Community Power Finance Forum Mark Salerno, CMHC
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Agenda </li></ul><ul><li>CMHC & Canada’s E...
CANADA MORTGAGE AND HOUSING CORPORATION /housingactionplan/ http://www.cmhc.ca CMHC & Canada’s Economic Action Plan
CANADA MORTGAGE AND HOUSING CORPORATION CMHC & Canada’s Economic Action Plan
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>General Background </li></ul><ul><li>2009 ...
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Stacking Options </li></ul>CANADA MORTGAGE...
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Eligible Projects </li></ul><ul><li>Munici...
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Eligible Projects (continuation) </li></ul...
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Eligible Projects (continuation) </li></ul...
Municipal Infrastructure Lending Program Housing-Related Infrastructure CANADA MORTGAGE AND HOUSING CORPORATION
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Eligible Costs </li></ul><ul><li>Soft (Pla...
Municipal Infrastructure Lending Program Housing-Related Infrastructure CANADA MORTGAGE AND HOUSING CORPORATION
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Loan Terms & Conditions </li></ul><ul><li>...
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Interest Rate </li></ul><ul><li>Set two we...
Municipal Infrastructure Lending Program Housing-Related Infrastructure CANADA MORTGAGE AND HOUSING CORPORATION
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>How to Apply </li></ul><ul><li>Municipalit...
Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Getting More Information </li></ul><ul><li...
Community Power Finance Forum Mark Salerno, CMHC
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Canada Mortgage and Housing Corporation's (CMHC) Municipal Infrastructure Lending Program

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Canada Mortgage and Housing Corporation's (CMHC) Municipal Infrastructure Lending Program
Speaker: Mark Salerno, National Sales Team Leader, Municipal Infrastructure Lending Program, CMHC

Part of the 2010 Community Power Finance Forum at MaRS:
http://www.marsdd.com/communitypower

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  • I’m going to first cover the four broad areas that CMHC is responsible for under Canada’s Economic Action plan that was announced as part of the 2009 budget. Access to this information is available directly from CMHC’s website.
  • General Background on the economic action plan: Immediate focus is to stimulate the economy primarily through job creation. Housing related work as well as infrastructure projects produce high numbers of jobs. Equally important is the fact that funding is being made available to assist with and address some of the infrastructure needs faced by Canada’s municipalities; opportunity to create additional affordable housing units and to help fund much needed repairs and energy retrofit needs of existing social housing stock. Most of the programs are well underway at this time however agreements still need to be signed with several Provinces in order to get moving on several of the initiatives. 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. 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. 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 Ontario, the federal government provides almost $739 million annually to support some 238,500 households.
  • For terms other than 15-years, our flexibility around timing is reduced where the loan is less than $5 million i.e. we would have to match up that loan with another bigger loan to get it funded.....definitely doable but less flexible in timing.
  • Canada Mortgage and Housing Corporation's (CMHC) Municipal Infrastructure Lending Program

