Moishe Alexander and Canadian Funding Corporation Review CMHC Reports

Posted by Moshe Alexander

The vacancy rate for private rental apartment buildings with three or more units in the St. Catharines- Niagara CMA (hereinafter Niagara) was above the national and historical averages. According to the CMHC’s Fall 2009 Rental Market Survey, the vacancy rate edged up to 4.4 per cent in 2009. This was above the 20-year average level of 3.5 per cent, and an increase of 0.1 percentage point from last year. Four main factors placed upward pressure on the vacancy rate. First, record low mortgage rates in combination with lower prices in the earlier part of the year translated into very affordable mortgage carrying costs. Many buyers, in particular first- time buyers, took advantage and moved out of rental accommodation and into home ownership. A comparison of average rents and mortgage carrying costs based on the mortgage terms chosen by most first-time buyers (i.e., maximum amortization period and the minimum down payment allowed) suggests that the gap between the two narrowed by more than 50 per cent in the first quarter of 2009.

Also, youth aged 15 to 24 are a key source of rental demand. Weaker employment among youth in this age group meant that some of them, after losing their jobs, moved back into their parents’ homes, or alternatively, postponed a decision to move out. Total employment for all age groups declined by around 11,000 people or 5.6 per cent when comparing the average level in the 12 months ending September 2009 to average level in the same period a year earlier.Youth employment declined by 4,500 people or 14 per cent, of which 2,900 in full- time positions and the rest in part- time jobs.

Finally, there were fewer international immigrants in 2009, due to the global economic slowdown. Since they traditionally tend to rent after landing in Canada, this implies that rental demand in 2009 was not as strong as in the previous years. Many international migrants find it difficult to settle in the region and land a job. Instead, they prefer to settle in major centres, such as the Greater Toronto Area, where they are more likely to find their first job and where there are established social networks.

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The Québec census metropolitan area (CMA) stayed the course at the beginning of the year, as the labour market there continued to grow. After the first six months of the year, the job market in the CMA was on the rise and, as such, stood out from the other five metropolitan areas across Quebec, where employment was down. Several sectors enjoyed growth, including construction, finance, and insurance and real estate.
The third quarter results, however, revealed a very different picture

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Posted by Moishe Alexander
The Government of Canada and the Province of Ontario today announced that three social housing projects in the City of Toronto will receive support for repairs and renovations over the next two years.

Repairs will include the replacement of windows and balconies, installation of energy efficient lights and carbon monoxide sensors and the replacement of appliances in the following buildings:

* Les Centres d’Accueil Heritage at 33 Hahn Place, $1.1 million.
* Toronto Community Housing Corporation at 30 and 40 Teesdale Place, $2 million.
* Mimico Co-op at 1 Summerhill Road, $403,300.

The $3.5 million investment is part of a notional allocation of more than $220 million for the City of Toronto to repair and retrofit existing local social housing units over the next two years.

The funding was made available as a result of a $1.2 billion joint investment under the amended Canada – Ontario Affordable Housing Program Agreement, which includes funding through Canada’s Economic Action Plan and by the Government of Ontario. The federal and provincial governments are contributing equally to this overall investment.

Lois Brown, Member of Parliament for Newmarket – Aurora, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC) and George Smitherman, Minister of Energy and Infrastructure and Member of Provincial Parliament for Toronto Centre, on behalf of the Honourable Jim Watson, Ontario Minister of Municipal Affairs and Housing, made the announcement today.

“This funding will improve the quality of life for residents by upgrading their homes and keeping them affordable,” said MP Brown. “These investments also benefit our communities by creating jobs and supporting the local economy.”

“These repairs are another step towards improving social housing in Toronto,” said MPP Smitherman. “This new funding will help ensure that people living in social housing have a safe and reliable place to live. Ontarians deserve nothing less.”

“This is very good news for the City of Toronto and is in keeping with our efforts to create a city that is liveable and prosperous for all residents,” said Toronto Mayor David Miller. “Through Council’s Housing Opportunities Toronto Action Plan, we will continue to work with Provincial and Federal partners in order to continue to upgrade and improve housing in the city.”

Ontario is moving quickly to invest a total of $704 million to repair eligible social housing across the province. In an effort to get shovels in the ground quickly, projects must be committed by the end of the fiscal years 2010 and 2011.

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