Affordable Housing Fund: Indigenous and Northern Housing
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IMPORTANT
Enhanced Affordable Housing Fund launches November 22, 2024
Current program details will be available on our website until November 21, 2024. Act now to ensure you have all the necessary information.
This Indigenous and Northern Housing option of the Affordable Housing Fund prioritizes partnerships between Indigenous and northern housing providers and other partners such as governments, non-profits and other organizations. The Fund provides low-cost repayable loans and forgivable loans to:
housing providers building and renovating housing serving Indigenous peoples
housing providers building and renovating housing in the North (Yukon, Northwest Territories and Nunavut)
Projects can now get up to:
base funding of $25,000 per unit for meeting minimum social outcome requirements
an additional $25,000 for exceeding affordability
an additional $25,000 for exceeding efficiency standards
The Affordable Housing Fund prioritizes affordable housing that is:
Before starting your application, please take a moment to download, save, and review our application guide. The guide includes information required to create your profile and start the application process successfully.
When starting your application in CMHC's application portal please select the correct choice from the program drop-down list: "Indigenous or Northern - Affordable Housing Fund"
After receiving confirmation from your CMHC specialist, submit your application to the application portal and upload required documents.
1
PRIORITIZATION
Once received, your application will be reviewed for readiness, eligibility and completeness. Processing your application is contingent on receiving all required documentation upon submission of your application as outlined in step 1.
We will contact you if additional documentation or clarifications are required. Once your application is confirmed as complete, we will conduct an initial assessment and prioritize applications based on project readiness, achievement of social outcomes and budget availability.
Selected applications will receive a conditional approval within 30 days.
The conditional approval will outline the conditionally approved funding amount and any required documents that must be submitted prior to underwriting.
You need to submit documents required for underwriting within 90 days or the application will be withdrawn from consideration.
Note: For projects on Federal Lands, including on-reserve, CMHC must review the Project Description Form and make a determination prior to issuance of a Conditional Offer.
2
UNDERWRITING
After receiving conditional approval of your application, it will be assessed based on:
• financial viability
• affordability minimum requirements
• minimum requirements and/or accessibility and energy efficiency achievement
• socio-economic outcomes to be achieved
• local community need
• available funding
We will contact you if additional documentation or clarifications are required as we work through your application.
After receipt of all necessary documentation, it can take up to 60 days to complete the underwriting process.
3
LOAN AGREEMENT
Once your application is approved, we will prepare your package of loan documents, typically within 40 days. Timing is dependent on the complexity of your application.
Note: For projects located on-reserve, additional complexity may be related the Canadian Impact Assessment process or securing of Ministerial Loan Guarantees or other forms of alternative security.
The loan agreement will detail items such as:
• funding amounts
• operating agreement
• conditions to funding
• details of the socio-economic outcomes in your project
• general representations and warranties
• contractor’s acknowledgment
• assignment of insurance
• events of default
• interest rate
• the advancing mechanics
• proposed security for the loans
• reporting requirements
• standard terms and conditions any other terms, including those specific to your project
• a list of security required by CMHC to secure the loan obligations
Security documents may include but are not limited to:
• mortgage security
• Ministerial Loan Guarantee
• assignments of rents and leases
• material contracts and insurance
• where applicable, guarantees and/or inter-creditor agreements.
You have 30 days to accept and return the signed loan documents to CMHC.
The fully executed loan agreement between CMHC and the successful applicant will contain a drawdown schedule. The drawdown schedule itemizes when and in what amount funds are expected to be advanced against CMHC loans or contributions.
The first advance typically includes:
• initial repayable loan advance of $50,000 to set interest rate
• advancing of full forgivable loan
Please note, you must satisfy all conditions required prior to initial funding, which includes submitting a draw request to CMHC, along with:
• a current project status report prepared by your Quantity Surveyor/Cost Consultant
• the project status certificate
• the project consultant’s certificate
• a notarized CCDC Form 9A-2001 (or equivalent) statutory declaration
• any other documentation that CMHC may deem necessary – all of which are specified in the loan agreement.
Conditions for subsequent advances are specified in the loan agreement.
Required documentation must be provided 10 days before each draw down date.
Your specialist will let you know if other documents are required.
5
This process takes time. To speed up your application, be prepared to submit
specific documents throughout the process. Inability to provide the outlined
documents at each stage of the process will inhibit progression of the file and may result in withdrawal of the submission.
By the end of 2024, the Affordable Housing Fund will begin referencing the 2020 building model codes and the CSA B651:23 and B652:23.
Eligible applicants include:
Indigenous governments and organizations
provinces, territories and municipalities serving Indigenous and/or northern
populations
community housing providers such as public or private non-profit housing
organizations or rental co-operatives serving Indigenous and/or northern
populations
Eligible projects include repair of existing affordable housing or construction of new affordable housing for Indigenous peoples including Urban Indigenous, on-reserve, as well as projects located in the North (Yukon, Northwest Territories and Nunavut) such as:
affordable rental housing
mixed use market / affordable rental
conversion from a non-residential use to affordable residential
emergency shelters and transitional housing (often referred to as second stage shelter housing)
Your project may qualify for several repayable and/or forgivable loan
combinations. This depends on meeting program requirements and level of need. See the Program Highlight and Funding Eligibility Sheet (PDF) for complete details.
Repayable loan: a form of loan that is to be repaid monthly within a specific time frame.
Forgivable loan: a form of loan that could be forgiven if you meet program criteria and targets.
Each repayable loan offers:
A 10-year term (closed to pre-payment) with a fixed interest rate locked in at first advance. The term will be renewable for another 10 years and the interest rate will reset when renewed.
Up to a 50-year amortization (40-year for repair) for smaller monthly payments and long-term viability.
Up to 95% loan-to-cost (85% for repair) for residential space and up to 75% loan to cost for non-residential space. There is up to 75% loan to cost (residential) for municipalities, provinces, territories, and the private sector.
Interest-only payments once loan is fully advanced.
We consider repayable loans first. Forgivable loans may be available in addition to a repayable loan in the following circumstances:
additional funding for higher performing projects to offset higher costs of meeting or exceeding minimum requirements
where cash flow is insufficient and a forgivable loan is needed to attain break-even cash flow
Your specialist can help you:
confirm that your project aligns with this program
explain the application, approval and funding process
understand the required documents by:
assisting you to gather and complete the CMHC application documents
If you are Indigenous or from a northern community, please ensure you select the correct choice from the program drop-down list: "Indigenous or Northern - Affordable Housing Fund" when starting your application in CMHC's application portal
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