The world is changing; you can see it every day.  While change is a fact of life, we all know that some changes create positive benefits and others do not.

 

Our industry has changed too.  In some cases this change has occurred by design and in other cases due to economic uncertainty.   For example, our industry has adopted One Voice – One Industry as one of the primary tools that CHBA-Alberta utilizes to deal with various regulatory issues confronting homebuilders.  Under this program we have been able to greatly increase our government relations and technical review activity.   

 

Unfortunately our industry is in a much less healthy financial position than we were a couple of years ago when OVOI was first approved.  As a result, we have cut back our administration dramatically and CHBA-Alberta now operates with about half the staff we had just one year ago. 

 

While we have cut back, special interest groups have not reduced their efforts to continue to lobby for changes in the way homes are built and the way home builders and trades operate. Governments at all levels are also moving forward with a number of regulatory changes in response to environmental, social, and economic concerns.    Unfortunately, as we all know, what may seem like a good idea to fix one concern, can result in creating problems in other areas. 

 

Our industry does not need to look any further than the recent  code changes introduced by the provincial government in response to the High Intensity Residential Fires (HIRF) recommendations.  These code changes – introduced despite our objections - ignore the affordability impact on our customers, as well as long-standing and hard-learned good building practices.  Is marginally improved fire resistance really worth incorporating building practices that could greatly increase the danger of mould and rot? 

 

One issue on the immediate horizon is the Alberta Government’s consideration of recommendations on Residential Construction Practices (RCP), drafted by Parliamentary Assistant and MLA for Edmonton Castledowns Thomas Lukaszuk.  Mr. Lukaszuk’s action plan was drafted in response to several homes in Calgary that were built in a manner that caused mould and rot problems for the home owners.  The document contains recommendations for changes to how our industry operates.  Some of the initial discussions with our office had very far-reaching recommendations around warranty, training, inspections, and building practices.   Despite our ongoing efforts, the homebuilding industry had been blocked from participating in the drafting of the document.  We should all be very concerned about this and we will keep you informed of our efforts to address this issue. 

 

We also have municipalities dramatically increasing fees, levies, inspections, and development requirements, all of which increase the cost of new homes thus making them less affordable.  Also, there is a strong push to open the Municipal Government Act (MGA) to provide increases in municipal control and additional taxation options.  This has been delayed for the moment, but it remains lurking in the shadows. We will continue to monitor this issue and keep you informed of any changes.

 

Green building practices are also getting increased attention in the Legislature.  This has been building momentum over the last few years.  Our industry has a very good story to tell.  We are one of the few industries that have improved our practices to such a degree that we would easily meet the Kyoto requirements.  We also have introduced an outstanding program, BuiltGreen™, that is industry-driven, voluntary, and cost-effective.  As this program grows we will become even more progressive in environmental practices. With such an excellent program already in place, we had hoped to partner with the Alberta government on green building initiatives. However, Alberta Environment Minister Rob Renner is planning to announce a rebate program that is based on EnerGuide ratings and not BuiltGreen™ certification.  We are disappointed by this decision but are now focused on how we can integrate the government’s initiative into our own industry’s BuiltGreen™ program.

 

CHBA-Alberta is also anticipating there will be more legislation to support green building codes on the horizon.  We are working through various channels to ensure we have industry representation at the table when recommendations are being discussed. 

 

On a more positive note, we are working successfully with various parties including government, municipalities, and the Alberta Construction Association to develop a solution for the disposal of construction waste.  The desire of environment groups and at least some people in government is to reduce construction waste by 75%; in other words that no recyclable material goes to the landfill.  This is a valiant goal but the implementation and practical application of such a goal is difficult.  Through our collaboration with various stakeholders, we are currently seeking ways to cost effectively implement an aggressive recycling program with the proper infrastructure and markets to ensure success.

 

This update is an overview of the immediate challenges that lay ahead. The potential impact of each of these issues is thousands of dollars per home, and a modest reduction in cost will have a very significant impact on your bottom line. As we work on your behalf, please consider supporting our efforts as much as possible through membership dues and by volunteering your time.  If you have a passion or knowledge about any of these issues, please contact our office and get involved. A commitment through your money or time will definitely have a very good impact on your bottom-line.  Call Kathy Watson, Bruce Galts, or any board member if you would like to discuss this further.

 

Sincerely,

 

Bruce Galts, President

CHBA-Alberta