Newfoundland and Labrador gets over $2 million boost in affordable housing



    HOLYROOD, NL, June 21 /CNW Telbec/ - Canada's New Government and the
Government of Newfoundland and Labrador today announced more than $2 million
to create 65 affordable housing units in eight communities under the Canada -
Newfoundland and Labrador Affordable Housing Program Agreement.
    Norman Doyle, Member of Parliament for St. John's East, on behalf of the
Honourable Monte Solberg, Minister of Human Resources and Social Development
and Minister responsible for Canada Mortgage and Housing Corporation, and the
Honourable Shawn Skinner, Minister of Human Resources, Labour and Employment
and Minister responsible for Newfoundland Labrador Housing, made the
announcement at a media conference held in Holyrood today.
    Seniors, persons with disabilities, non-elderly singles and families in
Newfoundland and Labrador will now have more access to affordable housing,
made available under this agreement, in communities across the province.
    "Canada's New Government is working to ensure funding is available for
projects like these to address the need for affordable housing in communities
across the country," said MP Norman Doyle. "We are pleased to be working with
our partners in both the public and private sector to help the people of
Newfoundland and Labrador build a better and stronger future."
    "In addition to this current $2 million announcement, the
federal/provincial Affordable Housing Agreement, to date, has provided
approximately $2.82M for the development of numerous other private and
non-profit sector projects throughout the province, such as the Tommy Sexton
Centre, Stella Burry Community Services, and CNB Holdings in Stephenville,"
said Minister Skinner. "The Affordable Housing Program assists many who may be
struggling financially, and allows individuals to remain in their communities
where they can continue to have the support of family and friends while
maintaining their independence."

    The new affordable housing projects include:
    
    REA Rentals Inc.       Corner Brook  $280,000  8 units - individuals
                                                   living with disabilities,
                                                   seniors and families

    KSAB Construction      Corner Brook  $210,000  6 units - individuals
    Ltd.                                           living with disabilities

    Ultimate Goal Inc.     Lewisporte    $280,000  8 units - seniors

    George Warr Ltd.       Springdale    $350,000  10 units - seniors

    Central Accommoda-     Bishop's      $350,000  10 units - seniors
    tions (2006) Ltd.      Falls

    Donovan Homes Ltd.     Paradise and  $350,000  10 units - families,
                           St. John's              seniors, singles

    Hawco Construction     Holyrood      $175,000  5 units - seniors
    and Development Ltd.

    White Bay Stores       Baie Verte    $280,000  8 units - seniors

    In January, Newfoundland Labrador Housing issued a proposal call for
private sector development and operation of affordable rental housing to
benefit low-to-moderate income households. The results of this proposal call
will be announced later in 2007.

    The Canada - Newfoundland and Labrador Affordable Housing Program
Agreement involves investments of over $20.45 million in the creation of
affordable housing units in Newfoundland and Labrador.


                                 BACKGROUNDER

       Canada - Newfoundland and Labrador Affordable Housing Agreement

    Phase I
    -------

    Objectives:
      - To increase the off-reserve supply of affordable housing in
        Newfoundland and Labrador.
      - Housing must be affordable for at least 10 years.

    Program:
      - Funding under this agreement will be used for the creation of
        affordable housing.
      - 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 Newfoundland Labrador Housing
        (Housing).
      - Housing is responsible for the selection of affordable housing
        projects.

    Financial Provisions:
      - Maximum CMHC funding under the agreement is $15.14 million to be
        matched by the Province of Newfoundland and Labrador.
      - Overall average CMHC funding will not exceed $25,000 per unit.

    Phase II
    --------

    Phase II of the Agreement increases the total investment under the Canada
- Newfoundland and Labrador Affordable Housing Program Agreement by          
$10.62 million in funding. The Government of Newfoundland and Labrador will
contribute at least 50 percent 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 creation of affordable housing;
      - targeted to areas with considerable housing needs and low-income
        households who are eligible for social housing.
    
    Overall CMHC funding will be based on 50 percent of capital costs to a
maximum of $75,000 per unit.




For further information:

For further information: Jenny Bowring, Manager, Communications,
Newfoundland Labrador Housing, (709) 724-3055, jmbowring@nlhc.nl.ca; Dawn L.
Ring, Consultant-Communications and Marketing, Canada Mortgage and Housing
Corporation, (709) 772-5973, dring@cmhc.ca


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