The Honourable Consiglio Di Nino, Senator for Ontario, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), and Dr. Helena Jaczek, Member of Provincial Parliament for Oak Ridges – Markham, on behalf of Jim Bradley, Ontario’s Minister of Municipal Affairs and Housing, Bill Fisch, York Region Chairman and CEO, along with Margaret Black, Mayor, Township of King, made the announcement.

“Through the second year of Canada’s Economic Action Plan, the Government of Canada remains committed to helping seniors in Ontario and throughout the country during these tough economic times,” said Senator Di Nino. “Projects like this one are providing safe, affordable housing to many residents in this community while creating jobs and stimulating our economy.”

“The McGuinty government is committed to meeting the housing needs of the people in our communities that need it the most,” said MPP Dr. Helena Jaczek. “This 39 unit expansion will improve the lives of the seniors living in Kingview Court, it will generate new jobs and it will also support local businesses in King City.”

“Through the expansion of Kingview Court, York Region will continue to fulfil the goal of providing housing services that benefit our residents,” said York Region Chairman and CEO Bill Fisch. “The upgrades to the building will meet Leadership in Energy and Environmental Design (LEED) standards, maintaining York Region’s plan to build caring and safe communities for our residents and growing for a sustainable future.”

“By building on existing resources at Kingview Court in the Township of King, more residents will be able to live in and enjoy their community longer,” said Township of King Mayor Margaret Black. “This exciting development not only will create greater access to affordable housing, it will provide an opportunity to improve current units through renovations, upgrades and the installation of an elevator for increased accessibility.”

The 39 unit expansion project at 90 Dew Street received $4.7 million in funding. The federal and provincial funding is complemented by $2.9 million in municipal financial incentives.

The Government of Canada wants to ensure that Canadians on fixed incomes can live with independence and dignity and remain in their communities, close to family and friends. Canada’s Economic Action Plan provides $400 million, over two years, to build new rental housing for low-income seniors. Overall, the Economic Action Plan includes $2 billion for new and existing social housing, plus up to $2 billion in loans to municipalities for housing-related infrastructure. Canada’s Economic Action Plan builds on the Government of Canada’s commitment in 2008 of more than $1.9 billion, over five years, to improve and build new affordable housing and help the homeless.

In 2009, Ontario allocated a combined federal and provincial investment of $704 million for the renovation of social housing, and $540 million for the creation of new affordable housing. This investment is part of the Open Ontario plan, and will generate an estimated 23,000 jobs over the course of the program, while strengthening local economies across the province. To date, Ontario has approved more than $465 million for construction-ready projects, which will provide affordable housing for low-income families, senior citizens, and persons with disabilities, and $351.9 million for repairs benefiting some 148,000 social housing units. To find out more about affordable housing in Ontario, visit www.ontario.ca/housing.

Joe Preston, Member of Parliament for Elgin – Middlesex – London, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), and Steve Peters, Member of Provincial Parliament for Elgin – Middlesex – London, along with Acting Mayor Tom Johnston, on behalf of St. Thomas Mayor Cliff Barwick made the announcement.

“Locally, this achievement gives a hand-up to individuals and families who need safe, affordable housing that meets their needs,” said MP Preston. “Our government is investing in this project to get the economy moving, creating immediate jobs and economic stimulus for the community.”

“These new homes are changing the lives of dozen families in St. Thomas,” said MPP Peters. “By building more affordable rental units, we are ensuring people in need have a safe place to call their own.”

“There continues to be a great demand for affordable housing in our community. With the co-operation of the Federal and Provincial governments we can see these needs being met,” said Mayor Cliff Barwick. “These buildings are assets for our community, and we appreciate the investment by Walter Ostojic and Sons and Collier Homes Inc., in developing additional housing units.”

