Organization suggests simplifying permitting processes
The Canadian Federation of Independent Business (CFIB), a non-profit business organization that represents owners of small and mid-size enterprises (SMEs) in Canada, has stated that municipal governments may be able to address the national housing shortage through the simplification of permitting processes and reducing red tape.
In its report, the CFIB evaluated fee and permit types in 12 cities all over Canada and noticed a “micro scenario,” which converted a powder room to a full bathroom for the price of $20,000.
“We found that some of the simplest projects, such as a bathroom project, could have some serious red tape,” said Duncan Robertson, senior policy analyst at the CFIB, who co-authored the report.
“We believe that cutting red tape and the permitting and approval process is a cost-efficient way to really speed up the home construction process.”
“If there are this many obstacles for a simple bathroom renovation, imagine how costly and time-consuming it is to permit a secondary suite, a complete renovation or a new build,” said Francesca Bata, research analyst at the CFIB.
The report found that Vancouver was the municipality with the highest permitting fees out of the 12 assessed. It had costs reaching more than $2,000 and had the most demanding document requirements, with up to 10 documents needed for a simple bathroom renovation.
However, the city of Vancouver released a statement that said the CFIB report did not reflect the average cost of permits that were needed for the assessed type of bathroom renovations. It said that the permits cost nearly $1,179, which assumed $5,000 in electrical work in addition to other possible costs.
It also stated that obtaining building permits take time depending on the type of project that was being made, explaining that the city had made efforts in making sure to fast-track the processing of permits for simple renovations. Permits for bathroom renovations, it added, will be able to be processed within a week’s time.
CFIB found that an average of seven additional documents were needed for bathroom renovation projects in Toronto, Edmonton, Calgary, Saskatoon, Winnipeg, Ottawa, Montreal, Halifax, Moncton, Charlottetown, and St. John’s, Newfoundland and Labrador. Costs for permits ranged between $180 and $2,029.
Homeowners also needed to pay for extra costs for documents that will support project applications, which can often take months before approval.
“If it costs a substantial amount in both money and time to get a simple project done, imagine what it would take to build an entire house or even a large-scale development,” said Robertson.
