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Posted by Tanya Hutchens

Of course, the first status residence is in Manhattan, and bankers are already starting to check out the goods in advance of their windfall. They’re putting up huge down payments, which has helped the $3 million to $5 million sector of the city’s housing market to rebound, said Pamela Liebman, CEO of New York-based brokerage firm Corcoran.

At the low end, they can score a three-bedroom, two bath condo right on Central Park or a tony address on Fifth Avenue. The more adventurous poet-at-heart bankers can tap out buying a five-story Queen Anne on the Upper West Side or head to the once-bohemian East Village for two joined buildings that boast an owner’s triplex with a stunning terrace — and income-generating apartments and businesses below.

Of course, many Wall Streeters already own their Manhattan dream homes, so they’ll spend their extra money revamping their primary residences, Pedraza said.

A makeover by a well-respected interior decorator can run at least $150,000 — but usually is more like 30% to 40% of the bonus. Think: Charlie Sheen hiring Daryl Hannah to give his new condo — and life — a high-rent makeover in the 1987 flick “Wall Street.”

Posted by Tanya Hutchens

Mr obama blames the Bush administration for the financial crisis but he has no real plan to get things back on track. People thought that he would become president and all the uncertainty on Wall Street would go away. What next.

“To understand how this tentative deal was reached, it’s important to remember how this all began. The Bush Administration initially asked for a blank check to respond to this problem, which I strongly opposed. It would have been unconscionable to expect the American people to hand this Administration or any Administration a $700 billion check with no conditions and no oversight when a lack of oversight in Washington and on Wall Street is exactly what got us into this mess. If the American people are being asked to pay for the solution to this crisis, their tax dollars must be protected.

“That is why over the past ten days, in conversations with the President, Secretary of Treasury and leaders of Congress, I laid out the four core principles I believed had to guide any solution: oversight by an independent board; protections for taxpayers to ensure that they are treated like investors and that they receive any profits – and recoup any losses – from this plan; measures to help homeowners stay in their homes; and rules to make sure CEOs are not being rewarded at taxpayers’ expense. While I look forward to reviewing the language of the legislation, it appears that the tentative deal embraces these principles.

“When taxpayers are asked to take such an extraordinary step because of the irresponsibility of a relative few, it is not a cause for celebration. But this step is necessary. Now Washington has to show the same sense of urgency in dealing with the crisis facing Main Street and the middle class by passing an emergency economic stimulus plan that would create jobs by rebuilding our crumbing roads; shore up flagging state budgets to prevent drastic cuts in education and health care; and extend expiring unemployment insurance benefits for those who’ve lost their jobs in this downturn and cannot find new ones.

“One final point. If elected President, I will order a thorough review of this plan to make sure that it fully lives up to the principles I’ve laid out. And I will also move quickly to upgrade our financial regulations for the 21st century, establishing new rules of the road and tougher oversight to ensure that the American taxpayers are never again forced to put their money and their futures at risk because of bad decisions in Washington and on Wall Street.”

The Constitution permits much private religious activity in and about the public schools. Unfortunately, this aspect of constitutional law is not as well known as it should be. Some say that the Supreme Court has declared the public schools “religion-free zones” or that the law is so murky that school officials cannot know what is legally permissible. The former claim is simply wrong. And as to the latter, while there are some difficult issues, much has been settled. It is also unfortunately true that public school officials, due to their busy schedules, may not be as fully aware of this body of law as they could be. As a result, in some school districts some of these rights are not being observed.

The organizations whose names appear below span the ideological, religious and political spectrum. They nevertheless share a commitment both to the freedom of religious practice and to the separation of church and state such freedom requires. In that spirit, we offer this statement of consensus on current law as an aid to parents, educators and students.

Many of the organizations listed below are actively involved in litigation about religion in the schools. On some of the issues discussed in this summary, some of the organizations have urged the courts to reach positions different than they did. Though there are signatories on both sides which have and will press for different constitutional treatments of some of the topics discussed below, they all agree that the following is an accurate statement of what the law currently is.

Student Prayers

1. Students have the right to pray individually or in groups or to discuss their religious views with their peers so long as they are not disruptive. Because the Establishment Clause does not apply to purely private speech, students enjoy the right to read their Bibles or other scriptures, say grace before meals, pray before tests, and discuss religion with other willing student listeners. In the classroom students have the right to pray quietly except when required to be actively engaged in school activities (e.g., students may not decide to pray just as a teacher calls on them). In informal settings, such as the cafeteria or in the halls, students may pray either audibly or silently, subject to the same rules of order as apply to other speech in these locations. However, the right to engage in voluntary prayer does not include, for example, the right to have a captive audience listen or to compel other students to participate.

