The Rapid Housing Initiative: One step closer to affordable housing in your community
By Yinhao Fan
What is CMHC Rapid Housing Initiative about?
Canada Mortgage and Housing Corporation (CMHC) is Canada’s national housing agency, which was established for one reason: to make housing affordable for everyone in Canada. CMHC aims to enhance the quality of life through affordable housing in Canada by mobilizing expertise and energy from different levels of organizations.
Recently, CMHC launched a Rapid Housing Initiative (RHI) that provides capital support for the rapid construction of new housing and/or acquisition of existing buildings for rehabilitation or conversion to permanent affordable housing. CMHC provides one competitive funding stream available to provinces; territories; municipalities; and Indigenous governing bodies, organizations, and non-profit organizations. This competitive funding stream applies to standard rentals, transitional housing, permanent supportive housing, single-room occupancy, and senior housing. The funding will prioritize projects that support Indigenous people and black Canadians, and the majority (25%) of the funding will go directly to women-focused affordable housing projects.
What is the funding eligibility?
To successfully apply for the RHI funding, there are a few “musts” that you should consider before submitting your application. Your project must be:
· Located in Canada
· Available for year-round occupancy
· Long-term tenancy (3 months or more)
· Residential for its primary use
· For rehabilitation funding - must be vacant, uninhabitable, and lost from the housing stock
· A minimum of 5 units or beds (units and beds are interchangeable terms based on project type)
· At least $1 million
How to stay competitive within the application process.
The RHI funding comes with a scoring mechanism to evaluate each application. Applications will be assessed and prioritized based on a list of criteria as listed below:
1. Need
Your project will be awarded up to 25 points based on the assessed need.
2. Priority, People, and Population
Projects that support vulnerable population groups: women and/or women and their children, Indigenous people, and black Canadians will receive additional points. For example, if more than half of your units support vulnerable groups, your project will be awarded 10 points.
3. Accessibility (Applies to new building only)
Projects that exceed the applicable accessibility requirements in your jurisdiction will receive a higher score. For example, if your location requires 10% of units to be accessible while your proposed project has over 20% accessible units, your project will be awarded 5 points.
4. Prior RHI Funding
If you have never benefited from previous RHI funding, your project will be awarded 5 points.
5. Energy Efficiency (Applies to new building only)
The more energy efficient your project is based on the 2017 National Energy Code for Buildings Part 3 or the 2015 National Building Code (NBC) for Part 9, the higher your project will score. For example, if your project exceeds the 20% applicable energy efficiency standard, your project will be awarded 5 points.
6. Duration of Affordability
The longer the project is affordable, the higher the project will score. For example, if the project remains affordable for over 40 years, your project will be awarded 10 points.
7. Land status
Land acquisition status for the project that informs readiness to deliver units will affect the total score. For example, if the land for your project is secured, your project will be awarded 10 points.
8. Expediency
The shorter the period your project is scheduled to be completed, the higher your project will score. For example, for housing in the North, remote, and special access communities, projects will be awarded 10 points if it is completed within 12 months.
9. Expediency – 25% occupation
The less time it takes for 25% of the units in your project to be occupied, the higher the score your project will receive. For example, for housing in the North, remote, and special access communities, if it takes less than 9 months to achieve 25% occupancy, your project will be awarded 10 points.
10. Cost Sharing
The higher percentage of non-RHI funding sources contributing to the total eligible project costs will result in your project scoring higher. For example, if this percentage reaches 40%, your project will be awarded 30 points.
11. Duration of Confirmed Operation Subsidy
The longer the period the applicant provides subsidies, such as operating and wrap-around services for the project, the higher the project will score. For example, as a non-profit organization, if the subsidy lasts over 20 years, the project will be awarded 25 points.
Application funding details: Rapid Housing Initiative | CMHC (cmhc-schl.gc.ca)
Application window: December 12, 2022, to March 15, 2023