The City of Summerside has been approved for a low-cost loan of $8 million to develop an electrical generating wind farm. This includes the installation of four wind turbines, the interconnection of the electrical grid and the construction of related transmission infrastructure in order to provide the residents of Summerside with green power and more stable electricity costs.

The Town of Stratford has been approved for a low-cost loan of more than $200,000 to improve their sewer and water systems. This includes installing new sewer mains for approximately 50 properties and new water mains for approximately 22 properties along Georgetown Road.

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said Minister Shea. “This program is opening the door for municipalities of all sizes to meet their housing-related infrastructure needs. Canada’s Economic Action Plan is creating jobs and stimulating the economy in the town of Stratford, and right here in Summerside.”

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 CMHC’s Municipal Infrastructure Lending Program (MILP). Municipal infrastructure loans are available to any municipality in Canada and will 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.

“This low interest loan from the CMHC’s Municipal Infrastructure Lending Program allows the City to have significant savings with the borrowing of the loan,” said Summerside Mayor Basil Stewart. “Producing wind energy was made a priority by our province and City, and having the opportunity to borrow this money through Canada’s Economic Action Plan has allowed the City to decrease the cost of borrowing.”

“We are pleased to be able to obtain a loan for our Georgetown Road infrastructure project from CMHC at a rate that is significantly lower than what we can obtain from the market,” said Stratford Mayor Kevin Jenkins. “The CMHC loan, along with the Building Canada infrastructure funding and the New Deal Funding, allowed the Town to provide much-needed sewer and water services to residents of the area, along with greatly improving safety via the addition of sidewalks and bicycle lanes. This project is a key step in accomplishing our goal of linked systems of sidewalks and bicycle lanes, encouraging our residents to use alternative transportation whenever possible and stay physically active.”

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.

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.

Posted by Moishe Alexander.

“Housing starts improved in both the singles and multiples segments in January,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “These increases are similar to the ones that occurred in December.”

The seasonally adjusted annual rate of urban starts increased by 4.4 per cent to 165,200 units in January. Urban multiple starts increased by 5.7 per cent to 76,300 units while single urban starts increased by 3.3 per cent to 88,900 units.

January’s seasonally adjusted annual rate of urban starts increased by 19.8 per cent in British Columbia, by 7.3 per cent in Quebec, by 2.3 per cent in Atlantic Canada, and by 1.5 per cent in the Ontario. In the Prairie region, the seasonally adjusted annual rate of urban starts decreased by 4.8 per cent.

Rural starts were estimated at a seasonally adjusted annual rate of 21,100 units in January².

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. 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.

Posted by Moishe Alexander.

The announcement was made by John Cummins, Member of Parliament for Delta-Richmond, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

“Through Canada’s Economic Action Plan, our government is taking concrete action to help ensure our economic recovery and create the conditions for long-term growth,” said MP John Cummins. “Funding renovation and retrofit projects like this one will not only improve the quality of life of its residents by keeping their homes safe and affordable for years to come, but also help stimulate the local economy and create jobs.”

Through Canada’s Economic Action Plan, the Government of Canada announced $1 billion for social housing renovation and retrofit. Of the $1 billion, $850 million is being delivered by provinces and territories on a cost-matched basis for existing federally assisted social housing projects which they administer on behalf of the partnership. The remaining $150 million is being delivered by CMHC for existing federally assisted off-reserve housing which it directly administers. Eligible repairs include general improvements, energy-efficiency upgrades or conversions, and modifications in support of persons with disabilities.

As of February 1, 2010, CMHC is accepting applications from eligible project sponsors for the remaining $75 million funding for year two. Sponsor groups can apply online or through the mail. Eligible repairs include general improvements, energy-efficiency upgrades or conversions, and modifications in support of persons with disabilities.

The housing co-operatives that will receive contributions from the Government of Canada being announced today are:

“We are very excited that the Mariner Cove has been granted federal funding through Canada’s Economic Action Plan,” said Bob Christofoli on behalf of the Mariner Cove. ”The planned renovations will not only make our complex more energy efficient, but will also provide an adequate environment for the future of our complex.”

