APCHQ — Apartment Construction Loan Program: Seniors Rental Housing

• The borrower must be a developer (for-profit or non-profit) or another order of government.
• The project must consist of permanent seniors’ rental housing that allows seniors to live independently (services may be included but not personal or medical care).
• The residential complex must contain at least 50 fully self-contained rental units and be primarily residential in use (non-residential space must not exceed 30% of total floor area and 30% of total costs).
• The applicant must demonstrate sufficient financial and operational capacity to operate the housing complex without ongoing operating subsidies and to meet required debt coverage ratios.
• The project must meet one of the program’s affordability conditions for at least 10 years, such as having at least 20% of units with rents at or below 30% of the area’s median total family income or being approved under another recognized affordable housing program or initiative.

Who is eligible?

• For-profit developers
• Non-profit developers
• Other orders of government

Eligible expenses

• Up to 100% of eligible costs related to residential spaces in the seniors’ rental housing project.
• Up to 75% of eligible costs related to non-residential spaces within the same building.
• Interest payments during construction, which are financed through the loan until the project reaches 12 months of stable gross income.

Eligible geographic areas

• Businesses located anywhere in Canada, as this is a federal program administered by the Canada Mortgage and Housing Corporation (CMHC).

• Projects must meet or exceed the program’s mandatory minimum requirements.
• Projects should be among the strongest applications overall, based on CMHC’s assessment.
• Projects are expected to generate strong social outcomes that help create vibrant and socially inclusive neighbourhoods.
• Projects must address a demonstrated need to increase housing supply in the target market.

• CMHC mortgage loan insurance is automatically included with the loan; the borrower does not pay the insurance premium but may have to pay applicable provincial sales tax on it.
• At term maturity, borrowers must obtain post-construction mortgage financing from a CMHC-approved lender to take over the insured loan.
• Interest payments during construction are financed by the loan itself until occupancy permit and then paid by the borrower until the project reaches 12 consecutive months of stable gross revenue.
• The program is administered operationally by CMLS Financial as CMHC’s external service provider once conditional approval is issued.