Community Infrastructure Improvement Fund Guidelines

** FedDev Ontario is no longer accepting applications under the Community Infrastructure Improvement Fund. These guidelines are for reference only. **

Revised on July 19, 2012 to reflect the Canadian Environmental Assessment Act, 2012.

Background

The Government of Canada is committed to strengthening public infrastructure. Economic Action Plan 2012 announced $150 million nationally over two years for a new Community Infrastructure Improvement Fund (CIIF). The new Fund will support the rehabilitation and improvement, including expansion, of existing community infrastructure facilities such as community centres, recreational buildings, local arenas, cultural facilities and other community facilities. This will improve the quality of community facilities and provide economic benefits, including support for job creation, in communities across Canada.

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is delivering this program in Ontario. FedNor, the Federal Economic Development Initiative for Northern Ontario, will provide support to FedDev Ontario by promoting and launching the fund in Northern Ontario.

Eligibility

I. Eligible Recipients

Eligible recipients under the CIIF include:

• a local or regional government established by or under provincial statute;
• a First Nation government, including a Band or Tribal Council or its agent (including its wholly-owned corporation);
• a not-for-profit entity;
• a provincial entity that provides municipal-type services to communities, as defined by provincial statute; and
• a public-sector body that is wholly owned by a local or regional government (as above).

II. Eligible Projects

CIIF funding is for the rehabilitation or improvement, including expansion, of existing community infrastructure that is non-commercial in nature. Expansions such as adding ramps to improve accessibility to a facility, adding a roof to an outdoor rink or extending a trail or bike path are all eligible activities. Ineligible expansion activities are those that would result in new infrastructure or a significant increase (i.e. 50 per cent or more in square footage) in the footprint of the facility. Construction of new infrastructure is ineligible.

The facility needs to be open for use to the public and not limited to a private membership.

Eligible projects must:

• fall under an eligible category and be proposed by an eligible recipient;
• be for the rehabilitation or improvement, including expansion, of existing community infrastructure assets;
• leverage a minimum of 50 per cent of funding from other sources. Priority may be given to projects that leverage 66.6 per cent or more; and
• be substantially completed by March 31, 2014.

For the purposes of the CIIF, “substantially completed” has the same meaning and shall be determined in accordance with how the term “substantially performed” is determined in subsection 2(1) of the Construction Lien Act, R.S.O. 1990, c. C.30, as amended, and “Substantial Completion” shall have a corresponding meaning.

Projects must fall within the following project categories to be eligible for funding under the CIIF:

• community centres
• cultural centres
• parks, recreational trails such as fitness trails, bike paths and other types of trails
• libraries
• recreational facilities including local arenas, gymnasia, swimming pools, sports fields, tennis, basketball, volleyball or other sport-specific courts, golf courses, ski hills or other types of recreational facilities
• tourism facilities
• docks; and
• other existing community infrastructure assets that have a local community impact, such as local roads, drinking water treatment and distribution systems, connectivity and broadband, local airports, solid waste management and wastewater infrastructure.

Priority will be given to projects that can demonstrate anticipated economic benefits to their community, including the potential for job creation and the use of new technologies and innovation.

III. Eligible Project 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, that are paid by an eligible recipient, and that are paid under a contract for goods or services. All eligible costs outlined below can only be reimbursed to the recipient following the signing of a contribution agreement. Costs must first be incurred and paid by the recipient, and will then be reimbursed by Canada at the prescribed percentage of federal contribution.

Eligible costs for support under the CIIF are as follows:

• costs that are incurred between April 1, 2012 and March 31, 2014;
• costs to rehabilitate or improve fixed capital assets of community infrastructure, including expansions;
• fees paid to professionals, technical personnel, consultants and contractors specifically engaged for the purpose of the rehabilitation or expansion project;
• costs of environmental assessments, monitoring and follow-up programs as required by the Canadian Environmental Assessment Act (CEAA) or equivalent legislation;
• costs of any public announcement and official ceremony or of any temporary or permanent signage that includes the cost of creation and posting of signage;
• other costs that are considered to be direct and necessary for the successful implementation of the project and that are approved in advance; and
• Employee And Other Incremental Costs
  The incremental costs of the recipient's employees or its direct costs may be included in eligible costs under the following conditions;
  • the recipient is a local, regional or First Nation government;
  • the recipient confirms and substantiates that it is not economically feasible to tender a contract;
  • employees or equipment are employed directly in respect of the work that would have been the subject of the contract; and
  • the costs were approved in advance and are included in the contribution agreement.

