Canadian Mortgage News

July 2006 National News Archive

New Affordable Housing Units for Seniors in Grand Falls

GRAND FALLS, New Brunswick, July 6, 2006 — Seniors in Grand Falls will have access to more affordable housing with the construction of a new housing complex on 1^st Avenue in Grand Falls.

The project, known as "Les Villas LPR," received $390,000 in funding under the Canada – New Brunswick Affordable Housing Agreement.

Mike Allen, Member of Parliament for Tobique-Mactaquac, on behalf of the Honourable Diane Finley, Minister of Human Resources and Social Development, along with the Honourable Bernard Lord, Premier of New Brunswick, made the announcement today.

"Canada's new Government is very proud to be supporting this project," said Mr. Allen. "Our seniors deserve safe, quality housing where they can live with dignity."

"We are happy to work with various partners to create more long-term, affordable housing for New Brunswickers as part of this Affordable Housing Agreement," Premier Lord said.

The project, to be developed by entrepreneur Roger Gagnon, received $150,000 in federal funding to offset the construction costs totalling $775,500. The project also received $240,000 in rent supplements from the Province of New Brunswick for six of the 12 units.

The Canada – New Brunswick Affordable Housing Agreement involves investments of more than $45 million for the creation of affordable housing units in New Brunswick.

For further information, please contact:

Robert Duguay
Communications
Family and Community Services
506-444-3684

Marianne Murphy
Marketing and Communications Consultant
Canada Mortgage and Housing Corporation
506-851-6581

See Related Speech

Backgrounder

Canada – New Brunswick Affordable Housing Agreement

Phase I

Objectives:

• To create and sustain rental housing for low- to moderate-income New Brunswick households through new construction or rehabilitation.
• Housing must be affordable for at least 10 years.

Program:

• Funding under this agreement will be used for a Rental Housing Program.
• The program will create and sustain in excess of 600 units of rental housing for low- to moderate-income households.
• Funding is available to private non-profits, cooperatives, community or private developers interested in developing projects for low- to moderate-income families, seniors, non-elderly singles, disabled persons and persons with special needs.

Administration:

• The program will be administered by the New Brunswick Department of Family and Community Services.
• Family and Community Services is responsible for the selection of affordable housing projects.

Financial Provisions:

• Maximum CMHC funding under the agreement is $14.98 million to be matched by the Province of New Brunswick for a total of $29.96 million.
• Overall average CMHC funding will not exceed $25,000 per unit.
• Province of New Brunswick will provide rent supplements for low- to moderate-income households who occupy their housing.

Phase II

Phase II of the Agreement increases the total investment under the Canada – New Brunswick Affordable Housing Program Agreement by $15.14 million in funding. The Government of New Brunswick will contribute at least 50 per cent of the matching funding; up to 10 per cent may come from municipalities and other third parties.

Under Phase II, funding will be:

• used for the Rental Housing Program in Phase I plus a new rent supplement program;
• targeted to urban areas with considerable housing needs; and
• targeted to persons on or eligible to be on a waiting list for social housing.

News source: Canada Mortgage and Housing Corporation (CMHC)