people altogether taking in the joys of the holiday season as seen through the wondering eyes of children.

The event included face painting, a balloon artist, craft stations, and, of course, SANTA handing out presents. The party was at Heritage Pointe Golf Club December 18. Many thanks to all of our members for making it a memory to capture: sponsors — Canyon Plumbing & Heating, DME Marketing, Wolseley Canada, Timber Tech Truss, Westridge Cabinets, Points West Marketing; and contributing sponsor — American Standard.

Thank You sponsors!


ASSOCIATION EVENTS

SHARING THE HOLIDAY JOYIf you missed our annual holiday Mix & Mingle, you missed a great reception her-alding the arrival of the holiday season.

The room filled with positive energy as the close to 300 members spent time with colleagues and friends, with some staying ‘til the lights went out. Well, okay, not quite — but they were enjoying the night so much they just didn’t want to leave.

The December 7th reception was at the Coast Plaza Hotel & Conference Centre and it included musical entertainment by the John De Waal Quartet — a melodious treat that was topped up by one of our own members, Peter Mauro, president, New Casa Company Ltd. singing.

Hors d’ oeuvres and a beef and turkey carving station added to the enjoyment — a perfect way to end up another year. Thanks again to our sponsors, Birchwood Properties, Nuvista Homes and Shane Homes, for a most enjoyable evening. Thank You

sponsors!


memBers | ASSOCIATION NEWS

n NovEMbEr 2011Alberta Siding Project Corp Siding & eavestrough rep: Dave Martin

bear Stone Masonry IncMasonry products rep: Brent leinweber

Cruz Custom Homes Ltd. Builder - Custom Homes rep: Danny Astete

EI DupontBuilding Materials rep: Mike McCreary

Harmony Park Development Corp Developer rep: Duncan Smaill

Hyatt Homes Inc.Builder - Custom Homes rep: Danny raposo

Interiors with Elegance Inc. renovations rep: Darrin Burton

Keywest Custom Homes Inc.Builder - Custom Homes rep: Ben li

Knelsen Sand & Gravel Ltd.Concrete trades & Supplies rep: John egely

La vita Land Inc.Developer rep: Yasmina rodesly

Mirolin Industries Corpplumbing trades & Supplies rep: Alexandra Motts

Sagebrook Developments Inc.Builder - Custom Homes rep: Kristine Yung

Select Custom Cabinets Ltd.Cabinets - All rep: Marie Jimenez

Soho Developments Ltd.Builder - Custom Homes rep: Darek Bogacz

Sovereign Custom Homes Ltd.Builder - Single family rep: Bryan Grosul

Stone West Homes Inc.Builder - Single family rep: paul Kundan

n DECEMbEr 2011rectangle Design Inc.renovations rep: Shane rennie

Sierra West Projects Inc.renovations rep: todd frerichs

NE W MEMbErS

CANCELLED MEMbErS

n oCtobEr 2011953365 Alberta ltd./rich-lee Custom HomesAllCity Small Hauls ltd.eiffel Developments ltd.eiffel Homes ltd.iCandy Construction ServiceSpraytek insulation

n NovEMbEr 2011Central Aire Heating & Air ConditioningClean earth recycling Corp.

n DECEMbEr 2011MD realty investmentnaylor Canada inc.


23 Builder Breakfast Glenmore Inn

25 Bowling Fun Night Chinook Bowladrome

FEbrUArY

MArCH

APrIL

MAY

JUNE

For more information visit www.chbacalgary.com

SUbJECt to CHANGE

7 Dinner Meeting: Alberta New Home Warranty Program Awards, Coast Plaza Hotel & Conference Centre


14 25th Annual SAM Awards Gala, Telus Convention Centre


28 RenoMark™ Glenmore Inn

2 Dinner Meeting: Student House Awards, Coast Plaza Hotel & Conference Centre


31 to JUNE 2 Fairmont Golf Classic, Fairmont Hot Springs Resort, Fairmont, BC

6 Annual General Meeting & Dinner Meeting: Volunteer Awards & Presidential Tribute


By Kelsey Williams event Coordinator, CHBA — Calgary region

EVENTS CALENDAR


By Kathy McCormick Director, Communications, CHBA — Calgary region

COVER FEATURE

Everyone has an opinion, whether expert or not — and all are different, depending on perspectives. Even the Mayans threw their hats in the ring … Armageddon will hit on December 21st, 2012, according to their ancient beliefs. But then, again, as one comedian

recently said, if the Mayans could predict the future, there would still be Mayans.

