Bill 124 Ontario Building Code Regulatory Changes

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1 Bill 124 Ontario Building Code Regulatory Changes Presented by Guido A. Mazza, P. Eng. Director of Building Services/Chief Building Official

2 Construction Activity in Greater Sudbury June 2006

3 Total Value of Construction (million $) Total value of construction in 2005 represents a 18% increase in development activity compared to Source: Building Services Section, City of Greater Sudbury. All figures in current dollars.

4 Total Construction Value: 2006 Year-to-Date Results (million $) Ja - Ap 2005 Ja - Ap 2006 Total construction value for the first four months of 2006 is on track to match last year s positive results. Source: Building Services Section, City of Greater Sudbury. All figures in current dollars.

5 New Residential Units The number of new residential units in 2005, as measured by building permits issued, increased by 8% over Source: Building Services Section, City of Greater Sudbury.

6 New Residential Units 2006 Year-to-Date Results Ja - Ap 2005 Ja - Ap 2006 Based on building permits issued, the number of new residential units created in the first half of 2006 are slightly higher compared to the same period last year. CMHC is forecasting further gains in housing starts for 2006 and Source: Building Services Section, City of Greater Sudbury. CMHC, Housing Market Outlook, Northern Ontario, Spring 2006.

7 Plans of Subdivision: Number of Lots Created No. of lots draft approved No. of lots registered A significant increase in the number of lots created through draft approved and registered plans of subdivision in 2005 reflects increased demand for new housing. Source: Development Services Section, City of Greater Sudbury.

8 Average Selling Price of a Home $145,000 $140,000 $135,000 $134,440 $141,519 $130,000 $125,000 $120,000 $115,000 $110,000 $105,000 $100, Q The average selling price of a resale home has increased significantly in the last few years, reflecting a very active housing market. The average price of a new single detached dwelling in 2005 was $236,530, a 14% increase over Source: Sudbury Real Estate Board, MLS Sales Activity, Resale Market.

9 Apartment Vacancy Rates 15.0% 12.5% 11.1% 10.0% 7.5% 5.0% 2.5% 1.6% 0.0% In the rental market, apartment vacancy rates have fallen dramatically in recent years, from a high of 11.1% in 1999 to 1.6% in A vacancy rate of 3% is generally considered to be a balanced rental market. Source: CMHC, Northern Ontario Rental Market Report 2005.

10 Estimates of Real GDP Growth 3.0% 2.5% 2.2% 2.2% 2.2% 2.2% 2.0% 1.9% 1.5% 1.6% 1.0% 0.5% 0.0% f 2007f 2008f 2009f 2010f Conference Board indicators are also positive related to growth in real GDP, which is forecast to average 2.1% over the five-year forecast period. Source: Conference Board of Canada, Metropolitan Outlook Series 2B, Winter 2006, Greater Sudbury CMA (f = forecast).

11 Policy Update: Building Regulatory Changes The Building Code Act, 1992 has been amended through the Building Code Statute Law Amendment Act, 2002 (Bill 124). Related changes to the Building Code have been made through O. Reg. 305/03 filed July 25, Changes intended to Streamline the building regulatory process Increase the accountability of building practitioners Enhance public safety Proceeding with phased implementation Most elements came into force July 1, 2005 Remainder came into force January 1, 2006

12 Key Elements Effective July 1, 2005: Mandatory use of common building permit application Building permit fees limited to the reasonable anticipated costs of enforcement New mandatory notices and inspections at key construction stages Roles for different building practitioners defined in Act including owners, builders, designers and manufacturers Code of Conduct for Building Officials

13 Key Elements Final Phase New OBC Regulation Implementation (Bill 124) As of January 1, 2006 Qualification requirements for Building Officials & designers Registration requirements (i.e. qualified staff & insurance) for designers Time frames for the review of building permit applications by municipalities Commencement of the first reporting period for the Annual Building Permit Fee Report to be prepared by municipalities

14 DLAC Subcommittee Bill 124 Implementation DLAC Subcommittee directed by Council to provide recommendations on Bill 124 Implementation. Review broken down into three categories: 1. Process Modifications Common building permit application form deemed unwieldy Two-stream approach (short form) between July 1, 2005 to January 1, 2006 Permit application check list HVAC guidelines drafted including recommendation for heating permit Heating Trades License

15 DLAC Subcommittee Bill 124 Implementation 2. Municipal Staffing Levels Evaluation Additional inspections residential (2) & ICI sectors (6) Time study/travel time/inspections per day Historical workload past 11 years RCA/contract staff Study workload over first 6 months of partial Bill 124 implementation July, 2005 January, 2006 Initial reviews indicate staff short fall 2 Building Inspectors/1 Plans Examiner

16 DLAC Subcommittee Bill 124 Implementation 3. Building Permit Fees Fees limited to cost of enforcing Committee drafted approved list of direct & indirect costs Historical data on budget cost vs. user fees Comparison survey with other municipalities ICI/Residential fees imbalance Raise fees based on current construction cost survey with Sudbury District Home Builders Assoc. Heating Permit fee Establish reserve

17 Public Safety/Streamlining/ Accountability Public Safety Mandatory Provincial Building Code knowledge (January 1, 2006) CGS sponsored 9 Ministry/OBOA Courses 36 CGS Staff/41 Outlying Area Municpalities/80 Private Development Sector participants Currently all Plans Examiners (4), Building Inspectors (6) & Chief Building Official are registered Internship Program participation

18 Public Safety/Streamlining/ Accountability Public Safety Cont d Mandatory notifications & inspections (July 1, 2005) 3 additional mandated residential inspections 6 additional mandated ICI inspections Final DLAC subcommittee determination based on time study & historical data additional 2 Inspectors/1 Plans Examiner required Further study/monitoring of process and procedures mandated by subcommittee

19 Public Safety/Streamlining/ Accountability Streamlining Specific time limits on building permit issuance (January 1, 2006) applicable law Common province-wide application form for permits (July 1, 2005) Provisions which provide municipalities the use of RCA s (July 1, 2005)

20 Public Safety/Streamlining/ Accountability Accountability Roles defined in Act for different practitioners (July 1, 2005) Mandatory professional indemnity insurance coverage enforced through provincial registration system July 1, 2005 (RCA s) /January 1, 2006 (all others) Mandatory reporting by municipalities on permit fees (January 1, 2006) Code of Conduct for Building Officials (July 1, 2005)

21 Summary-Recommendations 1. Continue to monitor to better serve the development community. 2. Increase staffing by three, permanent employees in Building Services to respond to increased mandatory obligations of plans review and building inspection.

22 Summary-Recommendations 3. Amend the Building By-law to allow for a separate heating, ventilation and air conditioning permit to be established at a fixed fee of $50/permit (after a public hearing). 4. Modify procedures in calculating residential building permit fees to bring them more in line with Institutional Commercial Industrial (ICI) sector fee calculations for value of construction.

23 Summary Amend Building By-law to allow for a separate Heating, Ventilation and Air Conditioning permit. Authorize increase in staffing by three permanent employees to meet mandatory obligations of plans review and building inspection required under Bill 124. Continue to monitor the regulatory processes through DLAC and report to Council. Modify procedures in calculating residential building permit fees to bring them more in line with the Institutional Commercial Industrial (ICI) sector fee calculations, effective July 1, 2006.