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Federal Community Housing Initiative

Designed to help community housing projects reaching the end of their operating agreements from past social and affordable housing programs.

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IMPORTANT

Housing providers who are currently enrolled in the program and would like to increase the number of households receiving rental assistance may be eligible for additional funding.

Housing providers who were previously eligible, but not currently enrolled and now wish to receive assistance may also be eligible to do so.

Please refer to the Eligibility and Enrolment section for more information.

For more details, contact us at fchi2-iflc2@cmhc-schl.gc.ca.

What is the Federal Community Housing Initiative?

The Federal Community Housing Initiative is a $618.2 million fund designed to support community housing projects reaching the end of their operating agreements from past social and affordable housing programs.

The initiative has 2 phases

Phase 1 provided $38 million in federal funding over a 2-year period (from 2018-2020).

Phase 2 provides $580.2 million in funding for housing providers whose agreements have expired or will expire by March 31, 2028. It has 2 streams of funding:

  • Rental Assistance: Available to housing providers who have low-income tenants. This funding aims to fund the gap between 30% of an eligible household’s gross monthly income and the occupancy charge.
  • Transitional Funding: Available to housing providers having trouble transitioning from their previous agreement to this initiative.

ELIGIBILITY AND ENROLMENT

Eligibility

There are 2 general rules to be eligible to receive funding through the Initiative:

  1. Be a housing provider with a federal operating agreement with CMHC that has expired or will expire before March 31, 2028; and
  2. Be a housing provider whose operating agreement is under one of the following social housing programs:
  • Section 95 (Pre-86) non-profit, co-operative or urban Native
  • Section 95 (Post-85) non-profit, co-operative or urban Native
  • Section 95 (Post-85) index-linked-mortgage (ILM) co-operatives
  • Section 27, 61 non-profit and co-operatives
  • Section 26 non-profit or entrepreneur
  • Section 95 rent supplement (units currently leased from a private property owner and rented to those in need)

Enrolment

Eligible housing providers will receive an invitation from CMHC at least 6 months before the end of their federal operating agreement.

Eligible housing providers not currently enrolled in the program may request to join the Federal Community Housing Initiative – Phase 2 outside of their initial eligibility date. Interested housing providers should contact the Federal Community Housing Initiative – Phase 2 team (fchi2-iflc2@cmhc-schl.gc.ca) to request an enrolment package.

In both situations, a completed application must be submitted to CMHC for a request to be considered.

Once a housing provider receives an enrolment package, they will need to confirm that there is at least 1 household in need of rental assistance. If there is a need and the housing provider would like to request assistance, a completed application must be submitted to CMHC. You should receive a response to your completed application within 60 days of it being received by CMHC.

IMPORTANT

Applying does not guarantee funding. It starts the process during which CMHC will assess your request.

DISBURSEMENT OF FUNDS TO HOUSEHOLDS

Funding provided should be managed as a budget envelope and should be divided amongst the low-income households in need.

Eligible households will need to complete the Request for Rental Assistance - Declaration form. The housing provider will then complete the Rental Assistance Calculation Worksheet to determine how much rental assistance will be allocated to each household.

The Request for Rental Assistance - Declaration form and the Rental Assistance Calculation Worksheet need to be completed upon enrolment and updated throughout the year or every 12 months at a minimum.

REVISION OF EXISTING AGREEMENTS

Need a Revision to Your Agreement?

fchi2-iflc2@cmhc-schl.gc.ca

As situations change, you may need to request changes to the number of households that require rental assistance or the amount of rental assistance being provided.

The decision to request a change to the amount of assistance received or the number of households included in the agreement rests with the housing provider.

IMPORTANT

If your agreement has changed, you will need to recalculate the amount of rental assistance to be applied to households' occupancy charge.

Revise the Amount of Rental Assistance Received Revise the Number of Households Included in the Agreement

When to request an increase
You are using a 30% rent-geared-to-income (RGI) level to provide rental assistance to the number of households noted on Schedule B of your agreement and you do not have sufficient funds.

When to request a decrease
You are providing rental assistance to all households that need assistance and have a surplus that you do not anticipate needing in the short term.

When to request an increase
You are currently providing rental assistance or would like to provide rental assistance to more households than noted on Schedule B of your agreement.

When to request a decrease
You are providing rental assistance to less households than noted on Schedule B of your agreement and you don’t anticipate additional households needing assistance in the short term.

ANNUAL REPORTING

Questions on Annual Reporting?

ge-am.adm@cmhc-schl.gc.ca

Note: For clients with agreements administered by the Agency for Co-operative Housing, please contact the Agency for more information at info@agency.coop.

To ensure that funding disbursed to housing providers is used according to the program guidelines, housing providers must submit the following documents annually:

  • report on the use of rental assistance
  • audited financial statements; and
  • action plan

Resources, including guides and templates, have been developed to help housing providers prepare their annual reporting documents. These resources are updated annually – make sure to use the latest versions available.

Annual Report on the use of rental assistance (all housing providers, except those in Quebec) (XSL)

  • Template to be used for preparing the Annual Report on the use of rental assistance based on the completed Rental Assistance Calculation Worksheet(s). To be used by all housing providers, except those in Quebec.
  • Updated in June 2025.

Annual Report on the use of rental assistance (only housing providers in Quebec) (XSL)

  • Template to be used for preparing the Annual Report on the use of rental assistance based on the completed Rental Assistance Calculation Worksheet(s). To be used by only housing providers in Quebec.
  • Updated in June 2025.

Guide for Preparing the Financial Statements (PDF)

  • To help housing providers and auditors as they complete the Financial Statement template.
  • Updated in October 2024.

Financial Statements Template (XSL)

  • To be used by the auditor when preparing annual financial statements.
  • Updated in October 2024.

Action Plan

  • To help housing providers build an Action Plan that captures objectives and milestones related to the following areas: governance, social inclusion, financial viability and asset management.
  • To complete your Action Plan in Microsoft Excel, please use Section 4 of the Annual Report on the use of rental assistance.

RESOURCES

Key activities under the FCHI-2 program (PDF)

  • Summary of key activities of the housing provider under the Federal Community Housing Initiative - Phase 2 program.
  • Updated in January 2025.

Federal Community Housing Initiative – Phase 2 Reference Guide (PDF)

  • Outlines the program guidelines.
  • Updated in April 2023.

Request for Rental Assistance - Declaration (PDF)

  • To be completed for each eligible household.
  • Updated in February 2023.

Rental Assistance Calculation Worksheet (Excel)

  • To determine rental assistance for eligible households.
  • Updated in April 2025. Forms are updated annually.

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Date Published: June 11, 2025

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