So here is what we do know. Whatever happens globally affects the economic welfare of Calgary and Alberta. With our reliance on the energy

sector, the world economy matters. And the economy affects the residential construction industry. People come to the province and our city for jobs. Those

people buy houses.We asked our own Calgary expert, Richard Cho, senior market analyst, Prairie and Ter-

ritories, with Canada Mortgage and Housing Corporation, for his forecast. He was the keynote speaker at our Annual Economic Forecast Dinner meeting.

With the books closed on the 2011 ledgers, the final numbers for housing starts indicate a slow return to a more normal market, says Cho. The latter part of the year was stronger than the first half, particularly in the multi-family sector — and that momentum should move forward into 2012. While not robust exactly, the numbers this year should reflect the positive economic environment in the province and the city, which has been largely shielded by the pressures facing other markets globally.

“Although there are still some concerns related to the economy and financial markets, we shouldn’t lose sight of the positive factors that are moving in favour for the Calgary housing market,” Cho says. “Employment in Calgary is back to the same levels prior to the slowdown, finishing 2011 up nearly three per cent and creating more than 20,000 jobs. Of the jobs cre-ated, a majority were full-time jobs, which bodes well for housing demand.”

He is calling for a net migration of 17,000, up 9.7 per cent over the estimated 15,500 last year which, in turn, was nearly 40 per cent over the previous year, although still well below the close to 22,000 in 2008 and 2009.

“With activity in the energy sector expected to continue in 2012, many other industries will also benefit, contributing to more employment growth. Migration flows to Alberta have

Building on theCanada Mortgage and Housing Corporation forecast for Calgary

Ask a dozen people where they think the world (and its effect on the economy) is headed this year – and you’ll get as many answers as there are choices of coffee at Starbucks.

momentum

… growing wages and relatively low mortgage rates will continue to provide opportunities for prospective home buyers.”

“


COVER FEATURE

Canada Mortgage and Housing Corporation forecast for Calgary

also been encouraging as people look to take advantage of the job opportunities in this province. In addition, growing wages and relatively low mortgage rates will continue to provide opportunities for prospective home buyers.”

He is forecasting a total of 10,300 starts this year, compared to 9,292 starts in 2011 (narrowly beating out 2010 numbers by just 30 more units). The single-family starts will be up close to 10 per cent to 5,500, and the multi-family sector will grow by approximately 15 per cent to reach a forecasted 4,800 units.

That’s an encouraging sign that things will be improving, albeit numbers are still below those reached so far in this century. Since 2000, total starts have been above 11,000 every year to 2008. In 2006, the 17,046 total starts included a record 10,482 single-family starts.

“Total starts last year were slightly above 2010 but still below historical averages,” Cho says, noting the numbers:• 2011totalstarts:9,292(up0.3%

year-over-year) • 2001-2010totalstartsaverage:12,457• 2011singlestarts:5,084(down12.1%

year-over-year) • 2001-2010singlestartsaverage:7,565Still, both single-family and multi-family

starts slowly started to regain traction last year and will be stronger this year for a number of reasons, says Cho.

“With the ample selection of listings and favourable mortgage rates, many buyers have taken advantage of some of the opportunities in the luxury home market,” he says. “However, the luxury home market is not the only segment that has experienced higher activity. For instance, condominium units in the lower price ranges have benefitted from activity from first-time home buyers. Job gains, higher migration, modest price growth, and stable mortgage rates are supporting sales across a majority of price ranges.”

momentum

The City of Calgary released its Socio-Economic Outlook for Calgary and region for 2011 – 2021 last fall. Here are some of the highlights:Population: Was 1.091 million in April 2011 Civic Census. Expected to reach 1.11 million in 2012 and 1.143 million in 2014, climbing to 1.256 million in 2021.Housing Starts: Total expected to be 7,500 units in 2012 (although 2011 forecast was only 6,400 – and the actual total was 9,292). Calling for trending upwards to 8,000 units by 2016.building Permits: Expected to range between $3 and $4.5 billion over the forecast period. Employment growth, decreasing vacancy rates for downtown offices and population growth should support demand for new non-residential and residential space.

