Canada's Economic Action Plan Delivers Housing-Related Infrastructure Loans to British Columbia

LAKE COUNTRY, BRITISH COLUMBIA--(Marketwire - July 28, 2011) - The Government of Canada announced today that the Municipality of Lake Country in the Province of British Columbia has been approved for more than $600,000 in low-cost infrastructure loans as part of Canada's Economic Action Plan.

The announcement was made by Ron Cannan, Member of Parliament for Kelowna-Lake Country, 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 Cannan. "This program opened the door here in Lake Country 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 British Columbia, and in all corners of the country."

The District of Lake Country has been approved for more than $600,000 for two projects in low-cost loans from CMHC's Municipal Infrastructure Lending Program (MILP). These funds are being used to improve and expand its water treatment distribution system and upgrade the water supply system.

"The Federal Government's Economic Action Plan funding is a significant opportunity to help improve the aged and failing distribution systems for the Lake Pine and Woodsdale small scale water service areas," says Lake Country Mayor, James Baker. "The low-cost loan will help with the major infrastructure upgrades and expansion of the system which will have a substantial positive impact on the water quality and therefore, on residents on the quality of life."

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 attached

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 through CMHC's Municipal Infrastructure Lending Program (MILP) 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; fire halls and green space.

There was a focus on funding projects that were shovel-ready, as this was 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.

Eligible loans were approved largely on a first-come, first-served basis, provided the proposal meets eligibility requirements. However, CMHC sought to facilitate equitable access to the program and worked to encourage applications from 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 website at www.cmhc.ca/housingactionplan.