Infrastructure Stimulus Fund Guidelines for Not-for-Profit Entities in Ontario

• Introduction
• Funding Allocation
• Program Management and Delivery
• Eligible Recipients
• Eligible Project Categories
• Eligible Projects
• How to Apply
• Eligible & Ineligible Costs
• Cost-sharing
• Expiration of Infrastructure Stimulus Fund
• Reporting and Public Information
• Environmental Assessment
• Contact Information

The purpose of this program guide is to provide as much relevant program information as possible to support applicants to the Infrastructure Stimulus Fund. Here you will find information on various topics, such as eligible project categories, mandatory criteria and other program documentation.

The Infrastructure Stimulus Fund is an important part of the Government of Canada's Economic Action Plan which provides a timely, targeted and temporary stimulus to the Canadian economy and protects Canadians during the global recession. The Province of Ontario will match the federal government's investments under the Infrastructure Stimulus Fund. Canada and Ontario have worked together to ensure the timeliness of funding under this program.

Introduction

The 2009 Federal Budget establishes a new $4-billion Infrastructure Stimulus Fund that provides funding towards the rehabilitation or construction of provincial, territorial, municipal and community infrastructure projects. The program provides $2 billion in 2009-10 and $2 billion in 2010-11 for projects that can begin construction quickly and be built during the 2009 and 2010 construction seasons. This initiative is structured to flow funding and get shovels in the ground quickly.

The Infrastructure Stimulus Fund will focus on the rehabilitation of existing assets and new infrastructure that can begin and be completed by March 31, 2011. Given the time-sensitive nature of the stimulus funding, the Infrastructure Stimulus Fund has been designed to ensure maximum flexibility. Funding allocations, project identification, selection and approval, have all been developed to provide the Government of Canada and the Government of Ontario with the necessary flexibility to ensure the most efficient and effective delivery of the program, thus enabling the funds to flow quickly to construction-ready projects across Canada. The Infrastructure Stimulus Fund will generally work by having Canada and Ontario match contributions from eligible recipients towards eligible projects on an equal basis. 

Funding Allocation

The $4 billion earmarked by the Government of Canada for the Infrastructure Stimulus Fund is notionally allocated on a per capita basis for projects in each province and territory. However, these notional allocations are subject to change in the event that project proponents in a given province or territory are unable to take up the available funding. Canada and Ontario are working together to ensure that Ontario's per capita allocation is taken up and injected into the economy.

Program Management and Delivery

An Infrastructure Stimulus Fund Contribution Agreement will be signed between Ontario and the project recipient, where Ontario, Canada and the recipient are contributing to the project.

It is the intention of both Canada and Ontario to have these contribution agreements put in place quickly and efficiently so that available funds can flow to projects over the next two years. These contribution agreements are also an important part of the accountability framework for the funding that will be allocated out of the Infrastructure Stimulus Fund.

Each contribution agreement includes stringent monitoring and reporting responsibilities for the recipient. Federal and provincial contributions are directly tied to these responsibilities, which are also subject to audit processes.

Applications are required for all projects that proponents wish to be considered for funding under the Infrastructure Stimulus Fund. These applications must be submitted using the online application form (see Section 7 on How to Apply).

Given the need for immediate economic stimulus, priority will be given to those projects that are able to spend more than 40% of their funding by March 31, 2010.

Eligible Recipients

In order to be considered an eligible recipient as a Not-for-Profit entity under the Infrastructure Stimulus Fund, you must be incorporated as a Not-for-Profit entity (possess an incorporation number). In addition, the entity must:

• Provide recent audited financial statements (within the past two years)
• Provide services and facilities accessible to and for the benefit of the public.
• Be financially stable with an accumulated debt of less than 10% of annual operating revenues.
• Be in continuous operation for the past three years. Exceptions may be considered for organizations who can demonstrate a valid rationale.

Eligible Project Categories

Projects must fall within the following eligible project categories to be eligible for the Infrastructure Stimulus Fund. In addition, only assets that are currently owned or will be owned by Not-for-Profit entities will be eligible.

