CaDCR staff writer
The federal government is changing the Affordable Housing Fund (AHF) and the Apartment Construction Loan Program (ACLP), the two largest housing supply programs in the National Housing Strategy (NHS).
Upcoming enhancements could make it easier for housing providers to build housing for these specific groups in the communities they serve. Housing providers will be able to submit applications using the new enhancements on November 22, 2024, and can reach out to their CMHC specialist to learn more.
” These enhancements will make it easier to build a range of new homes . . . and ensure more of our friends and neighbours who need extra support have a safe and affordable place to call home,” said housing minister Sean Fraser.
Affordable Housing Fund enhancements:
- Extend the program from 2025-26 to 2028-2029.
- Divide the existing New Construction Stream into two dedicated sub-streams:
- A Rapid Housing Sub-Stream to help build shelters, supportive, and transitional housing for those in greatest need.
- A Community Housing Sub-Stream to support affordable and mixed-market housing where there are both affordable and market rent units in a project.
- Adjust the Repair and Renewal Stream’s by replacing minimum requirements with an approach where projects supporting accessibility and energy efficiency will be prioritized.
Apartment Construction Loan Program’s enhancements:
- Extend the program from 2027-28 to 2031-2032.
- Expand eligibility to include:
- On- and off-campus student housing.
- Independent seniors housing.
- Remove minimum requirements related to accessibility and energy efficiency. Applicants will benefit from making stronger commitments to desired rental supply and social outcomes.
The AHF provides funding through low-interest repayable loans and forgivable loans or contributions to partnered organizations for new affordable housing and the renovation and repair of existing, affordable and community housing. This is a $14.6 billion program under the NHS that gives priority to projects that help people most in need, including women and children fleeing family violence, seniors, Indigenous peoples, people living with disabilities, those with mental health or addiction issues, veterans, and young adults.
The ACLP is a $55 billion program which provides fully repayable low interest loans to encourage the construction of standard rental homes as well as senior and student rental housing. It creates a positive impact in the housing system at minimal cost to taxpayers.
Also, CMHC implemented the Frequent Builder framework to expedite applications for existing housing providers with a proven track record of building multi-residential units. Different criteria apply to Governments, non-profit and for-profit organizations to qualify for Frequent Builder status.
Frequent Builders may receive benefits such as priority assignment of CMHC resources and expedited loan approvals, underwriting and advancing flexibilities, as well as the possibility of funding commitments for future years which will allow funding predictability and better planning for their pipeline of projects.