More information on this and other measures in Canada’s Economic Action Plan, the federal government’s plan to stimulate the economy and protect those hit hardest by the global recession, can be found at: www.actionplan.gc.ca.

Posted by Moishe Alexander.

The Government of Canada announced today an investment of $3.2 million, as part of Canada’s Economic Action Plan, to improve housing conditions in First Nation communities across New Brunswick.

Tilly O’Neill-Gordon, Member of Parliament for Miramichi, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), made the announcement along with members of the Elsipogtog First Nation.

“Our Government‘s Economic Action Plan is delivering support for improvements in housing conditions for members who live in the First Nation communities in New Brunswick and we are also stimulating the local economy by creating jobs,” said MP O’Neill-Gordon.

Through Canada’s Economic Action Plan, the Government of Canada has committed $400 million over the next two years to help First Nation communities build needed new housing, repair and remediate existing non-profit housing for their members, and complement housing programs offered by CMHC. This investment will also provide an economic stimulus for many First Nations and surrounding areas by creating jobs.

The application calls for the new funding initiatives under Canada’s Economic Action Plan were very successful and generated a large number of applications. As a result, CMHC will be fully allocating all the available funding for this fiscal year.

Through Canada’s Economic Action Plan, $3.2 million in federal investments will be made available to 12 First Nations communities in New Brunswick to address the immediate housing needs.

CMHC will allocate $2.2 million to retrofit 222 social housing units on-reserve in New Brunswick as well as $991,000 for subsidy associated with nine new housing units.  First Nation communities across the province receiving funding include: Burnt Church, Eel Ground, Eel River Bar, Elsipogtog, Fort Folly, Indian Island, Kingsclear, Madawaska Maliseet, Metepenagiag, St. Mary’s, Tobique and Woodstock.

“It is with great pride and excitement that the federal initiative stimulus package along with CMHC, are working with the Elsipogtog First Nation. By strengthening this working relationship with the current government, all parties are listening to the overwhelming basic needs of Elsipogtog people: adequate housing & shelter,” said Chief Jesse J Simon, Elsipogtog First Nation. “For far too long, my people have suffered when we work in isolation. Now comes the time to show the province of New Brunswick, other First Nations, and the rest of the country that great things can be accomplished when we set aside our political differences in the best interest of humanity. I hope that this is a first step towards overcoming immense challenges for all First Nation communities. Hand in hand, side by side, back to back; we are all much stronger now!”

The Government of Canada announced today an investment of $3.8 million, as part of Canada’s Economic Action Plan, to improve housing conditions in First Nation communities across Nova Scotia.

The Honourable Peter MacKay, Minister of National Defence and Minister Responsible for the Atlantic Gateway, Nova Scotia and Newfoundland and Labrador; and Scott Armstrong, Member of Parliament for Cumberland – Colchester – Musquodoboit Valley on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), made the announcement along with members of the Millbrook First Nation community.

“Our Government’s Economic Action Plan is delivering support for improvements in housing conditions for members who live in First Nations communities in Nova Scotia and we are also stimulating the local economy by creating jobs,” said Minister MacKay.

Through Canada’s Economic Action Plan, the Government of Canada has committed $400 million over the next two years to help First Nation communities build needed new housing, repair and remediate existing non-profit housing for their members, and complement housing programs offered by CMHC. This investment will also provide an economic stimulus for many First Nations and surrounding areas by creating jobs.

The application calls for the new funding initiatives under Canada’s Economic Action Plan were very successful and generated a large number of applications. As a result, CMHC will be fully allocating all the available funding for this fiscal year.

Some $3.8 million in federal investments will be made available to 13 First Nations in Nova Scotia to address immediate housing needs.

