Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation
Canada's Economic Action Plan

Canada's Economic Action Plan

September 09, 2011 13:00 ET

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

STRATHMORE, ALBERTA--(Marketwire - Sept. 9, 2011) - The Government of Canada announced today that the Town of Strathmore has been approved for a low-cost infrastructure loan as part of Canada's Economic Action Plan.

The announcement was made by Kevin Sorenson, Member of Parliament for Crowfoot, 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 MP Sorenson. "This program opened the door here in Strathmore 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 Alberta, and in all corners of the country."

The Town of Strathmore has been approved for more than $4 million in a low-cost loan from CMHC's Municipal Infrastructure Lending Program (MILP). This will help to upgrade the community water supply system for local residents and includes the construction of a water pipeline from Calgary to Strathmore. This is a good example of how the Municipal Infrastructure Lending Program is helping to improve community infrastructure for the health and safety for local residents, while creating jobs for Canadians.

"We were pleased to receive funding through the Municipal Infrastructure Lending Program from Canada Mortgage and Housing Corporation, for just over $4.1 million," said Mayor Steve Grajczyk. "With 13,000 residents and a forecast for continued growth, the new waterline will support the anticipated growth and Strathmore's continued goal to be a truly sustainable community."

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 residential green spaces.

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 related 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 residential green spaces.

There was a focus on funding projects that were construction-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.

Contact Information

  • Kimberlee Jones
    Senior Communications Consultant
    CMHC
    403-515-3048
    kjones@cmhc.ca

    Alyson Queen
    Press Secretary
    Office of Minister Finley
    819-994-2482