Today’s grand opening ceremonies recognized two affordable housing projects funded through the two-year extension of the Canada – Ontario Affordable Housing Program:

* Funding of $444,000 for a six-unit affordable housing project for low-income households at 5 Park Avenue.
* Funding of $480,000 for a six-unit affordable housing project for low-income households at 89½ Fairview Avenue.

The federal and provincial funding for both projects is complemented by more than $179,000 in municipal financial incentives.

The Canada – Ontario Affordable Housing Program Agreement comprises a commitment of $301 million from each of the two senior levels of government. In total, the federal, provincial and municipal governments will invest at least $734 million in the program, which will provide affordable housing for up to 20,000 households in Ontario.

In 2008, the Government of Canada committed more than $1.9 billion over five years to improve and build new affordable housing and to help the homeless. Canada’s Economic Action Plan builds on this with an additional one-time investment of more than $2 billion over two years in new and existing social housing and up to another $2 billion in loans municipalities for housing-related infrastructure. Combined for Ontario, this means a further $1.2 billion joint investment under the amended Canada – Ontario Affordable Housing Program Agreement. The federal and provincial governments are contributing equally to this overall investment.

Moishe Alexander presents YouTube video on St. Thomas

The announcement was made by Gary Schellenberger, Member of Parliament for Perth – Wellington, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said MP Schellenberger. “This program is opening the door for municipalities to meet their housing-related infrastructure needs. Canada’s Economic Action Plan will continue to create jobs and stimulate the local economy here in Minto, and in all corners of the country.”

Moishe Alexander comments that the approval for this loan for Minto to upgrade treatment systems is essential. Canadian Funding Corp is very happy to report on this. Mr. Alexander is studying the increased capacity which will aid Minto citizens.

The Town of Minto has been approved for more than $2.3 million in a low-cost loan from CMHC’s Municipal Infrastructure Lending Program (MILP), to upgrade its wastewater treatment systems. These funds will increase the capacity of the collection system and reduce the risk of sewer backups for residents of Minto.

Canada’s Economic Action Plan provides up to $2 billion in direct low-cost loans to municipalities, over two years, for housing-related infrastructure projects through the MILP. Municipal infrastructure loans are available to any municipality in Canada and provide a new source of funds for municipalities to invest in housing-related infrastructure projects. These low cost loans can also be used by municipalities to fund their contribution for cost-shared federal infrastructure programming.

“The Town of Minto greatly appreciates the funds made available through CMHC’s Municipal Infrastructure Lending Program,” said Mayor David Anderson. “The funds made available through this program allows the Town of Minto to better prepare for future growth and prosperity.”

Eligible projects include infrastructure related to housing services such as water, power generation and waste services, as well as local transportation infrastructure within and into residential areas, such as roads, sidewalks, lighting and green space.

Minto video – Moishe Alexander

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

Moishe Alexander points to Bob Dugan’s remarks. “Housing starts decreased in both the singles and the multiples segments in May,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The decrease in housing starts in May is consistent with our forecast that housing starts for 2010 will reach 182,000 units.”

The seasonally adjusted annual rate of urban starts decreased by 9.5 per cent to 165,200 units in May. Urban multiple starts decreased by 5.6 per cent to 92,800 units, while single urban starts decreased by 14.1 per cent to 72,400 units.

May’s seasonally adjusted annual rate of urban starts decreased 21.8 per cent in the Prairie region, 13 per cent in Quebec, 12.9 per cent in British Columbia, and 2.7 per cent in Ontario. Urban starts increased 23.3 per cent in Atlantic Canada.

Rural starts2 were estimated at a seasonally adjusted annual rate of 23,900 units in May.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

“One would have to say that the relation of house prices to Canadians’ income is right at the high end of what one would think would likely be sustainable over time,” David Dodge told Business News Network on Wednesday.

Mr. Dodge, the central bank chief from 2001 to 2008, said the remedy is not necessarily higher interest rates. Rather, the Canada Mortgage and Housing Corp. should start scrutinizing more closely the kind of mortgages that it insures.

