Canadian Mortgage News

July 2009 National News Archive

Canada’s Economic Action Plan Delivers Housing-Related Infrastructure Loan for St. Clair

COURTRIGHT, Ontario, July 24, 2009 — The Government of Canada announced today that the Township of St. Clair has been approved for an infrastructure loan as part of Canada’s Economic Action Plan.

The announcement was made by Patricia Davidson, Member of Parliament for Sarnia – Lambton, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

The Township of St. Clair has been approved for a $9 million low-cost loan under CMHC’s Municipal Infrastructure Lending Program (MILP) for the upgrade and expansion of a regional wastewater treatment plant for Corunna and Courtright. This regional facility will accommodate the expected growth of the Township.

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said MP Davidson. “This program is opening the door for municipalities of all sizes to meet their housing-related infrastructure needs and create jobs. It’s good news not only for Corunna and Courtright, but also for Ontario.”

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 to cost-shared federal infrastructure programming.

“We are very pleased to be starting the new wastewater treatment plant project in partnership with the federal and provincial governments and to finance our local share with CMHC,” said Mayor Steve Arnold. “Our community, as well as those communities downstream from us, will benefit in this multi-partnership to make our environmental footprint much less than it has been for many years. The Council and Staff of St. Clair Township are very pleased that this project is finally becoming a reality for our community.“

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.

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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 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.

News source: Canada Mortgage and Housing Corporation (CMHC)