Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

July 15, 2009 23:59 ET

Canada's Economic Action Plan delivers more than $20 million in housing-related infrastructure loans

OTTAWA, July 15 - The Honourable Diane Finley, Minister of
Human Resources and Skills Development Canada and Minister Responsible for
Canada Mortgage and Housing Corporation (CMHC), announced today the approval
of more than $20 million in low-cost loans for three communities, part of
Canada's Economic Action Plan.

In Nova Scotia, the Town of Bridgetown has been approved for more than
$350,000 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.

In Newfoundland and Labrador, the City of Corner Brook has been approved
for more than $19.5 million to construct a new water treatment plant.

In Saskatchewan, the Town of Asquith has been approved for $570,000 for a
new water treatment plant and for the drilling of a water supply well.

"Our Government understands the importance of infrastructure in
maintaining strong and prosperous communities," said Minister Finley. "We're
very pleased that towns and cities across Canada are taking advantage of these
low-cost loans so they can move forward quickly on their housing-related
infrastructure projects that will not only improve the quality of life for
residents, but will also help create local jobs."

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 CMHC's Municipal Infrastructure Lending
Program (MILP). Municipal infrastructure loans are available to any
municipality in Canada and will 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.

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.

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

  • 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