June 26, 2010

The Government of Canada announced today that a non-profit housing project located in Calgary received more than $240,000, through Canada’s Economic Action Plan, as part of the social housing renovation and retrofit investments.

The announcement was made at Bowside Manor by Lee Richardson, Member of Parliament for Calgary Centre, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

“Through Canada’s Economic Action Plan, our government is taking action to help ensure our economic recovery and create the conditions for long-term growth," said Lee Richardson, MP.  “Funding renovation and retrofit projects, like this one, will not only improve the quality of life of its residents by keeping their homes safe and affordable, but it will also help stimulate the local economy and create local jobs.”

The Government of Canada, through Canada’s Economic Action Plan, announced $1 billion for social housing renovation and retrofit.  Of the $1 billion, $850 million is being delivered by provinces and territories on a cost-matched basis for existing federally assisted social housing projects which they administer on behalf of the partnership.  The remaining $150 million is being delivered by CMHC for existing federally assisted off-reserve housing which it directly administers. Eligible repairs include general improvements, energy efficiency upgrades or conversions, and modifications in support of persons with disabilities.

“We congratulate and thank the federal government, MP Richardson and CMHC for making a sound investment to help ensure that this affordable community is preserved as a legacy for the long-term benefit of its residents, “ said Ken Elliott, President of the Co-operative Housing Federation of Canada. “Today’s announcement is an excellent example of stimulus funding that works towards preserving jobs, assisting the local economy, and protecting valuable affordable housing assets for Canadians.”

“On behalf of the board of directors of the Calgary Chinatown Development Foundation and members of the Chinese Community; we thank the Federal Government and CMHC for providing affordable housing for low-income families,” said Hugh Louis, President of the Calgary Chinatown Development Foundation. “The recent CMHC funding through ‘Canada's Economic Action Plan’ to upgrade Bowside Manor’s windows and patio doors has proven successful.  It has improved comfort for all residents of Bowside Manor and energy saving for the building.   This benefit will last many years to come and the foundation thanks the Federal Government’s economic initiative.”
                                          
More information on this and other measures in Canada’s Economic Action Plan, the federal government’s plan to stimulate the economy and protect those hit hardest by the global recession, can be found at: www.actionplan.gc.ca.

To find out more about how the Government of Canada and CMHC are working to build stronger homes and communities for all Canadians, call CMHC at 1-800-668-2642 or visit www.cmhc.ca/housingactionplan. 

The following is a speech delivered by Lee Richardson, M.P. at the announcement of funding for non-profit housing at Bowside Manor

Hello. And thank you all for coming.

It’s a pleasure to be here today on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and the Minister Responsible for Canada Mortgage and Housing Corporation.

I’d like to thank you for welcoming me to your home and to your neighbourhood. You’ve built a real sense of community here at Bowside Manor.

Being in one of Calgary’s older communities, this family apartment building was in need of upgrades; upgrades that will improve Bowside Manor’s energy efficiency.  That is what this announcement is all about today.

With the current economic situation, it’s more important than ever that we all work together, contribute where we can, and keep moving forward. That’s why our government is taking timely and focused action to boost job creation.

Canada’s Economic Action Plan is intended to stimulate the economy and create jobs during the global recession.  Among other things, it provides $7.8 billion to build quality housing, encourage homeownership, and enhance home energy efficiency.  This includes our government’s investment of $2 billion for new and existing social housing, plus up to $2 billion in low-cost loans to municipalities for housing-related infrastructure.

Included in the more than $2 billion investment for new and existing social housing is $1 billion to renovate and retrofit existing social housing. Of the total $1 billion available to renovate and retrofit social housing, our government is investing $850 million for existing social housing projects administered by the Provinces and Territories. The remaining $150 million is being delivered over two years by CMHC for existing federally supported housing, which it directly administers. It is thanks to this $150 million that we are here today.

Canada’s Economic Action Plan is stimulating the economy and creating jobs from coast to coast to coast.  It is also helping Canadians who need a hand-up. And, it is allowing us to repair and retrofit more places like this one. 

It gives me great pleasure to announce that Bowside Manor received more than $240,000 in funding, to replace existing windows and doors, providing safe and comfortable homes to residents.

Across Canada, the federal government spends some $1.7 billion annually in support of existing social housing which helps almost 625,000 households.  Some of this housing is getting older. That’s why we’re helping out with repairs and upgrades to make them more energy efficient and safe.  

That’s why a key focus for Canada’s Economic Action Plan is construction and renovation of social housing. It puts people to work quickly. 

And over the longer term, it benefits communities by renewing social housing and improving the quality of life for the people who live there.  

Working together, we can put Canada’s economy back on the path to growth; make a real and lasting difference in communities like this one.

Thank you.





Questions and Answers:
Investments in Social Housing Renovation and Retrofit
Administered by CMHC



Summary

As part of Canada’s Economic Action Plan, CMHC will deliver a one-time federal investment of $150 million, over two years, to address the needs of federally assisted off-reserve housing which CMHC directly administers.

The remaining $850 million will be delivered by provinces and territories for federally assisted social housing they administer on behalf of the partnership, under amendments to existing agreements. 

