Affordable Housing in Newfoundland and Labrador Gets a $93 Million Boost

The Government of Canada and the Government of Newfoundland and Labrador are partnering on a joint investment to build new and renovate existing affordable housing. This investment will help create jobs, strengthen the economy, and improve the quality of life for residents of Newfoundland and Labrador.

Both levels of government officially announced the signing of an amendment to the Canada-Newfoundland and Labrador Affordable Housing Program Agreement and an extension of the Housing Renovation Program Agreement. Overall, the provincial contribution is $50 million, while the federal government is contributing a further $43 million resulting in a joint investment of approximately $93 million over the next two years.

The Honourable Ethel Cochrane, Senator for Newfoundland and Labrador, 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), along with the Honourable Shawn Skinner, Minister of Innovation, Trade and Rural Development and Minister Responsible for the Rural Secretariat for Newfoundland, on behalf of the Honourable Trevor Taylor, Minister of Transportation and Works, Responsible for Newfoundland Labrador Housing, made the announcement today.

The Honourable Peter MacKay, Minister of National Defence and Minister for the Atlantic Gateway, was unable to attend this event but offered his congratulations on the signing of this joint agreement today.

“The Government of Canada continues to work hard to support Canadians during these challenging economic times and has moved aggressively to ensure Canada’s Economic Action Plan is implemented rapidly,” said Senator Cochrane. “We are helping the most vulnerable, including seniors and persons with disabilities, access suitable, affordable housing, as well as making needed renovations to existing social housing both in Newfoundland and Labrador and across Canada.”

“The Government of Newfoundland and Labrador is committed to building the necessary partnerships and investing in programs and services that will enable us to continue providing affordable housing for those most vulnerable,” said Minister Skinner. “In addition, this agreement will generate significant economic stimulus for the retail and labour sectors of the housing industry, throughout the Province.”

Today’s announcement includes federal funding of almost $29 million over two years under Canada’s Economic Action Plan as part of a one-time investment of more than $2 billion to build new and renovate existing social housing in Canada. The Province will also contribute almost $29 million for these initiatives, over the next two years.

“Our Government is committed to making affordable housing available in Newfoundland and Labrador and today’s announcement is good news for this province,” said Minister MacKay. “This investment will help create much needed jobs, strengthen the economy, and improve the quality of life for Newfoundlanders and Labradorians.”

“The agreements and economic action plans announced today will support significant social housing programs and infrastructure,” said Minister Taylor. “It will also encourage partnerships with private and non-profit sector groups; address the housing needs of seniors and persons with disabilities and help people live more independently.”

These investments build upon the $1.9 billion commitment for housing and homelessness programs announced by the Government of Canada in September 2008, which extended the Affordable Housing Initiative and the renovation programs for low-income households for two years. Today’s announcement also includes a further combined investment of almost $35 million by both levels of government for the two-year extensions to build new affordable housing and assist low-income households with needed renovations to their homes.

CMHC has been Canada’s national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes and making vibrant and sustainable communities and cities a reality across the country.

To find out more about how the Government of Canada and CMHC are working to build stronger homes and communities for all Canadians, call CMHC at 1-800-668-2642 or visit www.cmhc.ca/housingactionplan. For more information on Canada’s Economic Action Plan, call 1-800-O Canada.

– 30 –

 

Media contacts:

David Salter
Director of Communications
Department of Transportation and Works
709-729-3015, 691-3577
davidsalter@gov.nl.ca

Michelle Bakos
Press Secretary, Office of Minister Finley
819-994-2482
michelle.bakos@hrsdc-rhdsc.gc.ca

Dawn L. Ring
Consultant-Communications and Marketing
Canada Mortgage and Housing Corporation
709-772-5973
dring@cmhc.ca

Jenny Bowring
Communications Manager
Newfoundland Labrador Housing
709-724-3055
jmbowring@nlhc.nl.ca

Kristen Scheel
Senior Media Relations Officer
Canada Mortgage and Housing Corporation
613-748-2799
Email: kscheel@cmhc-schl.gc.ca

 

BACKGROUNDER

The Government of Canada’s commitment to affordable housing is significant.

