Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation
Canada's Economic Action Plan

Canada's Economic Action Plan

August 30, 2011 08:30 ET

Canada's Economic Action Plan Delivers Housing-Related Infrastructure Loans to Prince Edward Island Municipalities

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(Marketwire - Aug. 30, 2011) - The Government of Canada announced today that the City of Charlottetown and the Town of Stratford have been approved for low-cost infrastructure loans as part of Canada's Economic Action Plan.

The announcement was made by the Honourable Gail Shea, Minister of National Revenue, Regional Minister for Prince Edward Island and Member of Parliament for Egmont 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 Minister Shea. "This program opened the door here in Charlottetown 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 Prince Edward Island, and in all corners of the country."

The City of Charlottetown has been approved for more than $8.5 million in low-cost loans from CMHC's Municipal Infrastructure Lending Program (MILP). These three loans are being used to help finance the City's local transportation and water distribution system. This is a great example of how the Municipal Infrastructure Lending Program is improving community infrastructure while creating jobs for Canadians.

"I am pleased, as Mayor of Charlottetown for this opportunity to be able to leverage the scarce dollars available to take on significant municipal infrastructure projects," Mayor Lee said. "These projects will benefit the citizens of Charlottetown and visitors from throughout the region who visit our beautiful, historic capital."

The Town of Stratford has been approved for more than $600,000 in low-cost loans from CMHC's Municipal Infrastructure Lending Program. These three loans are being used to make improvements to the community's drinking water supply and wastewater distribution system. The projects will be conducted in residential areas, for the benefit of the residents of Stratford.

"The Municipal Infrastructure Lending Program has enabled Stratford to secure long term financing for the Town's portion of the Sundance Sewer, Glencove/Rodgerson Water and Lantz Water and Sewer Project," said Mayor David Dunphy. "These projects were part of the Building Canada Communities Component, which has helped the Town of Stratford to continue to provide much-needed sewer and water services to the residents of Stratford."

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

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).

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

Stratford $213,520 Wastewater - sanitary and combined sewer systems
Stratford $257,220 Water distribution system
Stratford $131,657 Drinking water supply
Charlottetown $2,031,457 Local transportation - roads
Charlottetown $5,974,024 Local transportation - arterial roads
Charlottetown $507,843 Water distribution system

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 green space.

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

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

    Giselle Thibault
    Communications and Marketing Consultant
    CMHC
    902-426-8320