National Housing Co-Investment Fund – revitalization

Long term, low-interest loans to help revitalize affordable housing.

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.

PRO TIP! Reach out to your CMHC specialist to help you get the specific documentation required for your application to the Co-Investment Fund.

Application Steps

Timelines are approximations and will depend on the complexity and completeness of the application. Talk to your CMHC specialist.

Co-Investment Fund 7-Step Process:

APPLICATION

Before applying, work with your CMHC specialist to prepare your application and gather relevant documentation. Application preparation and submission takes time and depends on the readiness of your project. You will need to complete the required documentation checklist (PDF), which outlines the minimum documentation required at each stage of the process in order to move forward.

PRO TIP! Use this guide (PDF) to understand and complete the application process

Additionally, complete these forms before signing in or creating an account in the CMHC portal:

• Financial Viability Assessment Calculator and Scoring Grid (XLS)
Need help using the scoring grid? Access our interactive guide for more information.
• Integrity Declaration (PDF)

After receiving confirmation from your CMHC specialist, submit your application on the application portal. You will have to upload all of the documents identified in the checklist.

1
PRELIMINARY REVIEW

Applications are reviewed for readiness, eligibility and completion. Processing of an application is contingent on receiving all required documentation upon application submission, detailed in step 01. CMHC will contact you if additional documentation or clarifications are required prior to commencing the financial analysis of your application.

You will hear from CMHC within approximately 14 days of submitting your application.

2
FINANCIAL ANALYSIS (CREDIT RISK ASSESSMENT)

Credit risk assessment of your application takes time. Selected, eligible applications are assessed based on financial viability, minimum requirements, socio-economic outcomes to be achieved, local community need and available funding. Provinces and territories also provide input and concurrence on projects in their jurisdiction. CMHC will contact you if additional documentation or clarifications are required as they work through your application.

This will take 30-120 days from your application submission, based on the complexity of your application and submission of all required documentation.

3
CONDITIONAL FUNDING COMMITMENT (LETTER OF INTENT)

Successful applicants will receive a letter of intent confirming CMHC’s conditional offer based on the assessment up to that point. The letter of intent may set out certain conditions, including requirements or documents you must satisfy within 60 days.

Once you provide all required documentation to satisfy the conditions in the letter of intent (Step 02), the application will then go through a final approval process, typically within 30 days. Failure to satisfy conditions within the set time frame may lead to a cancellation of the application.

4
CONTRACT IN PREPARATION (TERM SHEET)

Upon the completion and approval by underwriting, you will receive a term sheet typically within 20 days, which outlines the general terms, special conditions and additional requirements to be met prior to the issuance of a loan agreement and/or the advancing of funds.

The term sheet generally includes details of funding amounts, conditions to funding, details of the socio-economic outcomes in your project, general representations and warranties, events of default; as well as a list of security required by CMHC to secure the loan obligations. Security documents may include but are not limited to: mortgage security, assignments of rents and leases, material contracts and insurance, and where applicable, guarantees, and/or inter-creditor agreements.

You have 30 days to accept and return the signed term sheet to CMHC.

5
FUNDING AGREEMENT (LOAN DOCUMENTS)

Once you have signed and returned your Term Sheet, CMHC will sign the document and send you a fully signed copy for your records. CMHC will then prepare your package of loan documents, typically within 40 days. Timing is dependent on the complexity of your application. The loan agreement will detail items such as: interest rate, the advancing mechanics, security for the loans, reporting requirements and standard terms and conditions, among other terms, including those specific to your project.

You have 30 days to accept and return the signed loan documents to CMHC.

PRO TIP! Learn what documents the loan package will generally also include.

6
FIRST ADVANCE

The fully executed loan agreement between CMHC and the successful applicant will contain a drawdown schedule. The drawdown schedule itemizes when and in what amount funds are expected to be advanced against CMHC loans or contributions.

You must satisfy all conditions required prior to initial funding. At both initial funding and at the time of each subsequent funding, you must submit a draw request to CMHC, along with: a current project status report prepared by your Quantity Surveyor/Cost Consultant, the drawdown notice, the project status certificate, the project consultant’s certificate, a notarized CCDC statutory declaration, as well as any other documentation that CMHC may deem necessary – all of which are specified in the loan agreement.

Required documentation must be provided 10 days before each draw down date.

7

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)

PRO TIP! Contact your CMHC specialist for questions and to discuss your application.

Am I eligible

Projects must have support from another level of government (such as municipalities, provinces and/or territories, Indigenous government) to ensure a coordination of investments.

Partners will be required to contribute to the project (monetary or in-kind) and the level of contribution may vary from project to project.

Organizational Requirements

The National Housing Co-Investment Fund – Housing Repair and Renewal 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:

existing community and affordable housing
urban indigenous community housing
mixed use market / affordable rental
shelters
transitional and supportive housing

All projects must:

have a minimum of 5 units/beds (including scattered units/properties)
have primary use as residential
meet minimum requirements for partnerships, financial viability, affordability, energy efficiency and accessibility

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.

Considerations for Indigenous and Northern Housing Solutions Clients
In addition to a Ministerial Loan Guarantee (MLG), Canada Mortgage and Housing Corporation (CMHC) is now accepting four additional alternative types of security for projects on First Nation lands.

PRO TIP: Learn about some common misconceptions concerning Universal Design (PDF).

Benefits of NHCF Loans

There are several possible repayable loan and/or forgivable loan combinations. There is:

$3.46 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.

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

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 40-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.

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

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

PRO TIPS!:

Use this Financial Viability Assessment Calculator and Scoring Grid (XLS) to determine the maximum low-interest repayable loan and/or forgivable loan amount.
Need help using the Financial Viability Assessment Calculator and Scoring Grid? Access our interactive guide for more information.
Find more details on funding eligibility.
Review the Product Highlight Sheet for further details on the repayable loan characteristics.

APPLY TODAY

Application Step 6 Loan Package Documents

Related Program: If you are building new, a better option might be the New Construction Stream. This focuses on new construction.

Still have questions about the Fund?

1-800-668-2642

contactcentre@cmhc.ca

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Date Published: September 14, 2021