To be eligible for this funding, you must have an affordable housing purpose and a proven mandate to provide housing to lower-income households or populations in need. This funding is open to:

• community housing providers such as non-profit housing organizations, public housing agencies and rental co-operatives
• Indigenous governments and organizations including First Nations, Tribal Councils and Indigenous housing providers
• provincial, territorial and municipal governments

Private market housing organizations are not eligible for this funding.

Eligible property types:

• mixed income rental or mix-use with affordable rental housing
• community housing
• affordable rental housing
• Indigenous community housing and cultural spaces
• Shelters, transitional and supportive housing
• Single-room occupancy

PLEASE NOTE: The non-residential component of the property is not to exceed 30% of total gross floor space.

Eligible housing types need to ensure that projects must:

• be primarily residential
• include at least 5 units or beds
• be of a minimum age:
• part 9 buildings of the National Building Code, such as single detached, duplex and townhouses must be at least 10 years old
• part 3 buildings of the National Building Code, such as mid to high-rise, low-rise and multi-plex buildings must be at least 20 years old

To be qualify for Retrofit Funding, your project will need meet requirements for:

• energy efficiency
• financial viability
• retrofit type(s)

Energy Efficiency

Deep energy retrofits must target:

• 70% reduction in energy consumption relative to pre-retrofit performance, and
• 80% reduction in greenhouse gas (GHG) emissions relative to pre-retrofit performance.

Financial Viability

Minimum debt coverage ratio requirements:

• a debt overage ratio of 1.00 for the residential loan component
• a debt coverage ratio of 1.40 for the non-residential loan component

Security

To qualify for Retrofit Funding, you need to provide security.

We accept first, second and pari passu mortgages

On-reserve applicants: In addition to a Ministerial Loan Guarantee, we will accept 4 other types of security. Refer to the pre-application guide for more details.

Up to $1.1 billion in forgivable and low-interest repayable loans are available through a callout application-based process.

• CMHC will fund 100% of eligible retrofit costs, up to $170,000 per unit (repayable and forgivable loans combined). Forgivable loans will be the lesser of:
• $85,000 per unit, or
• Eighty percent (80%) of eligible retrofit costs.
• Projected energy savings should help offset repayable loan requirements.
• Funding will be available over 4 years starting in 2023-24.

Fill out the Retrofit Funding Assessment Calculator (XSL) and talk to your CMHC Specialist about project eligibility.

Repayable Loans

• Repayable loans will be low-interest and can be amortized up to the remaining economic life of the building (40 years maximum).
• The interest rate will be locked in at first advance for a 10-year term. At the end of this term, the loan can be renewed, and the rate will be reset and fixed for another 10 years.
• The loan will be closed to prepayment during the 10-year term.
• Payments will be interest-only until energy retrofits are completed. After the energy retrofits are completed, the principal and interest will be paid for the remainder of the loan’s term.

Forgivable Loans

• Will be forgiven over 10 years.

Pre-application Documents

Gather the required documentation now to apply for this program on June 1, 2023.

You’ll need to provide documents that detail:

• professional reports stating how you are achieving the climate objectives
• detailed retrofit scope of work, including cost estimates for the project and timelines for completion

Review the program highlight sheet (PDF).

Application

1. Talk to your CMHC specialist to help you gather the required documentation.
2. Review the required documentation checklist (PDF).
   You must submit the:
• Retrofit Funding Assessment Calculator (XSL)
• Integrity Declaration (PDF)
• Energy Assessment Attestation (PDF)
3. Submit your application in the application portal after you have received confirmation from your CMHC specialist.

Approval Process

1. CMHC will review projects for eligibility and complete a financial analysis in as little as 60 days after the close of the application window. Processing of an application is contingent on receiving all required documentation upon application submission. If there is high demand for the Retrofit Funding, we’ll prioritize funding based on:
• achievement of environmental outcomes
• project readiness (projects selected for funding are expected to start construction within 6 months)
2. You’ll receive a loan agreement confirming CMHC’s conditional approval of funding for the project if your application is deemed complete, typically within 30 days.
3. First advance (required documentation must be provided 10 days before each draw down date). The loan agreement will outline the process and any supporting documentation needed to request an advance from CMHC.

Project characteristics such as depth of energy consumption reductions, greenhouse gas emissions reductions, National Housing Strategy priority populations served, and number of units will be used to score applications.

You must satisfy advancing conditions within the set time frame, or you may be at risk of a cancellation of the application or changes to CMHC’s funding commitment.

1. If your project is approved, you must agree to Canada Greener Affordable Housing reporting requirements. These are outlined in your funding agreement.
2. Approved projects will be required to benchmark the long-term energy performance of the retrofitted property once the retrofit work is complete using ENERGY STAR Portfolio Manager during the initial 10-year loan term.
3. Approved projects will be required to report actual energy use and associated GHG emissions to CMHC using ENERGY STAR Portfolio Manager at 2 points:
• 1-year post-retrofit
• 10-years post-retrofit

PLEASE NOTE: We may request utility bills as a proof of program compliance. Energy modelling analyses may be reviewed randomly or as a directed quality assurance review.

In order to properly prepare your application for this program, please use and refer to these documents:

• Program Highlight Sheet (PDF)
• Required Documentation Checklist (PDF)
• Integrity Declaration (PDF)
• Applicant Guide (PDF)
• Energy Assessment Attestation (PDF)
• Retrofit Funding Assessment Calculator (XSL)