Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

July 15, 2009 23:59 ET

Canada's Economic Action Plan delivers housing-related infrastructure loan for Bridgetown

BRIDGETOWN, NS, July 15 - The Government of Canada announced today
that the Town of Bridgetown has been approved for an infrastructure loan as
part of Canada's Economic Action Plan.

The announcement was made by Greg Kerr, Parliamentary Secretary to the
Minister of Veterans Affairs and Member of Parliament for West Nova, on behalf
of the Honourable Diane Finley, Minister of Human Resources and Skills
Development Canada and Minister Responsible for Canada Mortgage and Housing
Corporation (CMHC).

Bridgetown has been approved for more than $350,000 in low-cost loans
from CMHC's Municipal Infrastructure Lending Program (MILP), which will be
used for the renewal of Church Street. This includes repairs to the surface
and sub-surface of the street, as well as improvements to the wastewater
collection system. Residents of Bridgetown will soon see improvements to
traffic flow and reduced damage to vehicles and homes. The repairs will also
minimize danger to pedestrian traffic.

"Our Government understands the importance of infrastructure in
maintaining strong and prosperous communities," said Parliamentary Secretary
Kerr. "This program is opening the door for municipalities of all sizes to
meet their housing-related infrastructure needs and create jobs. It's good
news not only for Bridgetown, but also for Nova Scotia."

Canada's Economic Action Plan provides up to $2 billion in direct
low-cost loans to municipalities, over two years, for housing-related
infrastructure projects through the MILP. Municipal infrastructure loans are
available to any municipality in Canada and provide a new source of funds for
municipalities to invest in housing-related infrastructure projects. These low
cost loans can also be used by municipalities to fund their contribution for
cost-shared federal infrastructure programming.

"The opportunity to borrow money through this program makes a huge
difference in the town's ability to move forward with this significant
infrastructure project," said Art Marshall, Mayor of Bridgetown.

Eligible projects include infrastructure related to housing services such
as water, power generation and waste services, as well as local transportation
infrastructure within and into residential areas, such as roads, sidewalks,
lighting and green space.

As Canada's national housing agency, 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.

More information on this and other measures in Canada's Economic Action
Plan, a plan to stimulate the economy and protect those hit hardest by the
global recession, can be found at: www.actionplan.gc.ca.

More information, including applications forms, for municipalities
wishing to apply for loans can be found at:
www.cmhc.ca/housingactionplan.gc.ca.

Backgrounder attached.

BACKGROUNDER
HELPING MUNICIPALITIES BUILD STRONGER COMMUNITIES
CMHC Municipal Infrastructure Lending Program

Canada's Economic Action Plan provides up to $2 billion in direct
low-cost loans to municipalities over two years through Canada Mortgage and
Housing Corporation (CMHC)'s Municipal Infrastructure Lending Program (MILP)
for housing-related infrastructure projects in towns and cities across the
country.

These infrastructure loans are available to any municipality within
Canada and will provide a new source of funds for municipalities to invest in
housing-related infrastructure projects. Only infrastructure projects serving
new or existing residential areas may be considered.

Eligible municipal infrastructure projects must directly relate to
housing, thereby contributing to the efficient functioning of residential
areas. Projects include infrastructure related to the provision of housing
services such as water, wastewater and solid waste services; power generation;
local transportation infrastructure within or into residential areas such as
roads, bridges and tunnels; and residential sidewalks, lighting, pathways,
landscaping and green space.

Infrastructure projects not directly related to housing such as social
infrastructure projects, including community centres, skating rinks,
playground equipment and libraries, are not eligible under this program.

There will be a focus on funding projects that are shovel-ready, as this
is a targeted, short-term, temporary measure intended to create jobs.

These low-cost loans will significantly decrease the cost of borrowing
for municipalities and can be used by them to fund their contribution for
cost-shared federal infrastructure programming.

Eligible loans will be approved largely on a first-come, first-served
basis, provided the proposal meets eligibility requirements. However, CMHC
will also seek to facilitate equitable access to the program and will work to
encourage applications from urban and rural municipalities across Canada.

CMHC will screen applications against program eligibility, readiness to
proceed and Canadian Environmental Assessment Agency (CEAA) requirements.

For more information or to make an application, municipalities can visit
CMHC's website at www.cmhc.ca/housingactionplan.gc.ca.

Contact Information

  • Media inquiries: Michelle Bakos, Office of the
    Honourable Diane Finley, Minister of Human Resources and Skills Development
    Canada, (819) 994-2482; Kristen Scheel, CMHC Media Relations, (613) 748-2799