Just tHe FaCts

richard ChoPhoto by Don Molyneaux

Source: City of Calgary


COVER FEATURE

The multi-family market, in particular, should regain some of its steam in 2012, he says.

“Multi-family construction is forecast to increase with the apartment segment leading the way. In the second half of 2011, apartment production had picked up, mainly for low- to mid-rise projects, and more is ex-pected for 2012. Many of these projects have been attracting buyers through competitive pricing as well as convenient locations, such as those projects in the inner city and Beltline areas. Some of the high-rise projects that were put on hold are also expected to resume construction as economic conditions and inventory levels have improved.”

A tightening of the apartment vacancy rates — from 3.4 per cent in 2011 to 2.9 per cent this year — will likely mean a small hike in rental rates, and could be another impetus for buyers to move into homeownership, rather than renting, he says.

The pressure on home prices is expected to stay modest this year. Cho is forecasting a 1.3 per cent increase in the average price of a single-detached home this year, up from $541,000 last year to $548,000 this year.

Permits, too, have been climbing. While a permit only indicates a builder’s intentions to build, it is still a positive sign that expecta-tions are higher. Residential permits were up last year to 9,812 units, compared to 7,026 in 2010. These were led by apartments with a total of 3,412 units.

The real estate cycle is working in Calgary — and that cycle is trending upward today, says a real estate expert.

“Calgary is the perfect Petri dish of the market performing exactly as it was designed to perform,” says Don R. Campbell, president of the Real Estate Investment Network (REIN), which has more than 3,500 members across Canada who listen to his advice to get into investing in the world of real estate — and it works. The investors have put more than $3.3 billion into residential real estate investment in Canada.

“Both Calgary and Edmonton are perfectly performing real estate markets func-tioning to economic fundamentals — and they are likely the only centres in North America that are doing that today,” says Campbell, who has authored several books on real estate investing. His latest, Secrets of the Real Estate Cycle (with Kieran Trass and Greg Head, published by John Wiley & Sons Canada, Ltd. in 2011) uses the Cal-gary example in it.

So why is he so convinced the cycle is moving up? “Albertans are always the last to believe their market is poised for a big bump upward, even though every-one else from the Asians, to the Americans, believe Alberta is the spot to put their money in, but the fun-damentals are there,” Camp-bell says. “Alberta builders know when to pull the plug — they turn off the tap faster than builders from other areas. They’ve been through it enough times. It saved the real estate market in Alberta from collaps-ing as it did in many other centres. The volume went down, sure, but not the dol-lar value as much as it could have — and though there was a bit of an overbuild, it wasn’t as much as what was in other areas.”

Riding out the storm, today’s fundamentals are now poised for growth, he says, albeit it will be slow and steady. “The energy sector will go, regardless of what hap-pens with the Keystone pipeline. This is a giant asset and they will do something with it; if it’s not building pipelines, it will be up-graders. And jobs will come with it.

“In Calgary, employment is starting to ramp up and the population is there.”Even so, he expects the uptick to be modest this year — “I’m excited about 2012,

but more excited about 2013. Calgary will bounce back a bit this year, but there’s not a clear direction of which way it will go for the housing sector, but 2013’s posi-tives will really reflect on the real estate sector.”

Calgary is the perfect Petri dishMarket factors

“You will see that we have green checkmarks to the pieces of the puzzle that have already occurred, which leads to the next phase of what’s next for Calgary – upward pressure on

— Don R. Campbellpresident of the Real Estate Investment Network (REIN)

demand and pricing for property purchases. Calgary has been a perfect example of how a real estate market should and does perform.”

Canadian Home Builders’ Association — Calgary RegionWe’ve heard from the experts. Here are the numbers our Economic Research Committee thinks we’ll see for starts this year.STARTS for 2012Single-family – 5,503Multi-family – 4,020Total – 9,523What do you think? Let us know.Email [email protected]

BY tHe NuMBers


— and those that were there were upbeat and anxious to get information to help them improve their homes or find new ones. Their first step was to pick up the new Consumer Directory with every member listed with contact information.

