Accelerating construction through the National Housing Strategy

Government of Canada logo (CNW Group/Canada Mortgage and Housing Corporation (CMHC))

Canada Mortgage and Housing Corporation (CMHC) logo (CNW Group/Canada Mortgage and Housing Corporation (CMHC))

OTTAWA, ON, July 24, 2024 /CNW/ - Today, Canada Mortgage and Housing Corporation (CMHC) launched the Frequent Builder framework to accelerate the construction of affordable and rental homes by expediting the application process for established housing providers. The new framework will target experienced housing providers who access funding through the largest National Housing Strategy (NHS) programs, the Affordable Housing Fund (AHF) and the Apartment Construction Loan Program (ACLP).

Across Canada there is an urgent need for both affordable and rental homes. One the biggest challenges facing housing providers and the communities they supply homes to, is the time it takes to get new housing through planning and approval stages to being shovel-ready, with construction financing secured. With the significant housing supply shortages the country is facing, it is imperative we support the homebuilding industry to build more homes, faster.

Housing providers with proven track records and who meet the criteria will be given the status of Frequent Builder, which will enable them to access a fast-tracked process for AHF and ACLP funding applications, a quicker approval process, underwriting and advancing flexibilities, and the possibility of funding commitments for future years to allow better planning for future projects.  

By recognizing the varied situations of housing providers, CMHC has established separate eligibility criteria for government entities, including Indigenous governments, for-profit developers, and non-profit developers. Housing providers who meet the criteria will be automatically approved to receive Frequent Builder status. Housing providers can reach out to their CMHC specialist to learn more. 

Quotes:

"We are facing a shortage of affordable housing in Canada, so if you're a housing provider, we want you to build. The Frequent Builder framework will allow experienced housing providers to access construction financing through the National Housing Strategy faster and get more projects off the shelf and shovels in the ground."

— The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities

"We are excited to launch the Frequent Builder framework as it will better support housing providers in building the housing we need and do it more quickly. This new framework will also support CMHC's new service standard of Affordable Housing Fund and Apartment Construction Loan Program applications receiving conditional approval within 30 days and full approval within 60 days."

— Coleen Volk, President and CEO of CMHC

Quick facts:

• The Affordable Housing Fund (AHF) and Apartment Construction Loan Program (ACLP) are part of the Government of Canada's National Housing Strategy (NHS), an $82+ billion plan to give more Canadians a place to call home.
  
  
• The AHF provides funding through low-interest and forgivable loans or contributions to partnered organizations for new affordable housing and the renovation and repair of existing, affordable and community housing. This is a $13.2 billion program under the NHS that gives priority to projects that help people most in need, including women and children fleeing family violence, seniors, Indigenous peoples, people living with disabilities, those with mental health or addiction issues, veterans, and young adults.
  
  
• As of March 2024, the Government of Canada has committed over $8.56 billion to support the creation of over 34,500 units and the repair of close to 165,000 units through the AHF.
  
  
• The ACLP provides fully repayable low interest loans to encourage the construction of rental homes for middle class Canadians. It creates a positive impact in the housing system at minimal cost to taxpayers.
  
  
• In addition to the $15 billion announced in the 2023 Fall Economic Statement for ACLP, Budget 2024 announced an additional $15 billion top-up in loans to build a minimum of 30,000 new rental apartments bringing the total funding to $55 billion.
  
  
• As of March 2024, CMHC has committed $18.81 billion in loans through ACLP to support the creation of 49,879 purpose-built rental homes.
  
  
• As of March 2024, through all NHS supply programs, the federal government has committed $50.97 billion to support the creation of over 146,000 units and the repair of over 286,000 units. These measures prioritize those in greatest need, including seniors, Indigenous Peoples, people experiencing or at risk of homelessness, and women and children fleeing violence.

SOURCE Canada Mortgage and Housing Corporation (CMHC)

Information on this news release: Micaal Ahmed, Office of the Minister of Housing, Infrastructure and Communities, [email protected]; Media Relations, Canada Mortgage and Housing Corporation, [email protected]