London is home to two substantial post-secondary institutions. Both of these schools draw tens of thousands of new residents to London every year. Because of this, residential rental units are very prevalent and can be found all over the city. The Residential Rental Units Licensing By-law is being put into place on March 1, 2010. Property owners will be subject to a $25.00 licensing fee for each rental property annually. It is being put into place in order to protect both the tenants, and those individuals who live in residences near rental units. The By-law will ensure that sub-standard living conditions of rental units are being addressed, and that the stability of neighbourhoods with rental units is being maintained. If property owners fail to comply with the By-Law and do not obtain a licence they will be subject to a maximum $25,000 fine and for a corporation $50,000 for the first conviction. The maximum fines for subsequent convictions are double the maximum initial conviction.

Not all rental units will require a licence. Rental units in apartment and townhouse buildings are exempt.  Any building however,  containing four or less rental units (including single detached dwellings, semi-detached dwellings, duplexes, triplexes, fourplexes, and converted dwellings) in the city of London will require a licence.

In order to obtain a licence a property owner must complete an application process. This application process involves obtaining 1) an application form for each rental property 2) a Self-Certification Checklist for each rental unit 3) a copy of a recent fire inspection report indicating compliance with the current First Protection and Prevention Act for each rental property. The application process also includes a copy of the incorporating document if the owner is a Corporation or a Partnership.

The Self-Certification Checklist will be an essential tool for all property owners to utilize in order to ensure they are complying with the By-Law. The checklist is designed to assist property owners in determining whether their properties comply with the City of London Property Standards By-Law. Each item on the checklist must be verified as being “in compliance” or marked as “non-applicable”. The checklist gives the owner opportunity to explain proposed actions to address non-conforming items. One Self-Certification Checklist must be completed for each rental unit and tenants should be provided a completed checklist.

Some of the items required for inspection include:

• interior maintenance
• exterior maintenance
• electrical/HVAC
• windows and ceiling heights

A fire inspection must also be completed in order to comply with the By-Law. If a fire inspection has been done in the last two years simply submit a copy of the approved inspection report with the licence application.  If a recent inspection has not been completed, the licence application will be accepted and a request for inspection will be submitted on your behalf. The Fire Prevention Office will then contact you to schedule the inspection. There will be no charge for the initial fire inspection; however, there will be a fee for subsequent re-inspections. You can contact London Fire Services in you have any further questions or to request an inspection.

The most important part of the new By-Law is in regards to ensuring property standards are being upheld and maintained. Rental properties will be subject to periodic random inspection by the City to ensure property owners are complying with the new By-Law. Approximately one month prior to the scheduled inspection date, the property owner(s) and tenant will receive a notice listing the date and time of the inspection. Tenants will have an opportunity prior to the inspection to advise their landlord of any deficiencies they require be addressed and will have the opportunity to speak with the City inspector during the time of their inspection. If violations are found during these inspections, the property owner will be given a specified time period to correct the violations. If violations are not corrected before the compliance date, a re-inspection fee of $95 will be issued. Where violations are found which are commonly dealt with by partner enforcement agencies – such as mould (Health Unit) or smoke alarms (Fire Prevention) – the partner agencies will be contacted.

If you have any other questions please visit the City of London website for more information.

The budgets were made available to the public in advance of the formal tabling at the November 4th Board of Control meeting. The budget recommendation is a nine per cent increase to wastewater and treatment rates and an eight per cent increase to water rates. “At the proposed rates the typical home will see an annual cost of $ 317 for water, an increase of $24 over last year. Wastewater services, including both sanitary and storm sewers, will increase $38 per year, with the average home incurring an annual cost of $460.”

The city lists a number of factors that were taken into account in this year’s water budget. The first is an increase in the cost of water purchased from both the Lake Huron and Elgin Area Water Supply Systems, at a rate of seven per cent and six percent respectively. In addition, a significant amount of funds have been dedicated to increasing our water distribution maintenance system, as part of the phased-in 20 year plan. Funds have been identified to align with stimulus projects, initiated by funding from both federal and provincial programs.

“We realize the difficulties homeowners face in the current economy but must continue to address the infrastructure gap and forge ahead with capital programs which maintain jobs in the construction sector and support senior government stimulus measures,” says Pat McNally, General Manager of Environmental and Engineering Services and City Engineer.

One fact that we can all be proud of is average household usage in London has declined 18 per cent from 2001 to 2008, this has contributed to the relatively low annual household increase for both sewer and water in previous years.

