Canada's Economic Action Plan Delivers Housing-Related Infrastructure Loan to the Town of Richibucto

RICHIBUCTO, NEW BRUNSWICK--(Marketwire - Aug. 2, 2011) - The Government of Canada announced today that the Town of Richibucto has been approved for a $1.2 million low-cost infrastructure loan as part of Canada's Economic Action Plan.

The announcement was made by the Honourable Keith Ashfield, Minister of Fisheries and Oceans, Minister for the Atlantic Gateway, Regional Minister for New Brunswick and Member of Parliament for Fredericton 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 in maintaining strong and prosperous communities," said Minister Ashfield. "Through Canada's Economic Action Plan, we were able to make important infrastructure investments while creating jobs and stimulating the local economy in all corners of the country."

The Town of Richibucto has been approved for a $1.2 million low-cost loan from CMHC's Municipal Infrastructure Lending Program (MILP). The loan is being used to upgrade the town's firehall.

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.

"The Town of Richibucto greatly appreciates the funds made available through CMHC's Municipal Infrastructure Lending Program," said Richibucto Mayor Roger Doiron. "With this low-cost loan, we are able to afford to provide residents with services the town desperately needed to upgrade. CMHC has allowed Richibucto to better prepare for future growth."

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, firehalls, lighting 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.