Canadian Mortgage News

January 2008 National News Archive

Affordable Housing for Seniors Announced in Fredericton

FREDERICTON, New Brunswick, February 18, 2008 — The Government of Canada and the Province of New Brunswick officially announced an affordable housing project for seniors and non-elderly singles in Fredericton today. Funded under the Canada – New Brunswick Affordable Housing Agreement and the Housing Trust fund, the project will create 45 new units, of which 33 are affordable housing units.

Mike Allen, Member of Parliament for Tobique – Mactaquac, on behalf of the Honourable Monte Solberg, Minister of Human Resources and Social Development, along with the Honourable Eugene McGinley, New Brunswick Minister of State for Seniors and Housing, made the announcement today.

"The Government of Canada is committed to making quality, affordable housing available in New Brunswick and across Canada available for those who need it most," said Mr. Allen. "The creation of these units will provide seniors in Fredericton with safe, quality housing at an affordable cost which will help them to build a better and stronger future."

"We are pleased to join our partners in this project to help improve the quality of life for seniors and non-elderly singles," McGinley said. "The creation of these units will allow individuals to remain close to their families and friends, and remain active in their local community."

The project, called Lutherplace Apartments, is located at 1039 Regent Street and will be developed by St. Matthews Lutheran Church in conjunction with Atlantic Peoples Housing Ltd. The project will receive $880,000 in federal funding to offset the construction costs, as well as $1.3 million in rent supplements from the Province of New Brunswick for 33 units.

Phase III of the Canada – New Brunswick Affordable Housing Agreement will see the investment of another $40 million to create at least 754 new housing units in New Brunswick over the next two years. Available under the Federal Housing Trust Fund, $17 million will be allocated to project promoters as forgivable loans to offset construction costs. The province will provide $23 million in long-term rent supplements to ensure that 580 of the 754 new housing units will be kept affordable.

Phase I and II of the Canada – New Brunswick Affordable Housing Agreement involves investments of over $45 million to create and sustain up to 700 units of rental housing for low-to-moderate income households in New Brunswick.

For further information, please contact:

Robert Duguay
Communications
Social Development
506-444-3684

Patricia Montreuil
Communications and Marketing Consultant
Canada Mortgage and Housing Corporation
506-866-8047

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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 up to 700 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 is administered by the New Brunswick Department of Family and Community Services.
• Family and Community Services is responsible for the selection of affordable housing projects.

Phase II

Phase II of the Agreement increased the total investment under the Canada – New Brunswick Affordable Housing Program Agreement to $45 million in funding. The Government of New Brunswick contributed 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:

• Were used for the Rental Housing Program in Phase I plus a new rent supplement program;
• targeted urban areas with considerable housing needs; and
• targeted persons on or eligible to be on a waiting list for social housing.

Phase III

Through Phase III of the Agreement, the Federal government, through the recently announced Housing Trust, and the province of New Brunswick are committing over $40 million to create at least 754 new housing units over the next two years.

The funding is available for private entrepreneurs and non-profit organizations to help increase the supply of affordable rental housing for low income seniors, families and non-elderly singles. Of the 754 housing units to be created, 580 will be subsidized and 10 per cent are to be accessible for persons with disabilities.

Proposal development funding is also available for non-profit organizations to help them prepare and develop their project.

Proponents can submit proposals to a regional office of the Department of Social Development. Projects will be selected based on their viability and their capacity to respond to housing needs for either seniors, low income families, non elderly singles, or persons with disabilities.

News source: Canada Mortgage and Housing Corporation (CMHC)