Official tabling of the city’s 2010 Water and Wastewater budgets will take place at Board of Control November 4. Board of Control will then hold a public participation meeting on November 10, 2009 commencing at 2 p.m. in Council Chambers to hear delegations from the public regarding the proposed budgets.

Anyone interested in participating in this meeting should provide written submissions to be included on the agenda by no later than 4:30 p.m. on November 6,2009, either delivered or mailed to the City Clerk’s Office. Click on the link above for more info.

Both the federal and provincial governments have come with programs to help ease the financial burden for first time home buyers. Their main reasoning behind these programs is the hope that these programs will entice more young people to purchase their first home improving home sales and in turn improving the economy overall. The purpose of this blog is to look at both options breaking how they work and how they can benefit you.

First-Time Home Buyers’ Tax Credit (HBTC)

This program is the Federal option: It was purposed in the recent federal budget. For 2009 and subsequent years, the budget proposes to introduce a new non-refundable tax credit, based on an amount of $ 5,000, for certain  home buyers that acquire a qualifying home after January 27, 2009.

What Does that Mean for you ?

The key part of that statement is when they say “based on an amount of $ 5,000.” What this means is the credit is not $5,000 but that is the base number they use to calculate the refund. Your next question may be then how do they calculate the rebate? The HBTC is calulated by multiplying the lowest personal income tax rate for the current year. So if we look at this year for example (15% in 2009) by $5,000 equals a rebate of $750.

Who is Eligible for the HBTC?

An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

There is an exception to these rules. If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first-time home buyer. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

What is a Qualifying Home?

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

As well, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.

If I buy a house, can my spouse or common-law partner claim the HBTC

Either one of you can claim the credit or you can share the credit. However, the total of both your claims cannot exceed $750.

How will I Claim the HBTC?

Beginning with the 2009 personal income tax return, a new line will be incorporated to allow you to claim the credit.

Land Transfer Tax Refund for First-Time Home Buyers

This is the provincial option and this refund is applied to the Land Transfer Tax that everyone is required to pay on all transfers of land in Ontario. Land Tranfer tax is usually about 1.5% of the purchase price of your new home.

How Much is the Refund?

The maximum amount of the refund is $2,000. If the refund is claimed at the time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue. No interest is paid on this refund.

Who Qualifies?

To claim a refund, you:

• must be at least 18 years of age;
• must occupy the home as your principal residence within 9 months of after the date of transfer; and
• cannot have owned a home, or an interest in a home, anywhere in the world.

In addition:

• your spouse can’t have owned a home, or an interest in a home, anywhere in the world while being your spouse; and
• in the case of a newly constructed home, you must be entitled to a Tarion New Home Warranty.

How Do you Apply?

Qualifying taxpayers may claim an immediate refund at the time of registration in one of two ways:

• If registering electronically, by completing the required statements under the explanation tab of the electronic affidavit.
• If registering on paper, by filling an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes at the Land Registry Office.
• Applications for a refund must be made within 18 months after the date of the transfer.

If you have any other questions about these programs or are ready to make the leap and purchase your first home we are just an email away.

Premier Dalton McGuinty’s plan to harmonize sales taxes threatens 21,200 construction jobs and will end up costing new home buyers at least $800 million, where GTA purchasers will pay $575 million of the $800 million as announced in the March 26 budget. Prior to the budget, BILD estimated that if the taxes were harmonized, Ontario homebuyers would end up paying $2.4 billion – that was before Finance Minister Dwight Duncan revealed that residences costing less than $400,000 would be not subject to the HST and partial rebates would be given to homes less than $500,000. But new houses costing more than $500,000 would be subject to the harmonized tax.

The 28-page report on the implications for sales tax harmonization on new home buyers in Ontario was written by veteran housing analyst Frank Clayton, PhD, of Canada’s largest independent real estate consulting and advisory firm Altus Group, for the Building Industry and Land Development Association (BILD). The report states that the melding of the 8% PST with the 5% GST on July 1, 2010 will be especially difficult on buyers in the GTA due to higher house prices and the impacts will specifically hit new housing in the GTA due to its higher price level and middle house incomes; new homes over $400,000 (in the BTA) are not exclusively owned by the very wealthy – that rather a significant amount of such households are considered to be “middle class”.
The report looked at 9 Ontario municipalities and 3 different home types, revealing tax increases for single detached homes in markets outside the GTA ranging from $8,597(Windsor) to $17,049(Ottawa) and within the GTA ranging from $24,566(Mississauga) to a mega $46,676(Toronto).

About one third – or about 36% – of all new sold GTA homes cost more than $400,000 and even a 10-15% reduction in demand because of this new tax would result in 7,400 to 11,100 fewer units being built. This translates into 14,100 to 21,200 jobs in construction as well as related industries and $720 million to $1.1 billion lost in wages.

