Green” Housing Initiative Goes National

CMHC’s EQuilibrium™ Sustainable Housing Demonstration Initiative Expands into B.C. and Atlantic Canada

The Green Dream Home, by the Canadian Home Builders’ Association (CHBA) Central Interior and Thompson Rivers University, is one of the winning projects in phase two of the EQuilibrium™ Sustainable Housing Demonstration Initiative.
Canada Mortgage and Housing Corporation (CMHC) launched the EQuilibrium™ Sustainable Housing Demonstration Initiative in May 2006 to support the construction of homes that balance the needs of our built and natural environments. EQuilibrium™ homes bring together, under one roof, the principles of occupant health and comfort, energy efficiency, renewable energy production, resource conservation, reduced environmental impact and affordability.
Now, three new builder and developer teams in British Columbia and Atlantic Canada have been chosen to take part in the EQuilibrium™ initiative, bringing their visions for an energy-efficient, eco-friendly future to reality. The winning projects include:
• The Green Dream Home (Kamloops, B.C.) — a solar-powered home that is designed by the Canadian Home Builders’ Association (CHBA) Central Interior, and Thompson Rivers University (TRU) to take advantage of one of Canada’s sunniest cities;
• Harmony House (Burnaby, B.C.) — a two-storey ultra-efficient house with in-law suite that is created by Habitat Design + Consulting Ltd. and Insightful Healthy Homes Inc. to suit the Lower Mainland’s unique climate; and
• The Moncton VISION Home (Moncton, N.B.) — a highly-efficient home designed by AlternaHome Solutions Inc. and VISION Land Developments Ltd. This home is part of downtown Moncton’s “VISION Lands” development project.
When they are complete, these three projects will join the 12 other demonstration homes that are currently being planned, built or that are already open for visitors across the country, making the EQuilibrium™ initiative truly national in scope. Together, these homes offer Canadians a chance to see and learn first-hand about the objectives of EQuilibrium™ sustainable homes, including:
• Lower monthly utility bills in every season.
• A clean supply of renewable energy.
• Healthier, more comfortable living environments for occupants.
• Reduced waste, greenhouse gas emissions and energy consumption.
• A resource-efficient housing alternative that protects and preserves the environment for future generations.
For more information on the CMHC EQuilibrium™ Sustainable Housing Demonstration Initiative or to find a demonstration home near you, call CMHC at 1-800-668-2642 or visit www.cmhc.ca and type in the search keyword “EQuilibrium”. For more than 60 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency and a source of objective, reliable housing expertise.

Philippe Daigle – Worthwhile Canadian Initiative

Canadian banks are typically leveraged at 18 to 1–compared with U.S. banks at 26 to 1.

