In this issue:
- Economic & Market Commentary: Q3 2025
- Provider Profile: Legion Wood Apartments, York Region
- Client Resource: Keep Your Account Information Up to Date
- Webinar Recording: Investment Basics for Affordable Housing Providers
- Client Notice: Holiday Office Closure
Economic and Market Commentary – Q3 2025
This quarter, Encasa’s quarterly Economic and Market Commentary explores how new U.S. tariffs, slowing growth, and shifting interest rates shaped the quarter – and how investors continued to find opportunities despite economic headwinds.
In Q3, Canada’s economy faced pressure from weaker exports and a rising unemployment rate, prompting the Bank of Canada to cut interest rates for the first time since March. Even so, all major asset classes delivered solid returns, with equities leading the way thanks to strength in technology and resource sectors.
To learn more, you can view our concise Encasa Market Minute or explore the detailed Q3 2025 Economic and Market Commentary.
Provider Profile: Legion Wood Apartments, York Region
To honour Remembrance Day, this month we are focusing on a housing non-profit founded by veterans.
Legion Wood is a 30-unit seniors’ building in the community of Woodbridge in York Region. The building comprises of 22 RGI one-bedroom units and 8 market rate two-bedroom units. Opened in 1993 and founded by the (now defunct) Branch 414 Legion, it has been managed by Claudio Di Vittorio of Precision Property Management since 1998. Precision specializes in managing community housing properties, so Claudio also currently serves as property manager to two co-ops, Glen Park and Orchard Grove.
Q: Legion Wood is 32 years old. From a capital repairs and replacement perspective, how has the building held up?
We’ve been very lucky. From a capital perspective, I’ve found that it was built very well – the founding board, which was around for many years, supervised the construction very closely.
The costs we have are largely to run and to improve the building. But being a senior’s building and a building with a deep sense of community (our residents organize lots of activities for themselves), it’s had considerably less wear-and-tear than what I’ve seen in family buildings of the same age. Unit turnover is pretty minimal. We’ve also had a great superintendent, who worked here from day one and now lives here as a senior. That’s unusual nowadays but works well in this building and he keeps things in good shape. We don’t have to spend a lot of money fixing things, so we’re able to consistently contribute to our capital reserves.
Q: Can you tell us a bit about the board?
The original board members are no longer with us, but our president is from the early days. And while Branch 414 no longer exists, board members are still required to belong to a Legion. So this non-profit’s history remains part of its identity.
The current board is small – but it’s a very progressive board with good common sense. They’re also investors themselves and watch the markets. They’re not afraid of the ups and downs. I present a financial statement on a monthly basis. And when I get the quarterly reports from WorldSource, they’re part of the package.
Q: Has this always been the case? Or did the strategy change?
It changed. About 10 or 15 years ago, our treasurer at the time came into a board meeting and said, “We’re going to go big into equities.”
He was the most conservative member of the board, but he had a change of heart. He basically told the board that we needed to be aggressive and look at the long term. This building’s going to here 50 years, 100 years. We have to grow the reserve. We have to grow our funds. If you put it in a GIC, you’re limited. Sure, it’s safe, but what are you making? If you’re making 3%, which is the inflation rate right now, you’re making zero. But in Encasa’s Equity Fund, you have the possibility of making seven or eight or nine percent.
So going into equities has worked exceptionally well. But it helps that this building was well constructed and our seniors take good care of things.
Q: Have you completed any major capital projects or had any major repairs/replacements to do? If so, how have you funded them?
We’ve done a couple and the approach to financing them is fairly consistent.
This building was originally built with bathtubs. However, we find as our residents get older, tubs are very difficult to step in and out of. So over the past few years, we’ve converted the tubs into shower stalls. It’s roughly $10,000 to do the conversion. We’ve done about 80% of the units now. But it’s not being entirely covered by us. In fact, our Service Manager has funded about 90% of that. We only had to put down 10% because the costs were a little higher than what they were willing to provide. And we wanted to do more units.
During COVID, we replaced our make-up air unit because there was a funding program for ventilation projects and COCHI dollars that were available. Seniors were particularly affected by COVID so the program made sense. While our air unit wasn’t at the very end of its life, our thinking was “If the funding is there, and they recommend it, Why not?” We weren’t going to say no to $120,000 – and spending an extra $50,000 or $60,000 from the reserve was fine.
About a year ago, we replaced all our fridges. SaveOn Energy has a program where they do it for free. So how many chances do you get to do that?
Every funding opportunity that comes up, we’ll take. And that makes a big difference in terms of sustaining the reserve.
How do you find the dollars to keep funding your reserve?
