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Affordable Housing Innovation Fund

Funding for innovative housing providers driving innovation across the housing continuum.

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Upload your documents and fill out the application in our portal to complete your application.

Apply now

TIP! Talk to your specialist before you start your application.

The Affordable Housing Innovation Fund supports new ideas that will drive change and disrupt the industry – ideas and approaches that will evolve the affordable housing sector and create the next generation of housing in Canada.

You can get funding for your innovations to:

  • develop and test innovations that incorporate resource and operating efficiencies and are replicable and scalable – including financing, operating models and technologies
  • get flexible financial support to test a range of innovations and leverage new partnerships
  • facilitate partnerships and encourage participation from diverse stakeholders including private sector, not-for-profits, community housing organizations, co-operatives, municipalities, provinces, territories, Indigenous governments and organizations and social investment organizations

NEW

A portion of this fund has been set aside to help developers and providers help renters transition to homeownership. Learn more about the Rent-to-Own stream.

Eligibility requirements

Eligibility

The Innovation Fund is looking for unique ideas and approaches that will evolve and disrupt the affordable housing sector in Canada.

The Fund will provide $550.8 million over 6 years.

Eligible applicants include:

  • municipalities, provinces and territories
  • private sector developers and builders
  • non-profit housing providers and community housing organizations
  • Indigenous governments and organizations
  • any other housing provider interested in developing and testing innovative approaches to rent-to-own housing

Innovation Fund proposals must demonstrate how they meet the following minimum criteria to be reviewed.

Affordability:

  • The Innovation Fund defines affordability based on the affordability criteria of the municipality where the project is located.
  • Failing such municipal criteria, the provincial criteria may be used. Where no affordability criteria exist, CMHC will determine affordability for rental housing projects based on the median market rent.
  • You must demonstrate how your project will remain affordable for at least 10 years.

Innovation:

  • The use of innovative solutions for affordable housing, including novel financing models or unique designs used to overcome barriers and lower the costs and risks associated with housing projects.

For this program, we consider 3 types of innovation:

  1. Transformational: Creates a new model that eliminates or totally transforms existing approaches.
  2. Breakthrough: Meaningful change resulting in a demonstrably new approach that results in a substantial competitive edge.
  3. Incremental: “New and improved” reflecting small, yet meaningful improvements in an existing approach.

Financial sustainability:

  • Your proposal must demonstrate that the required financial resources are available to support the sustainability of the project.

Proposals should also highlight how the innovation will reduce or eliminate reliance on government subsidies.

Knowledge transfer

  • As part of your application, you must provide a knowledge transfer plan and information dissemination strategy for your innovative project or idea.

Knowledge transfer objectives include:

  • capturing and sharing information, lessons learned and insights gained through the initiative
  • advancing the capabilities of the housing sector and knowledge of decision makers
  • informing and influencing policy makers, builders or seed the next generation of innovations to improve housing affordability

Additional objectives

You will also need to describe if and how your innovative proposal will support the following objectives:

  • reduce energy use and greenhouse gas emissions
  • increase the number of accessible units within the housing stock
  • address the needs of the National Housing Strategy in relation to focus on needs of priority areas for action

IMPORTANT

Proposals with demonstrated added value – like replicability, scalability, access to transit or serving priority populations – will score higher.

TIP! Download the required documentation checklist for more details on how to complete your application.

Proposals will be prioritized on these key elements:

  • innovation
  • affordability
  • financial sustainability
  • knowledge transfer
  • housing needs of priority populations
  • accessibility
  • partnerships promotion
  • scalability
  • replicability
  • reduction of energy use and green gas emissions
  • development, implementation and testing readiness

IMPORTANT

We need supporting documentation to evaluate and prioritize your proposal.

Approval process

CMHC accepts and reviews applications on a continual basis and funding announcements are made on a periodic basis.

CMHC requires the ability to use the information and ideas submitted by the applicant for research and evaluation.

What happens if your proposal meets program criteria?

