CMHC needs to include greater repair and replacement costs in its affordability calculations

 Current Issues...National



The Issue:

Longevity standards are not yet addressed by building codes, resulting in many purchasers of newly built homes finding that they face repair/replacement expenses (often not covered by their warranty program) much earlier than expected.  Examples of such repair bills include roofs and furnace repairs, and examples of replacement items are garage doors and windows.  These repair and replacement expenses can place considerable unexpected financial strain on purchasers.  While CMHC continues to pursue its corporate objective of facilitating access to more affordable, better quality housing for all Canadians (CMHC Corporate Plan Summary 2007-2011, p. 16), CMHC still does not include sufficient repairs/replacement costs in its calculation of affordability for newly built homes    

In July 2006, CPBH representatives met with the CMHC President and CMHC Vice President Policy and Planning and raised the need for CMHC to include more repair and replacement costs (in the short term, the medium term and the longer term) in its calculation of affordability for newly built homes.  Unfortunately, CMHC still has not included these expenses in its affordability calculations.

Canadians for Properly Built Homes' Position:
Canadians for Properly Built Homes is calling on CMHC to modify its calculations of affordability to include repair and replacement costs in the short term, medium term and long term to ensure that the homes continue to be affordable for the purchasers. 

What can concerned citizens do?

  • Write or telephone your Federal Member of Parliament and request that he/she ensures that CMHC develop/adopt and utilize a measure of Canadian housing quality.
     
  • Write or telephone the Federal Minister responsible for CMHC:   The Honourable Monte Solberg, House of Commons, Ottawa, ON, K1A 0A6, E-Mail: Solberg.M@parl.gc.ca, Telephone: (613) 996-4974