Group Quorum

Group Quorum

August 18, 2014 17:55 ET

Group Quorum Applauds the City of Montreal's Efforts at Maintaining the Programs, but Worries About the Long-Term Impacts

Financial Assistance Programs for Home Ownership and Renovations

MONTREAL, QUEBEC--(Marketwired - Aug. 18, 2014) - Group Quorum, a construction and real estate developer in Montreal, Laval, and Vaudreuil-Dorion applauds the City of Montreal's decision to launch its own, independent program for providing financial assistance for the purchase and renovation of properties. This was announced today by Mayor Denis Coderre, and the borough mayor for Côte-des-Neiges-Notre-Dame-de-Grace and Executive Committee member responsible for housing, urban planning, buildings, real estate transactions and strategies, Russell Copeman. The City's decision will help compensate for the suspension of Société d'habitation du Québec (SQH) programs this past July.

Despite the City's best efforts, the Provincial Government's decision to suspend its part in the financial assistance programs will have serious consequences in the Montreal market for not only buyers, but for the entire real estate and developer industry.

These programs supported buyers on the island of Montreal and were meant to slow the exodus of families to the suburbs. They have also had several positive impacts on communities across the island of Montreal since their launch. To date, many neighborhoods throughout Montreal have benefitted from the arrival of new owners and occupants that encourage growth in the form of parks, schools, public transport and the opening of retail spaces. Developers, such as Group Quorum, aim to take an active role in the revitalization of Montreal's neighbourhoods, thanks to the financial support available through the programs. For example, 60%-70% of the units purchased in Quorum's project on Monk Street in Ville-Émard sought support from the program; the project's success has been confirmed by an endorsement from Monk Street's Retail Association.

Impacts of the Cuts Made by the Quebec Government

Following the announcement made by the City of Montreal, for a new program to support the purchase of homes, there is renewed confidence that families ready to buy their first home will see the benefits of living in the City. However, following the Provincial Government's decision to suspend its support, many families will have no choice but to move to off-island suburbs; this will lead to an increase in urban sprawl, more traffic, and a loss of property taxes for the City of Montreal.

"Since the suspension of these programs was announced in July, several buyers have contacted us to discuss the situation. For example, a couple who is buying in Verdun is supposed to take possession of their home in three weeks; their budget was based on being able to have access to the $12,000 offered through the program; this amount has now been reduced by half. With this change, their personal financial situation is threatened; they are deeply concerned about what will become of the program." said Maxime Laporte, Head of Real Estate Development and Group Quorum.

These cuts are intended create savings in the short term, but they will soon become a burden for boroughs and their citizens. Indeed, the costs related to the growing urban sprawl and the required increases in infrastructure will cancel out any savings and fall back under the Provincial Government's responsibility. Moreover, the suspension of the program will lead to a lack of interest from developers to design projects that may have been supported by these programs; the net result will be less active real estate and development market.

About Group Quorum

Quorum has been developing construction and real estate projects for more than 30 years. Groupe Quorum builds high quality projects that are always respectful of the community all the while surpassing their client's expectations at an affordable price. Quorum was recently awarded top honours by its peers of the APCHQ in receiving the industry's most prestigious award: The Master Builder Diamond Award.

Contact Information