The Community Housing Sub-Stream of the Affordable Housing Fund’s New Construction option offers low-interest repayable loans and forgivable loans. These loans help eligible applicants build new affordable housing.

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.

You may be eligible for repayable loans combined with forgivable loans based on the needs of your project.

Low-interest repayable loans will be available for up to 20 years to fund projects demonstrating financial viability and long-term affordability.

Forgivable loans are offered to offset the additional costs of the higher performance and where project cash flow is insufficient.

Please complete the Project Assessment Workbook to assess potential forgivable loan incentive.

Each repayable loan offers:

• Either:
• 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.
• A single 20-year term (closed to pre-payment) with a fixed interest rate locked in at first advance.
• Up to a 50-year amortization for smaller monthly payments and long-term viability.
• Up to 95% loan-to-cost for residential space for co-ops, non-profits and Indigenous governments.
• Up to 75% loan to cost for residential space for municipalities, provinces, territories and private sector.
• For all projects containing non-residential space, the maximum funding is up to 75% of eligible costs related to the non-residential component.
• Interest-only payments until 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.

Projects must have support from another level of government (such as municipalities, provinces and/or territories, Indigenous government) to ensure a coordination of investments. Support can be in the form of investment of resources but could also be in the form of a letter stating endorsement for the project.

Eligible applicants

• community housing providers (i.e. public or private non-profit housing organizations or rental co-operatives)
• municipalities
• provinces and territories
• Indigenous governments and organizations
• private sector

Project requirements

We consider the following projects for funding:

• community and affordable housing
• urban Indigenous community housing
• mixed use market / affordable rental
• new construction and/or conversion from a non-residential use to affordable multi-residential
• shelters
• transitional and supportive housing

All projects must

• have a minimum of 5 units/beds
• have residential as its primary use
• meet minimum requirements for partnerships, financial viability (XLS), energy efficiency (PDF) and accessibility (PDF)

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

We give higher scores to applications that exceed minimum requirements.

The Affordable Housing Fund prioritizes affordable housing projects that are rural, Northern and Indigenous-led.

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.

Considerations for municipalities

In instances where municipalities are unable to provide the required forms of mortgage security, debentures may be considered as an alternative, on a case-by-case basis.

Timelines are approximations and will depend on the complexity and completeness of the application.

Application Steps:

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 Checklist (PDF)

Please refer to these documents to support your application:

• Program Highlight Sheet – Community Housing Sub-Stream (PDF)
• Required Documentation Checklist – New Construction (PDF)
• Project Assessment Workbook – Community Housing Sub-Stream (XLS)
• Energy Efficiency Attestation (PDF)
• Accessibility Attestation (PDF)
• Integrity Declaration (PDF)
• Applicant Guide (PDF)

The Affordable Housing Fund minimum requirements for energy efficiency and accessibility were updated in November 2024 to align with newer codes and standards. We understand that these changes may challenge projects where the design is already in progress and may result in financial impacts.

Transition period guidelines

To help with the transition, applications meeting the criteria below can use the previous Affordable Housing Fund energy efficiency and accessibility minimum requirements, until September 30, 2025. Regardless of which codes are used, we will prioritize applications that show the strongest commitment to improving social outcomes.

Important deadline

• Submit your application, including all required documents, on or before September 30, 2025, 11:59 pm ET, to qualify for the transition period.
• Applications submitted after this date will not be accepted and incomplete applications will not be processed.

You can find the checklist of required documents on the Affordable Housing Fund website under each program option.

Application guidelines

To ensure your application is eligible for review, please follow these guidelines:

• Submit your application before September 30, 2025, to ensure it is completed on time.
• Make sure your application is complete.
• Submit all required documents.

After September 30, 2025, 11:59 pm ET, we will only review and process complete applications.

If you would like to discuss how these changes may affect your application or next steps, please contact us.

We strongly encourage you to submit your application with all required documents before the September 30, 2025, deadline to ensure eligibility. After this date, no changes or updates to your application will be accepted.