“It was an unqualified success,” says Rick Young, show producer. “Everyone was happy with the traffic and after a flat 2011 when the city was in the heart of the downturn, HomExpo came roaring back with a 30 per cent increase this year in traffic.”

The event featured presenters John Sillaots, Andrew Downward and Sarah Richardson, all HGTv hosts past and present, who had a wealth of information

for show-goers. Destination Renovation was a highlight, featuring some of CHBA —

Calgary Region members and RenoMark™ renovators.

Congratulations to all the HomExpo exhibitors — the booths all looked amazing and were filled with information for consumers.

And a huge thank-you to our member volunteers for giving up their valuable time to help us hand out those bags with the coveted Consumer Directories inside.

9,000+ Consumer directories are in the hands of potential customers

Home xPo | ASSOCIATION EVENTS

People were lined up at the door at the opening of HomExpo, Canadian Home Builders’ Association — Calgary Region’s home, renovation and décor show that was held in early January before the deep freeze hit the city …


John Silaots


Working togetherCity of Calgary committed to transparency

Collaboration is a key to the success of the city and residential construction industry, Mayor Naheed Nenshi said during his keynote speech to members at the annual Canadian Home Builders’ Association — Calgary Region Annual Economic Forecast Dinner meeting in early January.

But that didn’t mean the two groups would always be on the same track. “We may not always be in agreement, but the process will be open, transparent and fair — and we will make sure industry succeeds,” he told the close to 650 members. “It’s not going to be easy, but it’s important.”

He praised the CHBA — Calgary Region for its involvement in many of the initiatives, changes and council issues relating to the residential construction industry.

He touched on some of the initiatives the city has worked on in the last year, emphasizing those that involve the residential construction industry directly. A few of those were:

• The renegotiated development agreement.

“It’s no secret I would have gone further and faster with this,” Nenshi said. “The new levy only covers half the cost of growth, but it is better than it was.”

The Urban Development Institute was directly involved in negotiations with the City, to which Nenshi said: “Your team worked very hard (on the final agreement).”


FEATURE


Working togetherCity of Calgary committed to transparency

• New Contextual Semi-detached Uses bylaw.

“It means approvals for semi-detached homes have gone from 180 days to 20 days now.”

• Proposed Redevelopment Levy for construction projects within established areas.

“We are still working on redeveloping areas, and are pleased to be partnering with the industry.”

• Framework for Growth and Management. This important new initiative will

determine where and how new areas are planned, and it will impact the way the industry does business.

The fundamentals will start to be applied this year, Nenshi said.

• The relationship of the City and Province. “This is one of my priorities,” he said. “And

it’s fundamental to everything we do at the City.”

Of particular concern, he said, is the Municipal Government Act. “It’s badly out of date and badly matched to the needs and priorities of Calgary.”

He urged everyone to hold candidates in the expected provincial election this spring accountable.

• The City’s planning process. “It’s not working,” he said simply. “Part of it

is the Municipal Government Act.” He urged everyone to take part in Cut Red

Tape — the initiative is asking people for their biggest concerns with dealings with the City and asking for proposed solutions.

“Everything is up for discussion. I am seeking perspectives from people in the room here.”


FEATURE


the greying of CanadaThe impacts of an aging population on our homes and communities

By Anand Mishra Senior research Advisor, CMHC, prairies & territories

Consequently, the Canada Mortgage and Housing Corporation has created a planning tool — Community Indicators for an Aging Population — based on extensive research and consultation from across the country. This concrete checklist offers effective steps communities can take to benefit seniors’ independence, health and quality of life in six key areas: neighbourhood walk-ability; transportation options; access to services; housing choice; safety; and community engagement in civic activities.

Local planners can use these indicators to set clear goals and priorities related to the needs of an aging population.

In the near future, communities could encourage the creation of more CMHC’s FlexHousing™. FlexHousing™ homes are designed to be accessible, affordable and readily adaptable to the changing needs of occupants over time. This could involve either building FlexHousing™ or introducing some features of it into existing homes.

