Canadian Mortgage News

January 2006 National News Archive

New Affordable Housing Units for Jacksonville

JACKSONVILLE, New Brunswick, July 12, 2006 — Residents of Jacksonville will have more access to affordable housing with the construction of a new affordable housing complex on 43 Sewell Road in Jacksonville.

The Darrell Sewell project received $650,000 in funding under the
Canada – New Brunswick Affordable Housing Agreement.

Mike Allen, Member of Parliament for Tobique – Mactaquac, 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.

"Our investment in this project demonstrates the commitment of Canada's new Government to provide affordable housing to New Brunswickers who may be struggling financially," said Mr. Allen.

"This project shows the advantage of how partnerships between governments and the private sector help meet the need for affordable housing in New Brunswick," said Premier Lord.

The 20-unit project, which includes 10 affordable housing units, was developed by Darrell Sewell and received $250,000 in federal funding to offset the construction costs totaling $1,303,242, as well as $400,000 in rent supplements from the Province of New Brunswick.

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

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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)