BILD Chair, Leith Moore added the GST/PST harmonization proposal could not come at a worse time and it runs completely contrary to the Province’s effort to stimulate spending as well as jobs. Moore said that there’s no point in putting the gas pedal to the metal while braking equally hard with the other foot – that is what harmonizing the sales tax on housing amounts to. In addition to housing, the 13% tax will boost the price of hundreds of items such as gasoline, heating fuel, fast food, newspapers, magazines, taxi fares and dry cleaning, along with other thing that are now only subject to 5% GST.

Meanwhile, Ontario Home Builders’ Association president Frank Giannone said harmonization is a “poison pill” for housing as it’s the only product which keeps on paying property tax after being consumed. Thus to cripple the new home buyer market at this time not only damages our provincial economy but hurts the government in terms of revenues. In addition, the HST would also add additional taxes to future renovation projects, but we all know tax increases drive consumers into the underground economy and into cash deals. Giannone says that this makes no sense.

As matters currently stand, builders pay an average of 2% PST included in the price of each new home and builders are prepared to keep paying at that rate, regardless of all the other taxes, fees and levies which they endure.

The premier insists that the Liberals are full-steam ahead with the reform – “We need to do this to strengthen our economy”. On the other hand, Interin Progressive Conservative leader Bob Runciman is against McGuinty’s plan as due to the current economic downturn, this is the wrong time to move forward with McGuinty’s ill-advised plan to yet again increase taxes on all people of this province.

David Poon, a real estate agent with Cathedraltown, a hosing development in Markham, believes that the harmonized tax will boost people’s decisions to buy homes. “There’s still a lot of time but I’m already seeig prospective buyers scrambling to find homes”. He states that this isn’t making buyers happy; “If my house costs about $500,000, I’ll have to pay another $40,000 after July 1st.” said Poon, calling this harmonization nonsense.

Let us know what you think!

Yesterday the ontario government released the brand new budget that includes many changes in an attempt to stimulate the economy in Ontario. In this blog I want to explain some of the changes, give some opinions for and against the budget the and let you decide what you think about it. The Ontario government’s goal is to invest $34 billion over two years to stimulate the economy. This timely and targeted investment includes $32.5 billion in infrastructure spending and nearly $700 million in additional funding for skills training. The government is also proposing to accelerate the phase-in of the Ontario Child Benefit (OCB) two years ahead of schedule, increase social assistance rates and invest in social housing infrastructure. The Budget also proposes a comprehensive tax reform package that includes moving to a single, value added sales tax at a combined rate of 13 per cent on July 1, 2010. Over the next three years, the transitional cash payments as well as ongoing, permanent tax relief. Business taxes would also be cut by $4.5 billion over three years.

Budget Highlights

•The government is increasing funding for summer employment opportunities for youth to nearly $90 million, which would benefit more than 100,000 young people this summer, including youth in high need communities.

•The government is providing $ 400 million more in children’s benefit over the next three years, providing low- and middle-income families with up to $1,100 annually per child in Ontario Child Benefit payments starting this july, providing additional payments to 115,000 families.

•The government is providing $1.2 billion to renovate 50,000 social housing units and build 4,500 affordable housing units for low-income seniors and people with disabilities.

•Books, diapers, children’s clothing and footwear, children’s car seats and car booster seats, and feminine hygiene products would be exempt from the provincial portion of the single sales tax.

•Newly constructed homes under $400,000 would not be subject to an additional tax. Buyers of new homes valued between $400,000 and $500,000 could also claim a proportional rebate.

•A new Ontario property tax credit which would be based on occupancy cost- property tax paid or 20 percent of rent paid. A credit would be provided for occupancy cost of up to $250 for non-seniors or $625 for seniors, plus 10 per cent of occupancy cost. The credit would not exceed occupancy cost and would be subject to a maximum of $900 for non-seniors and $1,025 for seniors. It would be adjusted by two per cent of adjusted family net income over $20,000 for single people and over $25,000 for families. The property tax credit would be refundable and claimed on the personal income tax return, beginning with the 2010 return.

•Eligible families with an income of $160,000 or less would get three payments totalling $1,000 to help them adjust to the new single sales tax. Eligible single people with an income of $80,000 or less would get three payments totaling $300.

•The first benefit payment would arrive in June 2010, the second December 2010 and the third in June 2011.

•One of the most generous sales tax credits in Canada, providing low- and middle income Ontarians with a permanent refundable credit of up to $260 for each adult and child.

