2014 25 years of publishing excellence ATLANTIC SHOWCASE

ATLANTIC SHOWCASE
Building
community
one home
at a time
Photo provided by Cardinal Homes
Limited, taken from their current
subdivision under construction.
For more information visit:
www.cardinalhomes.ca
64 1989 - 2014 25 years of publishing excellence
PROMOTIONAL FEATURE
Jan/Feb 2014 atlanticbusinessmagazine.com
65
ATLANTIC SHOWCASE
a
Chief Executive Officer for CHBA-NL,
Victoria Belbin, addresses guests at
the 5th Annual Building Excellence
and Residential Growth Awards Gala.
Photo: D. Edwards (dphotog.ca)
long-term, sustainable mega
project. That’s how the
Altus Group’s 2013 industry
report describes residential
construction in Newfoundland
and Labrador. Completed for
the Canadian Home Builders’
Association of Newfoundland
and Labrador (CHBA-NL), the
report compares economic
indicators from 2006 to 2012.
Victoria Belbin, Chief
Executive Officer for CHBANL, has reviewed the findings.
She says they show the
industry grew by 130 per cent
over that period, “but the
report shows that the impact
of residential construction on
the health of the province’s
economy goes far beyond
direct indicators.”
In 2012 there were 3,885
housing starts, up 75 per
cent from 2006. Investment
in residential construction
and renovations exceeded
$1.8 billion. New home
construction accounted for
$888 million of that. The
indirect and induced economic
impact included $4.78
billion in economic activity
related to residential home
construction and renovations.
“That is equal to the total
anticipated value of all oil and
gas investment activities in
Newfoundland and Labrador,”
Belbin says.
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66 1989 - 2014 25 years of publishing excellence
T he
Burton
Magazine
WINTER 2014
Collection
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ATLANTIC SHOWCASE
Increase in average MLS® housing prices 2003 - 2012
out of every 10 dollars paid in salary and wages
in the province,” explains Belbin. Residential
construction also added $2.05 billion net to
the gross domestic product.
$300,000
$250,000
$200,000
$139,129
$149,260
$178,477
$206,374
$235,360
$251,581
$268,776
$0
$141,556
$50,000
$132,993
$100,000
$121,292
$150,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: NL Association of REALTORS®.
MLS® is a registered trademark of the Canadian Real Estate Association
partners in development
The Altus Report found that residential
construction created more than 21,212 fulltime-equivalent jobs last year in construction,
material and service and other industries. “The
industry paid $1.08 billion in wages, that’s one
Companies driving residential construction
realized a profit of $980 million. Government’s
cut was $585 million in tax revenues including
$148 million in government-imposed fees on
new housing.
“Policy makers seem to think that the current
health of the residential construction industry
makes this an opportune time for further
taxation,” says Steve Porter. He is the newest
president of the CHBA-NL and president of
Porteco Renovations based in Conception
Bay South, 20 kilometres west of St. John’s.
“We discuss this problem around our board
table at every meeting and have 100 per
cent agreement.” Porter explains that the
professionalism and expertise members can
bring to the table would help ensure that “any
new policies related to development would
support the construction of affordable, energy
efficient homes.”
cont’d page 70
68 1989 - 2014 25 years of publishing excellence
PROMOTIONAL FEATURE
Incoming CHBA-NL President, Steve Porter, and
out-going CHBA-NL President, Darren O’Keefe, share
the spotlight as they tie to win the “Rooftopper of the
Year” Award. Photo credit: D. Edwards (dphotog.ca)
The “Rooftopper of the Year” Award is
presented to a member who recruits the
most new members to the Association
during the preceding year. It was presented
at the Annual Building Excellence and
Residential Growth (BERG) Awards held
Nov. 23, 2013 at the Sheraton Hotel in St.
John’s, NL.
As a condition of membership, each of
the Association’s more than 200 members
have agreed to abide by a nationally
recognized Code of Ethics and to strive to
provide affordability and choice in housing.
