There is an old saying that all politics is local, and it’s certainly true that increasing the quality of life is local, too.

The federal government is acutely aware of how important housing-related infrastructure projects are in our towns and cities. That’s why Canada’s Economic Action Plan provides up to $2 billion in direct low-cost loans to municipalities over two years through Canada Mortgage and Housing Corporation (CMHC).

The Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for CMHC, announced last month that municipalities can begin applying for low-cost loans for shovel-ready infrastructure projects.

These Municipal Infrastructure Lending Program loans are available to any Canadian municipality and will provide a new source of funds to invest in eligible projects that specifically relate to housing. Only infrastructure projects serving new and existing residential areas may be considered.

For example, projects could include infrastructure related to providing housing services such as water, wastewater and solid waste services, power generation, and transportation infrastructure within or into residential areas. These could include roads, bridges, tunnels, residential sidewalks, lighting, pathways, landscaping and green space.

Municipalities need not apply under this program for infrastructure projects that don’t directly relate to housing, such as social infrastructure projects in the form of community centres, skating rinks, playground equipment and libraries. Projects where construction work began prior to January 27, 2009 are not eligible for funding under the Municipal Infrastructure Lending Program.

There will be a focus on funding projects that are shovel-ready, as this is a targeted, short-term, temporary measure intended to create jobs. These low-cost loans will significantly decrease the cost of borrowing for municipalities and can be used by them to fund their contribution for cost-shared federal infrastructure programming.

Eligible loans will be approved largely on a first-come, first-serve basis, provided the proposal meets eligibility requirements. CMHC will facilitate equitable access to the program and work to encourage applications from urban and rural municipalities across Canada.

-30-

The audio version of Garry's May 4, 2009 op-ed column can be heard by clicking here