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This fund prioritizes partnerships between governments, non-profits, private sector, among others and provides low-cost loans and/or forgivable loans. The focus of this fund is to develop energy efficient, accessible and socially inclusive housing for mixed-income, mixed-tenure and mixed-use affordable housing uses.
Application Process
Co-Investment Fund 7-Step Process
Pre-application:
Application Readiness: Required Documentation Checklist
Before applying, work with your CMHC specialist to prepare your application and gather relevant documentation. You will need to complete the required documentation checklist (PDF). The required checklist outlines the minimum documentation required at each stage of the process in order to move forward.
Additionally, complete these forms before signing in or creating an account in the CMHC portal:
Application submission and post-application:
- Application Intake and Review
After receiving confirmation from your CMHC specialist, please submit your application. Application submission takes time. There are more than 200 questions across multiple pages and you have to upload several documents. All applications are prioritized upon application submission prior to proceeding to the next stage of the process, the preliminary review. - Preliminary Review (14 DAYS)
- Financial Analysis (30-125 DAYS)
- Funding Commitment (Letter of Intent) (60 DAYS)
- Contract in Preparation (Term Sheet) (30 DAYS)
- Funding Agreement (Loan Agreement) (up to 60 DAYS)
- Funding Agreement Finalized
This process takes time. In order to speed up your application, be prepared to submit specific documents throughout the process. Inability to provide the outlined documents at each stage in the process will inhibit progression of the file and may result in withdrawal of the submission. Refer to the required documentation checklist (PDF)
Program Details
ELIGIBILITY
Organizational Requirements
The National Housing Co-Investment Fund – New Construction Stream is open to:
- 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 primary use as residential
- meet minimum requirements for partnerships, financial viability, affordability, energy efficiency and accessibility
FINANCIAL INFORMATION
There are several possible repayable loan and/or forgivable loan combinations. There is:
- $5.19 billion available through low-cost repayable loans over 10 years
- $2.26 billion available through forgivable loans over 10 years
Low-interest repayable loans will be available for up to 20 years to fund projects demonstrating financial viability and long-term affordability.
Repayable loan: a form of loan that is to be repaid on a monthly basis 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 for smaller monthly payments and long-term viability.
- Up to 95% loan-to-cost 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 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 forgivable loan is needed to attain break-even cash flow
Your project may be eligible to receive a forgivable loan without a repayable loan in the following cases:
- where a repayable loan is not a feasible option
- where the project has external funding to cover the majority of total project cost, but a forgivable loan is required to bridge the gap
- additional funding as an incentive for higher performing projects
- Use this scoring grid to determine the maximum low-interest repayable loan and/or forgivable loan amount
- Find more details on funding eligibility.
- Review the Product Highlight Sheet for further details on the repayable loan characteristics.
APPROVAL PROCESS
The New Construction Co-Investment application process is a lengthy one. Your CMHC specialist can help you gather the specific documentation required for your application to the Co-Investment Fund.
CMHC accepts applications on a continuous basis.
At the end of each month, we review and prioritize the applications. You application can be:
- selected to proceed for further assessment
- retained for the next prioritization window
- declined
If we approve your application, we will provide you with a list of required documents to move to the next step. These are subject to approval based on a financial and borrower assessment.
Prioritization of applications
We prioritize applications based on:
- the achievement of National Housing Strategy outcomes
- Provincial and Territorial input
- affordability
- energy efficiency
- accessibility
- proximity to transit, amenities and community supports
- collaboration/partnerships
- social inclusion
- supporting federal priority groups
We give higher scores to applications that exceed minimum requirements.
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