Activity Summary

January 2006

ONTAIRO HOUSING STARTS 2005

The residential contraction industry had another very strong year in 2005 with housing starts expected to reach approximately 80,000. In 2005 single detached home starts are expected to decline 16%, while multiple-family home starts should increase by 8%. Rental housing starts are expected to reach 4,000 for the year and CMHC forecasts 3,500 in 2006. CMHC has forecasted 75,200 housing starts for 2006.

Ontario Housing Starts

Ontario Resale Housing

Year	MLS Price	MLS Sales
2004	$246,000	197,000
2005F	$264,000	195,000
2006F	$276,000	188,000

Ontario 2005 Vacancy Rates

	Oct 03	Oct 04	Oct 05
Hamilton	3.0%	3.4%	4.3%
Kingston	1.9%	2.4%	2.4%
Kitchener	3.2%	3.5%	3.3%
London	2.1%	3.7%	4.2%
Oshawa	2.9%	3.4%	3.3%
Ottawa	2.9%	3.9%	3.3%
St Cath/Niagara	2.7%	2.6%	2.7%
Sudbury	3.6%	2.6%	1.6%
Thunder Bay	3.3%	5.0%	4.6%
Toronto	3.8%	4.3%	3.7%
Windsor	4.3%	8.8%	10.3%
Ontario	3.5%	4.1%	3.8%

PRE-BUDGET SUBMISSION

OHBA President Victor Fiume and First Vice-President Brian Johnston appeared before the Standing Committee on Finance and Economic Affairs to present the OHBA Pre-Budget Submission on December 15. OHBA emphasized that housing choice and affordability are under pressure from a number of municipal and provincial government initiatives. If residential construction is to continue to be the engine that drives the provincial economy, the government will have to address the declining housing affordability. To receive copies of the Pre-Budget Submission, please contact the OHBA offices at 1-800-387-0109.

The standing committee on Finance and Economic Affairs will be travelling across Ontario in late January to conduct pre-budget consolations. OHBA will notify Local Associations if the standing committee is scheduled to visit your area of the province. Local Associations are encouraged to direct their own Pre-Budget Submissions to the Ministry of Finance at

The Honourable Dwight Duncan

Minister of Finance

C/O Budget Secritariat

Frost Building North, 3^rd Floor

95 Grosvenor Street

Toronto On M7A 1Z1

OMB PLANNING REFORM (BILL 51)

OHBA supports a strong role for the Ontario Municipal Board (OMB) to uphold the provincial interest in the planning and development review process within Ontario. The proposed legislation introduced on December 12 2005 would, if passed give local councils and residents more say in how their communities will grow. Under the governments proposed reforms, the OMB would continue to hear appeals on matters relating to official plans, zoning, subdivisions, site plans and development permits. These matters have the greatest impact on the broader public interests and the OMB would continue to play a strong role in upholding these interests.

The proposed legislation would also clarify the role of the OMB and protect local decision making by:

Returning it to its original role as an appeal body on local planning matters, not the main decision maker
Requiring the OMB to give greater weigh to the decisions of local councils during the appeal process, and limiting appeals to information and materials that were provided to the council when it made its decision … and
Enabling municipalities to establish local appeals bodies for some planning decisions such as minor variances

In addition to the proposed legislation, a number of administrative reforms to the OMB have been suggested to the Public Appointments Secretariat, which is currently conducting a broader review of Ontario's agencies, boards and commissions.

CITY OF TORONTO ACT

New legislation to strengthen the City of Toronto would help it grow and prosper by giving it the autonomy to make more of its own decisions, says Premier Dalton McGuinty. The City of Toronto Act would allow the city to pass by-laws covering its services, programs and public assets including the ability to increase revenues through a variety of taxes, levies and fees. The Act will also give the City more control over land-use planning.

The Joint Ontario Business Sector (JOBS) Coalition is calling on the provincial government to justify the need to give Toronto extensive new revenue/regulatory powers. The coalition believes it is necessary first to explore alternatives to increased revenue such as fewer responsibilities. All levels of government should operate within the existing total tax envelope, and not increase the total burden of taxes, fees and charges on Ontario taxpayers. JOBS is a coalition of 19 like-minded groups, including the OHBA, which share a common interest in the possible reforms to the Municipal Act, the City of Toronto Act and the City of Ottawa Act.

NEW SMOKE DETECTOR LAW

Residents in Ontario have until March 1, 2006 to upgrade their smoke alarm systems to meet new regulations implemented by the Ontario Fire Marshall. The new legislation states that each household must install a working fire alarm on each floor of the house, including outside all sleeping areas. For homeowners, tenants and individual landlords non compliance with the fires code can result in fines ranging from $235 to $25,000.

ONTARIO BUILDING AND RENOVATION FORUM

OHBA would like to thank all of our guests, moderators, speakers and delegates who attended Building and Renovation Forum 2006 at the fabulous Hilton Suites in Markham. Special thanks to TARION Warranty Corporation, CMHC, MASCO and Rogers, all major contributors to this event. This year was a tremendous success and we hope to see you all again in 2007.

GREATER WINDSOR HOME BUILDERS' ASSOCIATION BUILD FOR MRI

REMINDERS / AVAILABLE FROM OHBA

OHB Winter Magazine
OHBA Pre-Budget Submission
OHBA Tools to Support Intensification Report
Engine that Drives the Economy
September 2005 Housing Issues Status Report
OHBA Annual Report
OHBA Executive Reference Guide
2005 Resolutions to the OHBA Annual Meeting
ESSO 2.7 cent per litre Discount Program
What Does OHBA Do For You?

Ontario Home Builders' Association
20 Upjohn Road,
North York, Ontario M3B 2V9
(416) 443-1545
Toll Free: 800-387-0109
Fax: (416) 443-9982
E-mail: info@ohba.ca