Hamilton, June 9, 2021 – In a significant positive step towards economic recovery from the COVID-19 pandemic, the City of Hamilton is adopting a key financial tool recommended by the West End Home Builders’ Association (WE HBA) to attract investment and spur job creation. On June 9, 2021, City Council voted in favour of allowing the use of modern pay-on-demand surety bonds in lieu of traditional letters of credit in Hamilton. Surety Bonds are an alternative financial tool to secure municipal agreements in development projects, that enable builders and developers to reinvest capital elsewhere in the local economy.
The West End Home Builders’ Association worked closely with the City of Hamilton and the Mayors Task Force on Economic Recovery to reach this significant milestone. WE HBA 1st Vice President Terri Johns stated, “As a representative of WE HBA, as well as a small business owner, it was my honour to work with the Mayor’s Task Force on Economic Recovery. Our goal was to formulate an aggressive, action driven plan to ensure that Hamilton lands in a strong economic position after COVID-19. The introduction of surety bonds represents just that – an immediate action. This additional development finance tool, available to both developers and builders, will directly support job creation in the home building economy and in turn, our city.”
Getting to the point of Hamilton enabling the use of surety bonds was a collaborative effort between WE HBA, our members, and the City of Hamilton. WE HBA member Marsh Canada provided support and expertise to our Association in support of this economic recovery milestone. In a statement, Marsh Canada’s Senior Vice President Fraser de Walle said, “It has been a fantastic experience working closely together with WE HBA and the City of Hamilton, trailblazing this important initiative together with them. Hamilton is the first major city in Ontario to move forward with the acceptance of surety bonds as an alternative to letters of credit. Hamilton’s communities, the residents that enjoy those communities, and the overarching business environment in the area will all benefit from this progressive move.” WE HBA is looking forward to sharing more information about the adoption of surety bonds in Hamilton through a webinar co-hosted with Marsh Canada on July 6, 2021.
About West End HBA: Since 1942, the West End Home Builders’ Association (WE HBA) has been the voice of the local residential construction industry. WE HBA provides an effective voice for the land development, home building and renovation industries, as well as for new home buyers. WE HBA is actively engaged in working to ensure its members’ interests are represented at all three levels of government and advocates on behalf of consumers for choice, affordability, and sufficient supply.
Press Contact: Elena Balaska, Manager of Membership & Communications, [email protected] | (289) 208 1442