“That’s not to say the Bank [of Canada] ought to somehow raise interest rates really quickly, but it does say that [CMHC] should be very careful about the terms and conditions on which they are giving mortgage insurance,” he said.

As part of Ottawa’s policy to encourage home ownership among Canadians, the CMHC provides insurance for higher-risk home buyers such as those who are unable to make a 20% down payment, enabling people who would not otherwise be able to get a mortgage to enter the market.

The CMHC also guarantees billions of dollars of mortgages that are converted into Canada mortgage bonds and sold to investors.

Mr. Dodge said we’re “getting to a stage where one begins to get quite nervous” about the ability of some consumers to pay off their mortgages if rates rise. He notes that it is “clearly appropriate” to have very low interest rates because of the economic recovery and where rates stand in the rest of the world. He said that is why it’s more relevant to look at the “terms and conditions” of mortgages to deal with this issue.

The comments come less than a week after Jim Flaherty, the finance minister, said there is no compelling evidence of a housing bubble in Canada.

With residential real estate prices across the country close to record highs, many observers have expressed concern about the state of the market particularly with the run up that took place in the months since the financial crisis.

The concern is that when interest rates rise starting later this year many Canadians could find themselves struggling to make their payments. And if the economy reverses course at the same time – as some economists predict – the situation would be exacerbated, with serious negative implications for the housing market.

Moody’s warned last month that expanding consumer debt levels could leave Canada in a worse position than the United States in the next few years if current trends continue.

“We believe the housing market is the principal driver of this expansion,” said the report by Peter Routledge, senior vice president at the rating agency. “We have the uneasy sense that we have seen this movie before…. As witnessed in the United States, this movie does not end well.”

Many blame the meltdown south of the border on the availability of cheap credit even to people with no chance of meeting their obligations.

While nothing in Canada compares with the subprime market in the United States, experts say that the CMHC mortgage insurance program enables lenders to offer cheaper mortgages than they could otherwise to a wider range of borrowers.

At the same time, the CMHC’s mortgage bond progra – the underlying loans are also guaranteed by the agency – creates incentive for banks and other lenders to sell more mortgages by providing access to hundreds of billions of dollars of cheap funding.

The basic idea of making it easier for people to buy homes was a noble one but instead the Crown corporation’s programs have had the opposite effect of making houses less affordable.

And at the end of the day taxpayers are left holding the risk because CMHC mortgage insurance is effectively guaranteed by the federal government.

Read more: http://www.financialpost.com/news-sectors/economy/story.html?id=2547222#ixzz0gIYII5tg
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http://businessexchangeblog.blogspot.com/2009/07/leased-heating-equipment-chattel-or.html

reviewed by Alexander Moishe, CEO of  canadian funding corp

You don’t need to be an economist to understand why the nation’s joblessness is the biggest hurdle to reviving growth.

The official U.S. unemployment rate is at 9.5 percent and climbing, and it stands at a startling 16.5 percent when you add in discouraged Americans who have stopped looking for work and those who want to work full time but can only find part-time jobs. No wonder consumer spending has flatlined. That only perpetuates the crises in the housing and banking sectors.

“Everything that got us into this recession is made worse by weak job conditions and any hopes we have of climbing out of this recession will be hindered by the same,” said Niko Karvounis, a policy analyst at the New America Foundation, a nonpartisan think tank based in Washington.

The deep recessions that started in 1973 and 1981 were followed by a burst of hiring about six months after the peak in job losses. That wasn’t the case in 1991 and 2001, when shallower recessions were followed by nearly two years of woes for workers.

The term “jobless recovery” grew from those latter experiences. Even though the economy was looking stronger, plenty of Americans didn’t feel much relief because they still didn’t have jobs.

Part of that shift in post-recession employment had to do with structural changes in the economy. The manufacturing sector lost prominence to the service sector over the years. The diminished role of unions also was a factor.

