Federal Community Housing Initiative (FCHI)
Canada Mortgage and Housing Corporation (CMHC)
Other
Canada
The Federal Community Housing Initiative (FCHI) is a $500 million fund to support federally administered community housing projects reaching the end of their operating agreements from past social and affordable housing programs.
The initiative has two phases:
- FCHI-Phase 1, provided $38 million in federal funding over a two-year period.
- FCHI-Phase 2 will provide $462 million in funding from September 1, 2020 to March 31, 2028.
The two FCHI-2 funding streams are:
- Rental Assistance: The rental assistance stream provides financial assistance for low-income households. Housing providers may apply for this rental support, which aims to fund the gap between 30% of an assisted household’s gross monthly income and the occupancy charge.
- Transitional Funding: The transitional funding stream is available to housing providers having trouble transitioning to the new program. The temporary funding will cover eligible operating costs for up to 24 months following the expiration of past federal agreements. This funding stream has a limited budget and is reserved for the most vulnerable groups, such as deep subsidy projects or urban Indigenous projects. Transitional funding is provided alongside the rental assistance stream as a separate, additional form of assistance.
Once the transitional funding ends, housing providers will continue to receive rental assistance until the end of the FCHI-2 agreement.
Eligibility
RENTAL ASSISTANCE ELIGIBLITY:
To be an eligible FCHI-2 Housing Provider, you must meet the following criteria:
- Be a non-profit housing provider or a housing co-operative whose federal operating agreement with CMHC has ended or will end naturally between April 1, 2016, and March 31, 2028. Eligibility does not extend, at this time, to projects with agreements that expired before April 1, 2016.
- Be a provider whose operating agreement with CMHC is under one of the following social housing programs:
- Section 95 (Pre-86) non-profit, co-operative, urban native
- Section 95 (Post-85) non-profit, co-operative, urban native
- Section 95 (Post-85) Index-Linked-Mortgage (ILM) co-operatives
- Section 27, 61 non-profit and co-operatives
- Section 26 non-profit
- Section 95 Rent Supplement (units currently leased from a private property owner and rented to those in need).
An exception exists for ILM co-operatives where, they are eligible for FCHI-2 as soon as the first mortgage has been repaid and federal assistance (for the operating expenses) has ceased to be paid.
Note that housing providers who meet the general rules and have a rent supplement agreement, or who have another subsidy agreement with their province or municipality can submit a request only for units not covered by those other agreements. Once these agreements have expired, the units may be eligible for FCHI-2, subject to need and available funds at that time.
Breach of a previous operating agreement(s) could affect eligibility for FCHI-2. In this case, CMHC will contact the housing providers to discuss their specific case.
In cases where a housing provider is eligible for FCHI-2, but whose agreement ended before March 31, 2020, CMHC may request additional documents to confirm that the housing provider’s status is active and that it complies with its legal obligations (e.g. financial statements, proof of payment of property taxes, etc.)
Throughout the program, CMHC will identify eligible non-profit housing providers and housing co‑operatives and send them an enrolment form at least six months before the end of their agreement in effect with CMHC.
TRANSITIONAL FUNDING ELIGIBLITY:
Transitional funding is reserved for housing providers experiencing challenges transitioning to the new program model. This funding will be reserved for the most vulnerable groups, such as deep subsidy or urban Indigenous projects. It will be granted for twenty-four (24) months from the effective date of the FCHI-2 agreement.
Transitional funding is a complement to the rental assistance component. Eligible groups will receive funding from both streams simultaneously. The analysis process for transitional funding is completed in conjunction with CMHC’s review of the housing provider’s enrolment for the rental assistance of FCHI-2. First, the amount of rental assistance is calculated. Note that housing charges are of particular importance to this calculation. They should be established at a level that will support the viability of the project. CMHC will accept rents that are reasonably in line with market rents and that support the economic sustainability of the housing provider.
Following the rental assistance calculation, if it is determined that there are additional financial needs, then an additional amount through the transitional funding could be offered. Once the transitional funding ends, the housing provider will continue to receive rental assistance until the end of the FCHI-2 agreement.
Contact Details
fchi2-iflc2@cmhc-schl.gc.ca
1-800-668-2642
General enquiries and additional information about the NHS, including FCHI-2, or other CMHC programs:
- Phone: 1-800-668-2642 Business hours (ET): 8:00 a.m. to 7:00 p.m.
- Email: contactcentre@cmhc.ca
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