Apartment Construction Loan Program (ACLP)
CMHC's low-cost construction financing program for purpose-built rental apartments. It provides low-interest, insured loans during the riskiest phases of development (construction through to stabilized operations), with preferred interest rates and underwriting flexibilities for projects that commit to affordability, accessibility and energy efficiency. The program is open for applications. (Widely reported as the renamed/expanded successor to the Rental Construction Financing initiative (RCFi); see notes.)
What you get
Funding for affordable housing
Who it's for
Eligible borrowers include private entrepreneurs/builders/developers, public or private non-profit housing organizations, rental co-operatives (equity co-ops are NOT eligible), and other levels of government (Indigenous Governing Body, Province, Territory, Municipality).
This takes you to the official website
What to have ready
Documents they may ask for
- Government ID for everyone in your household, if available
- A copy of your lease or rent agreement
- Recent rent receipt, ledger, or proof of what you owe
- Recent pay stubs, benefit statement, or income proof
- ODSP, Ontario Works, CPP, OAS, or other benefit statement if you have one
- Recent bank statement, if the program asks for it
What to say when you call
“Hi, I found your housing support program and I want to check if I can apply. Can you tell me the current rules, documents needed, and the next step?”
Use the official page first, then call 211 if you are not sure where to start.
Can I get this?
You have a good chance if this sounds like you:
- Alternate covenants may be considered for newly formed groups
What to do next
Check off each step as you go — we'll remember where you are.
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What the official page looks like
The fine print
More details about the money
Minimum loan size $1,000,000. Residential loan component up to 100% loan-to-cost (non-residential component up to 75% LTC). Amortization up to 50 years (cannot exceed the economic life of the project); the loan term is one 10-year term (top-tier projects may opt for one 10-year or one 20-year term). Closed to prepayment. Interest-only payments during construction (financed by the loan to occupancy permit, then paid by the borrower). CMHC mortgage loan insurance is integrated and the insurance cost is NOT passed to the borrower (the borrower pays only PST on the premium, where applicable). Preferred interest rates. A point system (Lending Flexibility Scorecard) rewards stronger commitments to affordability, accessibility and energy efficiency with more favourable terms. Affordability requirement: at least one of (A) a minimum of 20% of units affordable with rents at or below 30% of the median total income of families in the market, or (B) rents set under an approved affordable-housing program; affordability must be maintained for a minimum of 10 years.
Amounts and eligibility change. Confirm the current figure with the program administrator through the official link before you rely on it.
The full eligibility rules
Eligible borrowers include private entrepreneurs/builders/developers, public or private non-profit housing organizations, rental co-operatives (equity co-ops are NOT eligible), and other levels of government (Indigenous Governing Body, Province, Territory, Municipality). The project must be purpose-built standard rental with a minimum of 5 fully self-contained units, primarily residential (the non-residential component cannot exceed 30% of total gross floor space, nor 30% of total cost), and permanent/long-term housing that responds to a need for rental supply. Borrowers must show financial viability, at least 5 years' property-management experience operating a similar property (or a minimum 5-year contract with a third-party PM firm with 5 years' experience), construction-management experience (or a fixed-price contract with an experienced general contractor), and at least break-even cash flow with excellent credit over the past 5 years. Alternate covenants may be considered for newly formed groups.
Good to know
Verified against the live CMHC ACLP page (open for applications) and the official Standard Rental Program Highlight Sheet (PDF), which confirm: min loan $1M, 5+ self-contained units, 30%/30% non-residential cap, 5-year PM/construction experience, up to 100% residential LTC, amortization up to 50 years, closed to prepayment, interest-only during construction, MLI cost not passed to borrower (PST excepted), and the 20%-of-units-at-30%-of-median-income / 10-year affordability criterion. CORRECTION applied: the loan TERM is a single 10-year (or 20-year at the top tier) term; '50 years' is the AMORTIZATION, not the term. The RCFi -> ACLP rename (Nov 2023 Fall Economic Statement) is widely reported but was NOT stated on the CMHC pages I read; treat the 'formerly RCFi' framing as reported background, not as a quoted CMHC statement. There are separate highlight sheets/streams for Seniors and Student housing with their own terms. Point thresholds and lending flexibilities live in the Project Assessment Workbook and can change; confirm current terms with a CMHC specialist.
Official sources we checked
- https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/funding-programs/all-funding-programs/apartment-construction-loan-program
- https://assets.cmhc-schl.gc.ca/sites/cmhc/professional/project-funding-and-mortgage-financing/funding-programs/all-funding-programs/apartment-construction-loan-program/apartment-construction-loan-program-highlight-sheet-standard-rental-housing-en.pdf
- https://www.cmhc-schl.gc.ca/media-newsroom/news-releases/2024/enhancements-affordable-housing-fund-apartment-construction-loan-program
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