Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation
Canada's Economic Action Plan

Canada's Economic Action Plan

March 26, 2010 17:00 ET

CMHC: Canada's Economic Action Plan Delivers Housing-Related Infrastructure Loans to the District of Saanich

SAANICH, BRITISH COLUMBIA--(Marketwire - March 26, 2010) - The Government of Canada announced today that the District of Saanich has been approved for two infrastructure loans as part of Canada's Economic Action Plan.

The announcement was made by the Honourable Gary Lunn, Minister of State (Sport) and Member of Parliament for Saanich – Gulf Islands 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 of State Lunn. "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, provide economic stimulus for communities in all corners of the country, and support Canadian workers and families."

The District of Saanich has been approved for almost $10.2 million in low-cost loans from CMHC's Municipal Infrastructure Lending Program (MILP) to upgrade storm sewer drain systems. The upgrades will benefit residents by replacing old pipes that will prevent future failures in the storm sewer drain system.

"We are very pleased to partner with the federal government to use this low-cost loan to improve our community," said Mayor Frank Leonard. "These significant projects will have a tremendous positive impact for our citizens and their quality of life."

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.gc.ca.

Backgrounder attached.

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.gc.ca

Contact Information

  • CMHC Media Relations, BC
    Valerie Rosenthal
    604-737-4123 or Cell: 604-202-2609
    or
    Office of the Honourable Diane Finley
    Minister of Human Resources and Skills Development
    Michelle Bakos
    819-994-2482
    or
    CMHC, National Office, Media Relations
    Charles Sauriol
    613-748-2799
    www.cmhc.ca