Where and how will tomorrow’s seniors want to live?In a recent survey, more than 85 per cent of Canadians over the age of 55 planned to remain in their home for as long as possible. Safety in the home will become a concern and the need for home adapta-

cmHc | INDUSTRY NEWS

home assistance, personal care, ‘tele-health’ and technology services will intensify, and mobile clinics may become a vital component of the health sector.

This population change will give suburbs a revitalizing opportunity by converting obsolete shopping centres or under-used schools into rental apartments or condominiums.

Communities need to develop comprehensive plans to make their services, facilities, programs, housing stock, and infrastructure more “senior friendly.”

Neighbourhoods with a high proportion of walk-up apartments could gradually become less suitable.

Seniors have individual needs. Munici-palities may have to adopt measures that would encourage developers to build a range of adaptable housing and develop flexible approaches to land use planning, building regulations, codes, and zoning.

Achieving Balancevibrant communities thrive on diversity, providing economic, social and cultural opportunities for all residents.

We need to address an aging popula-tion in a balanced, proactive and strategic manner — while enhancing the quality of life for all segments of current society and laying the foundation for Canada’s future generations.

By the year 2036, it is estimated that nearly a quarter of the entire Canadian population will be 65 years of age or older and this will deeply affect the way we live, the homes we build and the communities we live in.

tions such as grab bars, handrails, stair lifts, wheelchair ramps, and additional ground-floor bedrooms, will escalate.

The demand for condominiums and rental apartments is expected to rise given their convenience, supportive environment and maintenance-free lifestyle.

Other non-traditional forms of housing such as mingle suites, secondary or garden suites, long-term nursing homes, co-housing, and lifestyle retirement communities are also expected to become popular. The need for in-

on housing in Canada or to receive a free copy of CMHC’s Research Highlights in either English or French, call CMHC at 1.800.668.2642 or visit www.cmhc.ca

For More iNForMatioN


Provincial certificationResidential construction site manager occupational designation announced

By Kevin Donnan public Affairs officer, Communication Alberta Advaced education and technology

This means that voluntary provincial certification in this occupation is now available to anyone in the Alberta home building industry.

For the past five years, Sheri Reed has worked in Alberta’s residential construction industry as a site manager. She has also helped beta test the residential construction site manager training program and says the timing of the designation is perfect for the industry, “We’re at a very important time because so many of us are still benefitting from having experienced workers who can share generations of expertise. At the same time, we will also see new people coming in who need to continue enhancing the efficiency, management and safety of the entire industry.”

Industry training is available through the Professional Home Builders Institute of Alberta (PHBIA). The training consists of three levels; each level includes a formal training component combined with 1,500 hours and 12 months of level specific on-the-job work experience. Once the training is complete, the Government of Alberta’s

pleasure of working with government and specifically, the Ministry of Advanced Education and Technology, to provide a much needed educational program for residential construction site managers. Our collaboration with the government has proven to be integral in making this project a success and in providing the first occupational designation in Canada for the residential construction industry.”

Advanced Edu-cation and Tech-nology Minister Greg Weadick, who approved the designation of the residential construction site manager as an occupation in Alberta, says the training will go a long way towards enhancing the work of the industry. “Consis-tent training and certification standards are key benefits. The aim of this designation is to assist in creating a highly-skilled workforce in residential construction while laying the groundwork for current and future Albertans to take advantage of this new opportunity.”

Reed says she was happy to help with the development of the program, but says now it’s her turn to be a student. “I like the idea of having all of the information at my fingertips in a condensed format and having the chance to learn at my own pace. I’m already in the process of starting the program, and having this certification on my résumé is going to make an incredible difference in my career.”

PHBia | INDUSTRY NEWS

Earlier this fall, the Government of Alberta designated residential construction site manager as an occupation under the Apprenticeship and Industry Training Act.

role is to assess completion of all training components, administer the provincial exam and grant certification.

The Alberta New Home Warranty Program funded the development of the program. The Professional Home Builders Institute of Alberta is managing training development, the implementation of the course programs and materials, while also maintaining a registry of trainees. The program will require a minimum of three years to complete. Prior learning assessment and credit for experi-ence will also be available.