CMHC will allocate $2.57 million to retrofit 229 housing units on-reserve in Nova Scotia, as well as $1.22 million for subsidy associated with 12 new housing units to be constructed in seven First Nations communities in Nova Scotia. First Nation communities across the province receiving funding include: Acadia First Nation, Annapolis Valley First Nation, Bear River First Nation, Chapel Island First Nation, Eskasoni First Nation, Glooscap First Nation, Indian Brook First Nation (Shubenacadie Band Council), Membertou First Nation, Millbrook First Nation, Paqtnkek First Nation, Pictou Landing First Nation, Wagmatcook First Nation, and Waycobah First Nation.

‘’This is wonderful news for our community,” said Chief Lawrence Paul, Millbrook First Nation. “It came at the right time and allowed us to accommodate a family with special needs, as well as address overcrowding in some units. This program has also exposed us to new building practices which will be beneficial for years to come.”

The announcement was made by the Honourable Michael Chong, Member of Parliament for Wellington – Halton Hills 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).

The Town of Erin has been approved for more than $286,000 in a low-cost loan from CMHC’s Municipal Infrastructure Lending Program (MILP), to repair and reconstruct residential streets in the hamlet of Hillsburgh.

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said MP Chong. “This program is opening the door for municipalities of all sizes to meet their housing-related infrastructure needs and create jobs. It’s good news not only for Hillsburgh, but also for Ontario.”

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.

“It is a pleasure to find all levels of government working together to address the infrastructure needs of local municipalities,” said Town of Erin Mayor, Rod Finnie. “We appreciate the involvement of CMHC in providing loans for the local portion of the infrastructure costs.”

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.

More information on this and other measures in Canada’s Economic Action Plan, the federal government’s plan to stimulate the economy and protect those hit hardest by the global recession, can be found at: www.actionplan.gc.ca.

The Government of Canada today marked the start of construction of the Urban Ecology demonstration project, an energy-efficient and environmentally friendly home to be built in Winnipeg.

The home will be constructed by Winnipeg Housing Rehabilitation Corporation (WHRC), as part of Canada Mortgage and Housing Corporation’s (CMHC’s) EQuilibrium™ Sustainable Housing Demonstration Initiative, which encourages builders and developers to build the next generation of sustainable housing in Canada.

The Honourable Steven Fletcher, Minister of State (Democratic Reform), on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for CMHC, was joined today by Flor Marcelino, Member of the Legislative Assembly (MLA) for Wellington, on behalf of the Honourable Gord Mackintosh, Minister of Family Services and Housing and minister responsible for persons with disabilities for the Province of Manitoba, City Councillor Jeff Browaty, on behalf of Mayor Sam Katz and the City of Winnipeg, and Menno Peters of WHRC, along with sponsors and supporters in the ground-breaking of the first demonstration home of its kind in Manitoba.

“The Government of Canada is pleased to work with the housing sector to develop such innovative homes. We congratulate WHRC on their winning design and commitment to environmental responsibility,” said Minister of State Fletcher. “Urban Ecology gives people in this region an opportunity to see first-hand how we can create beautiful, healthy homes, conserve energy and resources, and reduce pollutant emissions.”

Urban Ecology will integrate solar energy systems into its design and construction, in addition to high-efficiency appliances, water-efficient fixtures and building materials with lower pollutant emissions. A two-storey duplex on an infill site in an established downtown area, Urban Ecology represents a new approach to building in an urban environment. It also demonstrates how the principles of EQuilibrium™ housing can play a key role in the delivery of affordable, efficient and healthy housing as part of the overall renewal of Canada’s inner cities.

The project received over $160,000 in funding from the Winnipeg Housing and Homelessness Initiative (WHHI). WHHI is a partnership between the Government of Canada, the Province of Manitoba and the City of Winnipeg. WHHI funding includes $120,000 from the cost-shared Canada – Manitoba Affordable Housing Initiative and up to $41,200 from the City of Winnipeg in funding and land costs. CMHC is also providing $60,000 to WHRC to help with the costs of designing, documenting and promoting the project. Other contributors include the Province of Manitoba Sustainable Development Innovations Fund (SDIF), the Province of Manitoba Science, Technology, Energy and Mines (STEM), the Winnipeg Foundation, and Manitoba Hydro.

