Closed
Source verified August 5, 2026
Affordable Housing Fund: New Construction - Community Housing Sub-Stream
Low-interest financing for constructing new community affordable housing
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Funding available
Up to 95% of project cost
Deadline
Unspecified
Location
Canada
Who can apply
Community housing providers (public or private non-profit housing organizations)
See full eligibility
Overview
The Affordable Housing Fund: New Construction – Community Housing Sub-Stream offers low-interest repayable loans of up to 95% of project costs and forgivable loans of up to 40% of costs (depending on applicant type) to support financially viable, long-term affordable housing. Funding can be used for new construction or conversion of buildings into mixed-income, mixed-use, community and affordable housing, including shelters and transitional and supportive housing that meet specific affordability, energy efficiency and accessibility requirements.
Receipt of requests is now closed
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At a glance
Funding available
Financing goals
- Increase social or community impact
- Develop strategic partnerships
- Reduce environmental footprint
Eligible Funding
- Up to 95% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- Non-financial cooperative
- For-profit business
- Non-profit
- Public or Parapublic institution
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Indigenous Peoples
- Rural or Northern Residents
- Canadians
Non-profit candidates
Sector of operation
- All industries
Target groups
- All the groups
Revenue structures
- All structures
Scope
- All dimensions
Next Steps
1
Determine your project
2
Validate your eligibility
Availability timeline
2026
Periods: 1
Activities funded
- Construction of new community and affordable housing developments.
- Development of urban Indigenous community housing projects.
- Creation of mixed-use and mixed-income rental projects combining affordable and market units.
- Conversion of existing non-residential buildings into affordable multi-residential housing.
- Development of shelters, transitional housing and supportive housing for people in need.
Eligibility
Who is eligible?
- Community housing providers (public or private non-profit housing organizations)
- Rental housing co-operatives
- Municipal governments
- Provincial and territorial governments
- Indigenous governments and Indigenous organizations
- Private sector housing developers or companies
Eligible geographic areas
- Projects located anywhere in Canada, as this is a federal program administered by the Canada Mortgage and Housing Corporation (CMHC).
- Projects on First Nation lands in Canada, including those using Ministerial Loan Guarantees or other accepted forms of security.
- Projects in rural and Northern areas of Canada, which are specifically prioritized under the program.
Selection criteria
- Level of affordability achieved by the project beyond the minimum program requirements.
- Degree of energy efficiency, including performance relative to 2020 model codes (e.g., achieving or exceeding Tier 2 of the 2020 National Energy Code or Tier 3 of the 2020 National Building Code).
- Level of accessibility, including alignment with or exceeding CSA B651:23 and B652:23 standards.
- Shovel readiness of the project, including ability to start construction quickly and completeness of required documentation.
- Social and community outcomes, including proximity to transit/childcare/community centres, strength of financial partnerships and collaboration, social inclusion, and benefits for National Housing Strategy priority groups and vulnerable populations.
How to apply
- Step 1: Prepare project and confirm readiness
- Ensure your housing project concept, partnerships and financing plan are sufficiently defined to begin an application.
- Verify that your project can meet the fund’s minimum requirements for partnerships, financial viability, energy efficiency and accessibility.
- Obtain support from at least one other level of government (for example, municipality, province/territory or Indigenous government), which can be an investment of resources or a letter of endorsement for the project.
- Step 2: Review guidance and check documentation needs
- Consult the Required Documentation Checklist — New Construction (PDF) to understand the minimum documents required at each stage of the process.
- Review the Applicant Guide (PDF) to understand the full application process and expectations.
- Refer to the Program Highlight Sheet — Community Housing Sub-Stream (PDF) for key program features and constraints.
- If your project is on First Nation lands or you are a municipality, review the specific guidance on acceptable security (e.g., alternative security types for First Nation lands or use of debentures for municipalities).
- Step 3: Complete required forms and tools
- Download and complete the Project Assessment Workbook — Community Housing Sub-Stream (XLS) to assess project viability and potential forgivable loan incentives.
- Complete the Energy Efficiency Attestation (PDF) confirming how the project will meet the required energy efficiency standards or, if eligible, prior standards during the transition period.
- Complete the Accessibility Attestation (PDF) confirming how the project will meet the required accessibility standards or, if eligible, prior standards during the transition period.
- Complete the Integrity Declaration (PDF) as required by CMHC.
- Step 4: Respect transition-period timelines (if applicable)
- If you intend to use the previous Affordable Housing Fund minimum requirements for energy efficiency and accessibility, ensure your application meets the specified criteria for the transition period.
- Submit a complete application, including all required documents, on or before September 30, 2025, 11:59 pm ET, to qualify for use of the previous requirements.
- Be aware that applications submitted after this date will not be accepted and incomplete applications will not be processed.
- Step 5: Create or access account in CMHC application portal
- Gather all completed forms and supporting documentation identified in the Required Documentation Checklist.
- Sign in or create an account in the CMHC application portal.
- If you are Indigenous or from a northern community, select “Indigenous or Northern - Affordable Housing Fund” when starting your application in the portal.
- Step 6: Complete and submit the application
- Fill out the online application in the CMHC portal for the Affordable Housing Fund: New Construction – Community Housing Sub-Stream.
