Released September 28, 2005

The project was announced today by John Efford, Member of Parliament for Avalon, on behalf of Joe Fontana, Minister of Labour and Housing, along with Joan Burke, provincial Minister of Human Resources, Labour and Employment and Minister Responsible for Newfoundland and Labrador Housing Corporation (NLHC).

"The Government of Canada is committed to supporting affordable housing for those Canadians who need it most," said MP Efford. "These homes in Holyrood, funded partly through Canada Mortgage and Housing Corporation (CMHC), go a long way to creating access to safe and affordable housing in our community."

“Affordable housing is fundamental to the health and future of our communities, which is why we are very pleased to have the support of the private sector in this project,” said Minister Burke. “Our private-sector partnerships play such a pivotal role to the success and continued development of the Affordable Housing Program, throughout the province. Their commitment to the program helps us increase housing options for those who need it most.”

Under the Affordable Housing Rental Program, the 10-unit apartment project will receive $150,000 in federal funding to offset constructions costs. The project is being developed by Hawco Construction and Development Ltd. at a total cost of $500,000, and is located on Salmonier Line in Holyrood.

“The availability of affordable housing is an important issue in our community,” commented Gus Hawco, president, Hawco Construction and Development. “As a member of the private sector, I welcome this opportunity to help address the issue by partnering with the federal and provincial governments and providing more housing options for seniors in our area.”

The development will provide one and two-bedroom affordable rental units for independent seniors. A one-bedroom unit will be completely accessible, and under the agreement, all the units will remain affordable for a minimum of 10 years. Construction on the project has begun and completion is anticipated by early October 2005.

For further information contact:

Jenny Bowing, NLHC, (709) 724-3055
Todd Selby, CMHC-SCHL, (902) 426-8127
E-mail:  releases@nlhc.nf.ca

Objectives:

• to increase the supply of off-reserve affordable housing in Newfoundland and Labrador; the housing must be affordable for at least 10 years.

Funding under this agreement will be used to:

• stimulate the production of new rental affordable housing and the rehabilitation of severely deteriorated existing rental affordable housing for low-to-moderate-income households;
• create new affordable ownership housing and to rehabilitate severely deteriorated existing affordable ownership housing for low-to-moderate-income households in Labrador .

• the program(s) will be administered by the Newfoundland and Labrador Housing Corporation (NLHC);
• NLHC is responsible for the selection of affordable housing projects.

• Maximum CMHC funding under the agreement is $15.14 million to be matched by the Province of Newfoundland and Labrador, municipalities and others;
• Overall average CMHC funding will not exceed $25,000 per unit;
• $5.0 million in federal funding is allocated to remote areas (Labrador).