Canada's Economic Action Plan Delivers a Housing-Related Infrastructure Loan to a Newfoundland Municipality

GILLAMS, NEWFOUNDLAND AND LABRADOR--(Marketwire - July 22, 2011) - The Government of Canada announced today that the Town of Gillams has been approved for a $100,000 low-cost infrastructure loan as part of Canada's Economic Action Plan.

The announcement was made by the Honourable Peter Penashue, Minister of Intergovernmental Affairs, President of the Queen's Privy Council for Canada and Minister Responsible for Newfoundland and Labrador on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

"Our Government understands the importance of infrastructure to maintain and support prosperous communities," said Minister Penashue. "This program has opened the door here in Gillams and in municipalities across Canada to meet their housing-related infrastructure needs. Canada's Economic Action Plan will continue to create jobs and stimulate the local economy here in Newfoundland and in all corners of the country."

The Town of Gillams has been approved for a $100,000 low-cost loan from CMHC's Municipal Infrastructure Lending Program (MILP). These funds are being used to upgrade the town's drinking water supply.

"This is the second time now Gillams has used CMHC for Capital grant projects as our source of funding. The Community of Gillams greatly appreciates the funds made available through CMHC's Municipal Infrastructure Lending Program.", said Shelley Penny, Town Manager. "With this low-cost loan we are able to afford to provide residents with a new septic outfall which was our project last year and this year we are able to provide residents with clean drinking water. We would like to thank CMHC for providing us with funding which has allowed Gillams to better prepare for future growth."

Canada's Economic Action Plan provided $2 billion over two years in direct low-cost loans to municipalities. Municipal infrastructure loans were available to any municipality in Canada and provided a new source of funds for municipalities to invest in housing-related infrastructure projects.

These low-cost loans could be used by municipalities to fund their contribution for cost-shared federal infrastructure programming.

Eligible projects included 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, firehalls and green space.

CMHC has been Canada's national housing agency for more than 65 years. CMHC is committed to helping Canadians access a wide choice of quality, environmentally sustainable, affordable housing solutions, while making vibrant, healthy communities and cities a reality 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.

BACKGROUNDER

HELPING MUNICIPALITIES BUILD STRONGER COMMUNITIES

CMHC's Municipal Infrastructure Lending Program

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

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

Eligible municipal infrastructure projects needed to be directly relate to housing, thereby contributing to the efficient functioning of residential areas. Projects included 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, firehalls and green space.

There was a focus on funding projects that were shovel-ready, as this was a targeted, short-term, temporary measure intended to create jobs.

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

Loans were approved on a first-come, first-served basis, provided the proposals met eligibility requirements. To facilitate equitable access to the program, applications were encouraged from both urban and rural municipalities across Canada.

CMHC screened applications against program eligibility, readiness to proceed and Canadian Environmental Assessment Agency requirements.

For more information visit CMHC's Web site at www.cmhc.ca/housingactionplan.