Hamilton and Brantford – Economic Trends

Rising Unemployment

Further job cuts are expected in 2009 and the unemployment rate for the year will remain at 8.7 per cent. Total employment in both the goods-producing and service-producing sectors in Hamilton has declined in recent months, leading to an unemployment rate that reached 8.7 per cent in the first quarter of 2009. In 2010, fiscal stimulus will help to improve local economic and housing market conditions.

Plant closures – both temporary and permanent – are rising and have contributed to nearly 3,000 fewer manufacturing jobs in the first quarter of 2009 as compared to a year ago. Drop in global demand for steel negatively impacted steel production in Hamilton, as well as industries which are related to steel production such as shipping and steel fabrication.
Furthermore, many planned projects in the manufacturing sector have been halted. Some employees in the manufacturing sector who are eligible for retirement and may consider retiring early instead of looking for work elsewhere. Fiscal spending and infrastructure spending will boost local employment, especially in the construction industry.
Although the overall service-producing sector has faced challenges in recent months with fewer retail sales and consumers less willing to purchase non-essential services, employment in the health care and social assistance sector rose 10 per cent last quarter.
Health science is becoming increasingly vital to local economic growth. In Brantford, employment is more heavily reliant on the manufacturing sector with over a quarter of all jobs in manufacturing. Temporary layoffs and plant closures primarily resulting from the downturn in the automotive industry continue to affect employment. The unemployment rate has reached new heights – 9.6 per cent in March – the highest unemployment rate in over a decade. However, plans for local economic growth are underway. The addition of new educa- tional institutions and programs at the post-secondary level and new infra- structure construction projects will add a number of jobs to the local market. The forecast for the unem- ployment rate is 9.2 per cent for 2009 before easing slightly in 2010.
Fewer employed people in Hamilton and Brantford, notes Tanya Hutchens, have resulted in fewer homes changing hands as households re-evaluate their finances. Home ownership this year will be geared towards first time buyers who have a stable job and a sufficient down payment. Many of these buyers will be interested in entry level homes such as townhouses and condominium apartments. Other households concerned about their job prospects will likely stay in their current dwellings, while some may consider options such as moving from ownership to rental or into a smaller home.

Mortgage Rates

Mortgage rates are expected to be relatively stable throughout 2009, remaining within 25-75 basis points of their current levels. Posted mortgage rates will increase very gradually during the course of 2010, reflecting a rise in government of Canada bond yields. For 2010, the one-year posted mortgage rate will be in the 4.75-6.00 per cent range, while three- and five-year posted mortgage rates are forecast to be in the 5.00-6.75 per cent range.

Tags: Business, Canada, Canada Mortgage and Housing Corporation, Employment, Health care, Housing, Manufacturing, Retailing, Secondary sector of the economy, Tanya Hutchens, Unemployment

Community Inclusions to Construct New House in Alberton for People with Intellectual Disabilities

Eight affordable housing units for persons with intellectual disabilities will soon be constructed in the Town of Alberton,says Tanya Hutchens, through a partnership with the federal and provincial governments.

Prince Edward Island’s Minister of Social Services and Seniors, Doug Currie, and the Honourable Gail Shea, Minister of Fisheries and Oceans, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation, made the announcement today.

“The Government of Canada is committed to making affordable housing available in Prince Edward Island and across Canada for those who need it most,” said Minister Shea. “The creation of these new units here in Alberton will provide persons living with intellectual disabilities access to quality, affordable housing, while ensuring that they can stay close to their families and friends.”

The $580,000 project is being developed by Community Inclusions and will be located on Church Street. The development is made possible though a $200,000 investment from the Federal Affordable Housing Trust Fund and a $150,000 investment from Human Resources and Skills Development Canada’s Homelessness Partnering Strategy (HPS).

“Our Department of Social Services and Seniors understands the pressures and worries of aging parents who care for adult children with intellectual disabilities,” said Minister Currie. “It’s a complex challenge to provide sufficient supported housing in our province, and I am pleased that we are continuing to work with families, communities and non-government organizations such as Community Inclusions to find the best solutions for these individuals,” he said.

