Affordable Housing Agreement Signed by Canada and Saskatchewan

Regina, June 28, 2002 — A Federal - Provincial Affordable Housing Program Agreement, which will provide $45.86 million over the next five years to construct up to 1,000 new housing units in Saskatchewan, was signed today in Regina.

The announcement was made jointly by Ralph Goodale, Minister of Public Works and Government Services, on behalf of John Manley, Deputy Prime Minister, Minister of Finance and Minister of Infrastructure and Crown Corporations, and Glenn Hagel, Saskatchewan's Minister of Social Services.

"This agreement will help people in need of affordable housing in this province during the next five years," said Minister Goodale following the signing of the agreement. "It is a key part of the Government of Canada's $680 million commitment across Canada and the seventh affordable housing agreement signed in the past six months"

"This agreement will help people in need of affordable housing in this province during the next five years," said Minister Goodale following the signing of the agreement. "It is a key part of the Government of Canada’s $680 million commitment across Canada and the seventh affordable housing agreement signed in the past six months."

Minister Hagel said, "Today’s agreement will mean significant support for the ongoing efforts of the Government of Saskatchewan to ensure suitable, affordable housing for the people of this province. The agreement is flexible and respects the unique priorities, strategies and realities of housing in Saskatchewan.”

Through this agreement, federal funds will be used for capital grants to reduce the cost of housing under three provincially-designed affordable rental housing and home ownership programs.

With matching contributions from the province, municipalities and other private and non-profit partners, a total $45.86 million will be available for investment in affordable housing and will help create approximately 1,000 new units of affordable housing.

In January 2001, the Speech From the Throne indicated the Government of Canada would help stimulate the creation of more affordable housing. The $680 million in federal funding was confirmed in the 2001 federal budget on December 10, 2001.

Persons and organizations interested in more details on this initiative should contact Saskatchewan Housing Corporation (SHC).

For further information please contact:

John Embury
Director of Communications
Office of Minister Goodale
(819) 956-5325

Brian Miller
Saskatchewan Social Services
Regina
(306) 787-0531

Backgrounder - Affordable Housing Initiative

The 2001 Speech From the Throne indicated the Government of Canada would help stimulate the creation of more affordable rental housing. The federal/provincial/territorial housing ministers met twice to finalize details of an affordable housing initiative that would address the needs and priorities of individual jurisdictions while meeting the goal of increasing the supply of affordable housing. The final framework was developed and agreed to on November 30, 2001 and includes the following:

• Provinces and territories have the primary responsibility for design and housing program delivery;
• Provinces and territories require flexible programs to address their housing needs;
• The initiative needs to create affordable housing for low- to moderate-income households;
• Units funded will remain affordable for a minimum of 10 years and;
• Provinces and territories will be required to match federal contributions overall.

To date, bilateral agreements have been signed with British Columbia, Alberta, Quebec, Ontario, Northwest Territories and Nunavut.

Other Government of Canada Housing Support in Saskatchewan

The $22.93 million federal contribution over the next five years builds on current Government of Canada expenditures on housing in Saskatchewan. The Government of Canada annually supports housing with approximately $150 million in grants, contributions and subsidies which serve lower-income families, seniors, persons with disabilities, Aboriginal people and victims of domestic violence.

This includes funding for over 34,000 lower-income households in existing social housing and for renovation programs such as the Residential Rehabilitation Assistance Program (RRAP), Home Adaptations for Seniors' Independence (HASI), Emergency Repair Program (ERP).

Affordable Housing Program Agreement Summary

Objectives:

• to increase the supply of affordable housing in Saskatchewan
• the housing must be affordable for at least 10 years

Programs:

Funding under this agreement will be used for:

• the construction of new affordable rental housing for low- to moderate-income households
• a Home Ownership Plan for low- to moderate-income families
• the acquisition and renovation of rental housing for low- and moderate-income households

Administration:

• the program(s) will be administered by the Saskatchewan Housing Corporation (SHC)
• SHC is responsible for the selection of projects

Financial Provisions:

• maximum CMHC funding under the agreement is $22.93 million to be matched by the Province of Saskatchewan
• $3.0 million in federal funding for remote areas of northern Saskatchewan
• overall average amount of CMHC funding will not exceed $25,000 per unit

Accountability:

• SHC will provide an annual audit and performance report on the use of CMHC funding
• CMHC will lead an evaluation of the program in 2006 and SHC will be invited to participate

Communications:

• SHC and CMHC have agreed on a communications protocol which will be open, transparent and will recognize the contributions of each party to this initiative

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