Fareed Zakaria
NEWSWEEK
From the magazine issue dated Feb 16, 2009

The legendary editor of The New Republic, Michael Kinsley, once held a “Boring Headline Contest” and decided that the winner was “Worthwhile Canadian Initiative.” Twenty-two years later, the magazine was rescued from its economic troubles by a Canadian media company, which should have taught us Americans to be a bit more humble. Now there is even more striking evidence of Canada’s virtues. Guess which country, alone in the industrialized world, has not faced a single bank failure, calls for bailouts or government intervention in the financial or mortgage sectors. Yup, it’s Canada. In 2008, the World Economic Forum ranked Canada’s banking system the healthiest in the world. America’s ranked 40th, Britain’s 44th.
Canada has done more than survive this financial crisis. The country is positively thriving in it. Canadian banks are well capitalized and poised to take advantage of opportunities that American and European banks cannot seize. The Toronto Dominion Bank, for example, was the 15th-largest bank in North America one year ago. Now it is the fifth-largest. It hasn’t grown in size; the others have all shrunk.
So what accounts for the genius of the Canadians? Common sense. Over the past 15 years, as the United States and Europe loosened regulations on their financial industries, the Canadians refused to follow suit, seeing the old rules as useful shock absorbers. Canadian banks are typically leveraged at 18 to 1—compared with U.S. banks at 26 to 1 and European banks at a frightening 61 to 1. Partly this reflects Canada’s more risk-averse business culture, but it is also a product of old-fashioned rules on banking.
Canada has also been shielded from the worst aspects of this crisis because its housing prices have not fluctuated as wildly as those in the United States. Home prices are down 25 percent in the United States, but only half as much in Canada. Why? Well, the Canadian tax code does not provide the massive incentive for overconsumption that the U.S. code does: interest on your mortgage isn’t deductible up north. In addition, home loans in the United States are “non-recourse,” which basically means that if you go belly up on a bad mortgage, it’s mostly the bank’s problem. In Canada, it’s yours. Ah, but you’ve heard American politicians wax eloquent on the need for these expensive programs—interest deductibility alone costs the federal government $100 billion a year—because they allow the average Joe to fulfill the American Dream of owning a home. Sixty-eight percent of Americans own their own homes. And the rate of Canadian homeownership? It’s 68.4 percent.
Canada has been remarkably responsible over the past decade or so. It has had 12 years of budget surpluses, and can now spend money to fuel a recovery from a strong position. The government has restructured the national pension system, placing it on a firm fiscal footing, unlike our own insolvent Social Security. Its health-care system is cheaper than America’s by far (accounting for 9.7 percent of GDP, versus 15.2 percent here), and yet does better on all major indexes. Life expectancy in Canada is 81 years, versus 78 in the United States; “healthy life expectancy” is 72 years, versus 69. American car companies have moved so many jobs to Canada to take advantage of lower health-care costs that since 2004, Ontario and not Michigan has been North America’s largest car-producing region.
I could go on. The U.S. currently has a brain-dead immigration system. We issue a small number of work visas and green cards, turning away from our shores thousands of talented students who want to stay and work here. Canada, by contrast, has no limit on the number of skilled migrants who can move to the country. They can apply on their own for a Canadian Skilled Worker Visa, which allows them to become perfectly legal “permanent residents” in Canada—no need for a sponsoring employer, or even a job. Visas are awarded based on education level, work experience, age and language abilities. If a prospective immigrant earns 67 points out of 100 total (holding a Ph.D. is worth 25 points, for instance), he or she can become a full-time, legal resident of Canada.
Companies are noticing. In 2007 Microsoft, frustrated by its inability to hire foreign graduate students in the United States, decided to open a research center in Vancouver. The company’s announcement noted that it would staff the center with “highly skilled people affected by immigration issues in the U.S.” So the brightest Chinese and Indian software engineers are attracted to the United States, trained by American universities, then thrown out of the country and picked up by Canada—where most of them will work, innovate and pay taxes for the rest of their lives.
If President Obama is looking for smart government, there is much he, and all of us, could learn from our quiet—OK, sometimes boring—neighbor to the north. Meanwhile, in the councils of the financial world, Canada is pushing for new rules for financial institutions that would reflect its approach. This strikes me as, well, a worthwhile Canadian initiative.

The Secret History of the Credit Card

Government of Canada Launches New Sustainable Communities Initiative-Philippe Daigle

OTTAWA, June 1, 2009

Communities across Canada will benefit from better energy efficiency and improved environmental impact, thanks to a new initiative launched today by the Government of Canada. The new $4.2 million, EQuilibrium™ Communities Initiative will seek to improve community planning and develop healthy sustainable communities that are energy-efficient, economically viable and vibrant places to live.
The Honourable Lisa Raitt, Canada’s Minister of Natural Resources, and Ed Komarnicki, Parliamentary Secretary to the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada, and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), made the announcement today at the Canadian Centre for Housing Technology. “Our Government is investing in more than just clusters of energy-efficient homes — we’re creating cost-efficient, sustainable neighbourhoods,” said Minister Raitt. “Building communities that use new, clean-energy technologies will create high-quality jobs for Canadians while protecting and preserving our environment.”
The EQuilibrium™ Communities Initiative will provide financial, technical and promotional assistance to sustainable community projects chosen through a national competition. It will showcase the talents and innovation of Canadian residential developers, planners, designers and municipalities. The initiative is being led and funded equally by NRCan and CMHC. “The EQuilibrium™ Communities Initiative will highlight the talents and innovation of Canadian residential developers, planners, designers and municipalities as leaders in sustainable housing and community development,” said Mr. Komarnicki. “These communities will integrate sustainable housing, infrastructure and land-use planning to help Canadians balance their housing needs with those of the natural environment.”
A call for project submissions will be issued this summer, inviting developers, with their teams of planners, designers, and municipalities, to submit project proposals. Winning teams will develop and showcase neighbourhoods that are more sustainable and energy efficient than most existing communities. Improvements will be achieved in the areas of energy use, water efficiency, environmental protection, land-use planning, clean-energy transportation and affordable housing.

