Canada Greener Affordable Housing

The Canadian government has introduced the Canada Greener Affordable Housing program to support affordable housing providers in undertaking deep energy retrofits on existing multi-unit residential buildings. This program provides pre-retrofit and retrofit funding, enabling significant energy consumption reductions and greenhouse gas emissions mitigation.

This guide covers the Canada Greener Affordable Housing program’s pre-retrofit and retrofit funding options, eligibility criteria, approval process, and funding details.

Understanding the Canada Greener Affordable Housing Program

The Canada Greener Affordable Housing program offers forgivable loans and low-interest repayable loans to finance building retrofit measures. These measures are designed to meet climate objectives, leading to substantial reductions in energy consumption and greenhouse gas emissions.

Pre-Retrofit Funding: Setting the Foundation

The Pre-Retrofit Funding component provides a variety of funding for activities that help affordable housing providers understand building energy performance and identify required retrofits. This includes energy audits, energy modeling studies, and building condition assessments.

Eligibility Criteria for Pre-Retrofit Funding

Eligible applicants include community housing providers, public housing agencies, rental co-operatives, indigenous governments and organizations, and provincial, territorial, and municipal governments. Private market housing organizations are not eligible for this program as of 2024.

Eligible property types include mixed-income rental, community housing, affordable rental housing, Indigenous community housing, shelters, transitional and supportive housing, and single-room occupancy. Non-residential components should not exceed 30% of the total gross floor space.

Projects must primarily serve residential purposes and include a minimum of five units or beds. Part 9 buildings must be at least 10 years old, and Part 3 buildings must be at least 20 years old.

Approval Process for Pre-Retrofit Funding

Before applying, affordable housing providers must gather required documentation, including professional reports outlining climate objectives and a detailed retrofit scope of work. It is advisable to consult with a CMHC specialist for guidance. The application must include forms such as the Retrofit Funding Assessment Calculator, Integrity Declaration, and the Energy Assessment Attestation.

CMHC reviews projects for eligibility and conducts a comprehensive assessment within approximately 60 days after the application window closes. Projects are prioritized based on environmental outcomes and project readiness, favoring those ready to commence construction within six months.

Approved applications receive a loan agreement confirming CMHC’s conditional approval of funding, typically within 30 days of submission.

Funding Details for Pre-Retrofit Funding

The Canada Greener Affordable Housing program allocates up to $19.5 million for Pre-Retrofit Funding. CMHC funds 100% of eligible retrofit costs, up to $130,000 per project. The funding is disbursed over three years, starting from the 2023-24 fiscal year.

Retrofit Funding: Energizing Sustainable Transformation

The Retrofit Funding component provides financial support for implementing deep energy retrofits, enabling significant energy consumption reductions and greenhouse gas emissions mitigation.

Eligibility Criteria for Retrofit Funding

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Eligible applicants include community housing providers, indigenous governments and organizations, and provincial, territorial, and municipal governments. Private market housing organizations are not eligible.

Eligible housing types include mixed-income rental, community housing, affordable rental housing, Indigenous community housing, shelters, transitional and supportive housing, and single-room occupancy. Projects must primarily serve residential purposes and include a minimum of five units or beds.

Approval Process for Retrofit Funding

Affordable housing providers must gather necessary documentation, including professional reports detailing retrofit plans, cost estimates, and completion timelines. Consulting with a CMHC specialist is crucial for a smooth application process.

The application, including forms like the Retrofit Funding Assessment Calculator, Integrity Declaration, and Energy Assessment Attestation, should be submitted through the designated application portal. CMHC reviews projects for eligibility and performs a comprehensive financial analysis within approximately 60 days after the application window closes. Timely submission of all required documentation is imperative for swift evaluation.

Projects demonstrating timely commencement potential within six months are given preference in high demand cases.

Funding Details for Retrofit Funding

The Canada Greener Affordable Housing program allocates up to $1.1 billion in forgivable and low-interest repayable loans for Retrofit Funding. CMHC funds 100% of eligible retrofit costs, up to $170,000 per unit when combining both repayable and forgivable loans. Forgivable loans are based on the lesser of $85,000 per unit or 80% of eligible retrofit costs.

The funding is disbursed over four years, beginning in the 2023