On May 24, 2009, CMHC announced the first of two national calls for applications related to the $150 million available in renovation and retrofit funding for existing social housing directly administered by CMHC. Eligible applications for the 2009/10 funding of $75 million have been processed and work is underway for these projects.

The Year 2 application call under the renovation and retrofit initiative was open from February 1 – 22nd, 2010. The application call is now closed and CMHC will be reviewing the applications received based on the eligibility and selection criteria outlined in the Application Guidelines.  Once this review process is completed CMHC will be contacting each applicant by letter to advise them of the status of their application.

1.   Who is eligible for renovation and retrofit funding?

Off-reserve, federally funded and administered social housing projects, including co-operatives, non-profit, urban native and some public housing projects administered by CMHC that are currently subject to an operating agreement with CMHC can apply.

Eligible projects can be found in Prince Edward Island, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, Yukon and British Columbia.


2.  How was the year one funding allocated?

Funding was allocated using a national application call.  A group’s performance in the areas of compliance with existing Project Operating Agreements, project management, as well as a group’s preparedness to proceed quickly (‘shovel ready’) were considered per the program guidelines.  This was critical to ensure that funds were allocated to groups who could move quickly in the context of the economic stimulus objectives of immediate job creation.


Per the selection criteria outlined in the application guide, priority was given to groups who managed their projects well and who did not have sufficient funds in their reserves to carry out needed repairs. 

If asked about the selection process ($2,000 cut-off or selection of only one priority per group):

CMHC has applied a series of objective selection gates, which are fully consistent with the application call. The selection criteria was outlined in the application guide.
Given the proposal call was oversubscribed; CMHC is allocating funding only for the top priority among the potential work flagged in each application.  This way, the available funding is allocated broadly, maximizing the number of sponsors receiving funding.
Per the selection criteria outlined in the application guide, priority was given to groups who manage their projects well and who did not have sufficient funds in their replacement reserve to carry out needed repairs.  In considering the criteria around available funds in the replacement reserve, CMHC applied a replacement reserve cut-off of $2,000 per unit in order to select from among the many well managed sponsors applying.  Given the oversubscription, difficult choices needed to be made and CMHC understands some sponsors are understandably disappointed.  However as the Co-operative Housing Federation (CHF) itself has stated: "The program will be completely successful at quickly allocating this year's $75 million ...” and going on to note that “in this context, CMHC officials had done a very good job in sharing this year's $75 million as widely as possible."  


3.   Will year two funding be allocated the same as year one?

As with year one, funding will be allocated using a national application call based on specific selection criteria outlined in the Application Guide. 

Applications will be approved by CMHC taking into account the timing of receipt of the application and the timeline for commencement and completion of the renovation and retrofit work;

Priority will be given to sponsor groups who have managed their projects well and who have $4,500 per unit or less in their replacement reserves to carry out needed repairs.

Priority will be given to renovations and retrofits that include major critical building systems and services, such as roofs, windows, doors, exterior building envelope, heating systems, plumbing, electrical and ventilation, as well as those renovations required for the health and safety of residents and renovations associated with modifications for the disabled. 


Priority will also be given to sponsor groups who did not receive funding under the 2009/10 Application Call. CMHC will work to encourage fair and equitable access to available funds.

4.  What is the status of the year one applications?

The response to the application call for the Renovation and Retrofit Initiative under Canada’s Economic Action Plan was very successful and generated a large number of applications.  Eligible applications for the 2009/10 funding of $75 million have been processed and work is underway for these projects.

5.  When was the application call for year two funding?

Applications for Year 2 of the Renovation and Retrofit Initiative were accepted by CMHC between February 1 -22nd, 2010.

6.  What is the timeframe for project completion for year two funding?

All renovation and retrofit work must be completed by March 31, 2011. The Letter of Commitment from CMHC will indicate a mandatory completion date specific to each project.

7.  Why is this funding only available for off reserve social housing?  What about funding for social housing on reserve?

Canada’s Economic Action Plan also provides $400 million over two years to support on-reserve housing. The funds are dedicated to new social housing projects, the remediation of existing social housing and complementary housing activities through programming from CMHC and Indian and Northern Affairs Canada (INAC).

8.  If CMHC is only delivering $150 million, what about the remaining $850 million?

The remaining $850 million is allocated to federally assisted social housing projects which are administered by the province on behalf of the partnership. The federal funds are cost-shared on a 50/50 basis with provinces and territories.

9.  What type of work is eligible under this initiative?

Eligible work would include replacement or construction of worn out major building components, major building services, basic facilities and equipment, and modifications to improve accessibility for persons with disabilities. Funding can also be used for energy retrofits. Regeneration projects will be considered on a case by case basis.  An element of modesty will apply to all repairs, improvements and replacements.                                      
However, priority will be given to renovations and retrofits of major critical building systems and services, such as roofs, windows, doors, exterior building envelope, heating systems, plumbing, electrical and ventilation, as well as those renovations required for the health and safety of residents and renovations associated with modifications for the disabled.

Eligible work does not include ongoing or routine maintenance.