Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

July 21, 2009 23:59 ET

Charlottetown celebrates new affordable housing

CHARLOTTETOWN, July 21 - The Government of Canada, the Government
of Prince Edward Island, and a local developer are partnering on a joint
investment to build new affordable housing for a dozen Island families. The
$1.5-million complex is made possible in part through a $414,000 investment
from the Canada-P.E.I Affordable Housing Agreement and the Affordable Housing

The Honourable Michael Duffy, Senator for Prince Edward Island, 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), and the Honourable Doug Currie, Minister of Social
Services and Seniors for PEI, made the announcement at the Charlottetown
construction site today.

"The Government of Canada is committed to creating safe and affordable
housing for lower-income families in PEI and across the country," said Senator
Duffy. "This project provides access to quality housing in Charlottetown at an
affordable cost."

Today's announcement recognized the start of a 12-unit project in
Charlottetown. Brent McQuaid of BM Housing is developing the new affordable
housing complex at 312 University Avenue, near public transit, schools,
businesses and community services. Each new unit will have two bedrooms, and
tenants will pay up to $685 per month in rent, including heat.

"With an ideal location on University Avenue, this new complex will offer
families healthy and affordable homes within walking distance of grocery
stores, banks, schools and community services," said Minister Currie. "This
new initiative means more families in our One Island Community will be able to
live in housing that offers them a good quality of life."

In addition, the project received SEED funding through CMHC to assist
during the initial planning stages. Construction is expected to be complete by
December 2009, with families moving in shortly afterward.

The Canada - Prince Edward Island Affordable Housing Agreement involves
an investment of $8.32 million in the creation of affordable housing units in
Prince Edward Island. To date, more than 120 units have been supported by the
Agreement in rural and urban communities across P.E.I.

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.

To find out more about how the Government of Canada and CMHC are working
to build stronger homes and communities for all Canadians, call CMHC at
1-800-668-2642 or visit For more information on
Canada's Economic Action Plan, call 1-800-O Canada or visit


The Government of Canada's commitment to affordable housing is

Overall, Canada's Economic Action Plan provides a total of $7.8 billion
to build quality housing, stimulate construction, create jobs, encourage home
ownership and enhance the energy efficiency of Canadian homes. In the process,
it will provide new and renovated housing for more than 200,000 Canadian

Of the $7.8 billion, more than $2 billion is provided through CMHC to
build new and renovate existing social housing. This will include:

- $1 billion for social housing renovation;

- $600 million for new housing and repairs to existing social housing on-
reserve and in the North broken down as follows:

- $400 million for on-reserve communities

- $200 million for the North

- $400 million for housing for low-income seniors; and

- $75 million for housing for people with disabilities.

Most of this funding, $1.525 million of the more than $2 billion is being
delivered by provinces and territories through amendments to existing
agreements. Provinces and territories will design and deliver these
initiatives, as well as cost-match the federal investment.

The federal government will directly deliver the remaining $550 million
of this $2 billion funding: $150 million for the renovation and retrofit of
social housing projects administered by Canada Mortgage and Housing
Corporation (CMHC), and $400 million in new construction and repair for
housing on-reserve through CMHC and Indian and Northern Affairs Canada.

In September 2008, the Government of Canada also announced $1.9 billion
over five years for housing and homelessness programs for low-income
Canadians. As part of this investment, the Affordable Housing Initiative and
the federal renovation programs for low-income households were extended for
two years. For PEI, this includes a total investment of $5 million for these
two-year extensions.

Overall, for both the stimulus funding and extensions, the federal
contribution is $7 million, while the province is contributing a further $6
million for the combined investment of $13 million.

As well, up to $2 billion in low-cost repayable loans for housing-related
infrastructure projects will be made available to towns and cities across the

The Government of Canada, through CMHC, spends approximately $1.7 billion
annually to support almost 625,000 low- and moderate-income households in
existing social housing across Canada. In Prince Edward Island, the federal
government provides almost $13.3 million annually to support some 3,100