Planning and development grants for affordable housing in B.C.

Development funds for affordable housing

Hey Funds Fans!  It’s another double-post day!!  Did you know that CMHC provides funding to the private, public and non-profit sectors to help develop affordable housing?

CMHC Seed Funding provides the financial assistance to carry out the initial activities required to develop a proposal for a specified affordable housing project that will result in increasing the stock of affordable housing in Canada.  The maximum amount of Seed Funding is $20,000 per housing project.

Up to $10,000 is available as a grant (no repayment required)

Up to $10,000 may be available as an interest-free loan, which is repayable if the housing project proceeds.

Projects can be:

New construction

Conversion from non residential use to residential affordable housing

Renovation of existing units to prevent them from demolition or abandonment.

Rents for the majority of units in a housing project must be within Levels 1 and 2 as identified on the Affordability Criteria/ Rent Levels by region.

Seed Funding may be made available to any proponent planning to create a specific housing project that will be affordable. Expenses must be directly related to the achievement of any of the following activities:

  • Incorporation
  • Analysis of need and demand for the proposed project
  • Preliminary analysis of financial viability
  • Preliminary design of the housing project
  • Preparation of business plan

CMHC also offers Proposal Development Funding (PDF), which are repayable interest-free loans to facilitate the development of affordable housing in Canada. PDF loans help with the up-front expenses incurred during the process of developing an affordable housing project proposal and enable housing proponents to carry out the activities required to bring their proposal to the point where they can apply for mortgage financing.  Up to $100,000 is available to develop an affordable housing project proposal.

Expenses must be directly related to the achievement of any of the following activities:

  • Soil load-bearing tests
  • Environmental site assessments
  • Project drawings and specifications
  • Professional fees, cost estimates
  • Management plan
  • Option to purchase
  • Development permits
  • Contract documents and application fees

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