Governments of Canada and Quebec Are Pleased With the Positive Results of the Housing-Related Municipal Infrastructure Lending Program

QUÉBEC CITY, QUÉBEC--(Marketwire - May 23, 2012) - The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, Minister of the Economic Development Agency of Canada for the Regions of Quebec and Member of Parliament for Roberval-Lac-Saint-Jean, 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), and André Drolet, Parliamentary Assistant to the Minister of Economic Development, Innovation and Export Trade, Parliamentary Assistant to the Minister of Tourism and Member of the National Assembly (MNA) for Jean-Lesage, on behalf of Laurent Lessard, Minister of Municipal Affairs, Regions and Land Occupancy, highlighted today in Québec the positive results of CMHC's Municipal Infrastructure Lending Program (MILP) for housing-related infrastructure projects, which ended on March 31, 2012.

Under this program, low-cost loans totalling over $2 billion were approved to fund many housing-related infrastructure projects, creating jobs and helping communities throughout the country. In Quebec, 70 loans were granted to 23 municipalities, for a total of more than $1.2 billion.

"Our government's top priority is job creation and economic growth, and we are aware of the importance of investing in infrastructure projects across Canada," said Minister Lebel. "Innovative and proven, the preferred approach taken under the Municipal Infrastructure Lending Program helped municipalities carry out housing improvement projects and create jobs, to the benefit of the communities."

"The appeal of Quebec's municipalities is based, among others things, on the improvement of their infrastructure. And, the Municipal Infrastructure Lending Program for housing-related infrastructure provided all Quebec municipalities with the opportunity to take advantage of low-cost loans to proceed with improvements to their housing-related municipal infrastructure. Municipalities were therefore able to benefit from this federal-provincial partnership that was designed to help them contribute to both the wellness of their citizens and the more harmonious development of their territories and regions from a sustainable development perspective," said MNA André Drolet.

The MILP was intended to encourage municipalities' initiatives to fund their housing-related infrastructure projects. The low-cost loans were aimed at significantly reducing the cost of borrowing for municipalities, which could use the borrowed sums to invest directly in housing-related infrastructure projects. Eligible work included water, wastewater and solid waste services, fire halls and power generation; local transportation infrastructure within or into residential areas, such as roads, bridges and tunnels; and residential sidewalks, lighting, pathways and green space.

Through Canada's Economic Action Plan, this program made available $2 billion over two years in direct, lowcost loans to municipalities. In Quebec, the implementation of this program was ensured by FinancementQuébec and the Ministère des Affaires municipales, des Régions et de l'Occupation du territoire. Municipal infrastructure loans were offered to provide a new source of funds for Canadian municipalities to invest in housing-related infrastructure projects.

CMHC has been Canada's national housing agency for more than 65 years. CMHC is committed to helping Canadians access a wide choice of quality, environmentally sustainable, affordable housing solutions, while making vibrant, healthy communities and cities a reality across the country.

Financement-Québec is an agency of the Government of Quebec that offers financing to Quebec's parapublic entities, such as school boards, Cegeps, universities, hospitals and municipalities.

Municipalities Having Benefited From a Low-Cost Loan Under

CMHC's Housing-Related Municipal Infrastructure Lending Program (MILP)