Canadian Funding Corp Reviews CMHC Affordable Housing Reports

Canada Mortgage and Housing Corporation (CMHC) launched its new National Seniors’ Housing Survey today. The survey, conducted in all provinces, collected information on vacancy rates and rents in seniors’ residences with services not offered in traditional rental structures.

“Vacancy rates and rent levels in the seniors’ housing market reflect a different market makeup than the traditional rental market,” said Bob Dugan, Chief Economist for CMHC. “The demand for seniors’ housing is expected to increase as the baby boom generation ages. The anticipation of this eventual increase in demand, has spurred the construction of seniors’ units ahead of actual demand. This, in turn, has led to an average vacancy rate of 9.2 percent in seniors’ residences that tends to be higher than in the traditional rental market.”

The national vacancy rate applies to standard spaces, which are defined as:

* private units such as a bachelor, one-bedroom or two-bedroom apartment occupied by a single individual or a couple; one unit is considered as one standard space;
* semi-private units; one unit is considered as two standard spaces;
* ward units; one unit is considered as three standard spaces or more;

The vacancy rate is calculated for all standard spaces regardless of whether the occupant participates in a meal plan or requires medical services. The vacancy rate covers only spaces that accommodate residents who receive less than 1.5 hours of care per day.

Vacancy rates varied considerably across the country, from a low of 3.4 per cent in Saskatchewan to a high of 18.9 per cent in Newfoundland and Labrador. The vacancy rate in Ontario (13.3 per cent) was above the national figure, while the rates in British Columbia (7.5 per cent) and Quebec (7.9 per cent) were below average.

Average monthly rents in the seniors’ market are higher than traditional market rents, reflecting the additional services and amenities that residents of these structures receive. The average rent for bachelor/private units where meals are included was $1,774 per month. Average rents ranged from a high of $2,519 per month in Ontario to a low of $1,271 in Quebec. Differences in average rents reflect, in part, the varying prevalence of services and amenities in each province.

As Canada’s national housing agency, Canada Mortgage and Housing Corporation (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.

Information on this release:

Andrea Scott
CMHC
Media Relations
Tel.: 613-748-4075
ascott@cmhc-schl.gc.ca

Backgrounder

* CMHC conducted its first National Seniors’ Housing Survey in February and March 2009. Previously, CMHC had regional seniors’ reports in B.C., Ontario and Quebec, which were published annually.
* The new national survey was conducted in all 10 provinces and in all centres regardless of size, which had a residence meeting the eligibility criteria.
* The survey targeted private and non-profit residences where the majority of residents were 65 years of age or older and had access to additional services not offered in traditional rental structures. To be eligible for the survey, a residence must provide an on-site meal plan or on-site medical services. Virtually all residences surveyed provided an on-site meal plan. Other amenities and services that were popular in some of the residences included on-site medical services (57.8 per cent), transportation services (44.2 per cent) and 24 hour call-bell service (92.0 per cent). Note that the survey excluded nursing homes and long-term care facilities.
* Across Canada, some 43 per cent of standard spaces in the seniors’ housing market rented for less than $1,500 and 22.0 per cent of spaces rented for $2,500 or more per month.
* Some 176,845 seniors lived in the 2,464 residences surveyed, capturing 8.2 per cent of the Canadian population at, or above, the age of 75.

http://www.cmhc.ca/en/corp/nero/nere/2009/2009-06-22-0815.cfm

reviewed by Moishe Alexander, CFC CEO

The Government of Canada and the Government of Alberta are partnering on a joint investment to build new and renovate existing affordable housing. This investment will help create jobs, strengthen the economy, and improve the quality of life for residents of Alberta.

Both levels of government officially signed an amendment to the Canada – Alberta Affordable Housing Program Agreement and announced $386 million over the next two years in Alberta.

The Honourable Jim Prentice, Minister of the Environment, 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), joined the Honourable Yvonne Fritz, Alberta Minister of Housing and Urban Affairs, at a signing ceremony today.

“The Government of Canada continues to work hard to support Canadians during these challenging economic times, and has moved aggressively to ensure Canada’s Economic Action Plan is implemented rapidly,” said Minister Prentice. “We are helping the most vulnerable, including seniors and persons with disabilities, access suitable, affordable housing, as well as making needed renovations to existing social housing both in Alberta and across Canada.”

“This strong partnership between the governments of Alberta and Canada will strengthen the economy, create jobs and help low to moderate income people across the province,” said Minister Fritz. “The additional investment in Alberta’s social housing portfolio means we will be able to expand upon planned maintenance and provide upgraded homes for families in need.”

Today’s announcement includes federal funding of $95 million over two years under Canada’s Economic Action Plan as part of a one-time investment of more than $2 billion to build new and renovate existing social housing in Canada. The Alberta Government is also contributing $95 million for these initiatives, over the next two years.

These investments build upon the $1.9 billion commitment for housing and homelessness programs announced by the Government of Canada in September 2008, which extended the Affordable Housing Initiative (AHI) and the renovation programs for low-income households for two years. Today’s announcement includes a combined investment of $48 million by both levels of government for the two-year extension of the AHI to build new affordable housing. The province is also contributing $132 million for affordable housing purposes over the next two years. Today’s announcement also includes more than $16 million in federal funding to assist low-income households with needed renovations to their homes.

Overall, the federal contribution is $135 million, while the province is contributing a further $251 million from its Capital Plan, for a combined investment of $386 million.

Today’s announcement was held at Alice Bissett Place, celebrating the official opening of a new 114-unit affordable housing project for seniors, individuals and persons with special needs.

Located at 2990 – 17 Street SE, the project received a total of $6.1 million in federal funding under the Canada – Alberta Affordable Housing Initiative and $100,000 in Proposal Development Funding, for a total of $6.2 million to off-set project costs. The project also received approximately $6.1 million from the Province of Alberta.

CMHC has been Canada’s national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes and making vibrant and sustainable communities and cities a reality across the country.

To find out more about how the Government of Canada and CMHC are working to build stronger homes and communities for all Canadians, call CMHC at 1-800-668-2642 or visit www.cmhc.ca/housingactionplan. For more information on Canada’s Economic Action Plan, call 1-800-O Canada or visit www.actionplan.gc.ca.

Alberta Housing and Urban Affairs aims to create more than 11,000 affordable housing units in Alberta by 2012 and in March, released Canada’s first provincial strategy to end homelessness.

http://www.cmhc.ca/en/corp/nero/nere/2009/2009-06-25-1230.cfm

reviewed by Moishe Alexander, CFC CEO