Overall, Canada’s Economic Action Plan provides a total of $7.8 billion to build quality housing, stimulate construction, create jobs, encourage home ownership and enhance the energy efficiency of Canadian homes. In the process, it will provide new and renovated housing for more than 200,000 Canadian households.

Of the $7.8 billion, more than $2 billion is provided through CMHC to build new and renovate existing social housing. This will include:

  • $1 billion for social housing renovation;
  • $600 million for new housing and repairs to existing social housing on-reserve and in the North broken down as follows:
    • $400 million for on-reserve communities
    • $200 million for the North
  • $400 million for housing for low-income seniors; and
  • $75 million for housing for people with disabilities.

Most of this funding, $1.525 billion of the more than $2 billion, is being delivered by provinces and territories through amendments to existing agreements. Provinces and territories will design and deliver these initiatives, as well as cost-match the federal investment. As of today, Newfoundland and Labrador, Nova Scotia, British Columbia, Saskatchewan, Prince Edward Island, Yukon, Northwest Territories and Nunavut have signed amendments to the existing agreement for the Affordable Housing Initiative (AHI).

 

The federal government will directly deliver the remaining $550 million of this $2 billion

funding: $150 million for the renovation and retrofit of social housing projects administered by Canada Mortgage and Housing Corporation (CMHC), and $400 million in new construction and repair for housing on-reserve through CMHC and Indian and Northern Affairs Canada.

In September 2008, the Government of Canada also announced $1.9 billion over five years for housing and homelessness programs for low-income Canadians. As part of this investment, the Affordable Housing Initiative and the federal renovation programs for low-income households were extended for two years. Today’s announcement also includes a total investment of $35 million for these two-year extensions.

Overall, for both the stimulus funding and extensions, the federal contribution is $43 million, while the province is contributing a further $50 million for the combined investment of $93 million.

As well, up to $2 billion in low-cost repayable loans for housing-related infrastructure projects will be made available to towns and cities across the country.

The Government of Canada, through CMHC, spends approximately $1.7 billion annually to support almost 625,000 low- and moderate-income households in existing social housing across Canada. In Newfoundland and Labrador, the federal government provides $50.4 million annually to support some 12,650 households.

Media Advisory: Important Housing Investment Announcement

Senator Ethel Cochrane, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation, and the Honourable Shawn Skinner, Newfoundland and Labrador Minister of Innovation, Trade and Rural Development and Minister Responsible for the Rural Secretariat, on behalf of the Honourable Trevor Taylor, Minister of Transportation and Works and Minister Responsible for Newfoundland Labrador Housing, will announce important investments in housing for Newfoundland and Labrador. The announcement will be made in St. John’s, tomorrow (Friday, May 22) at 2:00 p.m., at the Eastern Gate Church, 759 Empire Avenue West.

– 30 –

 

Media contacts:

David Salter
Director of Communications
Department of Transportation and Works
709-729-3015, 691-3577
davidsalter@gov.nl.ca

Michelle Bakos
Press Secretary
Office of Minister Finley
819-994-2482
michelle.bakos@hrsdc-rhdsc.gc.ca

Kristen Scheel
Senior Media Relations Officer
Canada Mortgage and Housing Corporation
613-748-2799
kscheel@cmhc-schl.gc.ca

Jenny Bowring
Manager, Communications
Newfoundland Labrador Housing
709-724-3055
jmbowring@nlhc.nl.ca

Dawn Ring
Communications and Marketing Consultant
Canada Mortgage and Housing Corporation
709-772-5973, 709-687-2194
dring@cmhc.ca
http://www.cmhc.ca

More Affordable Housing Being Made Available in St. John’s

Eastern Gate Manor, a 12-unit affordable housing project owned and operated by Eastern Gate Church in St. John’s, officially opened its doors today. The project has received a total of $1.2 million in funding under the Canada-Newfoundland and Labrador Affordable Housing Program, which is cost-shared – 50/50, between both levels of government. The proponent also received seed funding of $20,000 directly from Canada Mortgage and Housing Corporation (CMHC) to assist during the initial planning stages. The total cost of the building is $1.5 million, with the proponent covering the remaining costs.