Graduation Prayer and Baccalaureates
2. School officials may not mandate or organize prayer at graduation, nor may they organize a religious baccalaureate ceremony. If the school generally rents out its facilities to private groups, it must rent them out on the same terms, and on a first-come first-served basis, to organizers of privately sponsored religious baccalaureate services, provided that the school does not extend preferential treatment to the baccalaureate ceremony and the school disclaims official endorsement of the program.

3. The courts have reached conflicting conclusions under the federal Constitution on student-initiated prayer at graduation. Until the issue is authoritatively resolved, schools should ask their lawyers what rules apply in their area.

Official Participation or Encouragement of Religious Activity
4. Teachers and school administrators, when acting in those capacities, are representatives of the state, and, in those capacities, are themselves prohibited from encouraging or soliciting student religious or anti-religious activity. Similarly, when acting in their official capacities, teachers may not engage in religious activities with their students. However, teachers may engage in private religious activity in faculty lounges.

Teaching About Religion
5. Students may be taught about religion, but public schools may not teach religion. As the U.S. Supreme Court has repeatedly said, “[i]t might well be said that one’s education is not complete without a study of comparative religion, or the history of religion and its relationship to the advancement of civilization.” It would be difficult to teach art, music, literature and most social studies without considering religious influences.

The history of religion, comparative religion, the Bible (or other scripture)-as-literature (either as a separate course or within some other existing course), are all permissible public school subjects. It is both permissible and desirable to teach objectively about the role of religion in the history of the United States and other countries. One can teach that the Pilgrims came to this country with a particular religious vision, that Catholics and others have been subject to persecution or that many of those participating in the abolitionist, women’s suffrage and civil rights movements had religious motivations.

6. These same rules apply to the recurring controversy surrounding theories of evolution. Schools may teach about explanations of life on earth, including religious ones (such as “creationism”), in comparative religion or social studies classes. In science class, however, they may present only genuinely scientific critiques of, or evidence for, any explanation of life on earth, but not religious critiques (beliefs unverifiable by scientific methodology). Schools may not refuse to teach evolutionary theory in order to avoid giving offense to religion nor may they circumvent these rules by labeling as science an article of religious faith. Public schools must not teach as scientific fact or theory any religious doctrine, including “creationism,” although any genuinely scientific evidence for or against any explanation of life may be taught. Just as they may neither advance nor inhibit any religious doctrine, teachers should not ridicule, for example, a student’s religious explanation for life on earth.

Student Assignments and Religion
7. Students may express their religious beliefs in the form of reports, homework and artwork, and such expressions are constitutionally protected. Teachers may not reject or correct such submissions simply because they include a religious symbol or address religious themes. Likewise, teachers may not require students to modify, include or excise religious views in their assignments, if germane. These assignments should be judged by ordinary academic standards of substance, relevance, appearance and grammar.

8. Somewhat more problematic from a legal point of view are other public expressions of religious views in the classroom. Unfortunately for school officials, there are traps on either side of this issue, and it is possible that litigation will result no matter what course is taken. It is easier to describe the settled cases than to state clear rules of law. Schools must carefully steer between the claims of student speakers who assert a right to express themselves on religious subjects and the asserted rights of student listeners to be free of unwelcome religious persuasion in a public school classroom.

1. Religious or anti-religious remarks made in the ordinary course of classroom discussion or student presentations are permissible and constitute a protected right. If in a sex education class a student remarks that abortion should be illegal because God has prohibited it, a teacher should not silence the remark, ridicule it, rule it out of bounds or endorse it, any more than a teacher may silence a student’s religiously-based comment in favor of choice.

2. If a class assignment calls for an oral presentation on a subject of the student’s choosing, and, for example, the student responds by conducting a religious service, the school has the right — as well as the duty — to prevent itself from being used as a church. Other students are not voluntarily in attendance and cannot be forced to become an unwilling congregation.

3. Teachers may rule out-of-order religious remarks that are irrelevant to the subject at hand. In a discussion of Hamlet’s sanity, for example, a student may not interject views on creationism.

