Enhancements to the Affordable Housing Fund and Apartment Construction Loan Program

Ottawa, Ontario, November 14, 2024

Today, the federal government announced upcoming enhancements to the Affordable Housing Fund (AHF) and the Apartment Construction Loan Program (ACLP). These are the two largest housing supply programs in the National Housing Strategy (NHS).

Across Canada there is an urgent need for affordable housing and rental homes available to middle class families and individuals, along with vulnerable populations, students, and seniors. The upcoming enhancements to both the AHF and ACLP will make it easier for housing providers to build housing for these specific groups in the communities they serve.

Combining these enhancements with the recently announced Frequent Builder framework will allow housing providers to build more types of housing, faster. 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.

The Affordable Housing Fund enhancements will:

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.

The Apartment Construction Loan Program’s enhancements will:

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.

Quote:

“To end the housing crisis, we need to build different kinds of homes that meet all kinds of housing needs. These enhancements to the Affordable Housing Fund and Apartment Construction Loan Program will make it easier to build a range of new homes that will allow more students to live close to where they study, more seniors to stay in the communities they love, and ensure more of our friends and neighbours who need extra support have a safe and affordable place to call home.”
— The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

Quick facts:

The Affordable Housing Fund (AHF) and Apartment Construction Loan Program (ACLP) are part of the Government of Canada’s National Housing Strategy (NHS), an $115+ billion plan to give more Canadians a place to call home.
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.
- As of September 2024, the Government of Canada has committed $10.34 billion to support the creation of over 40,000 units and the repair of over 166,000 units through the Affordable Housing Fund.
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.
- As of September 2024, CMHC has committed $20.65 billion in loans through ACLP to support the creation of more than 53,000 purpose-built rental homes.
To support the Government’s work to grow housing supply and address the need for more affordable and rental homes, CMHC implemented the Frequent Builder framework.
- The Frequent Builder framework is helping expedite applications for the Affordable Housing Fund and the Apartment Construction Loan Program. The Frequent Builder status is given to 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.