Senator Ethel Cochrane, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for CMHC, and the Honourable Trevor Taylor, Minister of Transportation and Works and Minister Responsible for Newfoundland Labrador Housing (Housing), made the announcement today.

The Honourable Peter MacKay, Minister of National Defence and Minister for the Atlantic Gateway, was unable to attend the opening, however, offered his congratulations to the Eastern Gate Church.

“The Government of Canada is committed to making affordable housing available in Newfoundland and Labrador and across Canada for those who need it most,” said Senator Cochrane. “These new units in St. John’s provide seniors access to suitable, affordable housing that meets their specific needs.”

“I’m honoured to be here today to participate in this exciting event,” said Minister Taylor. “Through the commitment and continued efforts of all levels of government and the solid partnerships we’ve developed in the private and non-profit sectors, we will be able to continue increasing the supply of affordable housing available to the people of our province for many years to come.”

The Eastern Gate Church made a submission for this project to Newfoundland Labrador Housing under the Province’s 2006 proposal call for non-profit sector development and operation of affordable rental housing to benefit low-to-moderate income households. This development consists of 12 two-bedroom units, two of which are fully accessible.

“Today’s announcement is good news for St. John’s,” said Minister MacKay. “This significant investment will help to build brighter futures for the residents of St. John’s who are in need of suitable, affordable housing.”

“I’m very happy to see this new housing development open here today,” said Bob Ridgley, MHA, St. John’s North. “It will provide more rental options for low-income households, who may find it difficult to find housing with the current low vacancy rates within the area.”

“This project has been exciting from start to finish,” said Gordon Young, Pastor of Eastern Gate Church. “Many of our tenants will realize the dream of having a safe, comfortable place to call their own, and be able to build a stronger more secure future for themselves.”

In Budget 2009, the Provincial Government allocated $14.55 million for building, renovating, and retro-fitting social housing infrastructure throughout Newfoundland and Labrador.

Since 2003, the Canada-Newfoundland and Labrador Affordable Housing Program Agreement has invested over $40 million in the creation of affordable housing units in Newfoundland and Labrador.

Last fall, the Government of Canada committed more than $1.9 billion over the next five years to improve and build new affordable housing and to help the homeless. Canada’s Economic Action Plan builds on this with an additional one-time investment of more than $2 billion over two years in new and existing social housing and lending of up to another $2 billion to municipalities for housing-related infrastructure.

– 30 –

 

Media contacts:

David Salter
Director of Communications
Department of Transportation and Works
709-729-3015, 699-7903
davidsalter@gov.nl.ca

Michelle Bakos
Press Secretary, Office of Minister Finley
819-994-2482
michelle.bakos@hrsdc-rhdsc.gc.ca

Jenny Bowring
Communications Manager
Newfoundland Labrador Housing
709-724-3055
jmbowring@nlhc.nl.ca

Dawn L. Ring
Consultant-Communications and Marketing
Canada Mortgage and Housing Corporation
709-772-5973
dring@cmhc.ca

 

Media Advisory: Official Opening of Eastern Gate Manor

Senator Ethel Cochrane, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation, along with the Honourable Trevor Taylor, Minister of Transportation and Works and Minister Responsible for Newfoundland Labrador Housing, will officially open Eastern Gate Manor, a 12-unit housing project in St. John’s. The opening ceremony will take place today (Wednesday, May 20) at 3:30 p.m., Eastern Gate Church, 759 Empire Avenue (formerly St. John’s First Assembly Pentecostal Church).

– 30 –

 

Media contacts:

David Salter
Director of Communications
Department of Transportation and Works
709-729-3015, 691-3577
davidsalter@gov.nl.ca

Michelle Bakos
Press Secretary
Office of Minister Finley
Tel.: 819-994-2482
michelle.bakos@hrsdc-rhdsc.gc.ca

Jenny Bowring
Manager, Communications
Newfoundland Labrador Housing
709-724-3055
jmbowring@nlhc.nl.ca

Dawn Ring
Communications and Marketing Consultant
Canada Mortgage and Housing Corporation
709-772-5973, 709-687-2194
dring@cmhc.ca
http://www.cmhc.ca