Affordable Housing Fund: Indigenous and Northern Housing Enhanced

Access long term, low-interest repayable and forgivable loans to build or repair affordable housing

IMPORTANT

The Affordable Housing Fund has introduced 2 dedicated New Construction Sub-Streams:

The Rapid Housing Sub-Stream supports the construction of shelters, transitional and supportive housing for those in greatest need.
The Community Housing Sub-Stream supports the construction of new affordable housing supply. Eligible projects include mixed-income and mixed-use developments that integrate supports and services.

The Affordable Housing Fund has options for new construction, the repair and/or renewal of existing buildings. Make sure you speak to a CMHC Indigenous and the North Housing Solutions Specialist before you start your application.

FUND DETAILS

AM I ELIGIBLE?

IMPORTANT

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
private sector housing providers serving Indigenous and/or northern populations

Please note: Private sector is not eligible for the Rapid Housing Sub-Stream.

Project requirements

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)
supportive housing

Please note: The Rapid Housing Sub-Stream is focused on shelters, supportive and transitional housing.

All projects must

have a minimum of 5 units/beds
have residential as its primary use
meet minimum requirements for partnerships, financial viability, affordability, energy efficiency and accessibility.

Prioritization of applications

We prioritize applications based on:

affordability
energy efficiency (shifting to 2020 model codes – projects must achieve Tier 2 of the 2020 National Energy Code of Canada for Buildings or Tier 3 of the 2020 National Building Code)
accessibility (shifting to CSA B651:23 and B652:23)
shovel readiness
proximity to transit, childcare centres and community centres
collaboration and financial partnerships
social inclusion and community oriented
supporting National Housing Strategy priority groups and vulnerable populations

Projects with the most ambitious commitments to accessibility and energy efficiency will be prioritized for funding.

Considerations for Indigenous and Northern Housing Solutions clients

In addition to a Ministerial Loan Guarantee (MLG), CMHC is now accepting 4 additional alternative types of security for projects on First Nation lands.

APPLICATION STEPS

Timelines are approximations and will depend on the complexity and completeness of the application. Talk to your CMHC Indigenous and the North Housing Solutions Specialist.

Application Steps:

APPLICATION

Before applying, work with your CMHC Indigenous and the North Housing Solutions Specialist to prepare your application and gather relevant documentation. Application preparation and submission take time and depend on the readiness of your project. You will need to complete the New Construction - Required Documentation Checklist (PDF) or Repair and Renewal - Required Documentation Checklist (PDF), which outlines the minimum documentation required at each stage of the process in order to move forward.

PRO TIP! Use the Applicant Guide (PDF) to understand and complete the application process.

Additionally, complete these forms before signing in or creating an account in the CMHC portal:
• Project Assessment Workbook (XSL) – New Construction - Community Housing Sub-Stream
• Project Assessment Workbook (XSL) – New Construction – Rapid Housing Sub-Stream
• Project Assessment Workbook (XSL) – Repair and Renewal
Please note: Our interactive guide is currently being updated.
• Integrity Declaration (PDF)
• Accessibility Criteria Attestation (PDF)
• Energy Efficiency Criteria Attestation (PDF)

Projects on Federal Lands, including on-reserve, must complete the Project Description Form related to the federal Impact Assessment Act:
• Fillable (download the file then open it)
• Print only

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.

Complete applications will receive a decision (decline or conditional approval) within 30 days.

A 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
• shovel readiness
• 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 to 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, and 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.

4
FIRST ADVANCE

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.

Refer to the Required Documentation Checklists:

Required Documentation Checklist (PDF) – New Construction
Required Documentation Checklist (PDF) – Repair and Renewal

PRO TIP

Contact your CMHC Indigenous and the North Housing Solutions Specialist for questions and to discuss your application.

Application resources

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Date Published: November 12, 2024