Aside from taking advantage of the funding programs, we are very disciplined about spending and setting aside money.
Reserve contributions are built into our budgets every year. We pump our HST rebate into the reserve. This year it’s $80,000. We also have a $30,000 surplus this year because (as I’ve mentioned) people take care of the building and we don’t have to spend much fixing things.
Finally, our Service Manager is very progressive. If you are able to show a surplus at the end of the year, you don’t have to give it to them. As long as you put it in your capital reserves, and you let it grow, and use the capital reserve for only the capital work that needs to be done, they’ll let you keep it.
Q: Do you have any advice for other housing providers?
The big one is to utilize every single funding opportunity that’s available to you.
Related to that, be flexible on the timing of major replacements or projects – since your building components may last longer than their projected lifespan and there might be funding programs that roughly align with your capital plan.
Finally, use things like the HST rebate to build your reserve – every housing provider can do this – and think about investing for the long term.
Client Resource: Keep Your Account Information Up to Date
At Encasa Financial, we’re here to help make confident investment decisions that support the long-term health and affordability of your community housing portfolio. The funds you’ve set aside for capital repairs deserve careful stewardship – and that starts with keeping your account information up to date.
Why It Matters
Keeping your account details current helps us serve you better:
- Keep your investments on track –Your organization’s goals, liquidity needs, and risk profile can change over time. An updated account ensures your investments are well aligned with your organization’s capital plan and investment needs.
- Avoid delays – Outdated information can slow down or even stop transactions. For example, when your organization submits trade instructions, we must verify that they align with the investor profile we have on file. If there’s a mismatch, the transaction can’t proceed until everything is updated.
- Get advice that fits – Ensuring we have accurate records for all clients is a regulatory requirement for good reason; it is essential for providing investment advice that reflects your organization’s real needs and goals.
- Protect your account – Keeping current contact information and authorized signers helps to prevent unauthorized access or fraud.
What to Update
Changes happen all the time — here are a few examples of when to reach out:
- Financial or organizational changes: Mergers, changes in your capital plan, or shifts in your organization’s goals or liquidity needs.
- New signing officers or contacts: If your board, signing officers, or staff contacts change, let us know right away. (See our last Capital Ideas issue for a refresher on why this is important.)
- Address or contact changes: Update us if you’ve moved or changed your mailing address, phone number, or email.
- Change in Property Manager: If your property manager or management company has changed, be sure to update us.
- Authorized Access: If you’re granting or revoking online access for staff or your property manager, you will need to complete a form to help us keep your account secure.
When to Update
We’re required to complete a full account review – called a Know Your Customer (KYC) update – every three years. However, we recommend checking in with your Advisor at least once a year, or anytime there’s a change to your organization, finances, or contacts.
How to Update
Whether you’re making a small change or want to book a full account review, we’re here to help. Contact us:
- Phone: (Toll-Free) 1-888-791-6671
- Email: information@encasa.ca
We will let you know if any forms or documents are needed. To avoid delays, please use the latest version of our forms — older ones may have outdated contact information.
Book an Account Review Today!
If it’s been a while since your last review, now is a great time to connect. Keeping your account current helps your investments run smoothly – so you can focus on what matters most: providing safe, affordable homes in your community.
Webinar Recording: Investment Basics for Affordable Housing Providers
Are you an affordable housing provider struggling to balance today’s maintenance costs with tomorrow’s capital projects? A smart investment strategy can help ensure your organization’s financial stability and growth.
We recently presented a beginner-friendly webinar aimed at demystifying investing and providing a high-level guide for aligning your financial strategy with your organization’s capital needs. Whether you’re new to investing or seeking a refresher, this recorded 1-hour session will equip you with practical tools and confidence to make informed decisions – no financial expertise required!
What You’ll Learn:
- How to assess short- and long-term capital needs for your properties
- Strategies to choose investments that combat inflation and grow your funds
- Which investment options best align with your organization’s goals
- Practical tips for creating and updating an effective investment strategy
Client Notice: Holiday Office Closure
Please be advised that the Encasa offices in both Ontario and British Columbia will be closed on Tuesday November 11 as well as from Wednesday, December 24, 2025 to Thursday January 1, 2026. During this period, we will have a minimal staff on call to address any urgent matters.
Markets will also be closed on the following days:
- Thursday, December 25, 2025
- Friday, December 26, 2025
- Thursday, January 1, 2026
Should you have any urgent business during this time, email information@encasa.ca. However, we recommend that you contact us by Friday, December 19 if you need anything processed before year end.
The Encasa office and markets will re-open on Friday, January 2, 2026.