- Upload all required supporting documents as outlined in the Required Documentation Checklist, including the Project Assessment Workbook, Integrity Declaration, Energy Efficiency Attestation, Accessibility Attestation and any governmental support letters.
- Review all information for accuracy and completeness to ensure the application is complete.
- Submit the application through the CMHC portal, ensuring submission occurs before any applicable deadlines (particularly September 30, 2025, if using transition-period requirements).
- Step 7: Application review and prioritization
- After submission, CMHC reviews the application for readiness, eligibility and completeness; processing is contingent on receipt of all required documents at submission.
- Respond promptly if CMHC requests additional documentation or clarifications.
- Once deemed complete, the application undergoes an initial assessment and is prioritized based on project readiness, social outcomes and budget availability.
- Receive a decision (decline or conditional approval) within approximately 30 days for complete applications.
- Step 8: Provide underwriting documentation
- If you receive conditional approval, review the conditions and list of documents required for underwriting.
- Submit all underwriting documentation requested by CMHC within 90 days of conditional approval; otherwise, the application will be withdrawn from consideration.
- Respond to any further CMHC requests for additional documentation or clarification during underwriting.
- Allow up to 60 days after CMHC receives all necessary underwriting documents for completion of the underwriting process.
- Step 9: Review and sign the loan agreement
- Upon approval, receive a package of loan documents prepared by CMHC, typically within about 40 days, depending on application complexity.
- Review the loan agreement detailing funding amounts, funding conditions, socio-economic outcome commitments, interest rate, drawdown mechanics, security requirements, reporting requirements, standard terms and any project-specific conditions.
- Review accompanying security documents, which may include mortgage security, assignments of rents and leases, material contracts and insurance, and, where applicable, guarantees or inter-creditor agreements.
- Sign the loan documents and return them to CMHC within 30 days to accept the financing.
- Step 10: Request first advance and subsequent drawdowns
- After execution of the loan agreement, follow the drawdown schedule contained in the agreement, which sets out when and in what amounts funds will be advanced.
- Before the first advance, submit a draw request to CMHC along with the Borrower Certificate, project status certificate, project consultant’s certificate and any other documentation CMHC requires.
- Typically receive an initial repayable loan advance of $50,000 to set the interest rate and the full forgivable loan (if approved) as part of the first advance.
- Submit all required documentation at least 10 days before each scheduled drawdown date, as specified in the loan agreement, for subsequent advances.
Additional information
- Applications must be supported by another level of government, which can be demonstrated through invested resources or a formal letter of endorsement.
- There is a transition period for updated energy efficiency and accessibility requirements; to use the previous standards, complete applications must be submitted by September 30, 2025, at 11:59 p.m. ET.
- Complete applications are targeted to receive a decision (decline or conditional approval) within 30 days, and applicants then have 90 days to submit underwriting documents.
- The program gives explicit priority to rural, Northern and Indigenous-led affordable housing projects.
Other components of this program
Explore related funding streams and grants that belong to the same program.
- Affordable Housing Fund: New Construction - Rapid Housing Sub-StreamFunds construction of shelters, transitional and supportive affordable housing
Frequently Asked Questions about the Affordable Housing Fund: New Construction - Community Housing Sub-Stream Program
What is the Affordable Housing Fund: New Construction - Community Housing Sub-Stream?
The Affordable Housing Fund: New Construction – Community Housing Sub-Stream offers low-interest repayable loans of up to 95% of project costs and forgivable loans of up to 40% of costs (depending on applicant type) to support financially viable, long-term affordable housing. Funding can be used for new construction or conversion of buildings into mixed-income, mixed-use, community and affordable housing, including shelters and transitional and supportive housing that meet specific affordability, energy efficiency and accessibility requirements.
How much funding can be received?
Affordable Housing Fund: New Construction - Community Housing Sub-Stream Funds up to 95% of admissible expenses.
Who is eligible for the Affordable Housing Fund: New Construction - Community Housing Sub-Stream program?
To be eligible for the Affordable Housing Fund: New Construction - Community Housing Sub-Stream program, you must:
Applicant must be a community housing provider, municipality, province/territory, Indigenous government or organization, or private sector entity.
Project must have support from another level of government (e.g., municipality, province/territory, Indigenous government).
Project must meet minimum requirements for partnerships, financial viability, energy efficiency and accessibility.
What expenses are eligible under Affordable Housing Fund: New Construction - Community Housing Sub-Stream?
Construction of new community and affordable housing developments.
Development of urban Indigenous community housing projects.
Creation of mixed-use and mixed-income rental projects combining affordable and market units.
Conversion of existing non-residential buildings into affordable multi-residential housing.
Development of shelters, transitional housing and supportive housing for people in need.
Who can I contact for more information about the Affordable Housing Fund: New Construction - Community Housing Sub-Stream?
You can contact Canada Mortgage and Housing Corporation (CMHC).
Where is the Affordable Housing Fund: New Construction - Community Housing Sub-Stream available?
The Affordable Housing Fund: New Construction - Community Housing Sub-Stream program is available across Canada.
Is the Affordable Housing Fund: New Construction - Community Housing Sub-Stream a grant, loan, or tax credit?
Affordable Housing Fund: New Construction - Community Housing Sub-Stream is a Grant and Funding