Retrofit Funding for multi-unit residential buildings

Canada Greener Affordable Housing – Retrofit Funding provides access to low-interest repayable and forgivable loans for deep energy retrofits of multi-unit residential buildings.

IMPORTANT

The Canada Greener Affordable Housing program has been instrumental in making the transition to deep energy retrofits more affordable. With the program’s budget nearing full allocation, the application intake portal will close on January 20, 2026, at 11:59 p.m. Eastern Time.

To ensure your application is considered, we recommend submitting it well before the deadline. Please note:

Applications submitted after the deadline will not be reviewed by CMHC.
Incomplete applications will not be considered for funding.

The Canada Greener Affordable Housing — Retrofit Funding program is an important step in helping Canada reach its goal of net-zero emissions by 2050.

This program will address climate capability and resiliency to multi-unit (5+) residential buildings, by providing forgivable loans and low-interest loans to help finance building retrofit measures and activities needed to meet climate objectives, leading to deep reductions in energy consumption and GHG emissions.

Deep energy retrofits include projects that target:

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

AM I ELIGIBLE

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 a minimum age of 20 years old:

Flexibility on building age may apply to Indigenous*, Northern, or remote located organizations
*Indigenous applicants do not need to be located in a Northern or remote area for flexibilities to be considered.

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.

FUND DETAILS

aPPROVALS PROCESS

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

Review the required documentation checklist (PDF).
You must submit the:

Approval Process

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)

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.
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.

If your project is approved, you must agree to Canada Greener Affordable Housing reporting requirements. These are outlined in your funding agreement.
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.
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.