On Wednesday, the Canada Mortgage and Housing Corporation (CMHC) introduced the Frequent Builder Framework to fast-track the Affordable Housing Fund (AHF) and Apartment Construction Loan Program (ACLP), two of the largest funding programs under the Government of Canada’s National Housing Strategy. The program aims to reduce the delay caused in the construction of new projects owing to the lengthy loan approval process.
An eligibility criteria has to be met in order to receive the benefits. The developers must have conducted a minimum of $50M of business with CMHC. Loans obtained through the National Housing Strategy program and mortgage loan insurance for developments would count towards the $50M.
For-profit organizations must meet three of four criteria:
- Have over $1B in multi-residential assets
- Have a minimum net worth in excess of $250M
- Have a debt coverage ratio of 1.30 multi-residential portfolio
- Have over $500M of effective outstanding exposure with CMHC
The non-profit organizations and co-op housing corporations must have conducted a minimum of $20M of business with CMHC and have 500 units or more of rental housing in their portfolio.
In addition, CHMC will also assess the creditworthiness of the organizations before approving the application.
CMHC said in a press release, “Across Canada there is an urgent need for both affordable and rental homes. One thebiggest 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.”
CMHC President and CEO Coleen Volk added, “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.”
