McGuinty Government Makes Low-Cost Capital Loans Available to Not-for-Profit Homes

FOR IMMEDIATE RELEASE

TORONTO (Dec. 20, 2006) – Not-for-profit long term care homes in Ontario will now be eligible to receive capital funding under the province’s infrastructure loan program, a major development that will allow the sector to undertake new builds and renovations at a substantially lower financing cost.

“This is great news for not-for-profit homes,” said Donna Rubin, CEO of the Ontario Association of Non-Profit Homes and Services for Seniors (OANHSS). “It is something we have wanted for years, and the McGuinty government is to be commended for making it happen.”

The Ontario Strategic Infrastructure Financing Authority (OSIFA) loan program has been available to municipalities and universities. Now that not-for-profit homes have been included as eligible applicants, they will be able to borrow for capital projects at very attractive rates. Another attraction of borrowing from OSIFA is that collateral is not currently required.

The provincial government approved the regulatory change last week. The OSIFA loan program provides short-term construction loans as well as long-term financing with terms of up to 40 years.

“This represents a major opportunity for our members, and we hope that it results in new and upgraded homes being built for the frail elderly by not-for-profit organizations across the province,” Rubin said.

“We’d particularly like to thank Municipal Affairs and Housing Minister John Gerretsen, Public Infrastructure Renewal Minister David Caplan, Finance Minister Greg Sorbara and Health and Long-Term Care Minister George Smitherman, for spearheading this initiative.”

OANHSS is the provincial association representing not-for-profit providers of long term care, services and housing for seniors. Members include municipal and charitable long term care homes, non-profit nursing homes, seniors’ housing projects and community service agencies. Member organizations operate over 26,000 long term care beds and over 5,000 seniors’ housing units across the province.

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For further information, contact:

Ontario Association of Non-Profit Homes & Services for Seniors
7050 Weston Road, Suite 700, Woodbridge, Ontario L4L 8G7
(P) 905-851-8821
(F) 905-851-0744

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OANHSS members include not-for-profit providers of long term care, services and housing for seniors in Ontario.
Members include municipal and charitable long term care homes, non-profit nursing homes,
seniors' housing projects and community service agencies.