Multi-Unit Affordable Housing

Multi-Unit Affordable Housing

Under the multi-unit affordable housing financing program there are three levels of affordability that have been identified by CMHC. The criteria for each are as follows:

multi-unit affordable housing

Level 1

• Self-contained apartments: majority of rents in the project are below the 80th percentile*.
• Retirement facilities (facilities providing shelter and support services): majority of rents in the project are below the 80th percentile* for the same project type and service level in the market.
• Licensed care and special purpose facilities: majority of the beds are receiving per diem subsidies aimed at reducing shelter costs and term of subsidy is less than the amortization of the mortgage.
• Single room occupancy: majority of the units in the project rent for less than 60% of the median rent for one-bedroom units in the market.

Level 2

• Self-contained apartments: majority of rents in the project are below the 65th percentile*.
• Retirement facilities (facilities providing shelter and support services): majority of rents in the project are below the 65th percentile* for the same project type and service level in the market.
• Licensed care and special purpose facilities: majority of the beds are receiving per diem subsidies aimed at reducing shelter costs and term of subsidy is equal to the amortization of the mortgage.
• Single room occupancy is not eligible under Level 2.

Level 3

• Projects receiving funding under the federal-provincial/territorial Affordable Housing Initiative (AHI) agreements.
• Other projects will be considered that have a similar risk profile to AHI funded projects provided the rents are at levels targeted to meet the needs of households on or eligible to be on a social housing waiting list (generally at or below the 50th percentile* of rents for similar units in the same market).

* A given rent percentile is the point in the distribution (smallest to largest) of surveyed rents below which that per cent of rents would fall. For example, if the 80th percentile rent is $700, then 80% of all
surveyed units would have rents that fall below $700. CMHC publishes the rent levels semi-annually. Note that project rents must also be deemed to be below the market rent of comparable properties in the
neighbourhood.

Note: Some conditions and limitations will apply to the above mentioned products as per lender and insurer guidelines ….please contact us to discuss details.