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Peterborough Celebrates New Affordable Housing

The Government of Canada, the Government of Ontario, and the City of Peterborough today celebrated the official opening of an affordable housing project. The project is supported by more than $2 million in funding under the Canada – Ontario Affordable Housing Program.

Dean Del Mastro, Member of Parliament for Peterborough, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation; Jeff Leal, Member of Provincial Parliament for Peterborough, on behalf of the Honourable Jim Bradley, Minister of Municipal Affairs and Housing; Henry Clarke, Deputy Mayor of Peterborough on behalf of Paul Ayotte, Mayor of Peterborough; and Bonnie Clark, Chair of Peterborough Housing Corporation made the announcement.

“This is great news for families and individuals in Peterborough. Our Government is providing a hand-up to those families in need,” said MP Del Mastro. “Through projects like these, our government is stimulating the economy and creating jobs to help Canadians recover from the economic downturn.”

“The province is committed to helping people who live on lower or fixed incomes stay in their home communities,” said MPP Leal. “Investment in affordable housing is not only a fundamental support for individuals and families trying to break the cycle of poverty, it also improves job prospects and supports local trades and business.”

Today’s announcement recognized the official opening of 30 affordable housing units at Saunders Court, located at 130 Anson Street. The project for households with low incomes and persons with special needs is sponsored by the Peterborough Housing Corporation.

The federal and provincial allocations to the project were complemented by $355,459 in municipal financial incentives.

“Saunders Court is an exciting new development that will provide 30 new affordable housing units in the City of Peterborough,” said Mayor Paul Ayotte. “Peterborough Housing Corporation is to be congratulated for their continued efforts to create housing opportunities for low-income households in Peterborough.”

“We believe this building is our best effort yet”, said Bonnie Clark, Chair of Peterborough Housing Corporation. “This site has been part of a continuum of service to the community for nearly a century, as both a refuge and home for those in need.”

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 the next 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 lending of up to another $2 billion to 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.

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Peterborough Celebrates New Affordable Housing

More affordable housing posted by Moishe Alexander

The Government of Canada, the Government of Ontario, and the City of Peterborough today celebrated the opening of 48 new affordable rental units. This project is supported by $3.36 million in funding through the Canada – Ontario Affordable Housing Program.

Dean Del Mastro, Member of Parliament for Peterborough, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada, and Minister Responsible for Canada Mortgage and Housing Corporation; Jeff Leal, Member of Provincial Parliament for Peterborough, on behalf of the Honourable Jim Watson, Minister of Municipal Affairs and Housing; Paul Ayotte, Mayor of Peterborough; and project sponsor Amit Sofer, President of the TVM Group attended the event.

“When it comes to building safe and strong communities, it takes the efforts of many to achieve success. It takes partnerships at all levels of government to get real results,” said MP Del Mastro. “This project demonstrates what we can achieve when we work together.”

“Through the construction of safe affordable housing, we are helping vulnerable people establish and maintain the stability that many of us take for granted,” said MPP Leal. “I am very proud that the provincial and federal governments have joined together to create this complex. These units are going to make a significant difference in the lives of many families in our area.”

Today’s announcement recognized the official opening of 443 Reid Street, a school that was converted into a 48-unit complex sponsored by TVM Schoolhouse Inc. The $5.6 million project will be occupied by low income individuals and families and individuals with special needs.

The federal and provincial allocations to the project were complemented by over $653,000 in municipal financial incentives.

“The City of Peterborough is pleased to see this historic building continue to provide a benefit to the community by providing people with disabilities an accessible place to live,” said Mayor Ayotte. “We are grateful to The TVM Group and Kawartha Participation Projects for their dedicated commitment to serve our community.”

“The TVM Group is very proud to present these 48 units. 443 Reid Street is a special, purpose-built conversion of a historic school property which became surplus into a heritage designated fully accessible affordable residential complex,” said Mr. Sofer President of The TVM Group. “This adaptive reuse has preserved an important community asset, and ensured its long-term contribution to our community.”

The Canada – Ontario Affordable Housing Program Agreement, signed in 2005, 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.

Last fall, the Government of Canada committed more than $1.9 billion over the next 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 lending of up to another $2 billion to 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.

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Moishe Alexander’s review of the Peterborough Rental Market and CMHC Outlook Report Fall 2008

February 24, 2009 — Moishe Alexander’s review on how the current world economy and Canadian economic turndown is affecting the Peterborough Rental Market

Moishe Alexander’s Review

Highlights

Moishe Alexander says After remaining unchanged for three years at 2.8 per cent, the overall vacancy rate in October 2008 fell to 2.4 per cent. Little new construction and fewer renters moving to homeownership led to the market tightening. The rental market tightened for both small and large apartments. Rents for townhouses and apartments surveyed in both 2007 and 2008 grew by 2.3 per cent, similar to the rate of inflation.

Demand

Drop in Peterborough Vacancy Rate

Moishe Alexander says After holding steady for the past three years at 2.8 per cent, the vacancy rate for privately initiated apartments in buildings of three units or more in the Peterborough Census Metropolitan Area (CMA) dropped to 2.4 per cent in October 2008. The decline was due to an increase in demand.