“Manufacturers tend to have a deeper job cuts in a downturn and they have a sharper upturn,” said David Wyss, chief economist at Standard & Poor’s in New York. “The service sector does layoffs later but hires later, too.”

Many economists are forecasting a “jobless recovery” for the United States as it emerges from the recession that began in December 2007. That includes the Federal Reserve, which on Wednesday bolstered its outlook for economic growth. The central bank now predicts the economy will shrink between 1 percent and 1.5 percent this year, less than it had previously forecast. It also is predicting the economy will expand as much as 3.3 percent next year, a relatively weak showing coming out of a recession. One reason why: The Fed expects the unemployment rate to move above 10 percent this year and remain stuck in the high 9 percent range in 2010.

But can the economy really grow stronger in the face of such joblessness?

Researchers at the Federal Reserve Bank of San Francisco have found that the current recession is much like its predecessors in the overall pace of job losses. But what is different is a historically low level of hiring this time around, which means many of the newly unemployed can’t find new jobs.

At the same time, there are high levels of involuntary part-time workers. The fraction of the labor force that is working part time for economic reasons has nearly doubled to 5.8 percent in June of this year from when this recession began in December 2007. More than half of such workers faced reductions of five hours or more per week, according to the Fed report.

To see that at work, look at the many private and public entities using job furloughs, or short-time hiatuses, to reduce costs. Just this week, US Airways asked 400 flight attendants to take furloughs in an effort to avoid layoffs in that group. Workers at Gannett Co., CSX Corp. and many others have also faced furloughs.

All this presents a problem for the U.S. government, which has been trying to bolster the economy through monetary and fiscal stimulus. The Fed has cut interest rates to near zero, while President Barack Obama’s $787 billion stimulus package reduced taxes and increased government spending after an earlier Bush administration plan to distribute $168 billion in cash through tax rebates had little lasting impact.

None of that has been “labor intensive enough,” argued economist Nouriel Roubini in a note to his clients at his economics analysis firm RGE Monitor. Roubini, who is also an economics professor at New York University, was ahead of the pack in 2006 when he forecast that the worst recession in four decades was on its way.

Deutsche Bank chief U.S. economist Joseph LaVorgna points out that the ratio of household debt to income now stands at 128 percent, much higher than in the final quarters of the last two recessions. That will inhibit consumers’ ability to take on debt again, which helped drive those previous recoveries.

It also amounts to another hurdle to a housing rebound. That will intensify the pressure on already battered bank balance sheets as mortgage and credit-card default rates rise — and make them think twice about boosting lending to both consumers and businesses.

Even though Congress and the Obama administration haven’t shown any inclination to push for another stimulus package, they may have to act again with a plan directly aimed at creating jobs if the unemployment rate stays stubbornly high.

They may want to look at the success in China, where second-quarter growth accelerated 7.9 percent from a year earlier on a stimulus-fed investment boom. That plan included big spending on construction of highways and other public works.

In the U.S., money could be pumped into industries to make them more productive or there could be a further ramping up of spending on infrastructure projects. It also could mean more targeted tax cuts, including some aimed at businesses.

None of that will be cheap. But something has to be done to bring jobs back, for the entire economy’s sake.

http://blog.taragana.com/n/all-business-troubled-labor-market-threatens-a-significant-turnaround-in-us-economy-112799/

reviewed by Moishe Alexander, CFC  canadian funding corp CEO

http://www.announced.us/finance/mortgage-rates-canada-provide/

reviewed by Moishe Alexander, CFC  canadian funding corp CEO

The Re/Max Eastern Realty Inc. vice-president said when he bought his first house in 1972 his mortgage rate was 12%.

In 1980 mortgage rates topped around 21%. Earlier this week, Re/Max, which also has mortgages, was offering a 4.19% five-year fixed rate – the most common mortgage arrangement according to industry officials. “I’ve never seen a mortgage at these rates,”

Hope said. The time is right to buy a new home, he said. “They’re never going to be as affordable as they are now.” Local realtors and builders say the market slump has lifted and housing sales are rebounding because of unusually low mortgage rates.

