Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation
Canada's Economic Action Plan

Canada's Economic Action Plan

October 13, 2010 09:37 ET

Canada's Economic Action Plan Delivers Housing-Related Infrastructure Loans to Newfoundland and Labrador

ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(Marketwire - Oct. 13, 2010) - The Honourable Peter MacKay, Minister of National Defence, on behalf the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), announced today the approval of more than $4.4 million in low-cost infrastructure loans for the communities of Conception Bay South and the Town of Gillams as part of Canada's Economic Action Plan

"Our Government understands the importance of infrastructure in maintaining strong and prosperous communities," said Minister MacKay. "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 Newfoundland and Labrador, and in all corners of the country."

The Town of Conception Bay South has been approved for a low-cost loan of almost $4.4 million to upgrade its wastewater treatment system. The project includes the construction of a new lift station, the installation of new pumps and a new 9,500 meter long forcemain and will improve wastewater collection for the residents of Conception Bay South.

The Town of Gillams has been approved for a low-cost loan of more than $33,000 to upgrade its wastewater treatment system. The project includes the installation of new sewer mains and improvements to the primary wastewater treatment facility. 

"The Town of Conception Bay South is pleased to secure low interest long-term funding from the Federal Government through Canada Mortgage and Housing Corporation to assist the community in the Topsail Sewage Treatment Project," Mayor Woodrow French said. "This loan will allow the community to treat all wastewater entering Conception Bay while also resulting in significant interest savings over the next 15 years."

"The Community of Gillams greatly appreciates the funds made available through CMHC's Municipal Infrastructure Lending Program," said Town Manager Shelley Penney. "With this low-cost loan we are able to afford to provide residents with services the town desperately needed to upgrade. We are looking forward to partner with CMHC with other projects in the near future. CMHC has allowed Gillams to better prepare for future growth."

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.

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
    Katherine LeBlanc
    Communications and Marketing
    709-772-5973
    or
    CMHC
    Charles Sauriol
    National Office, Media Relations
    613-748-2799
    or
    Office of the Honourable Diane Finley
    Minister of Human Resources and Skills Development
    Michelle Bakos
    819-994-2482