In a significant development for Ontario’s housing sector and broader economy, the Ontario Real Estate Association (OREA) has successfully championed two pivotal recommendations that have been officially adopted into the provincial government’s 2020 budget. Tim Hudak, CEO of OREA, recently confirmed this milestone, emphasizing that these initiatives are strategically “focused on harnessing housing as an economic engine to support businesses, create jobs and help communities that need it most.” This recognition underscores the vital role the real estate market plays in Ontario’s prosperity and its potential to drive recovery and growth, especially in challenging times.

Ontario Real Estate Association Drives Economic Recovery and Housing Innovation with Key Policy Wins

The announcement arrives at a critical juncture, as Ontario, like the rest of the world, navigates the complexities of a once-in-a-century pandemic. With government attention primarily directed towards overcoming unprecedented public health and economic challenges, and traditional face-to-face engagements becoming rare, OREA’s consistent and strategic lobbying efforts have proven remarkably effective. This success highlights the association’s deep understanding of governmental processes and its unwavering commitment to advocating for the interests of both real estate professionals and Ontario residents.

The Power of Persistent Advocacy: OREA’s Strategic Influence

OREA’s ability to influence policy, even amidst a global crisis, is no accident. It is the culmination of years spent meticulously cultivating a reputation as a credible and trusted stakeholder within government circles. Sean Morrison, President of OREA, articulates this foundational principle: “It comes by building a good reputation (over years) with the government as a trusted stakeholder. It starts with being a good partner.” This proactive approach to collaboration, rather than mere petitioning, has been instrumental. Morrison further emphasizes the collective strength of the profession, stating, “And it shows the power of the Realtor lobby in Ontario, when our 80,000 Realtors work together for a common goal.” This unified front allows OREA to present a powerful, cohesive voice on critical issues impacting the housing market and the provincial economy.

During the pandemic, OREA leaders adapted their engagement strategies, transitioning to weekly Zoom meetings with government officials. These virtual dialogues were not simply about requesting support; instead, OREA adopted a collaborative stance, working alongside policymakers to develop robust research into the actual needs and desires of Ontarians. This data-driven approach ensured that OREA’s proposals were not only well-researched but also genuinely reflective of public sentiment and economic realities. By demonstrating a willingness to partner in problem-solving rather than just “approaching them with our hand out,” OREA solidified its position as an invaluable resource for the government.

Beyond Self-Interest: Championing Consumers and Communities

A cornerstone of OREA’s advocacy strategy is its broad focus, extending well beyond the immediate concerns of real estate professionals. Morrison stresses, “OREA is not mono focused on just what’s good for the Realtor. We’re also looking out for what’s good for the consumer and Ontario.” This commitment to the wider public is evident in initiatives like the partnership with Nanos Research to establish the Ontario Residential Real Estate Monitor. This crucial tool is designed to “measure and track sentiment of Ontarians who are actively in the housing market,” providing invaluable insights into consumer attitudes and market trends. The Nanos research report, as Morrison explains, significantly bolstered their lobbying efforts by enabling the government to “understand the attitudes of consumers and Realtors across the province.” This comprehensive data helped inform government decision-making, lending greater weight to OREA’s proposed policies and demonstrating widespread public support for them.

Another often-overlooked yet highly effective aspect of OREA’s lobbying strategy is its practice of publicly acknowledging and thanking the government for pro-homeownership and Realtor-friendly legislation. Morrison highlights the profound impact of showing basic gratitude: “We’ve heard several times that many other organizations don’t do that. It’s one of the most important things that we do in our lobbying – to acknowledge when they’ve listened to our advice and when they’ve done something that helps Realtors or Ontario communities.” This simple yet powerful gesture fosters goodwill and strengthens the collaborative relationship between OREA and the provincial government, paving the way for future successes.

Landmark Legislative Victories: Fueling Ontario’s Future

From OREA’s detailed discussion paper, “Rebuilding Ontario: A Framework for Recovery,” two key recommendations have received the province’s official endorsement. These initiatives are poised to deliver tangible benefits to Ontarians and stimulate economic activity:

1. Enhancing Senior Safety and Independence: The Seniors Safety Tax Credit

The COVID-19 pandemic starkly illuminated systemic vulnerabilities within long-term care facilities, intensifying public and governmental concerns about senior safety and the desire for elderly residents to age in place. In response to these pressing issues, the Ontario government has greenlighted OREA’s proposal for a one-year Home Seniors Safety Tax Credit. This vital program will offer significant financial relief, “worth 25 per cent of up to $10,000 in eligible expenses for a senior’s principal residence in Ontario. The maximum credit would be $2,500, providing 27,000 families with $30 million in relief,” as detailed in Hudak’s statement. This credit is not merely about financial aid; it’s about empowering seniors to live safely and independently in the comfort of their own homes for longer, reducing pressure on institutional care facilities.