“Manitoba has always enjoyed a leadership role in innovation, and we are especially glad to see these designs aimed at entry level or first time home buyers” said Doug Martindale, on behalf of Minister Mackintosh. “Environmental responsibility is everyone’s business and we all win when new housing options are made available to Manitobans, especially in existing neighbourhoods.”

Representing Mayor Sam Katz, Councillor Browaty said, “Building sustainable neighborhoods is a key focus of the City’s long-term planning in the Speak Up Winnipeg process. We’re pleased to be partners in a project that advances that goal, and helps point the way to a greener Winnipeg.”

“As with many growing cities, Winnipeg’s downtown neighbourhoods are in need of rehabilitation and renewal. We are excited to be creating affordable housing while renewing the urban environment,” said Menno Peters of Winnipeg Housing Rehabilitation Corporation. “Urban Ecology will demonstrate that energy-efficient healthy homes can be affordable for entry-level buyers of the housing market.”

Urban Ecology is one of 15 projects that won CMHC’s national EQuilibrium™ sustainable housing competitions since the initiative was launched in 2006. All EQuilibrium™ projects will be open to both the general public and professional audiences for tours, and then monitored for performance by CMHC for one year, once occupied.

EQuilibrium™ offers a new approach to housing in Canada. It strives to balance our housing needs with our environmental priorities. It brings together the principles of occupant health and comfort, energy efficiency, renewable energy production, resource and water conservation, and reduced environmental impact.

The June rate for urban – as opposed to rural – starts was up nearly 60 per cent in the Prairies, 25 per cent in British Columbia, and 3.1 per cent in Ontario. There was a 6.3 per cent drop in Quebec and 3.9 per cent slide in Atlantic Canada.

Urban starts, which account for most of the starts, rose nearly 10 per cent to 120,100 units in June. Urban multiple starts, which account for more than half the total urban number, rose faster than single starts.

The 140,700 June figure is close to CMHC’s latest full-year forecast, but about 70,000 or 33 per cent below the 2008 number.

Its most recent full-year forecast, in May, predicted there would be 141,900 starts this year. There were 211,056 in 2008.

CMHC said starts “are expected to improve throughout 2009 and over the next several years to gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year.”

Posted by Moishe Alexander CEO of the CFC. To see more click HERE.

* Would be first time below 200,000 in seven years

* Existing home sales, prices also seen falling

* Slight rebound seen in 2010

(Adds details)

By Ka Yan Ng

TORONTO, Feb 19 (Reuters) – New home construction in Canada is expected to drop by 24 percent this year as part of the fallout from a slowing economy, but rebound in 2010, the Canada Mortgage and Housing Corp forecast on Thursday.

Housing starts are seen to be about 160,250 units for 2009, down sharply from 211,056 units in 2008, the country’s national housing agency said in its first-quarter Housing Market Outlook report.

The forecast was revised lower from its the fourth-quarter outlook, which predicted in October that Canadian home building would slip to 177,975 units this year.

This would put starts below 200,000 units for the first time in seven years.

Low mortgage rates and a growing economy contributed to a healthy housing market for years. But home construction, a cornerstone of Canadian growth, has steadily declined in each of last four months as the economy felt the bite of the global financial crisis.

“The economic downturn will result in a decrease in demand for home ownership leading to a decline in housing starts and existing home sales in 2009,” Bob Dugan, chief economist for CMHC, said in a statement.

“Housing market activity will begin to strengthen as the Canadian economy rebounds in 2010 and the level of housing starts over the forecast period will be more in line with demographic fundamentals. ”

All 10 provinces are expected to show declines in new home construction this year, it said, led by the Western provinces, each with more than 30-percent drops expected for the year.

Most provinces may see an uptick in home building activity in 2010, with the exception of Quebec and British Columbia.

Existing home sales, explaines Moishe Alexander, as measured by the Multiple Listing Service system used by real estate agents, are expected to decline 14.6 percent during 2009 to 370,500 units from 433,990 units last year. The average home price is expected to fall 5.2 percent to C$287,900 ($230,320) from C$303,607 a year ago.

