The Canada Mortgage and Housing Corporation (CMHC) has announced the reopening of the Housing Accelerator Fund (HAF) application window for previous applicants who were not approved in the 2023 round. This initiative is aimed at fostering the development of affordable, inclusive, equitable, and climate-resilient communities within Canadian municipalities. The renewed application period will run 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). The opportunity is exclusively for previous applicants who were not successful in 2023, providing these municipalities with another opportunity to secure funding for their development projects.
Eligible Uses for Funding
Upon approval, the incentive funding can be allocated for a variety of purposes, categorized into four main areas:
- Housing Accelerator Fund Action Plans: Developing and implementing strategies that align with HAF objectives.
- Affordable Housing: Investments directly aimed at increasing the supply of affordable housing units.
- Housing-Related Infrastructure: Supporting infrastructure projects that facilitate the development of new housing.
- Community-Related Infrastructure: Investments in infrastructure that supports housing developments, such as parks and community centers.
Funding Methodology and Schedule
The amount of incentive funding is determined based on the projected increase in permitted housing units and their types. There are three components:
- Base Funding: Initial allocation based on basic eligibility and compliance with program requirements.
- Top-Up Funding: Additional funds are provided based on specific criteria and enhancements in the proposed projects.
- Affordable Housing Bonus: Extra incentives for projects that significantly boost the supply of affordable housing.
Successful applicants receive funding in four advances over the program duration, with one advance planned for each year. An initial advance is provided upon signing the contribution agreement, followed by annual payments contingent on satisfactory progress reviews and adherence to program conditions.
Best Practices
To assist these previous applicants, CMHC has provided a guidance document on best practices.
The document recommends various key strategies, such as ending exclusionary zoning by promoting mixed-use and high-density residential developments near urban centers and rapid transit. Another recommendation is using municipally owned lands, making surplus and underused municipal lands available for housing through strategic policies and partnerships.
The guidance document also highlights the importance of increasing process efficiency by implementing new technologies and software to streamline development approvals, such as e-permitting and digital tools. Prioritized development approvals are also encouraged, fast-tracking permits for non-market housing and purpose-built rental developments, and eliminating unnecessary rezoning and public hearing requirements.
Additionally, the document advises reviewing development charges and fee schedules, including waivers for affordable housing projects. Reducing parking standards to increase project viability and reduce carbon footprints is also suggested. Eliminating regulatory restrictions by adding flexibility related to height, setbacks, and building floor area can allow for a greater variety of housing types and densities.
Community improvement plans are encouraged to develop strategies for the rapid deployment of affordable housing. Creating and implementing design guidelines or pre-approved building plans for low-rise infill developments and accessory dwelling units is another suggested action. Finally, the document proposes introducing grant programs to encourage the development of housing types that align with HAF objectives, such as missing middle housing and innovative construction techniques.
