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Feds sign low-cost housing deal

Broadcast News - April 29, 2005

TORONTO — The federal government is trumpeting the fact it's reached a long-stalled $602 million deal with Ontario for affordable housing.

Over the next four years Ottawa and Ontario governments will each put forward $301 million.

The cash will fund rent supplements for low-income people and the construction of more affordable housing units.

The money will also fund a program to help low to moderate income families buy a house.

Initially, the two governments signed on to an affordable housing program in 2002, but little action was taken.

Federal Housing Minister Joe Fontana warns that another $1.6 billion for affordable housing across Canada won't get spent unless Parliament passes the new budget. That's part of the revised budget agreed upon by the federal Liberals and New Democrats in an attempt to stave off an election.

Fontana says right now the government needs to be allowed to put people -- not politics -- first.

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