For Broadcast Use:

Communities across Canada will benefit from better energy efficiency and improved environmental impact, thanks to a new initiative launched today by the Government of Canada. The new $4.2 million, EQuilibrium™ Communities Initiative will seek to improve community planning and develop healthy sustainable communities that are energy-efficient, economically viable and vibrant places to live. A call for project submissions from developers will be issued this summer.

Media may contact:

Jasmine MacDonnellDirector of CommunicationsOffice of the Honourable Lisa RaittNatural Resources CanadaOttawaTel.: 613-996-2007
Media RelationsNatural Resources Canada OttawaTel.: 613-992-4447
Michelle BakosOffice of the Honourable Diane FinleyHuman Resources and Skills Development CanadaTel.: 819-994-2482
Kristen ScheelCMHC Media RelationsOttawaTel.: 613-748-2799
NRCan’s news releases and backgrounders are available at www.nrcan.gc.ca/media.

The Age of persuasion-Resession Marketing

Season 3 Episode 2: “Recession Marketing”

Broadcast dates: Monday April 20 at 11:30 am and Saturday April 25 at 4:30 pm 
Originally Broadcast: Monday 12 & 17 January 2009

Strange things happen in the Age of Persuasion during an economic downturn. As Terry O’Reilly observes, many advertisers abandon their sense of humour, and often- mistakenly- turn to aggressive, desperate hard sell. Meanwhile, some brands, such as Wal-Mart, McDonald’s and SPAM, actually thrive. And a few, courageous marketers know that in tough times, great marketing is counter-intuitive. Terry explains why.

Listen to this episode as streaming audio (runs 27:30):

Much ado about Twitter

Brundtland Report on sustainabilty

Sustainability is now at the forefront of political and economic discussion as the issue that will define humanity in this new century. This is my first posting on the subject and I thought it was important to present the official summary from the United Nations as a basis for further articles I intend to post. My interest in the subject has been evolving over many years and is now an important aspect of my involvement in the Westbank and District Chamber of commerce. I will explain my involvement in future writing. 

Brundtland Report on sustainabilty

“Finally, and perhaps most importantly, the report called for increased co-operation with industry”.

The Bruntland Report, or Our Common Future, is the report made by the World Commission on Environment and Development in 1987. It is often called the Bruntland report after the chairperson of the commission, the then Prime Minister of Norway, Mrs Gro Harlem Bruntland. The report is one of the seminal environmental documents of the 20th century. It is representative of the growing global awareness in the second half of the century of the enormous environmental problems facing the planet, and of a growing shift towards global environmental action. As the report observes, humankind saw the earth from space for the first time only a few decades ago, and yet this has had a profound impact on the way in which we perceive the earth and our place on it.

The Commission?s brief was to re-examine the critical environment and development problems on the planet and to formulate realistic proposals to s olve them; to create a ?global agenda for change?. It was to work within the principle of Environmentally Sustainable Development (ESD). The report represents a collective call to action, involving all nation states as participants in finding solutions to the ?tragedy of the commons?. In the words of Bruntland, one of its goals was:

“to help define shared perceptions of long-term environmental issues and the appropriate efforts needed to deal successfully with the problems of protecting and enhancing the environment, a long-term agenda for action during the coming decades, and aspirational goals of the world community.” (Bruntland 1987:ix).

The report approaches the environmental and development issues which were (and still are) facing the world as one common challenge, to be solved by collective multilateral action rather than through the pursuit of national self-interest. It examines population and human resources, food security, species and ecosystems, energy, industry, and ?the urban challenge? of humans in their built environment. Importantly, it approaches these common concerns with a holistic perspective. For example, the report illustrates how the problems of poverty and population are interconnected. By examining the interactions between the problems facing the world, the report develops common approaches to peace, security, development and the environment.

The report makes institutional and legal recommendations for change in order to confront common global problems. Critically amongst these recommendations is the call for the development and expansion of international institutions for co-operation, and legal mechanisms to confront common concerns. The report was effectively calling for international action on issues of common concern. Finally, and perhaps most importantly, the report called for increased co-operation with industry.