Moishe Alexander says Demand for rental acommodation has been affected by the decreased demand for homeownership resulting from recent price appreciation, and some moderation in the labour market, particularly for youth.

Few Renters Moving to Homeownership

Moishe Alexander says The main reason the rental market tightened was that fewer renters became first time buyers. The movement into the rental market by youth and other households slowed, but not as much as the movement of renters into home ownership. Because of the appreciation of home prices in the existing home market, some prospective buyers have delayed a move to ownership. Owning has become less attractive, even for families with children, so some families are waiting for the market to become more accessible before they become homeowners. As a result, the vacancy rate  decreased, especially for three bedroom apartments.

Weaker Employment Offsets Demographic Support for Rental Demand

Moishe Alexander says Although the number of youth increased, their movement into the rental market has slowed. The population aged between 15 and 24, an age group typically associated with rental demand and household formation, increased from about 13.5 per cent of the population to about 15 per cent between the 2001 and 2006 census in Peterborough CMA.  At the job market level, service sector employment is growing. Overall part time employment has increased much faster than full time employment, although both are increasing. However, among 15 to 24 year olds, a sharp decrease in part-time employment offset the gains in full-time employment in 2008 and total employment was down. Given the labour market moderation, fewer youth moved out of their parental homes into rental accommodations.

More Rental Demand for Large and Small Size Units

Moishe Alexander says Less movement towards ownership is tightening the market for threebedroom apartments. The vacancy rate edged down to 1.4 per cent from 3.5 per cent in October 2007, while the supply increased by 37 units. Bachelor units showed the same trend. The vacancy rate for these smaller units fell to 1.5 per cent from 3.7 per cent. This decline is a result of an increase in demand which was greater than the supply increase. Bachelor apartments make up 3.2 per cent of the total rental universe. With this small portion, any change in vacancies can have a substantial impact on the vacancy rate for this segment.

For two-bedroom apartments, demand did not change significantly from last year. Changes in both demand and supply led to a drop in the vacancy rate from 2.7 per cent to 2.3 per cent.

Vacancy Rates in Older Buildings Decline

Moishe Alexander says Demand has shifted to older buildings which account for 17.6 per cent of the total stock of rental housing.  The vacancy rate in older buildings built in 1940 and before decreased from 5.8 per cent in October 2007 to 1.8 per cent in October 2008.  These buildings offer spacious units at lower rents. The average rent in this building segment is $674, compared to $858 for newer buildings and in particular those built after 1990. The vacancy rate in buildings built after 1990 started to trend up and reached 2.4 per cent in October 2008 from 1.7 per cent last year.

Apartments With Lower Rents in High Demand

Moishe Alexander says Despite the popularity of high end apartments, affordable rental units have become increasingly attractive.  The demand for apartments with rents between $600 and $699 has jumped up. The vacancy rate fell to two per cent from the 3.5 per cent registered in 2007. The vacancy rate for units with rents in excess of $1,000 moved down from 0.9 in 2007 to 0.7 in 2008.

Slight Decline in Availability

Moishe Alexander says The availability rate is the percentage of apartments that are either vacant or for which the existing tenant has given or has received notice to move out and for which a lease has not been signed by a new tenant. The availability rate indicates the percentage of apartments available to market to prospective tenants. In line with the vacancy rate, the availability rate for townhouses and apartments fell to 4.2 per cent this year, down from the 4.5 per cent registered in 2007. There were relatively fewer bachelor, one bedroom and three bedroom apartments available for rent in October 2008. In contrast, the availability rate for two bedroom apartments rose to 4.4 per cent in October 2008 from 3.8 per cent in the same period last year.

Softer Demand for Townhouses

Moishe Alexander says Demand for townhouses decreased in contrast to 2007 when it had increased. The vacancy rate went up to 2.8 per cent from 2.2 per cent in October 2007. Last year’s tighter demand for this type of dwelling pushed the rents up by 4.5 per cent and consequently made them less attractive this year.

Rent Increase Steady

Moishe Alexander says CMHC measures annual changes in average rents based on a method that compares rental structures that were common to both the 2007 and 2008 surveys. By eliminating the impact of structures coming into or being removed from the rental market universe, rent fluctuations due to changes in market conditions can be analyzed.

Moishe Alexander says Despite the lower vacancy rates, the growth in average rent for townhouses and private apartments was unchanged at 2.3 per cent, in line with the increase of 2.2 per cent of the consumer price index excluding gasoline in the 12 months to September of 2008. However, this rate is above the Residential Tenancies Act Guideline for 2008 of 1.4 per cent. Rent increases ranged from two per cent for two-bedroom units to 5.4 per cent for bachelors. Since bachelors account for less than four per cent of the rental stock, the high increase did not have much impact on the total average rent change.

Rental Market Outlook

Moishe Alexander says Appreciation of house prices and an increase in part time employment have made renting the preferred option for many households. A combination of slow ownership demand and low rental construction will push the vacancy rate down further in 2009.  Consequently, the overall vacancy rate is expected to drop down to 2.2 per cent in October 2009 from 2.4 in 2008 and at the same time the rent for a two-bedroom apartment will inch up to $870.

You can find the entire report in PDF format through the following link:
http://www.cmhc-schl.gc.ca/odpub/esub/65776/65776_2008_A01.pdf