Distribution of Religious Literature
9. Students have the right to distribute religious literature to their schoolmates, subject to those reasonable time, place, and manner or other constitutionally- acceptable restrictions imposed on the distribution of all non-school literature. Thus, a school may confine distribution of all literature to a particular table at particular times. It may not single out religious literature for burdensome regulation.

10. Outsiders may not be given access to the classroom to distribute religious or anti-religious literature. No court has yet considered whether, if all other community groups are permitted to distribute literature in common areas of public schools, religious groups must be allowed to do so on equal terms subject to reasonable time, place and manner restrictions.

“See You at the Pole”
11. Student participation in before- or after-school events, such as “see you at the pole,” is permissible. School officials, acting in an official capacity, may neither discourage nor encourage participation in such an event.

Religious Persuasion Versus Religious Harassment
12. Students have the right to speak to, and attempt to persuade, their peers about religious topics just as they do with regard to political topics. But school officials should intercede to stop student religious speech if it turns into religious harassment aimed at a student or a small group of students. While it is constitutionally permissible for a student to approach another and issue an invitation to attend church, repeated invitations in the face of a request to stop constitute harassment. Where this line is to be drawn in particular cases will depend on the age of the students and other circumstances.

Equal Access Act
13. Student religious clubs in secondary schools must be permitted to meet and to have equal access to campus media to announce their meetings, if a school receives federal funds and permits any student non-curricular club to meet during non-instructional time. This is the command of the Equal Access Act. A non- curricular club is any club not related directly to a subject taught or soon-to-be taught in the school. Although schools have the right to ban all non-curriculum clubs, they may not dodge the law’s requirement by the expedient of declaring all clubs curriculum-related. On the other hand, teachers may not actively participate in club activities and “non-school persons” may not control or regularly attend club meeting.

The Act’s constitutionality has been upheld by the Supreme Court, rejecting claims that the Act violates the Establishment Clause. The Act’s requirements are described in more detail in The Equal Access Act and the Public Schools: Questions and Answers on the Equal Access Act*, a pamphlet published by a broad spectrum of religious and civil liberties groups.

Religious Holidays
14. Generally, public schools may teach about religious holidays, and may celebrate the secular aspects of the holiday and objectively teach about their religious aspects. They may not observe the holidays as religious events. Schools should generally excuse students who do not wish to participate in holiday events. Those interested in further details should see Religious Holidays in the Public Schools: Questions and Answers*, a pamphlet published by a broad spectrum of religious and civil liberties groups.

Excusal From Religiously-Objectionable Lessons
15. Schools enjoy substantial discretion to excuse individual students from lessons which are objectionable to that student or to his or her parent on the basis of religion. Schools can exercise that authority in ways which would defuse many conflicts over curriculum content. If it is proved that particular lessons substantially burden a student’s free exercise of religion and if the school cannot prove a compelling interest in requiring attendance the school would be legally required to excuse the student.

Teaching Values
16. Schools may teach civic virtues, including honesty, good citizenship, sportsmanship, courage, respect for the rights and freedoms of others, respect for persons and their property, civility, the dual virtues of moral conviction and tolerance and hard work. Subject to whatever rights of excusal exist (see 5 above) under the federal Constitution and state law, schools may teach sexual abstinence and contraception; whether and how schools teach these sensitive subjects is a matter of educational policy. However, these may not be taught as religious tenets. The mere fact that most, if not all, religions also teach these values does not make it unlawful to teach them.

Student Garb
17. Religious messages on T-shirts and the like may not be singled out for suppression. Students may wear religious attire, such as yarmulkes and head scarves, and they may not be forced to wear gym clothes that they regard, on religious grounds, as immodest.

Released Time
18. Schools have the discretion to dismiss students to off-premises religious instruction, provided that schools do not encourage or discourage participation or penalize those who do not attend. Schools may not allow religious instruction by outsiders on premises during the school day.

Tanya Hutches has been working for many years for the rights to practice religions freely in schools as well as faith based funding for school boards.

Tanya Hutchens blogs about The Law Society of Upper Canada’s upcoming schedule of Continuing Legal Education offers fresh insight into both new areas of law and issues that are of constant interest. In today’s electronic world, the potential for defamatory communications is greatly increased.

Libel and Slander in the Electronic Age on May 28 will help you recognize the danger of defamatory statements and correspondence, and the associated risks. Attend this program to learn about the elements required to assert the tort of libel or  damages available.

