Reopening Of CMHC’s Housing Accelerator Fund For Previous Applicants

The Canada Mortgage and Housing Corporation announced the reopening. Housing Accelerator FundPrevious applicants who were rejected in the 2023 round can apply. This initiative aims at fostering the creation of affordable, inclusive and equitable communities in Canadian municipalities. The new application period will be from July 15, 2024 to September 13, 2024.

This window is reopening for both the Large/Urban Stream (municipalities with populations over 10,000) and the Small/Rural/North/Indigenous Stream (municipalities with populations under 10,000, in territories, or under an Indigenous government). This opportunity is only for previous applicants that were not successful in the 2023 round. This gives these municipalities another chance to secure funding for development projects.

Uses of Funding Eligible

Upon approval, incentive funding may be allocated to a variety purposes, which are categorized into four major areas:

1. Housing Accelerator Fund Action Plans (HAFAP): Develop and implement strategies aligned with HAF objectives.
2. Affordable Housing: Investments that directly increase the number of affordable housing units.
3. Housing-Related infrastructure: Supporting projects that facilitate new housing development.
4. Community-Related Infrastructure (Irrigation en relation avec la communauté): Investissements in infrastructure supporting housing developments, including parks and community centers.

Schedule and funding methods

The amount of funding for incentives is determined by the projected growth in the number and types of housing units. There are three main components:

1. Base funding: Initial allocation based upon eligibility and compliance to program requirements.
2. Top-up Funding: Additional funding is provided based on criteria and improvements in the project.
3. Affordable Housing Bonus: Additional incentives for projects that significantly increase the supply of affordable housing.

Successful applicants will receive funding in four advance payments over the course of the program, with one payment planned each year. A first advance is made upon signing the contribution contract, followed by annual payments based on progress reviews and adherence with program conditions.

Best Practices

To help these previous applicants, CMHC provided a guide on Best practices.

The document recommends several key strategies, including ending exclusionary zoning and promoting high-density mixed-use residential developments near rapid transit and urban centers. Another recommendation is to use municipally owned land, converting surplus and underused municipal land into housing through strategic partnerships and policies.

The document also emphasizes that it is important to increase process efficiency through the use of new technologies and software, such as ePermitting and digital tools, in order to streamline approvals for development. Prioritized development approvals, fast-tracking of permits for nonmarket housing and purpose built rental developments, and eliminating unnecessarily rezoning or public hearing requirements are also encouraged.

The document also suggests reviewing the development charges and fees schedules, as well as waivers for projects that provide affordable housing. The document also suggests reducing parking standards to increase the viability of projects and reduce carbon footprints. The elimination of regulatory restrictions can be achieved by adding flexibility to setbacks, height and floor area. This will allow for more housing types and densities.

Community improvement plans can be used to develop strategies to quickly deploy affordable housing. Another action suggested is the creation and implementation of design guidelines or building plans pre-approved for low-rise developments and accessory dwellings. The document also proposes grant programs that will encourage the development and construction of housing types aligned with HAF goals, such as missing-middle housing or innovative construction techniques.