Renos could help solve housing crisis. So why make them so difficult?
According to the Canada Mortgage and Housing Corporation (CMHC), to address housing affordability we need some 3.5 million homes on top of the 2.3 million the country is on track to build by 2030.
This challenge requires solutions of all shapes and sizes. One solution suggested by CMHC is expanding the housing supply from existing units through methods such as secondary suites.
Through secondary suites, homeowners can be a part of the solution. Whether the in-laws are moving in, an adult child is staying with their parents until they have saved a down payment, or opening up to renters, secondary suites are a versatile way to meet Canada’s changing housing needs.
However, when red tape clogs up the process, slowing down projects and adding to the overall cost, administrative headaches for homeowners and contractors ensue and can dissuade others from doing the same.
A recent report by the Canadian Federation of Independent Business (CFIB) found that even a simple project like renovating a bathroom, a common step in creating a secondary suite, can be bogged down by red tape, depending on the municipality.
Based on the jurisdictions examined, a $20,000 bathroom renovation will cost, on average, $415.62 upfront for permit processing and inspection fees and requires seven documents to be completed.
The worst offender is the City of Vancouver, which charges considerable fees and requires several documents well above the national average. A bathroom renovation in Vancouver would require more than $1,000 in fees, adding more than five per cent to the project before you move a tile. Additionally, you need to provide 11 documents ranging from floor plans to architectural designs.
In Toronto, if you want to complete a bathroom renovation you would need ten documents, while in Edmonton the permitting and approval process will cost you almost $700.
While there are necessary permits — electrical, plumbing — in many municipalities there are also forms that are burdensome or redundant. The unfortunate reality is that if municipalities require onerous and costly requirements for what should be a simple project, it creates barriers to work being done.
One of the most blatant examples of forms that create unnecessary red tape is the Renovation Energy Upgrade Proposal (REUP) required in Vancouver. Even for a simple bathroom renovation, this bylaw requires an EnerGuide Evaluation for the entire home performed by an energy adviser, who must then complete and submit a REUP application.
Then, after booking an energy adviser, having your entire house evaluated, and paying the relevant fees, you don’t even have to make any retrofits or changes based on the information from the EnerGuide Evaluation. So, at the end of the day, the REUP slows down the renovation process and adds to the cost of building for no discernable reason.
If we really want to see homeowners join the effort to add stock to the housing market, let’s make it easier for them, free them of unnecessary red tape, reduce costs and ensure that the permitting process is easy and timely.
Canada is in a race to solve our country’s housing needs. All levels of government have a role to play and have been trying to address the issue.
The federal government is providing incentives to accelerate housing development, several provincial governments are introducing policies to speed up the development process and add density, and a handful of cities are reviewing their processes and welcoming the innovation and creativity needed to meet the housing challenge.
However, some of Canada’s largest municipalities have made little progress. Their requirements are impeding projects of all sizes, making it harder for Canada to meet its collective goals.
Governments must do more. The federal and provincial governments can tie future municipal funding for housing and infrastructure to requirements to streamline the permitting processes, including renovation permits.
Municipalities can review and seek to reduce their permitting requirements and costs and modernize their processes.
Ultimately, if a simple project is made untenable as a result of red tape, how can we expect Canada to build the 5.8 million total units it needs by 2030 to address the lack of affordable housing? We need all levels of government, homeowners, and the private sector to be rowing in the same direction.