The Honourable Lawrence MacAulay, Member of Parliament for Cardigan, on behalf of the Honourable Joe Fontana, Minister of Labour and Housing, along with the Honourable Chester Gillan, Prince Edward Island Minister of Health and Social Services, today officially announced the opening of two new Habitat for Humanity homes supported by the Canada-P.E.I. Affordable Housing Agreement. Habitat for Humanity has just completed two homes, one in Montague and one in Stratford which will provide Island families with the ability to own their own homes with mortgages at rates that are affordable for them and their families.

The Canada-PEI Affordable Housing Agreement contributed land valued at $26,500 to these projects.

“This partnership with the Kings and Queens branches of Habitat for Humanity P.E.I., clearly demonstrates how governments can work innovatively and effectively with community groups to access home ownership,” said Mr. MacAulay. “The Government of Canada is committed to working together with partners to create more affordable housing in P.E.I. I congratulate Habitat for Humanity on the establishment of their new chapters in Kings County and Prince County and today we are announcing the opening of a house in Stratford as well as the first house in Kings County under the Habitat program. The expansion of the scope of Habitat for Humanity is great news for Island families.

"We are pleased to be working once again with Habitat for Humanity to create more long term, affordable housing for Islanders. This project will provide two well designed, well constructed, affordable homes for two Island families, which will improve the quality of their lives significantly,” Minister Gillan noted. “The flexibility of the Canada P.E.I. Affordable Housing Agreement allows us to work with community groups across the province to develop projects such as this. Habitat for Humanity is an inspiration to us all with the level of their volunteer commitment and their incredible productivity here on P.E.I..

“It will take all levels of government, the volunteer sector and the business sector working together to create affordable housing opportunities in Prince Edward Island,” said Jim Wicks, President of Habitat For Humanity, P.E.I.. “The money invested in these projects will be used over and over again to build more homes in our community, as Habitat partner families return those investments to the Habitat Building Fund through their mortgage payments.”

The Canada-Prince Edward Island Affordable Housing Agreement, which was signed in 2003, stated that it would provide $5.5 million to create 120 housing units by the end of 2007 across P.E.I.. The Government of Canada is contributing $2.75 million to be matched by the Province and other partners.

BACKGROUNDER

Canada-P.E.I. Affordable Housing Program Agreement Summary

Dated signature: May 23, 2003

Objectives:

-To increase and sustain the supply of new affordable housing in Prince Edward Island

-Housing supported by the Canada-P.E.I. Affordable Housing Agreement must be affordable for 10 years.

Program:

Funding under this agreement will be used to create new, additional, affordable housing units for low to moderate income Islanders through rental, conversion and homeownership initiatives.

Administration:

-The program is administered by the Prince Edward Island Department of Health and Social Services.

-P.E.I. is responsible for the selection of affordable housing projects.

-Provincial priorities are housing for families, persons with disabilities, and persons with special needs.

-The P.E.I. Government has partnered with Habitat for Humanity to deliver the homeownership component.

Financial Provisions:

-Maximum CMHC funding under the agreement is $2.75 million to be matched by the Province of Prince Edward Island, municipalities and others partners.

-Overall CMHC funding will not exceed $25,000/unit over the life of the agreement.

Accountability:

-P.E.I. will provide annual audit and performance reports on the use of CMHC funding.

-CMHC will lead a national evaluation of the program in 2006 and the province will be invited to participate.

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