Canada’s Economic Action Plan Delivers Housing-Related Infrastructure Loans to Toronto
Posted by: Toronto Real Estate Admin / Category: News Bulletin
TORONTO, ON, April 9, 2010 — The Government of Canada announced today that the City of Toronto has been approved for 11 infrastructure loans as part of Canada’s Economic Action Plan.
The announcement was made by 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 Finley. “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 City of Toronto has been approved for more than $77.9 million in low-cost loans from CMHC’s Municipal Infrastructure Lending Program (MILP), to improve infrastructure throughout the City. These funds will be used to improve roadways and sidewalks and upgrade bridges throughout the City and will also contribute to the Regent Park revitalization project that is already underway.
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.
“The City of Toronto is committed to maintaining and upgrading the quality of our transportation infrastructure,” said Mayor David Miller. “We appreciate receiving access to low cost financing to do this work from the Federal Government’s Municipal Infrastructure Loan Program. Toronto’s transportation network is a critical component of our community and we are investing in our infrastructure assets to ensure the safety of all road users.”
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 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.
Article source: http://www.cmhc.ca/en/corp/nero/nere/2010/2010-04-09-1230b.cfm