John Kozole, president and CEO of the Professional Home Builders Institute of Alberta, says stakeholders coming together were the key to realizing the new program. “With the support of the home building industry, our institute has the

Angela tripathy Chief Corporate Officer Professional Home Build-ers Institute of Alberta Phone: 1.888.325.9999Email: [email protected]: www.phbia.com

For More iNForMatioN oN

tHe ProGraM CoNtaCt:

At right: an example of interactive online course material from the RCSM prorgram.


safety response unit (sru) Working hard to keep Calgary safe

By Vanessa Gash residential plans examiner, Building regulations Division, City of Calgary

Within Building Regulations, the Safety Response Unit, headed up by Coordinated Safety Response Team (CSRT) Co-ordinator Wayne Brown and Safety Response Unit (SRU) Operational Supervisor Dave McKinnon, was working hard to keep Calgary safe.

Back in 2008 City Council identified the need for a multi-agency team to identify issues, investigate and correct potentially unsafe conditions within Calgary. Through the coordinated efforts of many parties including the Calgary Police Service (CPS), Alberta Health Services (AHS), Alberta Law Enforcement Team (ALERT), Animal/Bylaw Services and the Building Regulations Safety Response Unit (SRU) a new team with members from each agency was born in October of 2010 - Coordinated Safety Response Team (CRST). Together they have a mandate to provide the highest level of safety for the general public. Individually each agency is responsible to act within the parameters of their own legislation to enforce change.

The SRU operational team is composed of Senior Safety Codes Officers Rob Trotta and Layne Mueller and Safety Codes Officer Scott Miller. The three major areas of focus are Construction Site Safety Investigations, Marijuana Grow Operations (MGO) and

through Environmental Restoration Projects (ERP) than ever seen before.

Similarly, derelict property investigations have seen sites previously abandoned for years being remediated or demolished and returned to vacant lots. Of the 41 investigations completed and another 14 started, 24 were demolished (four pending demolition) and two remediated. Additionally, proposed changes and additions to Part 8 - Safety Measures at Construction and Demolition Sites of the Alberta Building Code, if approved, will help facilitate greater enforcement.

SRU conducted 99 urgent response investigations for construction site safety in 2011. The most common infractions investigated were: falling materials; open excavations; structural failures, and unsafe scaffolding. Based on these investigations over 25 charges were laid and $63,000 in fines and penalties were assessed (up to $15,000 per incident).

Finally, the SRU responded to the windstorm incident of November 27, 2011. With winds recorded as high as 150 kilometres/hour at the top of some downtown high-rise buildings, it is a perfect example of how sometimes nature can be the source of compromised safety. Thanks to the coordinated response from Police, Fire, EMS, Building Regulations SRU, and others, the Municipal Emergency Plan was set into action so that public safety was maintained.

Building Regulations would like to thank all the members of the Safety Response Unit for their ongoing contribution and to congratulate them on their successes in 2011. Keep up the great work!

cit y of c algary | INDUSTRY NEWS

As we begin a new year it is a good time to reflect on the one previous. Here in Building Regulations 2011 was a busy year. Permit numbers were up and Development and Building Approvals showed its ongoing commitment to customer service with the unveiling of its H.E.A.R. principles.

Derelict Property Investigations. The SRU mandate is to provide a single point of contact for all agencies, resources to the CRST, overall management of urgent incidents, remediation/demolition of MGO sites, inspection of construction sites, unsafe buildings and derelict buildings as well as to investigate construction site incidents where safety has been compromised.

An initiative to increase safety and security launched in September 2011 saw 24 dismantled marijuana grow houses fenced and placarded. The result has been quicker involvement of environmental consultants and initiation of the remediation process


| advertising feature |

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By many ways and means, Jertyne has also

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Camp Horizon.

In a city with so many first class builders,

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every job. nRobert and Lorie Legault, founders of Jertyne.

“Do what you say you will do, when you

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Integrity, honesty and accountability are the corner stones of Jertyne Interior Services. After 18 years in the drywall and insulation business, having weathered the ups and downs of the construction industry, Alberta’s recessions and other challenges businesses face, the company continues to deliver great craftsmanship and traditional artistry.

“Do what you say you will do, when you say you will do it.”

Building Beautiful with Jertyne


Documents

Profile Winter 2012