Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation
Canada's Economic Action Plan

Canada's Economic Action Plan

October 13, 2010 15:00 ET

Canada's Economic Action Plan Delivers Housing-Related Infrastructure Loans Throughout Saskatchewan

SASKATOON, SASKATCHEWAN--(Marketwire - Oct. 13, 2010) - The Government of Canada announced today the approval of 12 low-cost infrastructure loans for almost $67.4 million to ten different municipalities throughout the Province of Saskatchewan as part of Canada's Economic Action Plan. The loans were provided by the Government of Canada on behalf of the Canada Mortgage and Housing Corporation through the Municipal Infrastructure Lending Program to support housing-related infrastructure projects.

The announcement was made by Kelly Block, Member of Parliament for Saskatoon – Rosetown - Biggar, 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 MP Block. "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 Saskatchewan, and in all corners of the country."

"These loans will help finance important parts of the Circle Drive South Project," said Saskatoon Mayor Donald Atchison. "But I don't just see roads and sewers - I see connecting our community, bringing people together, and supporting growth in our city."

The City of Saskatoon has been approved for two low-cost loans for $44 million to improve roads and to construct trunk storm sewer lines. The Government of Canada, through Transport Canada and in partnership with the Province of Saskatchewan and the City of Saskatoon, has previously committed a total of $96 million to the Saskatoon Circle Drive Project, in support of the Asia-Pacific Gateway and Corridor Initiative.

The Village of Medstead has been approved for two low-cost loans for almost $300,000 to upgrade its water treatment system and to increase the capacity of its wastewater treatment system. 

The Town of Kindersley has been approved for a low-cost loan for almost $10.3 million to improve its community water supply system. 

The City of Yorkton has been approved for a low-cost loan for $7.3 million for the construction of a new fire hall.

The Town of Kerrobert has been approved for a low-cost loan for $2.3 million to expand the capacity of its drinking water treatment system.

The Town of Hanley has been approved for a low-cost loan for $1.2 million to upgrade its community water supply system. 

The Village of Hepburn has been approved for a low-cost loan for more than $1.1 million create a new community water supply system. 

The Village of Vibank has been approved for a low-cost loan for more than $500,000 to upgrade its water supply and water treatment systems.

The Town of Asquith has been approved for a low-cost loan for $220,000 to install a water main / sewer trunk line.

The Village of Neudorf has been approved for a low-cost loan for $150,000 to replace water pipes along a number of residential streets.

These low-cost loans will benefit municipalities all across the Province as they pursue their housing-related infrastructure goals and 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 (www.cmhc.ca/en/corp/about/index.cfm), 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

The municipalities that have been granted low-cost loans from the Government of Canada being announced today are:

Municipality Amount
City of Saskatoon $44,000,000
Village of Medstead $294,679
Town of Kindersley $10,268,000
City of Yorkton $7,300,000
Town of Kerrobert $2,300,000
Town of Hanley $1,200,000
Village of Hepburn $1,118,000
Village of Vibank $503,334
Town of Asquith $220,000
Village of Neudorf $150,000

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

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