Phase II Affordable Housing Agreement Signed

HALIFAX, March 3, 2005 — Nova Scotians will get another $18.92 million for the construction or renovation of affordable housing in the province under a new phase of a joint agreement with the federal government.

Today, the Honourable Joe Fontana, Minister of Labour and Housing; accompanied by Michael Savage, Member of Parliament for Dartmouth — Cole Harbour, Nova Scotia; and the Honourable David Morse, Minister of Community Services, signed the second phase of the Canada-Nova Scotia Affordable Housing Program Agreement.

Today's announcement brings the total investment under the Canada — Nova Scotia Affordable Housing Program Agreement to $56.18 million in funding by 2008. This investment is being equally shared by the Government of Canada, and the province of Nova Scotia and its housing partners.

"More Nova Scotians will now be able to gain access to affordable housing," said Minister Fontana. "We are very pleased with the work we are doing with our provincial partner to address the housing needs of Nova Scotians. This additional federal funding demonstrates our continued commitment to help provide safe and strong communities throughout Nova Scotia."

"The province of Nova Scotia is pleased to strengthen its commitment to affordable housing with the signing of the second phase of the Canada-Nova Scotia Affordable Housing Agreement," said Minister Morse. "The second phase of the program will provide the province with even greater flexibility in meeting the unique housing needs of low to moderate-income Nova Scotians."

Nova Scotia is the fourth province in Canada to sign the second phase of the agreement. To date, over $14.4 million has been announced by the Government of Canada, the Government of Nova Scotia,, and others for the construction or renovation of more than 300 units valued at over $20 million in the province. Several new projects will be announced in the coming weeks.

Funding under this affordable housing agreement will be used for provincially-designed programs that will support the creation of new rental housing and home ownership, and the rehabilitation or conversion of existing housing which is in poor repair.

For further information, please contact:

Peter Graham,
Director of Communications
Office of the Minister of Labour and Housing
(819) 953-5646

Vicki Fraser, Communications Advisor
Department of Community Services
(902) 424-4038

Todd Selby,
Marketing and Communications Consultant
CMHC-SCHL
(902) 426-8127

Backgrounder

Canada-Nova Scotia Affordable Housing Agreement

First Phase

The Governments of Canada and Nova Scotia signed an Affordable Housing Program Agreement on September 13, 2002 — the first phase provided federal funding of $18.63 million together with matching contributions of $18.63 million from the Province of Nova Scotia and its housing partners. This provides funding for a new rental housing initiative, a rental housing preservation program, a new home federal purchase program, and a home ownership preservation program.

Second Phase

Today's announcement increases the total investment under the Canada-Nova Scotia Affordable Housing Program Agreement by $18.92 million in funding by 2008. This investment is being equally shared by the Government of Canada, and the province of Nova Scotia and its housing partners. Under Phase II, funding will be:

• targeted to urban areas and other areas with considerable housing needs;
• targeted to persons on or eligible to be on a waiting list for social housing; and
• used for the same programs as Phase I, including a greater scope for renovation and conversion work.

As well, federal assistance is increased to 50 per cent of capital costs to a maximum of $75,000 per unit. The units funded will remain affordable and occupied by low-income households for a minimum of 10 years.

Other Government of Canada Housing Support in Nova Scotia

The Government of Canada annually supports housing with approximately $70.6 million in grants, contributions and subsidies which primarily serve some 22,700 lower-income families, seniors, persons with disabilities, Aboriginal people, and victims of domestic violence.

This includes funds for existing social housing and approximately $7 million for the Residential Rehabilitation Assistance Program (RRAP), Home Adaptations for Seniors' Independence (HASI), Emergency Repair Program (ERP) and the Shelter Enhancement Program (SEP).

Other Government of Nova Scotia Housing Support Programs

The provincial government offers a number of programs to help lower-income households maintain, acquire, or rent safe, adequate, and affordable housing. The province owns and operates more than 12,000 rental housing units for families and seniors, where rent is based on household income. The province administers agreements, provides subsidies to housing cooperatives, non-profit housing, and rural and native housing, and also provides grants and loans for home repairs and additions, and provides mortgage funds to purchase or build modest houses.