•$1.1 billion in income tax cuts, giving Ontario the lowest provincial tax rate in Canada for the first tax bracket.

•Cut the general Corporate Income Tax (CIT) rate 14 per cent to 12 per cent and reduce the rate to 10 per cent by 2013.

•Cut the CIT rate for small businesses from 5.5 per cent to 4.5 per cent.

•Cut the CIT rate for manufacturing and processing- helping businesses including farming, fishing, mining and logging from 12 per cent to 10 percent.

•Eliminate the CIT small business deduction surtax, making Ontario the only Canadian jurisdiction that would emlinate this barrier to growing small businesses.

•Exempt more small and medium-sized businesses from the Corporate Minimum Tax and cut the CMT rate from 4 per cent to 2.7 per cent.

I know that is alot of information but I felt it was important to give as much of the information as I could because there is a lot of benefits for a lot of different people. Now I would like to go over some of the comments being made for and against the budget. Ontario Finance Minister Dwight Ducan said in a statement yesterday “Through this Budget, the McGuinty government is helping families who are being hurt by the global economic crisis, but we’re doing much more than that. With our comprehensive tax reform, we’re making Ontario stronger and more competitive, and that will help our families and businesses when prosperity returns. This is the single most important thing we can do to create jobs and position our economy for future growth.” One major criticism of the budget is that it will put Ontario into the red for the next six years. Another thing critics are saying is that the changes, which will add tax to many items including gas prices, real estate purchases and other consumer items. With every budget and almost every politic  decision there is a trade off to money to one program or help a certain group money needs to come from somewhere that just a reality.

I think the biggest problem with this budget is the burden it will put on new home sales. In a year when new home starts are so low is it really the smartest decision to enforce and tax that will make it even more diffcult for people to buy new homes. When you really think about how many jobs going are dependent on the new housing market I think it is a bad move. Let us know what you think???

Effective Jan. 27, any Canadian who spends money on home renovations will be eligible to receive up to $1,350 in tax relief, thanks to the new Home Renovation Tax Credit proposed in the Government’s Economic Action Plan. Here we will outline exactly what is the HRTC and what types of products, services, and expenses are eligible.

The Home Renovation Tax Credit is one of several initiatives designed to help homeowners and homebuyers contained within the Government’s Economic Action Plan. Budget 2009 also announced $300 million over two years for homeowners looking to make their homes more energy efficient. This government is taking steps to help Canadians control their energy costs and keep more money in their pockets.

The Home Renovation Tax Credit will provide a one-year, temporary 15% income tax credit on eligible home renovation expenditures for work performed, or goods acquired, between January 27, 2009 and February 1, 2010. The credit may be claimed on eligible expenditures exceeding $1,000 but not more than $10,000.

Home renovations are smart investments in the long term value of a home and also create economic activity by increasing the demand for labour, building materials and other goods. Renovations can also reduce energy consumption and the long-term cost of owning a home. Every time Canadians invest in home renovations, they are helping to create construction and building-supplies jobs in their own communities. Providing an incentive for Canadians to invest in their homes, will encourage investment in local jobs.

What type of products, services and expenses are eligible?

Eligible Ineligible

-Renovating a kitchen, bathroom or

basement

-New carpet or hardwood floors

-Building an addition, deck, fence or retaining wall

-A new furnace or water heater

-Painting the interior or exterior of a house

-Laying new sod

-Labour costs;

-Professional fees;

-Building materials;

-Fixtures;

-Equipment rentals; and

-Permits

-Furniture and appliances (refrigerator, stove, couch)

-Purchases of tools

-Carpet cleaning

-Maintenance contracts (furnace cleaning, snow removal. lawncare. pool cleaning, etc.)

-Financing costs

What type of expenditures will not qualify?

The following expenditures will not be eligible for the HRTC:

i)the cost of routine repairs and maintenance normally performed on an annual or more frequent bias;

ii) expenditures that are not integral to the dwelling, and other indirect expenditures that retain a value independent of renovation

iii) expenditures for appliances and audio-visual electronics; and financing costs

Who is eligible to participate, and what are the conditions?

Family members (i.e. spouses or common-law partners and their children under 18) are subject to a single limit based on their pool expenditures. The credit is only available for a dwelling that is eligible to be the family principal residence or that of one or more of their other family members.

What should consumers do?

Begin to save your receipts for any home improvement project that you recurrently working on that qualify for the tax credit

How can I get more information?

Additional information on the Home Renovation Tax Credit will soon be available

on Canada Revenue Agency’s website at www.cra-arc.gc.ca

Information is also available at Department of Finance Canada at www.fin.gc.ca