Proposals that meet the innovation criteria will be reviewed by industry experts from within and outside CMHC. They’ll review proposals for innovation, ability to deliver and other key factors. Expert reviewers are from diverse sectors including:

  • financial and lending
  • academia
  • innovation
  • construction and engineering
  • all levels of government

If your proposal doesn’t meet minimum requirements, we will discuss options with you, including resubmitting it later.

Funding is available for 6 years beginning 2022 or until all funds are committed, whichever comes first.

Funding available to approved proposals

The amount and type of funding will vary based on the proposals received. Funding examples can take on varying forms with innovative funding and flexible financing options.

Some form of security may be needed depending on your proposal.

Additional details

In your application, you’ll need to answer questions in the following areas:

  • timing of the residential and affordable unit implementation
  • amount of support sought from Affordable Housing Innovation Fund
  • climate/energy efficiency application
  • partnerships, status, form and type
  • rent-to-own details for applications for the Rent-to-Own stream
  • innovation readiness
  • innovation details
  • proponent experience
  • innovation overview
  • risks and mitigation
  • innovation in relation to housing affordability
  • innovation sustainability

We will get in touch with you if we require additional documentation or clarification.

Start your application

Remember to download the required documentation and information checklist for more details on how to complete your application.

Before you begin the application process, contact your CMHC housing solutions specialist to help you prepare and gather the required documentation for your application submission.

Important: The team can’t assess your application if there is missing information. Once you have all required documentation and have spoken to your CMHC specialist, upload your documents and fill out the application in our portal.