May sales are almost on par with May 2008, which realtors said was a good year. “June is going like a rocket. But we’re playing a catch up game,” said Carl Oake, broker and owner of Century 21 Unity Realty Inc. Brokerage. His sales were down 75% from November to February. “But we’ll probably close that gap off by August and September,”

because of a rebound in the market, Oake said. Hope also said his sales have rebounded. Traditionally, it’s a busy time of year for home sales, Hope said. But he also believes there are a lot of first time buyers, and people looking to upsize, taking advantage of low mortgage rates. Re/Max mortgage agent Dave Griffin said six months ago Re/Max’s five-year fixed rate was 5.79%.

As of yesterday it was 4.39%, up from 4.19% on Thursday. On Wednesday it was 3.99% and 3.79% a few weeks ago, he said. A $250,000 home, with a 25- year mortgagee and 5% down, at 5.79% would cost $1,531 a month, Griffin said. At 4.19%, payments would be $1,308.91 a month.

At 3.99%, payments would be $1,282.33 a month. While the rate increased between Wednesday and Tuesday it’s “still a great rate,” Griffin said. He also said he thinks it will come down again. “I think now is the time is to lock in and take advantage of these low rates,” he said. “You see how quickly the rates changed.”

Earlier in the week, TD Canada Trust and RBC were both offering 4.15% five-year fixed rates. Yesterday those banks were offering 4.55%. BMO, CIBC and Scotiabank had a 5.85% rate posted online. When Bank of Canada interest rates go up, mortgages cost more.

Builders are also taking advantage of the low mortgage rates by boosting incentive packages, said Bill Turner Jr. with Triple T holdings, which specializes in building custom condominiums. Typically builders offer incentives but “not to the level that we’re talking about,” to help clear inventory, Turner said.

A typical incentive package could be about $5,000 worth of items, such as a new fridge, but Turner said he’s seen packages worth $16,000 including such things as hardwood floors and appliances. “Maybe where (builders) have been thinking we’d wait an extra year to two years to do something now is the time to make some serious financial gains by doing it,” he said.

“All the buyers that are sitting in the wings who might have been interested in upsizing their family home all of a sudden mortgage rates have dropped so much that they can actually afford to purchase a home that might be worth another $50,000 more than what their budget would have been a year ago.”

Paul Dietrich, vice-president of the Ontario Home Builders’ Association and president of the Peterborough and the Kawartha Home Builders’ Association, also credited mortgage rates and “good value” for homes. “It’s probably a very short window that this combination will be there for,” he said.

Several builders and realtors The Examiner spoke with said some of the market rebound could also be buyers trying to beat the harmonized sales tax (HST), which comes into effect in July 1, 2010. The HST only applies to sales of new homes. Right now only GST applies.

The province is creating a rebate to reduce the tax burden on new homes purchased for as much as $500,000. The rebate would be six per cent of the purchase price for homes purchased for less than $400,000, before taxes.

The rebate would be gradually reduced for homes priced between $400,000 and $500,000. For example, currently a $250,000 new home plus GST would cost $262,500. Once HST comes into effect and accounting for the rebate, a $250,000 home would cost $265,550.

Buyers of resale homes don’t pay PST and GST but the harmonized sales tax would increase the tax on services associated with buying a resale home, such as the mortgage insurance premium, legal fees, home inspections and the real estate agent commission, Barbara Criegern, president of the Peterborough and the Kawarthas Association of Realtors Inc., toldThe Examiner in March when Mortgage Calculator was released.

Criegern couldn’t be reached for comment this week but in a release, she said the recent activity is good news, but buyers and sellers shouldn’t assume the market has returned to pre-recession levels. “Our region is still suffering from many job losses but financial markets are slowly recovering.

