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

RICHMOND COUNTY, NOVA SCOTIA--(Marketwire - Sept. 12, 2011) - The Government of Canada announced today that the Municipality of the County of Richmond has been approved for low-cost infrastructure loans as part of Canada's Economic Action Plan.

The announcement was made by the Honourable Peter MacKay, Minister of National Defence and Member of Parliament for Central Nova, 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 MacKay. "This program opened the door here in Richmond County and in municipalities across Canada to help meet the housing-related infrastructure needs. Canada's Economic Action Plan will continue to create jobs and stimulate the local economy here in Nova Scotia and in all corners of the country."

Richmond County has been approved for more than $900,000 in low-cost loans from CMHC's Municipal Infrastructure Lending Program (MILP). These funds are being used to improve the efficiency and expand the wastewater and sewer systems for the residents of Evanston and Arichat. This is a great example of how the Municipal Infrastructure Lending Program is improving community infrastructure while creating jobs for Canadians.

"Being able to access funds from CMHC for Evanston Sewer Treatment Plant benefits all of our ratepayers," said Warden John Boudreau, Municipality of the County of Richmond. "The benefits realized from these savings are important for a municipality of our size. We are very pleased with our relationship with CMHC on this project. "

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 residential green spaces.

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).

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 residential green spaces.

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.