Lawyers acting for both residential landlords and tenants should attend the June 3 program Practice Gem- Understanding the Rights and Obligations of Residential Landlords and Tenants to learn about the latest substantive and procedural developments affecting the rights and obligations of their clients. Speakers will highlight key issues before the Landlord and Tenant Board, including the review process and multi-tenant applications.

The downturn in today’s economy presents challenges for lawyers in all areas of practice. The June 16 audio program Meeting the Challenges for Lawyers in Today’s Economy is designed to help you uncover new opportunities in the shifting marketplace. Topics include considering your options in career planning, developing your practice, transferring firms, Law Society and LAWPRO considerations and opportunities in smaller centres. And in light of the economic downturn, you may be looking to refresh your interviewing skills.

The Powerful Interviewing Skills for Legal Professionals audio program on September 15 offers practical advice and effective strategies for succeeding in professional job interviews. The Law Society offers programs in a variety of formats, including teleseminars and live webcasts. View the complete CLE Calendar on the Law Society’s website. Select e-Transactions from the home page, and then Continuing Legal Education from the menu. The calendar is updated on a regular basis to provide specific details, including program locations, speakers and topics. Online access to all papers presented at Law Society CLE programs is available through AccessCLE on the Law Society website. This resource provides users with full access to a library of CLE papers from 2004 onward, and is updated with new papers after each CLE program is held.

The outlook for the economy, notes Tanya Hutchens, has weakened since the last forecast. Consumer spending and exports will continue to contract in 2009. Ontario will face the slowest economic growth rate since the early 1990s. Kitchener CMA consumer bankruptcies are up in the last three months. Housing demand will decline due to the economic uncertainty and less household disposable income.

Employment

Due to economic conditions that continue to deteriorate, employment in Kitchener-Guelph is expected to decrease in 2009. Employment in the Kitchener and Guelph CMAs will decline by two per cent. As the labour force will continue to increase, the unemployment rate is expected to reach nine per cent in the Kitchener CMA and eight per cent in the Guelph CMA in 2009. Participation rates in the Kitchener CMA are the highest in the province, resulting in an unexpectedly high unemployment rate as more people compete for the few jobs available.
Full-time jobs will be most affected by the downturn in employment and, it is full-time employment that drives housing demand. On a more positive note in the Kitchener CMA, RIM is expected to hire 3,000 more employees in 2009, while OpenText has job openings for more than 200.
The goods sector will continue to contract because of the manufacturing sector and an export market which will see negative growth this year. The manufacturing sector has been contracting for the last four years and with turmoil in the automotive sector, the job shedding will continue. Guelph has sustained a harder hit from the downturn in the automotive sector than has Kitchener. Guelph manufacturing, as a percentage of total employment, has dropped from 26 per cent in the first quarter of 2008, to 20 per cent in the same period of 2009. In both CMAs, while the services sector has been supporting employment growth, lower consumer spending will weaken growth in this sector through 2009.
Older employees will be hard hit by the downturn in the economy, impacting move-up buyer demand. Some older employees will be forced into early retirement as companies downsize to trim overhead costs and to remain viable. Many of these employees will remain in the labour force. On the other hand, youth employment will fluctuate near current levels, benefiting the rental market.

Average Weekly Earnings

A rising jobless rate, less inflationary pressures and the decline in some higher paying jobs will dampen wage growth this year. Wage growth in the Kitchener CMA is expected to be near two per cent in 2009, while Guelph CMA earnings are forecast to increase by one per cent. The lower level of wage growth in 2009 will be a small contributing factor to the decline in housing demand. A plus for the rental market is the increase in the minimum wage in Ontario by eight per cent in March, enabling some people to form households.

Migration

Net migration is forecast to be 2,500 in 2009 in the Kitchener CMA and 900 in the Guelph CMA. Although slowing, inter-provincial migration to the west continues, resulting in lower net migration. Employment is a strong driver of migration to the Kitchener CMA. Kitchener has the second highest employment rate in Ontario and continues to attract households to the area. International migration is the driving force behind any migration growth in the CMAs, but does little to increase immediate ownership demand, as renting is the most prevalent tenure choice among those new to Canada.

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.

OTTAWA, May 19, 2009 - Housing starts are expected to decline to 141,900 for 2009, but increase to 150,300 for 2010, according to Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook, Canada Edition* report.