Last week, data showed sales of previously owned Canadian homes plunged 41 percent in January from a year earlier while prices dropped 11 percent.

Looking to 2010, starts should rise a bit to 163,350 units, CMHC said, while home sales and prices are also expected to climb.

Sales of previously-owned homes are expected to rise by 9.3 percent to 405,000 units in 2010, and the average national home price may inch higher to C$288,100 from the forecasted 2009 level, CMHC said.

($1=$1.25 Canadian) (Reporting by Ka Yan Ng; Editing by Jeffrey Hodgson)

Given that sales will fall and listings will rise, the market will ease slightly over the coming year. Average resale prices will continue to increase, but more slowly than in recent years.

A higher proportion of condominium sales will take place in the suburbs and in the less expensive sectors on the Island of Montréal, which will contribute to limiting the growth in prices. For the market overall, prices will therefore rise by 4 per cent in 2008 and by 3 per cent in 2009. Still, on the whole, the market will remain favourable to sellers in the short term and gradually ease toward more balanced conditions in 2009.

Here is the break down of the report:

• Mortgage rates are expected to be relatively stable
• Resale market will be moderately slow
• Condominiums will maintain more demand than single family houses
• Supply of home listings with increase slightly.
• Affordable homes are expected to register increases in starts.
• Prices for single family homes and plexes will go up by an average 4 % in 2009
• Condo prices are expected to grow by 3%

Now, let’s take a look at the details…

Change of pace for the economy

In 2009, despite the anticipated decrease in residential construction, several nonresidential projects announced by the different levels of governments, such as the replacement of the Turcot Interchange and the modernization of Notre-Dame Street, will boost employment growth in the construction sector.
However, the level of activity in the manufacturing sector will moderate.

Mortgage rates are expected to be relatively stable

“Posted mortgage rates will decrease slightly in the first half of 2009 as the cost of credit to financial institutions eases. Rising bond yields, however, will nudge mortgage rates marginally higher in the latter half 2009.”

**Note: The Back of Canada already made cuts to the interest rates. Check the December 9th press release.
The next scheduled date for announcing the overnight rate target is 20 January 2009.

Resale market to slow moderately

The growth in prices will be slower for existing homes than for new homes, which will widen the price gap between them and consequently prompt more buyers to turn to the resale market.
While slightly less active, the resale market will still remain strong. The sales levels forecast for 2008 and 2009 will exceed the annual average of 39,000 transactions recorded for the period from 2002 to 2007.

Condominiums will maintain the upper hand

Condominiums—the only housing type that will register an increase in sales in 2008—will sustain a less significant decline in demand than single-family houses or plexes 2009.
Affordable housing types, such as condominiums, and homes located in less expensive geographic sectors, are managing better.

Slightly more supply on the market

This is good news, says Moishe Alexander

Montreal Listing Trends 2009

Currently, the supply of homes is growing. Listings started to rise again in the second quarter of 2008, and there is every indication that they will end the year up by 7 per cent over 2007. As well, we forecast that they will maintain this momentum in 2009, with an increase of 9 per cent. At the end of 2008, an average of 22,300 active listings per month will have been registered in the GMREB MLS® system for the Montréal CMA.

Affordable homes will again stand out

Overall, total starts will fall this year. However, the opposite will hold true for more affordable housing types, which are expected to register increases in starts. After having exploded in 2007, with a gain of 35 per cent, semi-detached and row housing starts will maintain their momentum this year and rise by 14 per cent to 2,200 units.

Condominium starts will increase, to a lesser extent.

In 2009, these two housing types will again stand out. Semi-detached and row home starts will stay at the same level as in 2008, while condominium starts will register a smaller decrease than the declines that will be recorded for single detached home building and rental housing construction. In all, 7,700 new condominium units will be started next year, or 4 per cent fewer than in 2008.

The downward trend in single detached home starts

Single Detached Housing Starts

It began a few years ago, will continue. Because these houses are more expensive, also because the population is aging and households are getting smaller, the need for more spacious homes is less significant than before.