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Both levels of government officially signed an amendment to the Canada-P.E.I. Affordable Housing Program Agreement and an extension of the Housing Renovation Program Agreement, resulting in a joint investment of more than $13 million over the next two years.

The Honourable Gail Shea, Minister of Fisheries and Oceans, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC) and the Honourable Doug Currie, Minister of Health and Minister of Social Services and Seniors for PEI, made the announcement at a signing ceremony today.

“The Government of Canada continues to work hard to support Canadians during these challenging economic times, and has moved aggressively to ensure Canada’s Economic Action Plan is implemented rapidly,” said Minister Shea. “We are helping the most vulnerable, including seniors and persons with disabilities, access suitable, affordable housing, as well as making needed renovations to existing social housing both in Prince Edward Island and across Canada.”

“This investment will enable Prince Edward Island to renovate or replace many of our aging social housing units,” said Minister Currie. “Everyone deserves to live in comfortable and affordable homes, and today’s investment means that more seniors, families, and people with disabilities in our One Island Community will be able to live in housing that offers them a good quality of life.”

Today’s announcement includes federal funding of $4 million over two years under Canada’s Economic Action Plan as part of a one-time investment of more than $2 billion to build new and renovate existing social housing in Canada. The province will also contribute $4 million for these initiatives, over the next two years.

These investments build upon the $1.9 billion commitment for housing and homelessness programs announced by the Government of Canada in September 2008, which extended the Affordable Housing Initiative and the renovation programs for low-income households for two years. Today’s announcement includes a further combined investment of $5 million by both levels of government for the two-year extensions to build new affordable housing and assist low-income households with needed renovations to their homes.

Overall, the federal contribution is $7 million, while the province is contributing a further $6 million for the combined investment of almost $13 million.

CMHC has been Canada’s national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes and making vibrant and sustainable communities and cities a reality across the country.

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. For more information on Canada’s Economic Action Plan, call 1-800-O Canada.

BACKGROUNDER

INVESTMENTS IN AFFORDABLE HOUSING FOR CANADIANS

The Government of Canada’s commitment to affordable housing is significant.

Overall, Canada’s Economic Action Plan provides a total of $7.8 billion to build quality housing, stimulate construction, create jobs, encourage home ownership and enhance the energy efficiency of Canadian homes. In the process, it will provide new and renovated housing for more than 200,000 Canadian households.

Of the $7.8 billion, more than $2 billion is provided through CMHC to build new and renovate existing social housing. This will include:

~ $1 billion for social housing renovation;

~ $600 million for new housing and repairs to existing social housing on-reserve and in the North broken down as follows:

- $400 million for on-reserve communities

- $200 million for the North

~ $400 million for housing for low-income

seniors; and

~ $75 million for housing for people with disabilities.

Most of this funding, $1.525 billion of the more than $2 billion, is being delivered by provinces and territories through amendments to existing agreements. Provinces and territories will design and deliver these initiatives, as well as cost-match the federal investment. In addition to Prince Edward Island, British Columbia and Nova Scotia have signed amendments to the existing agreement for the Affordable Housing Initiative (AHI).

The federal government will directly deliver the remaining $550 million of this $2 billion funding: $150 million for the renovation and retrofit of social housing projects administered by Canada Mortgage and Housing Corporation (CMHC), and $400 million in new construction and repair for housing on-reserve through CMHC and Indian and Northern Affairs Canada.

In September 2008, the Government of Canada also announced $1.9 billion over five years for housing and homelessness programs for low-income Canadians. As part of this investment, the Affordable Housing Initiative and the federal renovation programs for low-income households were extended for two years. Today’s announcement includes a total investment of $5 million for these two-year extensions.

Overall, for both the stimulus funding and extensions, the federal contribution is $7 million, while the province is contributing a further $6 million for the combined investment of $13 million.

As well, up to $2 billion in low-cost repayable loans for housing-related infrastructure projects will be made available to towns and cities across the country.

The Government of Canada, through CMHC, spends approximately $1.7 billion annually to support almost 625,000 low- and moderate-income households in existing social housing across Canada. In Prince Edward Island, the federal government provides almost $14.6 million annually to support some 3,450 households.