Open
APCHQ — Affordable Housing Fund: New Construction - Community Housing Sub-Stream
Last Update: March 4, 2026
Canada
Low-interest financing for constructing new community affordable housing
Grant and Funding
Loans and Capital investments
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.
At a glance
Funding available
Financing goals
- Increasing community impact
- Develop strategic partnerships
- Reduce the ecological footprint
Eligible Funding
- Up to 95% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Health care and social assistance
Location
- Canada
Legal structures
- Financial cooperative
- Non-profit
- Public or Parapublic institution
- For-profit business
- Non-financial cooperative
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
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
- The applicant must be a community housing provider (public or private non-profit housing organization or rental co‑operative), a municipality, a provincial or territorial government, an Indigenous government or organization, or a private‑sector entity.
- The project must be primarily residential, with a minimum of 5 units or beds.
- The project must create new affordable housing supply, such as community/affordable housing, urban Indigenous community housing, mixed-use market/affordable rental, new construction or conversion from non‑residential use, shelters, or transitional/supportive housing.
- The project must have documented support from at least one other level of government (municipal, provincial/territorial or Indigenous), which may be financial or in the form of a letter of endorsement.
- The project must meet CMHC’s minimum requirements for partnerships, financial viability, energy efficiency and accessibility as defined in the program documentation.
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
1
Verify eligibility and requirements
- Review the Affordable Housing Fund: New Construction – Community Housing Sub-Stream eligibility and project requirements
- Confirm your organization and project type meet CMHC criteria, including minimum units/beds and residential use
- Ensure your project can meet minimum affordability, energy efficiency and accessibility outcomes
2
Prepare required documentation
- Use the Required Documentation Checklist (PDF) to identify all documents needed at each stage
- Complete the Project Assessment Workbook (XLS) for the Community Housing Sub-Stream
- Prepare the Integrity Declaration, Energy Efficiency Attestation and Accessibility Attestation (PDFs)
- Gather partnership, financial viability and local government support documentation (e.g., endorsement letter)
3
Submit online application
- Create an account or sign in to the CMHC online portal
- Complete the online application, ensuring all sections reflect your project’s affordability, energy, accessibility and social outcomes
- Upload all required forms and supporting documents listed in the checklist
- Submit the complete application before the specified deadlines, including the September 30, 2025 transition date if applicable
4
Undergo initial prioritization
- Respond promptly to CMHC requests for additional documentation or clarification
- Await initial assessment for readiness, eligibility and completeness
- Receive a decision within approximately 30 days: decline or conditional approval
- If conditionally approved, review the funding amount and list of documents required for underwriting
5
Complete underwriting requirements
- Within 90 days of conditional approval, compile and submit all underwriting documents requested by CMHC
- Demonstrate financial viability, minimum requirement compliance and shovel readiness
- Provide information on socio-economic outcomes and local community needs as required
- Await completion of underwriting, which may take up to 60 days after all documents are received
6
Sign and return loan agreement
- Review the loan agreement package prepared by CMHC, including funding amounts, conditions and reporting requirements
- Examine the list of required security documents (e.g., mortgage security, assignments of rents, guarantees)
- Sign all loan and security documents within 30 days
- Return the fully executed documents to CMHC for final approval
7
Request and receive advances
- Follow the drawdown schedule in the executed loan agreement to plan advances
- Before the first advance, submit a draw request along with the Borrower Certificate, project status certificate and project consultant’s certificate
- Receive the first advance, typically a $50,000 repayable loan advance to set the interest rate and the full forgivable loan amount
- Provide required documentation at least 10 days before each subsequent draw as specified in the loan agreement
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.