Temporary Housing Shelters - infrastructure providing temporary or emergency shelter to disadvantaged or homeless persons.

Community Centres - multi-purpose centres providing a facility for public use for meetings, recreation, arts, and other community purposes for use by the public.

Community Services - facilities in which community and social services are provided to the public such as food banks, immigrant services, employment and other counseling, and emergency animal shelters. This excludes Not-for-Profit entities or projects whose primary focus and purpose is to provide health care, long term medical care or medical services to the public, education facilities (schools, colleges, universities, etc.) or correctional facilities.

Culture - Art galleries, libraries, museums, performing arts centres for the creation and presentation of the arts as well as preservation or enhancement of heritage structures.

Projects must be for the substantial renovation or rehabilitation of existing infrastructure or new capital infrastructure. Minor improvements (painting, flooring, interior decoration), vehicles and equipment are not eligible.

Eligible Projects

Eligible projects under the Infrastructure Stimulus Fund are for the rehabilitation or retrofit of existing infrastructure assets, or the construction of new infrastructure assets, in eligible categories, that can be substantially completed by March 31, 2011. For the purposes of the Infrastructure Stimulus Fund, a project is deemed to have been substantially completed once all major construction work has been completed and the infrastructure is ready to be used for its intended purpose. Upon completion of the project, and prior to the final payment, recipients will be required to provide a Solemn Declaration of Substantial Completion attested to by a registered professional or in a manner deemed satisfactory by Canada and Ontario.

To be eligible for funding under the Infrastructure Stimulus Fund, projects will be required to demonstrate:

1. Project incrementality - All eligible recipients will be required to attest, in conjunction with their project application, that the work to be undertaken is an incremental construction activity that would not otherwise have been constructed by March 31, 2011, were it not for funding from the Infrastructure Stimulus Fund. Federal and provincial funding could be used to provide sufficient funding to allow a project to proceed that would not otherwise be built, or could be used to accelerate a project planned for future years so that it can be completed by March 2011.
2. Project readiness - All eligible recipients will be required to provide information necessary to determine if the project is construction-ready and likely to be substantially completed by March 31, 2011.
3. Project merit - As part of the online application form, all eligible recipients will be required to provide a description of the project benefits, which may inform the evaluation and selection of projects under the Infrastructure Stimulus Fund. For projects involving the rehabilitation of existing assets, such benefits could include: public health and safety, energy efficiency, accessibility, and/or extending the economic life of the asset consistent with sound asset management principles. For projects involving new construction, these benefits could include: adding new public infrastructure for which there is a demonstrable need, replacing an existing asset that has reached the end of its useful life, but is still needed to provide public services, or improving the energy efficiency, accessibility, safety or quality of public infrastructure in a community.
4. Financial leverage - The Government of Canada and the Province of Ontario are seeking to leverage additional funds from municipalities, not-for profit sector or the private sector to provide additional economic stimulus. The ability for a given project to leverage additional capital will be considered when making project decisions.
5. Endorsement – All Not-for-Profit project recipients must submit a resolution of its board of directors endorsing the project.

In addition to the above criteria, an applicant must demonstrate that the proposed project:

• Has total eligible costs not less than $750,000 and not greater than $15 million. Projects exceeding the $15 million value will be considered on an exceptional basis, provided all other provisions are met.
• Has secured all other necessary funds for the project.

Applications are limited to one project per organization. The head of the organization applying for Stimulus funds must sign an attestation to accompany the information submitted.

Priority will be given to projects and proponents that:

• Are rehabilitating or renovating existing assets, as opposed to new construction.
• Will spend over 40% of their project budget before March 31, 2010.
• Can be completed by December 2010 (eligibility still exists until March 31, 2011).
• Require not more than 1/3 federal funding and 1/3 provincial funding for the project.
• Has leveraged funding from another source(s) (e.g. municipal government).
• Have experience in managing capital projects, similar in nature to the proposed project.

