Canadian Mortgage News

January 2006 National News Archive

Canada and New Brunswick Announce New Affordable Housing Units for St. Stephen

ST. STEPHEN, New Brunswick, July 7, 2006 — Non-elderly singles in St. Stephen now have access to more affordable housing units with the official opening of Heritage Chocolate in St. Stephen. The eight-unit building received $260,000 under the Canada – New Brunswick Affordable Housing Agreement.

The Honourable Greg Thompson, Minister of Veterans Affairs and Regional Minister for New Brunswick, 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 Goverment is very proud to be helping address the diverse affordable housing needs of New Brunswickers," Minister Thompson said.

"We are pleased to partner with the private sector to help low-income New Brunswickers, not only in building new housing units, but also by keeping them affordable," Premier Lord said.

The project received $100,000 in federal funding to offset the construction costs totalling $457,455, as well as $160,000 in rent supplements from the Province of New Brunswick for four of the eight units.

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

For further information, please contact:

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

Gerald A. Lefebvre
Director of Communications
Richard Roik
Special Assistant, Communications
Office of Minister Thompson
613-996-4649

Marianne Murphy
Consultant, Marketing and Communications
Canada Mortgage and Housing Corporation
902-426-6581

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)