National Housing Co-Investment Fund - New Construction Stream

The National Housing Co-Investment Fund provides low-cost loans and/or financial contributions to support and develop mixed-income, mixed-tenure, mixed-use affordable housing. This housing must be energy efficient, accessible and socially inclusive. The National Housing Co-investment Fund prioritizes projects that support partnerships between governments, non-profits, private sector, and others to make federal investment go further. It covers a broad range of housing needs, from shelters to affordable homeownership.

The National Housing Co-Investment Fund will:

• create 60,000 new units
• repair 240,000 units
• create or repair at least 4,000 shelter spaces for victims of family violence
• create at least 7,000 new affordable units for seniors
• create at least 2,400 new affordable units for people with developmental disabilities

Projects funded through the initiative will also:

• support Canada’s climate change goals
• improve accessibility of housing for people with disabilities by promoting accessibility, universal design and visitability

There are two streams within the fund:

• The Housing Construction Stream is for new construction
• The Housing Repair and Renewal Stream is for the preservation and renewal of the existing community and affordable housing supply

Applications for both streams are accepted and reviewed on a continual basis. CMHC will prioritize completed applications monthly.

NOTE: For funding to renovate or repair an existing community or affordable housing project, please apply through the Housing Repair and Renewal Stream of the Co-Investment Fund.

Proponents are eligible for loans and/or financial contributions depending on the needs of the project and the level of achievement of the National Housing Strategy outcomes. Different combinations of loans and/or contribution are possible. There is:

• $5.19 billion available through low-cost repayable loans over 10 years
• $2.26 billion available through capital contributions over 10 years

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

Each 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.

When feasible, a loan should be considered as the first option by proponents and may be combined with a contribution. Capital contributions may be available in addition to a Co-investment 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 contribution is needed to attain break-even cash flow

A project may be eligible to receive a contribution without a Co-investment loan in the following cases:

• where a loan is not a feasible option
• as a top-up contribution where the project has external funding to cover the majority of total project cost
• additional funding as an incentive for higher performing projects

The maximum eligible low-interest loan and/or contribution amount will be determined through a scoring grid. Click here for more information on the funding eligibility. The Product Highlight Sheet provides further details on the loan characteristics.

Contact an affordable housing specialist today to learn more about submitting an application for funding. Our affordable housing specialist can help assess your need, identify possible solutions and help you navigate the application process.

The National Housing Co-Investment Fund – Housing 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

The following projects can be considered 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

Minimum Requirements

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 (as outlined below)

Partnerships

Partnerships are a central feature of the National Housing Co-Investment Fund. Partnerships maximize investments, ensure coordination of efforts and remove barriers to the development process. Partners will be required to contribute to the project (monetary or in-kind) and the level of contribution may vary from project to project.

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 financial in nature (monetary or in-kind) or in the form of a letter demonstrating support of the project. For financial support (capital or operating), funding would need to be confirmed at the assessment stage prior to receiving a final approval from CMHC.

Financial Viability

Applicants will have to:

• demonstrate their financial and operational ability to carry the project
• provide evidence of the financial viability of the proposed project itself
• have the capacity to deal with development risks, such as cost over-runs and delays in construction

Affordability

Applicants must:

• keep rents for a minimum of 30% of units below 80% of the Median Market Rental rate (as described in the most recent CMHC Rental Market Survey for the market and unit type in question)
• commit for a minimum of 20 years.

Accessibility:

Proponents will be expected to meet the minimum accessibility requirement that:

• Option 1 - Proponents will be expected to meet the minimum accessibility requirement that 20% of all units within the project meet or exceed accessibility standards as prescribed in Table A and that access to the project and its common areas is barrier free
• Option 2 - The entire project (common areas and dwelling units) has full universal accessibility design.

View our guide to learn more about accessibility requirements.

View our infographic to learn about some common misconceptions concerning Universal Design.

Energy Efficiency:

New projects are required to achieve either a 25% decrease in energy consumption and greenhouse gas (GHG) emissions relative to the 2015 National Energy Code for Buildings or the 2015 National Building Code; OR a 15% decrease relative to the 2017 National Energy Code for Buildings.

Note: Once your project is selected, we require a confirmation of the energy efficiency and GHG emissions reduction by a qualified energy professional. Click here to learn more about Energy Efficiency requirements.

When your project is selected to proceed, you may also wish to apply for Solutions Labs or Demonstrations to allow you to overcome barriers to your projects or capitalize on opportunities to improve performance and enhance outcomes.

CMHC will accept and review applications on a continuous basis and will follow this selection process:

• Completed applications will be prioritized by CMHC at the end of each month.
• Once prioritization of the applications is complete you will be informed whether your application was:
  • selected to proceed for further assessment
  • retained for the next prioritization window
  • declined
• Selected applications will be provided with a list of required documents that must be submitted. These are subject to approval based on a financial and borrower assessment.

Prioritization of applications

All applications for funding will be prioritized based on the achievement of National Housing Strategy outcomes. Provincial and Territorial input on regional housing need will also be considered in the prioritization of applications. A higher score will be assigned to those that exceed minimum requirements. Factors used to prioritize and select applications for further assessment include:

• affordability
• energy efficiency
• accessibility
• proximity to transit, amenities and community supports
• collaboration/partnerships
• social inclusion
• supporting federal priority groups

CMHC will use a scoring grid to determine the eligible loan and/or contribution amount. The score obtained will determine the amount of funding your project could be eligible to receive. Learn more about funding eligibility.

The following resource are available to help you prepare your application:

• Product Highlight Sheet (PDF)
• Required Documentation Listing (PDF)
• Energy Efficiency and Accessibility Requirements Guide (PDF)
• CMHC Rental Market Survey
• Scoring Grid/Viability Assessment Calculator (XLSX)
• Funding eligibility (PDF)
• National Housing Co-Investment Fund Application Guide (PDF)
• Integrity Declaration (PDF)
• Median Market Rents – Pooled Small CA's and Cities (XLSX)

For help in completing your application, contact your Affordable Housing Specialist. They can help you understand and assess your needs, identify possible solutions, provide information on how CMHC can support your goals and help you navigate our application process.

General inquiries about the NHS or technical support

• Phone: 1-800-668-2642 - Business hours (ET): 7:30 a.m. to 7:30 p.m.
• Email:  contactcentre@cmhc.ca