“The decline in housing starts in 2009 can be attributed to several factors, including the current economic climate, increased competition from the existing home market, and the impact of strong house price growth between 2002 and 2007” said Bob Dugan, Chief Economist for CMHC. “However, housing market activity will begin to strengthen in 2010 as the Canadian economy recovers, bringing housing starts more in line with demographic fundamentals over the forecast period”.

Existing home sales, as measured by the Multiple Listing Service (MLS), are expected to decline to 357,800 units in 2009 from 433,990 in 2008, but increase to 386,100 units in 2010. The average MLS price is also expected to decrease to $283,100 in 2009 and to stabilize in 2010.

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.

In short: Real Estate Investment Trust: an investment trust that owns and manages a pool of commercial properties and mortgages and other real estate assets.

Now a bit Longer:

A Real Estate Investment Trust or REIT  is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable, into the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.

Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges like shares of common stock in other firms. REITs can be classified as equity, mortgage or hybrid. After originating in the United States in 1960, they were adopted in many other countries in variety of forms here are some:

Australia

After originating in the United States in 1960, the REIT concept was launched in Australia in 1971. General Property Trust was the first Listed Property Trust (LPT) on the Australian stock exchanges (now the Australian Securities Exchange). REITs which are listed on an exchange were known as Listed Property Trusts (LPTs) until March 2008, distinguishing them from private REITs which are known in Australia as Unlisted Property Trusts. They have since been renamed Australian Real Estate Investment Trusts (A-REITs) in line with international practice.

There are now more than 60 A-REITs listed on the ASX, with market capitalisation in excess of A$100bn.

Australia is also receiving growing recognition as having the world’s largest REITs market outside the United States. More than 12 percent of global listed property trusts can be found on the ASX.

Brazil

REITS were introduced in Brazil in 1993 by the law 8668/93 and ruled by the instruction 205/94 from CVM (Comissao de Valores Mobiliários – which is the Brazilian equivalent of SEC). Locally they are denominated FIIs or “Fundos de Investimento Imobiliário”. FII’s dividends are free of taxes for personal investors (not companies) since 2006, but only for the funds which distribute at least 95% of their income and that are publicly negotiated in the stock market.

Bulgaria

REITS were introduced in Bulgaria in 2004 with the so called “Special Purpose Investment Companies Act”. They are pass-through entities for corporate income tax purposes (i.e. they are not subject to corporate income tax), but are subject to numerous restrictions.

Canada

Canadian REITs were established in 1993. They are required to be configured as trusts and are not taxed if they distribute their net taxable income to shareholders. REITs have been excluded from the income trust tax legislation proposed in the 2007 budget by the Conservative government. Many Canadian REITs have limited liability.

Germany

Germany is also planning to introduce German REITs (short, G-REITs) in order to create a new type of real estate investment vehicle. Government fears that failing to introduce REITs in Germany would result in a significant loss of investment capital to other countries. Nonetheless there still is political resistance to these plans, especially by the social democratic party (‘SPD’). As of June 2006 the ministry of finance has announced that they still plan to introduce G-REITs in 2007. The legal details seem to adopt much of UK-REITs regulations (taxation, public listing, etc.), as far as it is possible to tell yet.

A law concerning G-REITs was enacted 1 June, 2007, and is retroactive to 1 January, 2007.

Qualification

• REITs will have to be established as a corporation “REIT-AG” or “REIT-Aktiengesellschaft“.
• At least 75% of its assets have to be invested in real-estate.
• At least 75% of the G-REIT’s gross revenues must be real-estate related.
• At least 90% of the REIT’s taxable income has to be distributed to its shareholders through dividends.
• The corporation is income-tax-exempt, but the shareholders will have to pay individual income tax on the dividends.

Hong Kong

REITs have been in existence in Hong Kong since 2005, when The Link REIT was launched by the Hong Kong Housing Authority on behalf of the Government. Since 2005, there have been 7 REIT listings as at July 2007, most of which, including Sunlight REIT have not enjoyed success due to low yield. Except for The Link and Regal Real Estate Investment Trust, share prices of all but one are significantly belowIPO price. Hong Kong issuers’ use of financial engineering (interest rate swaps) to improve initial yields has also been cited as having deterred investors’ interest

India

India is currently in the process of formulating definitive legislation for the introduction and smooth functioning of REITs in the Indian real estate market. Once introduced these Indian REITs (country specific/generic version I-REITs) will help individual investors enjoy the benefits of owning an interest in the securitised real estate market. The best benefit being that of fast and easy liquidation of investments in the real estate market unlike the traditional way of disposing real estate. The government and Securities and Exchange Board of India SEBI through various notifications is in the process of easing the norms of investing in real estate in India directly and indirectly through foreign direct investment, through listed real estate companies, mutual funds etc. With the current real estate boom and the market being flooded withInitial Public Offer of various listed real estate companies in India it will be the best time for investors to own a share of the profiting market economy. Legislative framework, revised investment norms, a favourable investment opportunity, and a clear taxation policy will provide the right kind of investing opportunity in India in the time to come.

