Communities Component

New in Canada’s Economic Action Plan

Through Canada’s Economic Action Plan, the federal government will top up the Building Canada Fund’s Communities Component to accelerate infrastructure projects in small communities. An additional $500 million has been committed over the next two years, which will be allocated to projects that are ready to get started, and will be completed, in the next two construction seasons.

About the Program

The Communities Component of the Building Canada Fund recognizes that smaller communities have unique infrastructure needs, and therefore targets projects in communities with populations of less than 100,000. Projects are selected through an application-based process.

Projects are cost-shared on a one-third basis among federal, provincial and municipal counterparts. Projects related to safe drinking water, disaster mitigation, brownfield redevelopment, and local roads and bridges are funded through the Communities Component.

How it Works

Municipalities will be able to participate in the applications-based programs that are managed to best fit circumstances in each province. Application intakes will take place in each province and those intakes will be communicated to municipalities. Projects will be eligible under the existing seventeen categories of the Communities Component. Through the extra $500 million, work funded must be completed within two years. Furthermore, the existing Communities Component allocation for a province must be committed to projects before municipalities in that province can access the $500 million top-up.

Who is Eligible?

Canadian municipalities with a population of less than 100,000, as determined by the Statistics Canada’s Final 2006 Census, are eligible to apply for funding under the Communities Component. A private sector body or non-profit organization whose application is supported by a Council resolution from the local municipality could also apply.

March 26, 2009