The eligible expenses covered by this progressive tax credit are wide-ranging and designed to address various aspects of senior safety and accessibility. Morrison elaborates that “eligible expenses in this program would be for things like grab bars and related bathroom reinforcements, which will help keep seniors safe in their homes, so they can stay in there longer.” Beyond immediate safety enhancements, the credit also extends to broader renovations aimed at improving senior residences or creating secondary suites, such as accessible basement apartments, which can facilitate multi-generational living or provide dedicated caregiver spaces. Furthermore, critical accessibility enhancements like wheelchair ramps, stair lifts, and even home elevators are included, making homes more navigable and functional for seniors with mobility challenges. This comprehensive approach aligns with the growing societal need to support an aging population with dignity and practical resources. Morrison also points out the economic ripple effect of this credit, noting that “it creates jobs in the economy” for skilled tradespeople specializing in accessibility installations and home modifications for seniors, thus serving as an effective economic stimulus.

2. Boosting Business Growth: Cutting the Business Education Tax

Another significant victory from OREA’s advocacy efforts is the province’s commitment to substantial cuts in the Business Education Tax (BET) rates. This measure is directly aimed at fostering a more favourable economic environment for businesses across Ontario. Hudak’s statement confirms that these changes “will lower all high BET rates to a rate of 0.88 per cent for both commercial and industrial properties beginning in 2021.” The impact of this reduction is substantial, promising “approximately $450 million in annual savings” and directly benefiting an estimated 200,000 Ontario business properties. For many commercial property owners, this reduction translates into lower operating costs, freeing up capital that can be reinvested into their businesses, used to create jobs, or to expand operations. By reducing the tax burden on businesses, the government, with OREA’s urging, is actively promoting economic resilience and encouraging growth. This policy contributes to a healthier commercial real estate market and supports the overall economic fabric of communities throughout the province.

A Vision for a Stronger Ontario: Future-Focused Recommendations

The “Rebuilding Ontario” report outlines additional forward-thinking recommendations from OREA, demonstrating a holistic vision for the province’s long-term economic health and community development.

Unlocking Potential: Opportunity Zones in Underprivileged Communities

One such innovative proposal is the creation of “opportunity zones” in underprivileged communities. Morrison explains that these zones would target areas, particularly in regions “like Northern Ontario where a mine is closed, or the major industry or mill has closed,” which have experienced significant economic setbacks. The concept behind opportunity zones is to stimulate investment and job creation in these struggling areas through strategic incentives. These could include “things like differential tax treatment, or investments in infrastructure” to attract new industries and businesses. By providing targeted support, OREA aims to revitalize these communities, diversify local economies, and create sustainable employment opportunities for residents who have been impacted by industrial decline.

Promoting Affordability and Renovation: Additional Key Proposals

OREA’s commitment to a thriving housing market extends to proposals designed to enhance affordability and encourage home improvements. These suggestions include a temporary six-month Land Transfer Tax holiday for homes priced at less than $600,000. Such a measure would significantly reduce closing costs for first-time homebuyers and those purchasing more moderately priced properties, making homeownership more accessible to a broader segment of the population. Furthermore, OREA advocates for increasing the scope of the seniors safety tax credit by introducing a broad-based home renovation tax credit. This would incentivize homeowners across all demographics to invest in improving their properties, boosting the construction and renovation sectors, creating jobs, and enhancing housing stock quality throughout the province. These proposals underscore OREA’s multifaceted approach to supporting both the demand and supply sides of the housing market.

A Legacy of Advocacy: Past Triumphs and Future Ambitions

Empowering Real Estate Professionals: Personal Real Estate Corporations

OREA’s history of successful advocacy is extensive. Earlier this year, a long-standing objective finally came to fruition when Ontario Realtors were granted the right to form Personal Real Estate Corporations (PREC). This policy change, which OREA had been diligently working on for many years, empowers real estate professionals with greater financial flexibility and tax planning opportunities, aligning Ontario with best practices in other provinces and enhancing the professional standing of Realtors.

Elevating Professional Standards: The Future of Ontario Real Estate

Looking ahead, OREA remains steadfast in its mission to elevate the real estate profession. Morrison notes that while the immediate focus on “increasing professionalism through TRESSA regulations” and advancing broader economic stimulus packages has seen some slowdown due to the extraordinary circumstances of COVID-19, the association’s long-term determination remains unwavering. OREA is committed to continuing its collaborative work with the government to “make Ontario the leader in North America when it comes to professional standards and enforcement of business tools for our Realtor members.” This ambitious goal reflects OREA’s dedication to ensuring that Ontario’s real estate market operates with the highest levels of integrity, professionalism, and efficiency, benefiting both practitioners and the public.

Conclusion: OREA’s Enduring Commitment to Ontario’s Prosperity

The recent policy adoptions by the Ontario government are a testament to OREA’s strategic vision, persistent advocacy, and collaborative approach. By successfully championing initiatives like the Seniors Safety Tax Credit and the reduction of the Business Education Tax, OREA has demonstrated its profound impact on driving economic recovery, supporting vulnerable populations, and fostering a robust business environment. Their commitment to data-driven proposals, combined with a focus on both Realtor and consumer interests, positions OREA as an indispensable partner in shaping Ontario’s future. As the province continues its journey towards recovery and growth, OREA’s ongoing efforts to enhance professionalism, promote affordability, and stimulate investment will undoubtedly play a critical role in building a more resilient and prosperous Ontario for all its residents.