Japan

Japan is one of a handful of countries in Asia with REIT legislation (other countries/markets include Hong Kong, Singapore, Malaysia, Taiwan and Korea), which permitted their establishment in December 2001. J-REIT securities are traded on the Tokyo Stock Exchange, and most participants are Japanese conglomerates and foreign investment banks.

Since the burst of the real estate bubble in 1990, property prices in Japan have seen steady drops through 2004, with some signs of price stabilization and possibly price increase in 2005 and 2006. Some see J-REITs as a way to increase investment in the real estate market, although notable increases in asset values has not yet been realized.

A J-REIT may be structured as an independent corporation or as a contractual relationship through a trust bank.

In addition to REITs, Japanese law also provides for a parallel system of special purpose companies which can be used for the securitization of particular properties, but not for the maintenance of a real estate portfolio.

Pakistan REITs

Pakistan’s regulatory body Securities and Exchange Commission of Pakistan is in process of implementing REIT regulatory framework that will allow full foreign ownership, free movement of capital and unrestricted repatriation of profits. It will curb speculation in Pakistani real estate markets and gives access to small investors diversifying into real estate as well. The Securities and Exchange Commission of Pakistan following regulatory framework similar to Singapore and Hong Kong REITs.

The Securities and Exchange Commission of Pakistan expects that about six REITs will be licensed within the first year, mainly large assets management companies applying for it. Pakistan is recently seeing a outflux of investments by foreign real estate development mostly Malaysian and Dubai based companies.

Singapore

Commonly referred to as S-REITs. There are currently 20 REITs listed on the SGX, starting with CapitaMall Trust in July 2002. They represent a range of property sectors including retail, office, industrial, hospitality and residential. S-REITs hold a variety of properties in countries including Japan, China, Indonesia and Hong Kong, in addition to local properties.

S-REITs are regulated as Collective Investment Schemes under the Monetary Authority of Singapore’s Code on Collective Investment Schemes, or alternatively as Business Trusts.

S-REITs benefit from tax advantaged status.

United Kingdom

The legislation laying out the rules for REITs in the United Kingdom was enacted in the Finance Act 2006 and came into effect in January 2007 when nine UK property companies converted to REIT status, including the five that were FTSE 100 members at that time: British Land, Hammerson, Land Securities, Liberty International and Slough Estates (now known as “SEGRO”). The other four were: Brixton, Great Portland Estates, Primary Health and Workspace Group.

British REITS have to distribute 90% of their income. They must be a close-ended investment trust and be UK resident and publicly listed on a stock exchange recognised by the Financial Services Authority.

To support the introduction of REITs in the UK, the REITs and Quoted Property Group was created by several commercial property and financial services companies. Other key bodies involved are the London Stock Exchange the British Property Federation and Reita. The Reita campaign was launched on 16 August 2006 by the REITs and Quoted Property Group, in order to provide a source of information on REITs, quoted property and related investments funds. Reita’s aim is to raise awareness and understanding of REITs and investment in quoted property companies. It does this primarily through its portalwww.reita.org, providing knowledge, education and tools for financial advisers and investors.

Doug Naismith, managing director of European Personal Investments for Fidelity International, said: “As existing markets expand and REIT like structures are introduced in more countries, we expect to see the overall market grow by some ten percent per annum over the next five years, taking the market to $1 trillion by 2010.”

United States

A real estate investment trust, or REIT, is a company that owns, and in most cases, operates income-producing real estate. Some REITs finance real estate. To be a REIT, a company must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.