The Government of Canada’s Homelessness Partnering Strategy (HPS) is a unique community-based program aimed at preventing and reducing homelessness by providing direct support and funding to more than 60 communities across Canada. The HPS took effect April 1, 2007, with annual funding of $134.8 million for two years. It has been extended at the same funding levels for two additional years from April 1, 2009 to March 31, 2011. Funding for housing and homelessness programs has been extended for another five years, until March 31, 2014.

The residence in Alberton will provide transitional housing for eight individuals with intellectual disabilities. There will be a four-bedroom unit on the first floor, with two, two-bedroom dorm-style units on the first and second floors.

The objective of the Canada – Prince Edward Island Affordable Housing Agreement is to create and sustain rental housing for low- or moderate-income Prince Edward Island households through new construction or rehabilitation.

The provincial Department of Social Services and Seniors contributed two lots of land estimated to be valued at $40,000 for the project. The Department also increased its annual grant to Community Inclusions by nine per cent, bringing its total grant for 2009 – 10 to $691,800. This contribution will assist the organization with operating funding and staffing the new facility.

Community Inclusions is a non-governmental organization that provides supports and services to adults with intellectual disabilities in western PEI.

“Back in August of 2007, this organization released a needs analysis that clearly illustrated the need for more housing for person’s with disabilities in the West Prince region,” said Jackie Charchuk, Board Chair for Community Inclusions. “We see this as a very positive step in the right direction in beginning to meet that need,” she said.

Tags: Alberton, Canada, Community, Diane Finley, Doug Currie, funding, Gail Shea, Honourable, Housing, Human, Jackie Charchuk, Prince Edward Island, Seniors, Tanya Hutchens, West Prince

York Developments Inc. Fredericton, New Brunswick

York Developments Inc. operates an apartment complex consisting of 72 one- and two-bedroom apartments for independent seniors and people with disabilities. The company, says Tanya Hutchens, is governed by the same Board of Directors that oversees York Manor, a 204 bed nursing home. In 2004 the same Board put in place an ahdoc committee to oversee the development of a supportive housing facility on its site to help create a full “continuum of care” for seniors.

Care for people as they age and become less independent is a challenge for almost every community. Across Canada, there are many apartments and retirement facilities providing homes for seniors. However, there is a need for seniors’ supportive housing that can help people extend their ability to remain independent. There is a special need for supportive housing for low-income seniors who cannot afford to purchase extra support at market rates.

The particular need that York Developments identified was the challenge of providing supportive housing for low-income seniors. York Developments and York Manor had land available between their buildings and decided to build a 19-unit supportive housing facility that could benefit from the synergy of the two corporations.

York Developments Inc. received Seed Funding from CMHC for a feasibility study and initial design. This study suggested it would be feasible to build an additional 19 units for low-income seniors at a cost of $2.1 million, in addition to the value of the land they would be contributing.

York Developments received $665,000 from CMHC and the government of New Brunswick through the Affordable Housing Initiative, and also benefited from CMHC mortgage loan insurance for the mortgage loan for the remaining capital cost.

The new supportive housing facility is physically joined to York Manor, which allows staff to transport food from the main kitchens at York Manor to the dining room on the bottom floor of the new facility. The 19 tenants are able to attend activities and entertainment at the nursing home and they can also use other services such as hair care.

Through ongoing subsidy assistance from the Government of New Brunswick, the supportive housing is geared to people whose annual income is $21,500 or less. Tenants pay 30 per cent of their income for rent and the additional services cost them $430 per month. In return for the $430, tenants receive two meals a day, laundry and housekeeping services and each apartment has an emergency call bell. Personal care can also be provided and in most cases is paid for through the Department of Social Development. All 19 units are studio apartments. Three are modified to be fully accessible for people who use wheelchairs. The supportive housing facility opened in October 2007.

Tags: apartment, Board, Brunswick, Canada, care, challenge, CMHC, development, facility, Fredericton, Home, Housing, Inc, land, Manor, need, New, nursing, Tanya Hutchens, York