The Bruntland report has often been subject to criticism, on the grounds that many of its ?forecasts? did not come true. However such criticisms are perhaps missing the significance of the report and the fact that despite inaccuracies in forecasting, the Bruntland report?s premise of the need for global environmental action has not been invalidated. The Bruntland report must, as with any other historical document, be seen as a product of its time. Viewed in the historical context of the late 1980?s, the Bruntland report can be viewed as a landmark document in terms of furthering environmentalism in the following decades. Tangible results have flowed from the Bruntland report, such as the emergence of International Agreement?s such as the Montreal and Kyoto Protocols, and Agenda 21, which further enshrined the concept of environmentally sustainable development.

Further Reading

Bruntland, G (ed) (1987). Our Common Future: The World Commission on Environment and Development, Oxford: Oxford University Press.

Interest Rate Forecart

The following is the interest rate forecats courtesy of Valley First Credit Union. Currently rates are historically low and are likely to remain low for some time. Rates referred to are posted rate and those I have access to are as low as 3.59% for a five years fixed OAC.

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Administered deposit and lending rates declined in April. The typical one-year GIC deposit rate fell to a record low 0.28% from 0.38% at the end of March while the three-year rate dropped to 1.48% from 1.68% and the five-year rate declined 30bps to 1.78%. Posted mortgage rates declined 60bps to 3.90% for a one-year term and 50 bps to 4.15% for a three-year term. The five-year rate dropped 30bps to 5 .25%.

Rates for short-term business credit followed the target rate lower in April, which indicates the successful impact of monetary easing. The three-month commercial paper rate declined about 30bps and the three-month bankers’ acceptance rate dropped about 25bps. While spreads remain higher than normal, these reductions are positive signs of some easing in the financial crisis.

One segment of business credit that remains constrained is longer term funding sources. For example, the cost of raising funds in the bond market for an AAA rated company is more than 4% and for a BBB rated company it is about 5.5%. These rates are down from the September crisis period but are still high and are not following the Bank rate lower. This is goes to the core of the credit crisis and presents the greatest challenge for policymakers and the greatest risk to the economic outlook.

This situation is more constrained in the U.S. than in Canada and presents problems for Canadian companies who raise funds in the U.S. it is estimated that about 25% of Canadian company financing is, or was, sourced from U.S. markets.

The government bond yield curve steepened during April with lower Treasury bill rates and higher longer term yields.

The ten-year bond yield rose between 10 to 20bps while the three-month t-bill rate declined about 20bps.

Interest rate forecast

The Bank’s target rate remains at 0.25% well into 2010 and turns up when economic growth resumes and the outlook is positive. The first increase is around mid-2010 but the main risk is for a later increase if the recession last longer than expected. During the recovery phase and the initial rate-normalization phase, the Bank is likely move to the target rate up rather quickly and in 50bps increments at times.

Some further declines in mid to long term deposit and mortgage rates is likely in the next quarter or two. Administered rates are approaching the bottom for this cycle, likely this year.

Mortgage Calculator

Okanagan house sales increase

by Castanet Staff – Story: 46272

Apr 13, 2009 / 6:00 am

The Central Zone of the Okanagan Mainline Real Estate Board reported March 2009 sales activity of all MLS property types continued to pick up steam – increasing by 52% from 163 sales in February to 248 in March.  In particular, single family residential units sold in March increased by 52% from February – up from 86 units to 131.  “Putting this into perspective, the average increase in residential units sold in March over February for the past seven years (2002 to 2008) has been 28%,“ says Brenda Moshansky, OMREB Director.  “The current increase in spring buyer activity has likely been primarily boosted by improved affordability and record low interest rates. With the lower interest rates and house prices, the mortgage on an average priced home today is costing buyers considerably less per month than a year ago.  She says in March, the monthly mortgage payment on an average priced $438,493 single family home was at $2,421 – a 26% saving over the $3,269 per month for an average priced home in March 2008 ($509,878).  “The monthly payment on an average priced townhouse ($328,611) has dropped 27% to $1,814 compared to $2,492 last year at this time ($388,761), while the $1,350 payment on an average priced condo ($244,433) is down 24% from $1,771 per month last March ($276,267).”  Moshansky says increased affordability combined with a good supply of homes is resulting in more activity.