Be Funding Ready for CMHC’s Rental Construction Financing initiative
Over the last several decades, funding for non-profit housing providers has shifted from long-term operational funding to application based funding.
One example — the new Canada Mortgage and Housing Corporation (CMHC) Rental Construction Financing initiative (RCFi), first announced in the 2016 Federal Budget — is now in the process of rolling out.
The federal government recently announced $625 million annually in reduced interest loans across Canada for new rental development. Provinces are not eligible to borrow this funding, rather municipalities, non-profit organizations and private housing developers are required to apply directly. In addition, CMHC has determined affordability in this context to be (at least) 20 per cent of units having rents at 30 per cent of the median household income, differing from some measures which have been tied to Average Market Rent. One key scoring criteria of this loan program is that it requires housing providers to demonstrate financial viability without operating subsidies.
Within the program details, CMHC has signaled that it is targeting applications that can demonstrate greater social outcomes. The scoring grid includes, amongst other items: a focus on collaboration, energy efficiency, transit orientation and accessibility (topics that have informed important conversations at ONPHA Regional Meetings and will be explored further at the upcoming ONPHA conference).
Are you curious about the initiative and finding out if your project qualifies? CMHC has a Rental Construction Financing Team that is available to answer your questions from 8 a.m. until 7 p.m. EST.
If you want to get funding ready, sign up for Financing our Future: Laying the Groundwork for Funding Success on Education Day, November 2, in Niagara Falls. Register before September 15 and save with early bird pricing.