Rental Construction Financing Initiative

By mmuise
Description:

CMHC's Rental Construction Financing Initiative provides low cost loans to eligible borrowers during the most risky phases of product development of rental apartments (construction through to stabilized operations). The initiative focuses on standard rental apartment projects in Canada with general occupants where there is a need for additional rental housing supply.


Comments on Funding:

Funding is a loan of $1,000,000 up to 100% for residential loan component.

Deadline: Currently accepting applications
Eligibility:

Applicants include but are not limited to:

  • private entrepreneur/builder/developer;
  • public or private non-profit housing organization;
  • rental co-operative; and
  • Municipality.
    Applicants’ 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 six months of date of the executed loan agreement;
  • meet minimum financial viability and social outcome requirements;
  • meet minimum requirements: financial viability, affordability and energy efficiency.
Application Steps:

Applicants must:

1. contact their CMHC specialist prior to submitting their application;

2. work with their CMHC specialist to prepare their application and gather relevant information;

3. submit their application on the application portal along with the necessary documentation for the prioritization, after receiving confirmation from their CMHC specialist; and

4. pay the application fees, once selected.

Successful applicants will be issued a Letter of Intent.

Documentation Needed:

Applicants must submit the completed application form and supporting requirements in the application portal.

Other Things to Note:

Date Published: July 20, 2020

About the author
mmuise