Canada's Economic Action Plan Creates Jobs And Improves Social Housing In Prince Edward Island

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(Marketwire - Dec. 19, 2011) - The Honourable Gail Shea, Minister of National Revenue and Member of Parliament for Egmont, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), visited the Home Base Inc. Fitzroy Centre today to view the progress on renovations currently underway.

The Government of Canada provided $106,609 to the non-profit organization, through Canada's Economic Action Plan, as part of the social housing renovation and retrofit investments.

"Our Government is committed to giving a hand up to the people of Prince Edward Island in need of safe, affordable housing," said Minister Shea. "We are also focused on the economy, supporting hardworking Canadians and their families and completing and securing the economic recovery. Our plan invests in jobs and growth, and control government spending to eliminate the deficit."

The Government of Canada, through Canada's Economic Action Plan, announced $1 billion for social housing renovation and retrofit. Of the $1 billion, $850 million was being delivered by provinces and territories on a cost-matched basis for existing federally assisted social housing projects which they administer on behalf of the partnership. The remaining $150 million was being delivered by CMHC for existing federally assisted off-reserve housing which it directly administers. Eligible repairs included general improvements, energy efficiency upgrades or conversions, and modifications in support of persons with disabilities.

Human Resources and Skills Development Canada's Homelessness Partnering Strategy (HPS), through the John Howard Society of PEI, provided funding of $130,000 to the Canadian Mental Health Association for the Fitzroy Renovations project. The HPS is a unique community-based program aimed at preventing and reducing homelessness by providing direct support and funding to 61 designated communities across Canada.

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

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 www.cmhc.ca/housingactionplan.

BACKGROUNDER

RENOVATION AND RETROFIT OF EXISTING SOCIAL HOUSING

ADMINISTERED BY CMHC

The Government of Canada's commitment to affordable housing is significant.

Overall, Canada's Economic Action Plan provided 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. Canada Mortgage and Housing Corporation (CMHC) delivered $2 billion to provide new and renovated housing for more than 200,000 Canadian households.

Co-operative and non-profit housing represented an important form of housing for many low and moderate-income households. A portion of the existing units were aging and required repairs and upgrading to meet modern energy efficiency and accessibility standards.

As part of Canada's Economic Action Plan, the federal government invested $1 billion to renovate and retrofit existing social housing. Of this amount, $850 millions will be used for existing social housing projects administered by provinces and territories, which are in receipt of annual Federal funding. Provinces and territories are required to cost-share this funding on a 50-50 basis and are responsible for program design and delivery.

The remainder of the $1 billion, $150 million was delivered over two years to address the needs of existing social housing units directly funded and administered by CMHC. This $150 million was targeted, under the Renovation and Retrofit of Existing Social Housing Initiative (the "Renovation and Retrofit Initiative"), to off-reserve federally funded and administered social housing units currently subject to an operating agreement under a National Housing Act social housing program. The following criteria were applied to the $150 million being delivered by CMHC:

• This initiative was to help address the demand for renovation, general improvement, energy efficiency upgrade or conversion, regeneration and modifications for persons with disabilities;

• Applicants must have had the capacity to undertake work quickly and must meet all other program eligibility criteria; and

• Priority was to be given to sponsors who have managed their projects well and who did not have sufficient funds in their replacement reserve to carry out repairs.

Eligible repairs included, but are not limited to repairs to existing building components, replacement or construction of worn out major building components, major building services, basic facilities and equipment.