The Commercial Financing Market in 2009

Increasing concerns over commercial lending exposure at regional banks is growing as most experts think commercial lending credit declines will likely increase sharply this year.
Loan losses are on the rise to 1.5% to 2% of all commercial loans this year from around 1% currently. But just because a certain percentage of loans are going bad this doesn’t mean that banks still can’t or won’t lend. In fact rates are low and banks are still lending. Wells Fargo’s report that commercial mortgage refinancing went particularly well in the first three months of 2009 prompted broad feelings of relief among investors who now believe banks may be able to earn their way out of their difficult circumstances. Many regional commercial lenders and banks are going under which is creating more business and more opportunities for the banks that survive.

http://www.bcab.org/2009/07/16/commercial-finance-site-launches-to-help-business-owners-and-commercial-real-estate-investors-reach-capital/

brought by Moishe Alexander, CFC  canadian funding corp CEO

According to Moishe Alexander, the Government of Canada, the Government of Ontario and the City of Toronto today announced $4.34 million in funding that will help to create 62 new affordable rental homes for seniors under the Canada – Ontario Affordable Housing Program.

The announcement was made by Jim Flaherty, Finance Minister and Minister Responsible for the GTA, on behalf of the Honourable Diane Finley, Minister of Human Resources and Social Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC); Laurel Broten, MPP for Etobicoke – Lakeshore, on behalf of the Honourable Jim Watson, Minister of Municipal Affairs and Housing; and Councillor Giorgio Mammoliti, Chair, Affordable Housing Committee, City of Toronto, on behalf of Mayor David Miller.

“The Government of Canada is committed to making affordable housing available in Ontario and across Canada for those who need it most,” said Minister Flaherty.  “These seniors in Toronto will now have access to quality, affordable housing and the services that meet their specific needs, while remaining close to their families and friends in the community.”

“Access to safe, affordable housing is vitally important to the economic and social well-being of Ontario’s communities,” said MPP Broten.  “Through this allocation to the City of Toronto, the McGuinty government is renewing its commitment to work with our housing partners to grow the supply of affordable housing.”

The City of Toronto is investing an additional $3.2 million, as well as waiving development charges and property taxes.

“I’m proud that we are able to provide much needed affordable housing for Torontonians as well as create jobs,” Coun. Mammoliti said. “By working together, all orders of government are making Toronto a city that is liveable, prosperous and provides opportunity to all residents.”

The $4.34 million allocation to Toronto will help fund the conversion of a former chronic-care facility into seniors housing at 717 Broadview Ave. The development is being led by Toronto Community Housing Corporation.

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

For more information:

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-02-10-1000f.cfm

OTTAWA, January 22, 2009 — The Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), announced today eight new grants that will improve housing affordability for Canadians. The grants, totalling $38,000, are being awarded under CMHC’s Affordability and Choice Today (ACT) initiative.

“The Government of Canada is committed to making housing more affordable for Canadians across our country,“ said Minister Finley. “Through the ACT grants we are reducing red-tape and eliminating hurdles in planning and building regulations, so that families have better access to a range of affordable housing in their communities.”

Operating since 1990, ACT provides grants to local teams made up of municipalities, builders and housing stakeholders who promote the improvement of planning and building regulations in their communities to lower the cost of housing.  ACT also offers a wealth of proven best practices and lessons learned so that communities can benefit from the innovations of others.

According to Moishe Alexander, ACT is funded by CMHC and administered and delivered by the Federation of Canadian Municipalities (FCM), with the participation of the Canadian Home Builders’ Association (CHBA), and the Canadian Housing and Renewal Association (CHRA).

In addition to providing grants, ACT experts promote best practices and lessons learned from the projects undertaken by grant recipients at workshops, conferences and other events attended by municipalities and housing stakeholders.

“Reforming regulations is key to increasing housing affordability and broadening choice. Municipalities across Canada can draw on ACT solutions to reduce costs and encourage innovation,” said CHBA President John Hrynkow.

“The grants will help address housing needs locally by encouraging options like secondary suites. Since 1990, ACT has been gathering a wealth of information on solutions like this, which are available to communities across Canada,” added CHRA President David Eddy.

“Municipalities of any size and region can benefit from developing new regulatory solutions or adopting ACT’s wide range of solutions leading to improved housing affordability and choice for residents,” stated FCM President Jean Perrault. “We look forward to ACT’s continuing contribution to helping Canadian cities and communities pursue innovation in residential development through regulatory reform.”

With 148 projects complete, ACT has a rich database of information that local partners can benefit from in their future housing projects. These best practices and lessons learned are available on the ACT website www.actprogram.com. By sharing these results with other municipalities, ACT extends the benefits of the program beyond those receiving project grants. ACT’s knowledgeable staff can also help local stakeholders in addressing regulatory issues.

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, healthy communities and cities across the country.

For more information, please see the following document:

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-01-22-1500.cfm

MARKHAM, January 20, 2009 — Low-income families, seniors and people with special needs will soon benefit from the development of 120 new affordable housing units in the Town of Markham. More than $8.4 million committed under the Canada – Ontario Affordable Housing program will help fund a new affordable housing project about to begin construction.

The announcement was made by Lois Brown, MP for Newmarket – Aurora, on behalf of the Honourable Diane Finley, Minister of Human Resources and Social Development Canada; Michael Chan, MPP for Markham – Unionville and Minister of Citizenship and Immigration; and the Honourable Jim Watson, Ontario’s Minister of Municipal Affairs and Housing. Also participating in today’s announcement were York Region Chairman and CEO Bill Fisch and Frank Scarpitti, Mayor of the Town of Markham.

“The Government of Canada is committed to making affordable housing available in Ontario and across Canada for those who need it most,” said MP Brown. “The creation of these units here in Markham will provide low-income families, seniors and individuals with special needs access to safe, affordable and quality housing, helping them to build a stronger future.”

“Access to safe, affordable housing is vitally important to the economic and social well-being of Ontario’s communities,” said Minister Chan. “This investment will make a significant difference in the lives of those residents of Markham living on lower incomes.”

Today’s announcement was made at the future site of East Markham Non-Profit Homes, at 25 Deverill Court, in Markham. The $25-million project, which includes $8.4 million from the Canada – Ontario Affordable Housing Program, is sponsored by the Markham Interchurch Committee for Affordable Housing (MICAH).

According to Moishe Alexander, federal and provincial allocations to the project are to be complemented by more than $3.4 million in municipal financial incentives.

“York Region is committed to working with all levels of government and community organizations to meet the growing and diverse housing needs of all residents,” said York Regional Chairman and CEO Bill Fisch. “This housing project is a concrete example of what happens when we work together.”

“This building has been designed with diversity in mind,” said Town of Markham Mayor Frank Scarpitti. “We are pleased that this building will be one of the first multi-residential facilities to feature a number of environmental initiatives that will help reduce its carbon footprint.”

The Canada – Ontario Affordable Housing Program 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 20,000 households in Ontario.

For the full report, please click here:

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-01-20-1030.cfm