The benefits of membership particularly
for those who work directly in the industry
include regular participation in networking
opportunities and group marketing
initiatives such as the Membership
Directory in print and online, the Home
Show in St. John’s, as well as the Members’
Advantage Program (with offers that are
exclusive between members).
In line with the Association’s
commitment to ongoing training, Belbin
says they provide members with access to
opportunities for skills development. There
are also regular group advantages such as
health insurance.
“If your company is involved in
residential construction and you are
serious about your work and committed to
protecting the interests of the consumer,
then you should join CHBA-NL,” says
Belbin.
Whether you are a builder or a
homeowner, you should bookmark the
CHBA-NL website at www.chbanl.ca
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Jan/Feb 2014 atlanticbusinessmagazine.com
69
ATLANTIC SHOWCASE
Photo provided by Cardinal Homes Limited, taken from their current subdivision under construction.
For more information visit: www.cardinalhomes.ca
In line with that logic, he says CHBANL is actively pursuing ways to work in
partnership with the municipalities. The
response from the other side of the table
has so far been less than warm. “Instead of
consulting with the CHBA-NL in the early
stages of policy development, municipalities
often just keep adding on taxes for new
home construction,” he says. “What they
don’t seem to realize is that the developer is
not the person paying that tax. It is passed
on to the home buyer. So, in the end, it is the
policy makers who are chipping away at the
affordability of homes.”
As a recent example, Porter points to
significant increases in development fees
enacted by the City of St. John’s on November
1, 2013. “They went up across the board and
some fees increased by as much as 600 per
cent,” he reveals. “And there are other tax
increases being considered as we speak.”
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70
1989 - 2014 25 years of publishing excellence
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15 Wylies Place, Conception Bay South, NL, A1W 4V6
Office: 709-834-2963 • Fax: 709-834-1800
[email protected]
PROMOTIONAL FEATURE
The Canadian Home Builders’
Association Newfoundland and
Labrador, founded in 1956, is an
industry association. With more
than 200 members, the CHBA-NL
network includes industry-related
professionals such as new-home
builders, renovators, developers,
trade contractors, manufacturers,
suppliers, lenders, and government
representatives. On their behalf, the Association offers support and services to members,
fostering continuing education and training and encouraging excellence. The Association
and its members are committed to providing affordability and choice in housing for all
Newfoundlanders and Labradorians.
“As the Altus study showed, the amount
of activity that the new home sector
represents is equal to the benefits of
a mega project every year. But we feel
like both levels of government still
fail to recognize the importance of
this industry as part of the economic
engine,” says Porter. “Community
growth shouldn’t be a burden on the
newcomer.”
Victoria Belbin agrees. She points to the
fact that government imposed charges
and taxes on residential construction
have increased dramatically since
2006. “The ever expanding list of new
development fees are a concern for
everyone,” she says.
“In the past, the cost for the installation
of public services, such as water and
sewer, were shared by all the tax
payers.” The developer is now paying
for the full cost of infrastructure in new
developments, not the municipality.
These costs are passed on to the
consumers who move into that new
neighbourhood. “These costs are in
addition to the municipal fees and levies
and taxes on each new home. And that
makes housing less affordable,” she
says. “If industry is to build the homes
and the neighbourhoods that home
buyers want, then the time to consult
with the residential construction
industry is now, while we have time to
adapt to the changing market.”
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You expect a warranty
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“One of the biggest topics at the
boardroom table is what part we can
play in housing affordability,” Porter
Jan/Feb 2014 atlanticbusinessmagazine.com
71
ATLANTIC SHOWCASE
says. “But it seems a lot of times our hands are tied.” As an example, he says that
that more often than not, when a developer proposes an affordable housing project
they are stymied by inflexible regulations and zoning. “Say, I propose an apartment
complex to a town or a denser urban subdivision, then, instead of finding ways to
partner with us and make it work, municipalities don’t make it easy.”
