Some mayors upset after southwest N.B. left out of federal housing funding

Mayors across southwest New Brunswick say they are disappointed after the region was denied funding under the federal housing accelerator fund.

The government agency that distributed funding says there were simply too many applications to satisfy each proposal, but one mayor is disappointed that he didn't get any explanation for why his application was rejected.

"The federal government didn't seem to care about our part of the province," Craig, mayor of Eastern Charlotte, told CBC's Information Morning Saint John. Eastern Charlotte includes St. George and numerous other communities.

Other municipalities, such as St. Stephen, McAdam, Grand Manan, Campobello, and Fundy Shores also applied and were denied.

"I think the first word that comes to mind would be anger, I think we were all very angry," Craig said.

The housing situation in Eastern Charlotte "is bad," he said, adding that several large employers "badly" need housing for workers.

Craig cited large corporations in Eastern Charlotte, such as Cooke Aquaculture, as a reason that the region needs more housing to accommodate workers and residents. (Associated Press/Robert F. Bukaty)

The fund is run by the Canada Mortgage and Housing Corporation.

Spokesperson David Harris said not all applications could be funded. Demand was high and the evaluation process was highly competitive.

CMHC's website says municipalities must submit details of how many housing units could be built with and without federal funding, and data on building permits issued in recent years to determine how feasible goals are, and how the funding would be used.

Harris declined to speak about specific applications, but said CMHC received 544 applications, just 179 of which resulted in agreements.

CMHC received 544 applications for the housing accelerator fund, but was only able to approve 179, a spokesperson said. (Todd Korol/Reuters)

Cities and communities from across Canada could apply either through a large/urban stream or a small/rural/North/Indigenous stream.

Harris said three small or rural areas in New Brunswick did receive money from the housing accelerator: Grand-Bouctouche, Champdoré and Indian Island got a combined $7.1 million, Cap-Acadie received $2 million, and Bathurst, Caraquet, Shippagan and Tracadie got a total of $10.5 million.

He said the government balanced prioritizing the most ambitious proposals with ensuring municipalities of all sizes from across Canada were approved.

Larger cities were also picked, including Saint John with $9.2 million and Moncton with $15.5 million.

Craig said it's great that other places in New Brunswick got funding, but he's disappointed Eastern Charlotte didn't get any, especially since his municipality only applied for $1 million.

He said the municipality made a strong case, which is driven by major employers such as Cooke Aquaculture, Mowi, Connors Bros. Seafoods, and the J.D. Irving paper mill at Lake Utopia.

"It's not that hard to make a case when you have major companies down here wanting to expand and wanting to grow, and they have no place to put their workers, and that's very frustrating," Craig said.

John Williamson, MP for New Brunswick Southwest, called the lack of housing funding approval in the region disappointing. (CP121586490/The Canadian Press)

Cooke spokesperson Joel Richardson said in an email that "the largest gap with bringing more people and their families into the workforce in southwest New Brunswick is the availability and cost of housing" in communities where the company operates.

Craig said he and other mayors are trying for a meeting with CMHC to understand their decision. He added that there are a few housing projects in the municipality that could have used the money, but now these projects will have to be funded through local taxes.

Local MP calls funding snub political

Craig said he and other mayors asked New Brunswick Southwest MP John Williamson for help.

In an emailed statement to CBC News, Williamson, a Conservative, said it's disappointing to see many proposals from the region were not approved, adding he will speak with Housing Minister Sean Fraser next week when Parliament sits.

McAdam Mayor Ken Stannix was also disappointed by the lack of explanation given for why applications from communities like his were denied. (Shane Fowler/CBC)

"There is a growing housing crisis in my riding as well as other rural communities across the country," Williamson said.

"It doesn't make sense why southern New Brunswick is being overlooked when it's much more affordable to build housing here and rapidly approve permits through willing municipal governments."

He wondered whether political affiliations played any part, noting the southwestern New Brunswick rejections were in Conservative-held ridings.

McAdam mayor also disappointed

Mayor Ken Stannix of McAdam said he was disappointed not to receive the $2.2 million his community asked for.

He said he wished he got an explanation for what criteria CMHC used to judge applications, and what other successful communities had that McAdam did not.

Stannix said McAdam's proposal was put together by staff from the Southwest New Brunswick Service Commission, and included studies on the housing needs for the region done by the commission last year.

"If you are denied once, you should be told as to why are you were denied, so that when you next apply for the next funding envelope that comes available, that you're better equipped," Stannix said.