Qualification

In order to qualify for the advantages of being a pass-through entity for U.S. corporate income tax, a REIT must:

• Be structured as corporation, trust, or association
• Be managed by a board of directors or trustees
• Have transferable shares or transferable certificates of interest
• Otherwise be taxable as a domestic corporation
• Not be a financial institution or an insurance company
• Be jointly owned by 100 persons or more
• Have 95 percent of its income derived from dividends, interest, and property income
• Pay dividends of at least 90% of the REIT’s taxable income
• No more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year (5/50 rule)
• At least 75% of total investment assets must be in real estate
• Derive at least 75% of gross income from rents or mortgage interest
• No more than 20% of its assets may consist of stocks in taxable REIT subsidiaries.

This Explanation was brought to you by Tanya Hutchens. Hey I worked hard , at least leave a comment of appreciation.

The construction of 50 new apartments for non-elderly singles and disabled persons was announced today by the provincial and federal governments. The new Moncton-based units will be funded under Phase III of the Canada – New Brunswick Affordable Housing Agreement.

Social Development Minister Mary Schryer, who is also minister responsible for housing, and Tilly O’Neill-Gordon, Member of Parliament for Miramichi, 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.

“We are pleased to join our partners in these projects to help increase the availability of high-quality and affordable homes for low-income seniors in the Moncton area,” said Schryer. “The creation of more affordable housing is part of this government’s efforts to help seniors be active and healthy members of local communities.”

The $4.9 million project at 430 High St. is expected to be completed by January 2010.

The units are being developed by Tannery Court Cooperative Ltd. The project will receive funding of $1.4 million under the Federal Affordable Housing Trust Fund to offset construction costs, as well as $2.1 million in rent supplements from the Province of New Brunswick for 49 of the 50 units.

“The Government of Canada is committed to making affordable housing available in New Brunswick and across Canada for those who need it most,” said MP O’Neill-Gordon. “Here in Moncton, the creation of these units will help individuals and persons with disabilities access suitable, affordable housing that meets their specific needs.”

Funding is available to private non-profit organizations, co-operatives, and community or private developers interested in developing projects for low- to moderate-income families, seniors, non-elderly singles, disabled persons and persons with special needs.

This project will be built to high energy-efficiency standards, and it will involve consultation with Efficiency NB. Builders of affordable housing projects for low-income individuals may receive an incentive of $2,000 per apartment unit if the building is heated by low greenhouse gas emission technologies as approved by Efficiency NB.

VAUGHAN, April 30, 2009 — The Government of Canada, the Government of Ontario and the Region of York celebrated the start of construction of the Reena Community Residence, a development of 60 new affordable housing units in the City of Vaughan. This project received $4.2 million in funding through the Canada – Ontario Affordable Housing Program.

The Honourable Madeleine Meilleur, Minister of Community and Social Services, on behalf of the Honourable Jim Watson, Ontario’s Minister of Municipal Affairs and Housing attended the official groundbreaking ceremony. Also participating in today’s announcement were York Regional Chairman and CEO Bill Fisch and officials from Canada Mortgage and Housing Corporation (CMHC) and Reena.

“The Government of Canada is committed to making affordable housing available in Ontario and across Canada for those who need it most,” said the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister responsible for CMHC. “The creation of these new units here in Vaughan will provide low-income seniors and people with special needs access to quality, affordable housing and the services that meet their specific needs, while remaining close to their families and friends in the community.”

“Access to safe, affordable housing is vitally important to the economic and social well-being of Ontario’s communities,” said Tanya Hutchens. “This investment will make a significant difference in the lives of people, especially those with disabilities, who will call Reena Community Residence home.”

Today’s announcement was made at the future site of the Reena Community Residence, at 9600 Bathurst Avenue in the City of Vaughan. The $23-million project, which includes $4.2 million from the Canada – Ontario Affordable Housing Program and $2.6 million from the Ministry of Community and Social Services, is sponsored by Reena, an organization committed to investing in a better quality of life for people with developmental disabilities.

Federal and provincial allocations to the project are to be complemented by more than $3.6 million in municipal financial incentives.

“When completed, this residence will offer a full spectrum of needed supports that will enhance the lives of the people who live here, their families and our community,” said York Region Chairman and CEO Bill Fisch. “The Regional Municipality of York is proud to be a partner in this project.”

The Reena Community Residence is situated on the Joseph and Wolf Lebovic Jewish Community Campus. The campus is a project of UJA Federation of Greater Toronto’s Tomorrow campaign, which is building three centers of Jewish life in the GTA. In addition to educational facilities, the campus will be home to social services and recreational centers for all GTA residents.