I’m ready to apply

Learn more about funded projects

Overview of Current Affordable Housing Innovation Fund Projects
Project Objective of Project Why was it Innovative Level and Type of Innovation Location
Housing Investment Corporation (HI-C) The Housing Investment Corporation (HI-C) created a revolving fund that raises and issues debt in the bond market. Proceeds are used to provide long-term, affordable financing for the construction or renewal of affordable housing without the need for ongoing government support. HI-C is the first dedicated financial institution created by the affordable housing sector that uses private capital to finance the construction of affordable housing. Through a Credit Enhancement Facility, the Innovation Fund investment supported the credit worthiness of the proponent within the bond market Transformational Financing Model National
Fonds Accès Coop Proprio (FCAP) Confédération québécoise des coopératives d’habitation CQHC The Fonds model is to offer cooperative members units at below market cost by contributing financially to the creation of projects and positioning the cooperative as the developer of projects The intention of the Fonds is to be an instrument for access to property for low-income households, with the goal of increasing homeownership in Quebec. Units are offered and managed under a co-operative tenure providing affordable housing while allowing members to earn equity. The innovation is focused on the fact that affordability will be maintained over time, to support intergenerational equity. Incremental Financing Model Quebec
Illu Tigguaralik Green-Plex This project was designed to construct modular housing and test several building technologies that could provide insight into some of the most significant housing issues in the North In partnership with the National Research Council, a series of advanced building technologies specific to northern climates were tested and implemented for the first time in residential buildings Transformational Building Model Nunavut
Vancouver Affordable Housing Agency VAHA To provide a housing option for homeless individuals, the Vancouver Affordable Housing Agency (VAHA) provided modular units that can be built and installed quickly and inexpensively, on parcels of undeveloped, city-owned land. Units can also be moved to new parcels of land to address changing needs and without the cost of creating new housing. First movable modular project developed in Canada that demonstrated the technical viability of modular housing, but also tested new approaches to finance the construction of modular housing. This project is also responsible for greater understanding of the financing and viability of modular housing throughout the affordable housing sector. Transformational Building Model British Columbia
Whistler Housing Association Passive House Project to develop affordable housing which could achieve passive housing certification at a similar cost to housing which does not have certification. Using a prefabricated assembly system, Whistler Housing Authority demonstrated that housing built to achieve Passive House standards could be built at similar costs to code-built housing. At the time of this project, it was still widely believed that all passive housing was prohibitively expensive to construct. Breakthrough Building Model British Columbia
VanCity Credit Union VanCity Credit Union created the VanCity Pre-Construction Loan Fund (Loan Fund), which consists of a pool of funds to be loaned out as low-cost, patient capital to affordable rental projects to assist with the early stages of redevelopment, addressing the perceived higher risk associated with predevelopment financing This project tested the market’s perception that the early construction stages were exceptionally risky by providing pre-development and pre-construction financing at low interest rates, typically the most difficult and expensive part of construction financing. Allows non-profit and social housing providers that would typically have to be subject to higher interest rates due to the perceived pre-development risks and limited track records or assets to be used as security. Breakthrough Financing Model National
United Church of Canada Creation of a focused organization which can manage the entire development of an exceptionally large real-estate portfolio that can be targeted towards the creation of affordable housing. The establishment of an organization by United Church of Canada (UCC) to develop its over 3,000-site real estate portfolio leveraging the innovative in scale, size, scope, and complexity. Notably, the use of a portfolio approach allowed the UCC to leverage idle assets for development of sites that were previously unconnected, developing both new and converting existing buildings to create affordable housing. Transformational Financing Model National
Kanas The Kanas Shelter Corporation tested the extent to which green energy (e.g., wind, solar, battery and cogeneration power) can contribute to the overall energy needs of two buildings being constructed to local building code standards. While most building projects that are pursuing high levels of energy efficiency while minimizing energy use utilize higher insulation levels or improvements to the building envelope, Kanas focused on testing how green energy sources combined with storage could minimize reliance on traditional energy sources. Tenants were also provided real-time data to monitor, and possibly reduce or minimize, their energy consumption. Incremental Building Model Alberta
Alberta Rural Development Network Creation of shipping container affordable housing units which met net-zero specifications. Creation of a framework which would leverage a portfolio of projects to achieve economies of scale to build net zero housing with shipping container housing at a similar cost as non-net zero housing units. Breakthrough Building Model Alberta and Ontario
Ken Soble Towers The first multi-unit residential high-rise building retrofit to passive housing standard in Canada. The project sought to leverage new technologies and approaches to demonstrate cost savings associated with the retrofitting of high-rise multi units when compared to the new build of a multiunit passive building. Work focused on a high-rise building that was constructed in the 1940’s. Project has provided significant lessons learned for future retrofit projects that will move the industry forward in this ambition. Breakthrough Building Model Ontario
Toronto’s Modular Housing Pathway Develop an approach that allows for rapid movement of housing units to areas where homeless populations reside within the city. Modelled off the VAHA model, the Toronto approach demonstrated scalability and a novel approach to delivering housing. Leveraging the ability of the city to quickly provide zoning, the city will move units to where homeless residents reside (e.g., tent cities) to provide rapid housing as opposed to dislocating individuals from the current support networks they have. Incremental Building Model Ontario
