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Budget 2021 provides increased funding for the Rapid Housing Initiative (RHI) to address the urgent housing needs of our most vulnerable populations. The additional funding will be delivered under two separate funding streams. Under the Cities Stream, pre-determined municipalities have been notified of their allocations.
Under the Projects Stream, only the applicants who applied during the first round of RHI and had eligible projects that remained unfunded will be considered. If your application qualifies, you will be contacted directly and invited to update your application.
The RHI provides capital contributions (upon signing a funding agreement with CMHC) under two streams (Cities Stream, and Projects Stream) to expedite the delivery of affordable housing. It will:
- Support the creation of new permanent affordable housing units
- Cover the construction of new rental housing units, as well as the acquisition of land, and the conversion/rehabilitation of existing buildings to affordable housing.
- Aim to commit all funds as quickly as possible to ensure housing is available within 12 months of agreements unless otherwise agreed upon.
Round 1 (October 27, 2020 – March 31, 2021):
The Government of Canada, through CMHC, launched the Rapid Housing Initiative (RHI) in October 2020. The initial funding for this initiative was $1 billion to help address urgent housing needs of vulnerable Canadians, especially in the context of COVID-19, through the rapid construction of affordable housing.
The first round of RHI exceeded its initial target of creating up to 3,000 new affordable units and will support the construction of more than 4,700 units across Canada.
Round 1 delivered funding under two streams. Under the Major Cities Stream, RHI expedited funds to pre-determined municipalities. Funding allocations were based on the highest level of renters in severe housing need with considerations for regional coverage and local housing market costs. For a full list of cities and allocation, please visit the CMHC News Room. For the Projects Stream, applications were submitted via a web portal.
Round 2 (June 30, 2021 – March 31, 2022):
Budget 2021 provides an additional investment of $1.5 billion in new funding for the Rapid Housing Initiative in 2021-22 to address the urgent housing needs of vulnerable Canadians.
This new funding will add a minimum of 4,500 new affordable units to Canada’s housing supply. At least 25 per cent of this funding will go towards women-focused housing projects.
CMHC will contact eligible applicants and pre-determined cities directly with further details.
Missed our webinar?
Watch this session to learn more about the Rapid Housing Initiative!
This webinar was recorded on July 6 2021. Please consult with your specialist to ensure that you have the latest information.
Round 2 Process
Round 2 - Additional Funding via Budget 2021:
The additional funding will be divided into two streams as follows:
- $500 million allocated under the Cities Stream to 30 pre-determined municipalities based on the number of renters in severe housing need, local market housing cost and regional coverage
- $1 billion will be allocated to unfunded eligible applications that were submitted during the RHI’s initial application period last fall.
For the extended funding, only applicants who applied during the first round of RHI and remain eligible will be considered. If your application qualifies, you will be contacted directly.
TWO FUNDING STREAMS
1. Cities Stream: Immediate Support for Identified Municipalities
The 30 pre-determined municipalities were given an allocation based
on the number of renters in severe housing need, regional coverage,
and local market housing cost in their respective rental housing
market.
Each municipality has been notified of their allocation and is
required to submit their proposed projects that demonstrate
alignment with the RHI criteria as well as how the results will be
achieved. Municipalities have been asked to submit
their proposed projects through CMHC’s online portal, which
will remain open for a minimum of 60 days (until August 31, 2021 at
11:59 PM EST).
| Funding under the Cities Stream will be allocated to the following municipalities: | |
|---|---|
|
Burnaby |
Ottawa |
|
Calgary |
Québec City |
|
Capital Regional District (BC) |
Regina |
|
Edmonton |
Region of Durham |
|
Gatineau |
Region of Peel |
|
Greater Sudbury |
Region of Waterloo |
|
Halifax |
Saskatoon |
|
Hamilton |
St. John’s |
|
Iqaluit |
Surrey |
|
Kingston |
Toronto |
|
Laval |
Vancouver |
|
London |
Whitehorse |
|
Longueuil |
Windsor |
|
Montreal |
Winnipeg |
|
Niagara Region |
Yellowknife |
Projects Stream:
Given the high level of interest in the first round of RHI, a number of eligible applications did not receive funding. As a result, only eligible applicants who applied during the first round and had projects that were not fully funded are eligible for the extended funding.