“The Reena Community Residence at the Joseph and Wolf Lebovic Jewish Campus will give Reena an opportunity to create a model of support which is unique,” said Sandy Keshen, President and CEO of Reena. “In partnership with a number of other service providers, it will set a bench mark for the future — demonstrating that services can be provided in an integrated setting to a population with diverse needs.”

The Canada – Ontario Affordable Housing Program, says Tanya Hutchens, 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.

Iqaluit is the capital of Nunavut, the territory in the eastern Arctic that became self-governing in 1999. With a population of around 6,000, Iqaluit is relatively small but fast-growing–its population doubled between 1999 and 2006 and is expected to double again by 2015. Nurturing the homeownership market and encouraging affordable homeownership are among the many goals the City has integrated into its planning.

Iqaluit (formerly known as Frobisher Bay) is on Baffin Island. It faces many challenges as Nunavut develops its own infrastructure and all levels of government explore the viability of an integrated deepwater port. The physical terrain, says Tanya Hutchens, presents construction challenges, as do the costs and availability of materials and skilled labour. Moreover, there are market distortions peculiar to the Far North. Only 20% of the territory population owns their own homes and in Iqaluit 37% of residences are owned. In consideration of the higher housing costs both rental and homeownership in Iqaluit, the federal government and other employers offer subsidized staff housing as a benefit to attract employees and this is a significant factor to keep in mind when looking at homeownership. As recently as 1996, 59% of the population of Nunavut lived in public housing, where as in Iqaluit 17% of residences are public housing.

To add to its other challenges, Nunavut and the Far North in general appear to be experiencing the effects of climate change sooner and with greater impact than the rest of the world. Undaunted, the City laid the groundwork to face these varied issues in its Core Area and Capital District Plan completed in 2004. More importantly, the City began implementing the plan in October 2004 by reserving lots in its new Plateau sub- division for affordable housing. The City is unequivocal that it is not a housing developer and has clearly made it known that it will use its planning authority and land base to encourage sustainability and the kind of housing it wants.

The Affordable Housing Solution

In Phase I of the new Plateau subdivision, Iqaluit designated two medium-density lots for affordable ownership by offering a reduced land price. Each lot had capacity for a fourplex of two-bedroom units. The successful developer sold all units before construction began. The sale prices were in the $200,000-$225,000 range, which is affordable given Iqaluit’s market conditions. Two-bedroom apartments were renting for between $1,700 and $1,800 monthly; the median household income was $69,650 and the average $78,644 in 2001. Households in the $60,000-$66,000 income bracket could afford the price range of the eight affordable units.

In the proposal call used to allocate those lots, the City specified standards and evaluation criteria to guide interested developers. All units were to be attached, ground-level units with individual entrances, with special attention to sound attenuation. The lower the selling price within a specified range of affordability, the higher the proposal would score. Affordability was measured on a sliding scale of estimated sale prices. For example, units selling at less than $210,000 received 20% of the potential score and those from $230,000 to $239,000 5%. The percentage applicable to sustainability features beyond those required in the subdivision plan was also set at 20%.

The land price for the whole subdivision was based on the pro-rated costs to service the lots in the subdivision. But the prices were adjusted to reflect other factors the market would recognize. For example, lots with views on the water and other factors deemed desirable were assigned a premium price. Those premiums offset the lower prices for the lots designated for the affordable homeownership sites.

The City leases the lots to the homeowners for a 30-year term with an automatic renewal for another 30-year term at a cost of one dollar. These equity lease rents can be paid upfront as a capitalized rent at the beginning of the lease or paid over the first 15 years of the term. If the equity lease is paid upfront in a lump sum, the lessee pays a discounted rent amount. It should be noted CMHC allows Equity Leases to be included in mortgage costs, which may further assist in reducing land costs. The latter rent payments are adjusted to include interest reflecting the City’s carrying costs in providing the infrastructure to service the lots.

Another three medium-density lots designated for affordable homeownership will be made available through a proposal call in the next year for the phase II potion of the Plateau subdivision. The City of Iqaluit received assistance in preparing its Core Area Plan from CMHC and the Federation of Canadian Municipalities Green Municipal Enabling Funds. In 2005, the Plan won an award from the U.S.-based Environmental Design Research Association for its sensitivity to the Arctic environment, respect of Inuit culture and creativity in its vision for the new capital. The Plan also received an Award of Excellence from the Alberta Association of the Canadian Institute of Planners in 2006. What a great example, says Tanya Hutchens.