For both Belbin and Porter, the strength of the partnership with municipalities
hinges on the ability of the residential construction industry to “remain profitable
even though the return on investment in housing can go up or down.” Success
demands a careful balance of risk, return, investment, and profit. “That balance
can be undone by ill-considered policy,” Porter says.
a matter of trust
The Get It In Writing campaign helps home owners gain
control over renovation and construction projects, in an effort
to protect consumer interests to ensure long-term satisfaction.
While they are concerned about the impact of government policy on the affordability
of homes, the CHBA-NL is also concerned with the individual experience of home
owners. Building a custom home or renovating can be a costly and stressful
experience if it is not managed properly. Belbin says homeowners should not
confuse the temptation to hire cash-only contractors with protecting themselves.
“When these fly-by-nighters come in, there is no guarantee of worker skills or
compliance with building codes,” she says. There are no permits, inspections,
licenses or certificates. “If a worker is injured while working on your home, or if
there is damage to a neighbouring property, you are liable. And because you have
no contract you have no legal recourse,” she says. “One accident could cost you
everything.”
New company.
Experienced builders.
Introducing PORTECO Renovations
Steven Porter
Steve currently owns and
operates S & L Porter
Homes in C.B.S and is the
incoming President of the
Canadian Home Builder’s
Association Newfoundland
& Labrador for 2014. He was
awarded Builder Member of
the Year for 2013 by
CHBA-NL and also awarded
the prestigious BERG Award
for Building Excellence for
homes under 1500sqft.
At PORTECO we believe that in today’s
market it’s imperative to conduct business in a
professional and quality oriented environment.
Price combined with quality of workmanship
through our experienced skilled trades people
will deliver a finished product that customers
expect and deserve.
Steve and Peter have combined their skills to
form a renovation company that will exceed
the expectations of their customers.
15 Middle Ridge, CBS NL A1X 6B4
t: (709) 330-7511 • f: (709) 834-9794
www.portecorenovations.com
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1989 - 2014 25 years of publishing excellence
Peter Thornhill
Peter is a past member
serving on the Board of
Directors in the capacity
of Treasurer for CHBA-NL
as well has having served
on the Board of Directors
for Atlantic Home Warranty.
Peter brings his years of
management and
organizational skills to
Porteco Renovations.
PROMOTIONAL FEATURE
But you can protect yourself and control
costs at the same time, says Belbin.
“Anyone who does the due diligence will
quickly discover that by hiring a contractor
who is a member of CHBA-NL they can
be assured of skilled work by trained
professionals.” That assurance includes a
contract with warranties on skilled work
and quality materials in writing, plus all
necessary permits, inspections, licenses
and certificates. “It also provides you with
protection from liability for workers’ injuries
and property damage.”
As president, Steve Porter has his eye on
the big picture but he understands as a
developer that communities are built one
home, one relationship, at a time. “We
adhere to a strict code of ethics at all times.
Our objectives are to increase the credibility
and the expertise of home builders. Our
work and our warranties have home owners
covered. That is our main strategy for
building quality, affordable homes,” he says.
Whether you are renovating an existing
home, or building a new home, Belbin
recommends hiring a CHBA-NL member.
For renovations, look for a member who has
registered as a RenoMark renovator. For new
homes, look for builders who have earned
Master Builder certification. To qualify for
either of these – the nationally recognized
RenoMark program or the provincial Master
Builder program – the member companies
must meet rigorous professional standards.
Belbin explains that by following the project
management steps laid out in the Get It In
Writing brochure on their website, and by
hiring a member of CHBA-NL, “you have
done your due diligence and taken the right
steps to ensure the quality and contain the
cost of your project.”
membership matters
Since it was founded in 1956, the CHBANL has attracted a broad cross section of
industry-related professionals. The list of
past and present leaders is a who’s who in
the residential construction industry. •
For more information,
please contact
Victoria Belbin, CEO
Canadian Home
Builders’ Association Newfoundland and Labrador
709.753.2000 • [email protected]
chbanl.ca
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Jan/Feb 2014 atlanticbusinessmagazine.com
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