Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation
Canada's Economic Action Plan

Canada's Economic Action Plan
Government of Canada

Government of Canada

July 12, 2011 13:30 ET

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

LONDON, ONTARIO--(Marketwire - July 12, 2011) - The Government of Canada announced today that twelve municipalities and twenty-three projects have been approved for more than $127 million in low-cost infrastructure loans as part of Canada's Economic Action Plan.

The announcement was made by 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 Finley. "This program opened the door here in London 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 Ontario, and in all corners of the country."

The City of London has been approved for more than $15 million in low-cost loans from CMHC's Municipal Infrastructure Lending Program (MILP). These funds are being used to upgrade residential infrastructure, local transportation and wastewater treatment facilities.

"Municipalities deliver the front line services that provide for their citizen's quality of life - everything from essential services to grey and green infrastructure, but behind the municipality there must be strong support from other levels of government," said Joe Fontana, Mayor of London. "These are the partnerships that make significant improvements possible and the $15 million that has been invested in London is an outstanding example of how cooperation and well planned projects benefit us all".

The other municipalities in Ontario receiving contributions from the Government of Canada are outlined in the attached backgrounder.

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 were also 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 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.

The municipalities that will receive contributions from the Government of Canada being announced today are:

Oxford County $ 758,112 wastewater treatment systems
Oxford County $ 3,175,000 wastewater treatment systems
Oxford County $ 1,500,000 roads
Oxford County $ 2,000,000 roads
Oxford County $ 1,372,000 sanitary & combined sewer systems
Strathroy-Caradoc $ 2,700,000 wastewater treatment systems
Strathroy-Caradoc $ 900,000 drinking water supply
Temiscaming Shores $ 1,000,000 roads
Dryden $ 12,000,000 wastewater treatment systems
Wollaston $ 652,000 roads
Stone Mills $ 850,000 solar utilities
Region of Peel $ 13,264,508 wastewater treatment systems
Region of Peel $ 4,142,047 sanitary & combined sewer systems
Region of Peel $ 49,876,980 drinking water supply
Kapuskasing $ 1,998,334 roads
Wawa $ 349,836 roads
Toronto $ 8,600,000 energy systems
Toronto $ 1,600,000 electrical systems
Toronto $ 2,978,000 building, demolition & remediation of lands
North Perth $ 1,500,000 wastewater treatment systems
London $ 908,333 residential infrastructure
London $ 7,625,915 local transportation
London $ 7,333,334 wastewater treatment systems

Contact Information

  • Media inquiries:
    Office of Minister Finley
    Ann Matejicka
    Director of Communications
    819-994-2482

    CMHC
    Dean D'Souza
    Consultant, Marketing & Communications
    416-250-2760