    1. 1. Community Power Finance Forum Mark Salerno, CMHC
    2. 2. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Agenda </li></ul><ul><li>CMHC & Canada’s Economic Action Plan </li></ul><ul><li>Municipal Infrastructure Lending Program </li></ul><ul><li>General Background </li></ul><ul><li>Eligible Projects </li></ul><ul><li>Eligible Costs </li></ul><ul><li>Loan Terms & Conditions </li></ul><ul><li>Interest Rate </li></ul><ul><li>How to Apply </li></ul><ul><li>Getting More Information </li></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    3. 3. CANADA MORTGAGE AND HOUSING CORPORATION /housingactionplan/ http://www.cmhc.ca CMHC & Canada’s Economic Action Plan
    4. 4. CANADA MORTGAGE AND HOUSING CORPORATION CMHC & Canada’s Economic Action Plan
    5. 5. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>General Background </li></ul><ul><li>2009 Federal Budget – Canada’s Economic Action Plan; </li></ul><ul><li>Direct, low-cost loans to municipalities through Canada Mortgage and Housing Corporation (CMHC); </li></ul><ul><li>Up to $2 billion over two years (27/1/09 - 31/3/11); </li></ul><ul><li>Re: housing-related infrastructure projects; </li></ul><ul><li>Available to towns and cities across the country; </li></ul><ul><li>Can be used to fund municipal contribution for cost-shared federal infrastructure programs. </li></ul><ul><ul><li>Stacking of federal contributions is allowed. </li></ul></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    6. 6. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Stacking Options </li></ul>CANADA MORTGAGE AND HOUSING CORPORATION Infrastructure Grants & Loans FCM’s GREEN Municipal Funds – Grants & Loans CMHC’s Municipal Infrastructure Lending Program Source for Municipal 1/3 Housing – Related Infrastructure Federal / Provincial Infrastructure 2/3 Grants Requires Municipal 1/3 Infrastructure Ontario Loan Program Source for Municipal 1/3
    7. 7. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Eligible Projects </li></ul><ul><li>Municipal housing-related infrastructure projects. </li></ul><ul><li>New, expansion or renewal of existing infrastructure. </li></ul><ul><li>Shovel-ready projects as this is a short-term, temporary measure to create jobs. </li></ul><ul><li>Construction has started on or after 27/1/09. </li></ul><ul><li>Soft costs incurred before 27/1/09 are eligible. </li></ul><ul><li>Loan advanced by 31/3/11 </li></ul><ul><li>Construction complete by 31/3/12 </li></ul><ul><li>Subject to Canadian Environmental Assessment Act (CEAA). </li></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    8. 8. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Eligible Projects (continuation) </li></ul><ul><li>Utilities : Electrical, Wind, Solar, Gas, Combined Heat and Power District Energy Systems, Other. </li></ul><ul><ul><li>Grid-tied Solar PV or Wind Power Systems do not have to be contiguous with a residential area; </li></ul></ul><ul><ul><li>They can be attached to any building type or ground mounted on sites with any land use where in feeding the grid they contribute electricity to residential areas and the broader community. </li></ul></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    9. 9. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Eligible Projects (continuation) </li></ul><ul><li>Water : Drinking Water Supply, Distribution Systems, Drinking Water Treatment Systems, Other; </li></ul><ul><li>Waste-water : Sanitary and Combined Sewer Systems, Separated Storm Water Systems, Waste-water Treatment Systems, Trunk Storm Sewer Systems, Other; </li></ul><ul><li>Solid Waste : Material Recovery Facilities, Landfills, Organics Management, Thermal Treatment, Collection Depots, Other; </li></ul><ul><li>Local Transportation : Roads, Sidewalks, Bridges, Arterial Roads, Tunnels, Other; </li></ul><ul><li>Residential Infrastructure : Parks, Fitness Trail, Bike Lanes, Fire Stations, Pathways, Green Space, Lighting. </li></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    10. 10. Municipal Infrastructure Lending Program Housing-Related Infrastructure CANADA MORTGAGE AND HOUSING CORPORATION
    11. 11. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Eligible Costs </li></ul><ul><li>Soft (Planning/Designing) & Construction costs. </li></ul><ul><li>Example Costs: </li></ul><ul><ul><li>Plans and specifications for the project; </li></ul></ul><ul><ul><li>Land for construction of infrastructure; </li></ul></ul><ul><ul><li>Environmental assessment; </li></ul></ul><ul><ul><li>Remediation or decontamination of land for construction of infrastructure; </li></ul></ul><ul><ul><li>Materials used in or located on the site; </li></ul></ul><ul><ul><li>Interest on bridge financing </li></ul></ul><ul><ul><li>Legal services. </li></ul></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    12. 12. Municipal Infrastructure Lending Program Housing-Related Infrastructure CANADA MORTGAGE AND HOUSING CORPORATION
    13. 13. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Loan Terms & Conditions </li></ul><ul><li>A municipal borrower (may partner with other parties); </li></ul><ul><li>No loan size limit; </li></ul><ul><li>Amount may not exceed 100% of eligible costs; </li></ul><ul><li>15 years (with 10, 20, 25, 30 year options); </li></ul><ul><li>Non-renewable; </li></ul><ul><li>Prepayment not permitted; </li></ul><ul><li>Regular annual payments of principal and interest; </li></ul><ul><li>Loan may be secured by a loan agreement or debenture. </li></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    14. 14. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Interest Rate </li></ul><ul><li>Set two weeks prior to loan advance; </li></ul><ul><li>Lower than typical municipal borrowing rates; </li></ul><ul><li>No profit margin built into rate; </li></ul><ul><li>Government of Canada 15 yr rate plus approx. 0.5%; </li></ul><ul><li>Historical funding rates posted on CMHC website; </li></ul><ul><li>Updated monthly to add the latest funding rate achieved. </li></ul><ul><li>Example Savings on a $50M Loan, 15 year term: </li></ul><ul><ul><li>0.25% rate margin = $1.2M savings over term </li></ul></ul><ul><ul><li>0.5% rate margin = $2.4M savings over term </li></ul></ul><ul><ul><li>0.75% rate margin = $3.6M savings over term </li></ul></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    15. 15. Municipal Infrastructure Lending Program Housing-Related Infrastructure CANADA MORTGAGE AND HOUSING CORPORATION
    16. 16. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>How to Apply </li></ul><ul><li>Municipalities can apply on line by visiting CMHC Website at www.cmhc.ca/housingactionplan </li></ul><ul><li>There are two (2) parts to the application: </li></ul><ul><ul><li>On-Line Application form </li></ul></ul><ul><ul><li>Attach Supporting documents: </li></ul></ul><ul><ul><ul><li>Council Resolution identifying specific project to be funded and confirming that project design (prepared by a project engineer/architect/planner) has been approved by appropriate authorities having jurisdiction; </li></ul></ul></ul><ul><ul><ul><li>Construction timeline identifying applicable milestones. </li></ul></ul></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    17. 17. Municipal Infrastructure Lending Program Housing-Related Infrastructure <ul><li>Getting More Information </li></ul><ul><li>Visit CMHC Web site www.cmhc.ca/housingactionplan </li></ul><ul><li>Send an email to [email_address] </li></ul><ul><li>Call CMHC Call Centre 1-800-668-2642 </li></ul><ul><li>National Rep – Mark Salerno: [email_address] </li></ul><ul><li>Ontario Rep – Brett Barnes: [email_address] </li></ul>CANADA MORTGAGE AND HOUSING CORPORATION
    18. 18. Community Power Finance Forum Mark Salerno, CMHC

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