IV. Ineligible Project Costs

Costs related to the following items are not eligible costs under the CIIF:

• project costs incurred before April 1, 2012 or after March 31, 2014;
• moveable equipment, including motorized vehicles, furniture and sports equipment;
• services or work that is normally provided by the recipient or a related party;
• salaries and other employment benefits of any employees of the recipient except as indicated under Employee And Other Incremental Costs above;
• a recipient's overhead costs, its direct or indirect operating or administrative costs, and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by the recipient's staff;
• the cost of feasibility and planning studies;
• taxes, such as GST and HST, for which the recipient is eligible for a tax rebate and all other costs eligible for rebates;
• the cost of land or any interest therein, and related costs;
• cost of leasing of equipment by the recipient except for as indicated in eligible costs, above;
• legal fees;
• routine maintenance costs; and,
• project administration costs that involve the salaries and benefits of existing staff and general administration costs unrelated to project implementation.

Funding

Under CIIF, eligible recipients may receive a non-repayable contribution of up to 50 per cent of eligible costs of an infrastructure project, with recipients providing the remaining balance. However, priority may be given to those projects that require a CIIF contribution of only 33.3 per cent.

Eligible recipients may receive contributions of up to a maximum of $1,000,000. The total funding from all federal sources will not exceed 50 per cent of total eligible project costs.

All projects are required to begin and substantially complete construction prior to March 31, 2014. Should this condition of funding not be met, Canada shall have the right to cancel funding in whole or in part, and further, Canada 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.

Other Requirements

Endorsement

Project applications must be duly authorized or endorsed by a resolution of Council / Band or Tribal Council / Board of Directors, as applicable. The resolution must be submitted at the time of the application.

Additional documentation will be required from not-for-profit entities.

All funded projects will also require a resolution to enter into a contribution agreement.

Ownership of Asset

If at any time within six (6) years from the date of completion of the project, the recipient sells, leases, encumbers or otherwise disposes of, directly or indirectly, any asset constructed, rehabilitated or improved, in whole or in part, with the financial assistance contributed under the terms of the CIIF, the recipient must repay the federal government, on demand, a proportionate amount of the financial assistance, as follows:

Ownership of Asset

Where Project asset is sold, leased, encumbered or disposed of:	Repayment of contribution (in current dollars)
Within 2 Years after Project completion	100%
Between 2 and 6 Years after Project completion	55%
6 Years after Project completion	0%

If an applicant does not own the asset for which CIIF funding is requested, the applicant must complete an Applicant Declaration and Landlord Authorization form at the time of application.

Environmental Assessment

Projects that are defined as "designated projects" under the Canadian Environmental Assessment Act, 2012 and those located on "federal lands" may require an environmental assessment or review. "Designated projects" include major projects such as electrical generating stations and transmission lines, oil and gas mining and processing facilities, metal and mineral mines, major railway lines, and all season highways. Applicants should communicate with the Canadian Environmental Assessment Agency (web site www.ceaa-acee.gc.ca) for more information on "designated projects". For projects carried out on "federal lands" (which are not "designated projects"), FedDev Ontario will have to determine if the project is likely to cause significant adverse environmental effects. Eligible costs cannot be reimbursed until this review has been completed.

Reporting

All recipients of funding for a project, funded under the CIIF, will be required to submit progress reports until project completion. The progress report should detail progress on the implementation of the project, and amounts received from Canada 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 approved recipients in their contribution agreements.

Application Review

FedDev Ontario will review all applications following the application deadline. Applicants will be notified when their projects are approved.

It is the intention of FedDev Ontario to have contribution agreements put in place quickly and efficiently so that available funds can flow to projects as soon as possible. The contribution agreements are also an important part of the accountability framework for the investments made under the CIIF.

In addition to meeting the eligibility requirements described above, priority will be given to projects that can demonstrate anticipated economic benefits to their community, including the potential for job creation, and the use of new technologies.

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 CIIF. Projects will be assessed on the eligibility requirements and priority areas described above, as well as the following selection criteria.

Project Readiness: All eligible recipients will be required to provide information necessary to determine if the project is construction-ready and will be substantially completed by March 31, 2014.

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, 2014, were it not for funding from the CIIF. Federal 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 31, 2014.

Extent to which Other Funding is Leveraged: The ability for a given project to leverage 66.6 per cent of project funding from other sources may be considered when making project decisions.

Technology and Innovation: All eligible recipients will be assessed on the use of innovative technologies, new techniques, processes or materials used in the project.

Partnerships: All eligible recipients will be assessed on the extent to which community-based partnerships have been formed for the use of the facility.

Contact Us

For more information on the Community Infrastructure Improvement Fund, please email or call 1-866-593-5505.