Canadian Mortgage News

January 2007 National News Archive

New Affordable Housing Project in Saint John

SAINT JOHN, New Brunswick, May 22, 2007 — Low income families and individuals in Saint John will have access to more affordable housing with the construction of a new affordable housing project by Housing Alternatives Inc.

The housing project, Rehabitat Inc., will receive $1.2M under the Canada – New Brunswick Affordable Housing Agreement and involves a total of 16 affordable housing units.

Rob Moore, Parliamentary Secretary to the Minister of Justice and Attorney General of Canada and Member of Parliament for Fundy Royal, on behalf of the Honourable Monte Solberg, Minister of Human Resources and Social Development, along with the Honourable Mary Schryer, New Brunswick Minister of State for Housing, made the announcement today.

“This project will help many lower-income families and individuals in Saint John access quality, affordable housing,” said MP Rob Moore. “Canada’s New Government is pleased to be working with our partners to extend a helping hand to those who are working towards building a better future.”

“The non-profit sector plays an important role in our efforts to develop more affordable housing units in our province,” Minister Schryer said.

The Rehabitat Inc. housing project will be located at the corner of Adelaide Street and Victoria Street, in Saint John. They will receive a total of $560,000 in federal funding to offset the construction costs, as well as $608,000 in rent supplements from the Province of New Brunswick for 16 units.

The Canada – New Brunswick Affordable Housing Agreement involves investments of over $45 million in 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)