Consumer confidence is returning. Many well-priced homes are attracting multiple offers. We expect this seasonal increase to continue well into the summer months to compensate for the slow start.”

http://www.americanpoems.com/members/alisashuang/housing-sales-are-rebounding-because-of-low-mortgage-rates/

reviewed by Moishe Alexander, CFC  canadian funding corp CEO

According to statistics released by The Canadian Real Estate Association (CREA), actual (not seasonally adjusted) home sales, via the Multiple Listing Service® (MLS®) of Canadian real estate boards, totaled 147,351 units in the second quarter of 2009 – the fourth strongest quarterly sales figure ever. Up 1.4 per cent from the second quarter of 2008, this marks the first year-over-year increase in quarterly activity since the fourth quarter of 2007.

On a seasonally adjusted basis, national MLS® home sales numbered 114,173 units in the second quarter, jumping up a record 31.5 per cent from the first quarter of 2009.

“Potential buyers who moved to the sidelines late last year when economic uncertainty peaked are returning to the housing market now that the worst of the recession may be behind us,” said Dale Ripplinger, President of The Canadian Real Estate Association.

Seasonally adjusted resale activity in the second quarter was up from the previous quarter in about 85 per cent of local markets. Quarterly activity increases in Toronto (45 per cent), Vancouver (77 per cent), Montreal (33 per cent), Calgary (66 per cent) and Edmonton (39 per cent) contributed most to the national increase in activity.

Strong upward momentum for monthly sales activity was sustained throughout the second quarter. June marked the fifth consecutive month in which activity was up from month-ago levels. Some 41,304 homes traded hands via the MLS® of real estate boards in Canada on a seasonally adjusted basis in June 2009. This is up 8.7 per cent from May and represents the first time since January 2008 that monthly activity topped 40,000 units.

Actual (not seasonally adjusted) MLS® home sales climbed 17.9 per cent year-over-year to 54,616 units in June 2009. This is on par with the record for the month of June set in 2007 and is the fourth highest level for activity in any month on record.

The national MLS® residential average sale price reached the highest quarterly level ever in the second quarter of 2009. At $318,696, the average sale price was up half a percent from the previous record set in the second quarter of 2008.

The national average home price also scaled new heights on a monthly basis, climbing 3.6 per cent year-overyear to $326,613 in June 2009. However, only 13 local markets posted new average price records in June, less than a handful of which are among the most active or expensive. The strong rebound in sales activity, not price, in Canada’s most expensive markets is skewing average prices upward nationally and in some provinces, just as a sharp decline in activity in these markets skewed the average lower in late 2008.

MLS® home sales rebound in the second quarter. The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price was up 1.7 per cent year-over-year in June 2009 – less than half of the percentage increase in the unweighted national average price.

The supply of homes coming onto the MLS® market continued retreating in second quarter. Seasonally adjusted MLS® residential new listings were down 16.9 per cent from the previous quarter to 197,049 units, the lowest level since the fourth quarter of 2005.

Nationally, the number of months of inventory was 4.2 months in June 2009. This is the lowest level since August 2007, and well down from the recessionary peak of 12.8 months in January 2009. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The residential dollar volume for MLS® sales jumped 40.6 per cent on a seasonally adjusted quarter-over-quarter basis in the second quarter of 2009, to reach $34.8 billion.

“Low interest rates have improved the affordability of homeownership, as have price adjustments in housing markets that previously experienced rapid price increases,” said CREA Chief Economist Gregory Klump. “Housing markets where negotiations recently favoured the buyer have become more balanced and the stage is being set for modest price appreciation as inventories are drawn down by sales.”

“Sales momentum remains strong going into the second half of 2009,” said CREA President Dale Ripplinger. “Chances are good that the number of transactions in the second half of 2009 will surpass levels in the first half of the year.”

http://www.myseatosky.com/blog/?p=231

reviewed by Moishe Alexande, CFC canadian funding corp CEO