Rental Construction Financing Initiative
Low-cost loans encouraging the construction of sustainable rental apartment projects across Canada.
Grant Deadline
Deadline not available
Funding Amount
$1,000,000
Type of Grant
Grant
Sectors
All Sectors
Demographics
Incorporation
For Profit
Perks
Region Restriction
This grant is restricted to whole of Canada
Keywords
Age Restriction
This grant is age restricted from 18 to 100
Eligibility and Requirements
CMHC rental construction financing provides low cost funding to eligible borrowers during the most risky phases of product development of rental apartments (construction through to stabilized operations). The minimum loan is $1,000,000, and a maximum of up to 100% of Loan to Cost (for residential loan component).
The initiative focuses on standard rental apartment projects in Canada with general occupants where there is a need for additional rental housing supply.
Note: It does not support construction of niche housing types such as retirement homes, single room occupancy and student housing. To learn about funding for niche housing types, please visit MLI for Affordable & Market Rental Housing.
Eligible borrowers include for-profit developers, non-profit developers and municipalities.
All projects must
- have at least 5 rental units
- have a loan size of at least $1 million
- respond to a need for rental supply
- have zoning in place, a site plan in process with municipality and a building permit available. The first construction draw must be within 6 months of date of the executed loan agreement
- meet minimum financial viability and social outcome requirements described below
- Meet minimum requirements (Key highlights) :
- Financial Viability: You must have the financial and operational ability to carry the project without ongoing subsidies and ability to meet debt coverage ratio requirements.
- Affordability: You must meet one of the following affordability requirements and it should be maintained for at least 10 years.
- A: At least 20% of units must have rents below 30% of the median total income of all families for the area, and the total residential rental income must be at least 10% below its gross achievable residential income.
- B: The proposal has been approved under another affordable housing program or initiative from any government level, such as capital grants, municipal concessions or expedited planning processing.
- Energy efficiency: Projects must be a minimum of 15% more efficient in energy consumption and GHG emissions than the applicable reference model building code:
- Low-rise multi-unit buildings under Part 9 of the National Building code must demonstrate a minimum 15% improvement over the 2015 NBC.
- All buildings under Part 3 on the National Building code must demonstrate a minimum 15% improvement over the 2017 NECB.
- Accessibility requirements: At least 10% of the project’s units must meet or exceed accessibility standards as regulated by local codes.
Grant Application website
Contact
For more information please contact