LogisNov The construction of two, 15-unit modular buildings for households in need of affordable housing that adopt an innovative approach to construction. Development of cost-effective modular housing approach and design that would lower the cost and increasing scalability relative to conventional modular housing. Incremental Building Model Quebec
Capital Regional District CRD The project sought to reduce the barriers associated with developing affordable housing through the creation of a central funding source that brought together multiple funders. The pilot project of this entity worked to create shelter units that do not require ongoing subsidies, and which will support housing first programs. Model brought together actors from all levels of government (Municipal, Provincial and Federal) along with housing sector proponents to facilitate and adopt a mixed-use approach to address homelessness. This approach helped to reduce the barriers typically found in developing affordable housing that often requires developers to seek multiple sources of funding and increases the risk of funding being pulled due to the timelines involved. Incremental Financing Model British Columbia
UTILE UTILE created a revolving fund where a portion of Concordia’s student tuition fees are combined with funding from a social trust to construct affordable rental housing for students. The financial innovation was demonstrated by how UTILE took the capital to market and attract various investments sources The investments facilitated the creation of Fonds d’investissement pour le logement étudiant (FILE), which in turn created an investment fund that would guarantee the construction of affordable student housing in the city. Breakthrough Financing Model Quebec
SÉDAC Program aimed at developing on-reserve housing homeownership and rental options, which did not require access to Ministerial Loan Guarantee through leveraging debt markets in developing a revolving loan fund. The project was innovative due to its use of on-reserve funds which did not require a Ministerial Loan Guarantee. Additionally, the program is expected to demonstrate that it is possible to leverage debt markets to finance on-reserve housing when it expands its portfolio to an adequate size that it can potentially issue a bond. Incremental Financing Model Quebec
Isthmus Capital Reconciliation Income Fund Isthmus proposed that it can accelerate the First Nations reconciliation process and economic development by unlocking high-value land owned and controlled by Indigenous Nations for development through the creation of a revolving fund and the development of key partnerships. Isthmus leverages the flexibility of the Innovation Fund via a revolving fund to facilitate the development of relationships that bridged private developers, investors, municipalities, and Indigenous groups to unlock the value of land parcels for the achievement of housing development. Its nuanced approach was able to overcome a long history of obstacles preventing such partnerships from being successful. Breakthrough Financing Model National
Homes for Heroes—Rapid Village Program sought to develop, in a demonstrated rapid fashion, development of tiny homes for homeless veterans. The project sought to show that changes in process and technology use could be leveraged to realize a very quick development cycle for rapid delivery. As an added benefit, project also leveraged research to incorporate therapeutic and mental-health oriented design features such as having units that are detached but within sight of each other in a closed fashion to provide independence, yet a simultaneous community feel. Incremental Building Model Alberta
Nisichawayasihk Cree Pewapun Construction The project leveraged new building innovations and approaches to building units in the North and on-reserve. The project was able to demonstrate success in multiple unique building techniques with a northern focus including new approaches to reducing mold. Incremental Building Model Manitoba
Indwell—Passive House Development Portfolio To reduce costs associated with passive house creation, Indwell leveraged a portfolio approach to creating new units of supportive housing targeted at the low-income populations. The use of a portfolio approach was innovative in scale and scope within the field of passive housing, allowing Indwell to leverage the scale of work to reduce costs associated with construction. Incremental Building Model Ontario
District Heating, DREAM REIT—ZIBI This project will provide district heating and cooling for a 34-acre waterfront community located in both Ontario and Quebec using post-industrial waste heat recovery system. This is the first post-industrial waste heat recovery system in North America and takes advantage of the heat energy of the water that would have otherwise been wasted. The project has fully redundant natural gas boilers for operational contingency. Tenants will be shielded against future increases in energy prices, providing for greater certainty of future housing costs. Breakthrough Building Model Ontario Quebec
CentreVenture Development The project sought to incorporate technology and design approaches to develop the first Canadian net-zero high-rise building. The project innovation comes from the application of material, design and process approaches needed to build the first high-rise construction of net zero in Canada, applying a Scandinavian-based building model to the Canadian context. Breakthrough Building Model Manitoba
FTQ Project sought to reduce barriers associated with multilateral investment within the unique Quebec context to support the renovation of Quebec’s social community and affordable housing stock. The project was innovative in how it brought together multiple partners (government, institutional, private for-profit) to create access to funding through the creation of a lending syndicate. It is expected that this project will further demonstrate the ability of varying partnerships to assist in development of affordable housing through making funding available for use by smaller and more focused non-profits and community housing sector providers. Incremental Financial Model Quebec

Contact

Need assistance or have questions?
Contact your CMHC housing solutions specialist.

Remember to download the required documentation and information checklist for more details on how to complete your application.

Before you begin the application process, contact your CMHC housing solutions specialist to help you prepare and gather the required documentation for your application submission.

Important: The team can’t assess your application if there is missing information. Once you have all required documentation and have spoken to your CMHC specialist, upload your documents and fill out the application in our portal.

I’m ready to apply

Here Are Some of the Projects That Have Been Funded

A Temporary Building Leaves a Lasting Impression

The City of Vancouver uses available sites to build modular affordable housing

The Vancouver City Savings Credit Union (Vancity) Model

Demonstrating how financial institutions can foster and fund affordable rental housing

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Date Published: August 30, 2022

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