How to Apply

If you have met the conditions outlined above, you may request a user account which will allow you to submit your proposal online. Please note that an applicant must meet ALL of the conditions under eligible recipients, eligible categories and eligible projects in order to become a successful applicant.

To request a user account, please email us at +SIMSI-SPGII@infc.gc.ca with your organization's name, a primary contact and telephone number. Responses can take up to 24 hours.

After receiving your user account information, please use our online application form.

NOTE: Please make sure you have read all the Guidelines on this page to ensure you are an eligible entity with an eligible project. Please also note that YOU MUST COMPLETE the "Additional Information Document" and attach it to your online application (using our online application system).

Eligible and Ineligible Costs

Eligible Costs

Eligible costs are costs considered to be direct and necessary for the successful implementation of an eligible project, excluding those explicitly identified in Ineligible Costs.

All eligible costs outlined above can only be reimbursed to the recipient following the signing of a contribution agreement.

Ineligible Costs

Ineligible costs associated with a project will not be reimbursed under the Infrastructure Stimulus Fund and include the following:

1. costs incurred prior to the date of approval of a project, as indicated in writing to the recipient by the federal and provincial minister;
2. costs incurred for projects that are intended to be substantially completed after March 31, 2011;
3. land acquisition, leasing land, buildings, vehicles, equipment and other facilities, real estate fees and related costs;
4. financing charges, legal fees and loan interest payments (including those related to easements (e.g. surveys);
5. any goods and services costs which are received through donations or in-kind;
6. employee wages and benefits, overhead costs as well as other direct or indirect operating, maintenance and administrative costs incurred by the ultimate recipient for the eligible project(s), and more specifically costs relating to services delivered directly by permanent employees of the recipient, or a Crown corporation or corporation owned and controlled by the recipient; and
7. provincial sales tax and Goods and Services tax, for which the recipient is eligible for a rebate, and any other costs eligible for rebates.

Cost-sharing

Federal funding from the Infrastructure Stimulus Fund for non-profit sector assets will be one-third (33.3%) of total eligible project costs. Funding from the government of Ontario for non-profit sector assets will also be one-third (33.3%). Recipients will be responsible for the remainder of the eligible project costs. 

On an exceptional basis, the federal share of funding may be up to 50 percent (50%) of total eligible project costs. The federal share of the project, from all federal sources cannot exceed 50 percent (50%) of total eligible project costs.

Expiration of Infrastructure Stimulus Fund

All projects are required to begin and be substantially completed by March 31, 2011. Should this condition of funding not be met, Canada and Ontario shall have the right to cancel funding in whole or in part, and further, Canada and Ontario shall have the right to be repaid any funding advanced, in whole or in part, for any project that is not completed by the end of the program.

The Federal (Minister of Transport, Infrastructure and Communities) and Provincial (Minister of Energy and Infrastructure) Ministers, pending consultations with funding recipients, may cancel funding for any project that has not begun construction within sixty (60) days of its stated start date.

Reporting and Public Information

All recipients of funding for a project, funded under the Infrastructure Stimulus Fund, will be required to submit progress reports every three months until project completion, or more frequently if requested in writing. The progress report should detail progress on the implementation of the project, amounts received from Canada and Ontario through the agreement, amounts expended on approved projects, and an overall update on the project status.  Further information on the details of this reporting will be provided to funding recipients in the future.

Environmental Assessment

Projects receiving federal and provincial funding may require federal and provincial environmental assessment requirements to be met, including the Canadian Environmental Assessment Act. The information requested in the project will help to determine whether an assessment is required. Construction should not begin on the project pending this review.

Contact Information

All correspondence, queries and notices to the Government of Canada regarding the Infrastructure Stimulus Fund can be sent to:

Email: info@creatingjobs.gc.ca

Link to Infrastructure Stimulus Fund Application Process for Not-for-Profit Organizations in Ontario >>

Link to Questions and Answers for Not-for-Profit Organization Applicants >>

Link to Infrastructure Stimulus Fund Guidelines >>

Back to Infrastructure in Ontario >>

Link to News Release and Backgrounder >>