SCHL Update: Hingles to be expected on the affordability of rents

The Canadian Mortgage. Nevertheless, Housing Company (SCHL) updated its mortgage loan insurance premiums on July 14 for the construction of collective buildings. Similarly, Changes that increase the bills of projects … Therefore, and which make promoters fear to have to transmit the note to the tenants.

The said update-announced on July 3-is said to be substantial increases in the insurance premiums of the promoters’ mortgage loan. Nevertheless, concerns all multi-residential buildings of five dwellings and more in Canada.

For example. In addition, for a 150 units project, The financing bonus that we were going to seek three months ago, versus that of today, for the same conditions, we speak of an impact which can be between 1 and 1.6, 1.7 million [de dollars] On the cost of projectIndicates François Pelchat. In addition, partner and vice-president of development at schl update: hingles expected affordability Immostar, a manager and real estate developer in the large region of Quebec.

Since 2016, the company has developed around 2,000 rental units in the region.

We get along, 2, 3 % additional cost, it goes extremely fasthe argues. In addition, If it is added to the other constraints schl update: hingles expected affordability that are currently being seen in industry. Similarly, whether it is the increase in construction costs, development fees, increased taxation, that makes several percentages that make the cost of rent increases significantly.

We are asked to make more and more affordable projectscontinues François Pelchat. Therefore, We ask to build more to help settle the current housing crisis. but the only actions that are taken, often, is to put sticks in the wheels to prevent us from building.

We. our goal is to pass as little as possible to our tenants. But if the pressure does not stop increasing. in the new projects that we are going to do, it is certain that a given moment it will be felt in the rent costs of our various tenants.

Schl update: hingles expected affordability

There is something a little illogical. in all of this

It’s one more tile on the heads of the promotersbelieves Isabelle Melançon, President and CEO of the Quebec Urban Development Institute (IDU). While everyone wants us to make more housing. and more affordable housing, we learn, overnight, that funding is less affordable to make affordable housing. I find that there is something a little illogical, in all of this.

The objectives that will have been set by the politician will not be achieved because the promoters will say “with the new rules of the game. I am not able to reach neither my figures nor the affordable figures that we are asked”.

There are some who clearly suggested that with the new figures […] It just didn’t make sense to do what they are doingshe continues. That is to say housing, and affordable accommodation.

As an example, schl update: hingles expected affordability Ms. Melançon quotes one of the members of the IDU for whom the update of the Lock represents an increase of more than $ 5 million on the invoice which is already quite salty. 5 million, that means that it comes out directly from its pockets overnight.

It will freeze the market […] It will slow down the development we knowbreath Isabelle Melançon.

Compensation to promoters?

Same bell sound on the association of the Quebec Construction. Housing Professionals (APCHQ), where we say to ourselves concerned by updating Lock.

According to David Goulet. director of the economic service at theAPCHQ, It is clear that schl update: hingles expected affordability in a context where we must do everything to maintain and even reduce the development costs of projects as much as possible to ensure that affordable housing, [cette nouvelle] is coldly welcomed by the real estate sector.

There are some promoters who told us that the increases in their premiums could even go so far as to schl update: hingles expected affordability double themhe adds. warning that this isIncreases, in the end, which will be reflected in the rents of future tenants.

Now what theAPCHQ would like to. it is that the federal government offers a certain form of compensation to the promoters to minimize the impact it will have on rentsyour M. Goulet.

We are aware that the SCHL must remain profitable. must remain an institution which, from a financial point of view, is not exposed to such a great risk.

Currently, more than 80 schl update: hingles expected affordability % of the accommodation is built in Canada are provided by the Lockhe specifies.

With this change in pricing. the Lock wishes to offer more flexible financing options to promoters and to limit economic risks with the dazzling rise in the number of projects in the country.

With the information of Louis-Simon Lapointe