Applicants will have until August 31, 2021 at 11:59 PM EST to renew their interest by revising, updating and re-submitting their project application through CMHC’s online portal.
CMHC will review and prioritize the majority of updated applications based on program criteria by the end of October 2021 with the intent to notify all applicants of the status of their application by March 31, 2022.
PRE-APPLICATION READINESS
For Non-Government entities: please review the RHI Documentation Requirements (PDF) with your CMHC Specialist to determine the requirements that apply to you.
Additionally, you will be required to complete the Integrity Declaration (PDF) form, and the Development and Construction Project Management Schedule (XLS).
For Government entities: you must submit a copy of your Development and Construction Project Management Schedule (XLS) with milestones as a minimum required document. Please contact your CMHC Specialist for assistance.
Documentation will be required at application.
The Application Worksheet (XLS) is available as a working document for those who wish to utilize it as they prepare their applications. You are not required to submit it along with your application.
Program Details
ELIGIBILITY
Eligibility requirements
Eligible applicants included:
- Municipal, Provincial, and Territorial Governments including their agencies
- Indigenous governing bodies and Organizations
- Non-profit organizations
Eligible applicants must have:
- Property Management Experience*
- Construction Management Experience*
- A previous eligible application that remains not (fully) funded (projects stream)
* Experience may be acquired through a third party.
Those eligible to renew their interest for the additional funding include:
- Applicants who had submitted an eligible application in 2020 and were not selected for funding
- Applicants who had submitted an eligible application in 2020 and only received partial funding from RHI, and
- Applicants who had submitted an eligible application in 2020 and while not being prioritized under RHI, received partial funding from another CMHC initiative.
Property Type and Size Requirements:
- Standard rental, transitional, permanent supportive housing, single room occupancy and seniors housing (that requires light to no care)
- Must have a minimum of five units or beds*
- Minimum contribution request of $1M*
- Primary use is residential
- Permanent housing (long-term tenancy, 3 months or more)
- Located in Canada
- Available for year-round occupancy
* with possible exceptions made for Northern, Indigenous or remote projects.
Mandatory minimum requirements
Eligible applicants must meet mandatory minimum requirements (PDF) for Expediency, Financial Viability, Affordability, Energy Efficiency, Accessibility and Targeted Populations.
For additional information, please consult the RHI Product Highlight Sheet (PDF) where full details on mandatory minimum requirements and eligibility criteria are detailed.
FINANCIAL INFORMATION
Funding
CMHC will provide up to 100% in capital contribution funding to cover eligible residential construction costs. CMHC will not fund non-residential costs.
Eligible recipients will receive funding for one of three eligible project types:
New Construction:
1. Support the construction of a multi-unit rental project, which may include the acquisition of the land.
Conversions/Rehabilitations:
2. Support the acquisition of land and buildings for the purpose of conversion of a non-residential building to an affordable rental project.
3. Support the acquisition of land and existing buildings in state of disrepair or abandoned for the purpose or rehabilitation where units were previously lost from the housing stock.
* Acquisition of land and buildings includes construction, conversion and rehabilitation costs.
Advancing
Cities Stream:
The full contribution will be advanced once both CMHC and the municipality sign the contribution agreement.
Projects Stream:
For government entities, the RHI will advance the full contribution once both CMHC and the government sign the contribution agreement.
For non-government entities, funds will be released through construction draws following review of progress reporting by a Quantity Surveyor or alternate qualified consultant (approved by CMHC).
APPROVAL PROCESS
Prioritization Criteria
In addition to meeting mandatory minimum requirements (PDF), the RHI will prioritize applications that achieve higher outcomes in the following priority areas:
- Need
- Duration of confirmed subsidy / Confirmation of financial self-sufficiency
- Cost sharing / Support from another level of government
- Expediency
- Land status
- Duration of affordability
- Energy efficiency
- Accessibility
- People or populations who are vulnerable
Eligible applicants will be contacted directly and provided further instructions on how to renew their interest and update their application to be considered in this round of funding.
