Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation
Canada's Economic Action Plan

Canada's Economic Action Plan

September 16, 2010 08:22 ET

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

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(Marketwire - Sept. 16, 2010) - The Government of Canada announced today that the City of Charlottetown has been approved for two infrastructure loans as part of Canada's Economic Action Plan.

The announcement was made by The Honourable Gail Shea, Minister of Fisheries and Oceans, on behalf 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 Shea. "This program is opening the door for municipalities to meet their housing-related infrastructure needs. Canada's Economic Action Plan will continue to create jobs and stimulate the local economy here in Charlottetown, and in all corners of the country."

The City of Charlottetown has been approved for more than $7.4 million in low-cost loans from CMHC's Municipal Infrastructure Lending Program (MILP). These funds will be used to upgrade the City's wastewater treatment system while also repairing a number of residential streets throughout the City. These projects will improve wastewater treatment facilities and also improve traffic flow and safety for residents of the City of Charlottetown.

Canada's Economic Action Plan provides up to $2 billion in direct low-cost loans to municipalities, over two years, for housing-related infrastructure projects through the MILP. Municipal infrastructure loans are available to any municipality in Canada and provide a new source of funds for municipalities to invest in housing-related infrastructure projects. These low cost loans can also be used by municipalities to fund their contribution for cost-shared federal infrastructure programming.

"The City of Charlottetown greatly appreciates the funds made available through CMHC's Municipal Infrastructure Lending Program", Mayor Clifford Lee said. "The funds made available through this program allows Charlottetown to better prepare for future growth and prosperity."

Eligible projects include 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 and green space.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities 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

More information, including applications forms, for municipalities wishing to apply for loans can be found at: www.cmhc.ca/housingactionplan.

BACKGROUNDER

HELPING MUNICIPALITIES BUILD STRONGER COMMUNITIES

CMHC Municipal Infrastructure Lending Program

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

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

Eligible municipal infrastructure projects must directly relate to housing, thereby contributing to the efficient functioning of residential areas. Projects include 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 and green space.

There will be a focus on funding projects that are shovel-ready, as this is a targeted, short-term, temporary measure intended to create jobs.

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

Eligible loans will be approved largely on a first-come, first-served basis, provided the proposal meets eligibility requirements. However, CMHC will also seek to facilitate equitable access to the program and will work to encourage applications from urban and rural municipalities across Canada.

CMHC will screen applications against program eligibility, readiness to proceed and Canadian Environmental Assessment Agency (CEAA) requirements.

For more information or to make an application, municipalities can visit CMHC's website at www.cmhc.ca/housingactionplan

Contact Information

  • CMHC
    Jennifer MacNeil
    Communications and Marketing
    902-406-7683
    or
    CMHC Media Relations, National Office
    Charles Sauriol
    613-748-2799
    or
    Office of the Honourable Diane Finley
    Minister of Human Resources and Skills Development
    Michelle Bakos
    819-994-2482