COVID-19: Real Estate News Roundup - Key developments and considerations

The COVID-19 outbreak has created a new reality for all of us, at least temporarily. Chances are you’re dealing with many new challenges, both personally and professionally. We all are.

Now, it’s up to each of us to do our part so we can get through this as quickly as possible. Remember, we’re all in this together. Stay positive and know that things will get better.

Good information and advice are often the antidote to stress, especially during challenging times. So, please, don’t hesitate to reach out to me. In a climate that is constantly evolving and changing, this Update presents key developments and considerations to assist real estate investors, landlords, tenants and other interested parties.

Realty Tax Relief

In response to COVID-19, municipalities across Canada have begun instituting property tax relief measures in order to aid businesses. Below is a non-exhaustive summary of relief granted by municipalities that have implemented these measures. Please refer to the applicable municipality’s publications with respect to any relief provided before relying on such relief, as there may be conditions to the applicability of the relief that are not covered by the brief summaries below.

Ontario

Landlord/Tenant Matters

As Canadians continue to face uncertainty, both landlords and tenants alike have been closely monitoring developments. With major Canadian banks having already stated a willingness to provide flexible solutions for mortgage payments, momentum both online and in social media has picked up, calling for legislative intervention aimed at regulating both residential and commercial leasing, in response to the COVID-19 pandemic.

Ontario

While rental tenancy advocacy groups have been calling for similar payment relief to apply to the rental market, that hasn’t yet become a reality. However, there have been some protections announced for renters at various provincial levels across Canada.
In Ontario, a freeze has been placed on all evictions, with Premier Doug Ford stating that while those who can afford to pay rent should continue to do so, those who are unable due to COVID-19-related reasons will not be removed from their homes, and that financial resources should prioritize medical and essential services.

On March 19, the Landlord and Tenant Board, the tribunal in Ontario responsible for resolving disputes between residential landlords and tenants, announced the suspension of eviction orders and all hearings related to eviction applications unless the matter relates to an urgent issue such as an illegal act or a serious impairment of safety. See here for more details.

Latest Government Supports and Information

• The Bank of Canada Makes 2nd Emergency Rate Cut in March The Bank of Canada (BoC) cut its Overnight Lending Rate by 50 basis points on March 27 from 0.75% to 0.25% – the lowest it has been since April 2009 – as further response to the COVID-19 pandemic and its impact on the Canadian economy. 
• Real Estate Named an Essential Service in Ontario In the evening of March 23, the provincial government released a list of businesses and industries deemed as “essential” as part of the current State of Emergency, and included real estate agent services, moving services, and land registration services among those that did not have to close operations. However, as both provincial and municipal real estate boards and associations have made clear, this does NOT mean it’s business as usual for the industry.   

  The Ontario Real Estate Association (OREA), a provincial lobbyist group, has urged brokerages and agents to stop all face-to-face business. This includes:

  • Holding open houses
  • Having public office hours
  • Having agents come in person to a brokerage office
  • In-person showings and inspections

As well, it has been strongly recommended that homes with rental tenants  dwelling there not be shown or listed for sale as long as current health advisories are in force.

• Canada Emergency Business Account | A new loan program that will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.
• New Wage Subsidies Available | A 75% wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, to help businesses keep and return workers to the payroll.
• Ontario's Action Plan: Responding to COVID-19 | It will make available $10 billion in support for people and businesses through tax and other deferrals to improve their cash flow, protecting jobs and household budgets, and $7 billion in additional resources for the health care system and direct support for people and jobs.
• Supporting Bars, Restaurants and Alcohol Retailers | Liquor sales licensees may now sell liquor for takeout or delivery along with food.
• Canada Emergency Response Benefit | Support for people who are unable to work, including wage earners and self-employed individuals, and contract workers who would not otherwise be eligible for EI.
• WSIB Financial Relief | Businesses can now defer workplace insurance premium payments and reporting until August 31. All businesses covered by WSIB are automatically eligible.
• Mental Health and the Pandemic | CAMH offers strategies and suggestions about how best to cope in this difficult time.
• Guidance for workplaces and businesses in Peel | Information on how emergency measures impact businesses can call 1-888-444-3659.
• Stop the Spread Business Information Line 1-888-444-3659 Canada's COVID-19 Economic Response Plan
• Your Ontario Property Tax Bill Could Be Delayed ( Check with your local City)
• Potential Relief for Tenants

In the meantime, you might have immediate concerns about the real estate market. For example, you might be wondering if you should put off moving. Or, you might need to move but are worried about all this uncertainty.

If so, give me a call. As a real estate professional, I have the latest market information, insights and tools - and can give you sound advice how to tide over such rough time.