Rapid Housing Initiative
Get Your Project Funded by the Rapid Housing Initiative:
The National Housing Strategy (NHS) is a 10-year plan that aims to deliver much-needed housing for Canadians. The plan brings together the public, private, and non-profit sectors to provide affordable housing through a mix of funding, grants and loans.
This comprehensive strategy will create stable, livable communities in areas with access to essential amenities and transportation, and with the resources needed to help families thrive. The strategy is to make sure all Canadians have access to housing that is affordable and meets their needs, with the initial focus being on the most vulnerable Canadians.
It is an incredibly ambitious goal, and a key element is the Rapid Housing Initiative or RHI. Canada’s Rapid Housing Initiative is a federal program designed to help Canadians access safe, accessible, and affordable housing. The program aims to create up to 3,000 new housing units across the country and provide rent subsidies to households in need.
The initiative will also provide funding for repairs and retrofits of existing housing units, as well as creating new units. The goal of the initiative is to reduce homelessness and provide safe, secure housing to Canadians.
Why Modular is Ideal for Rapid Housing Initiative Projects:
Modular construction is an obvious choice for potential Rapid Housing Initiative (RHI) projects because modular projects can be completed faster than traditional construction, and with much more efficient use of resources, materials, and labour. Our 20-25% faster timelines mean your project can be completed with in the 18 month period mandated by the funding requirements.
With up to 90% of a project being completed indoors, in a controlled factory environment, off-site steel modular construction dramatically reduces waste, requires less energy, optimizes recycling efficiencies and delivers a stronger, healthier, better-built product.
As the modular components are produced on a modern assembly line, the quality of the product is much more consistent and reliable, and weather delays and damage are a thing of the past. Modular buildings are built under strict QA/QC controls in-factory to standards that meet and often exceed those of site-built projects.
The Rapid Housing Initiative (RHI) targets rapid housing and delivery of units to vulnerable communities within 12-18 months. BECC will help you efficiently complete your project application with a keen eye to meeting the strict compliance standards. We can’t wait to help you bring to reality your rapid housing initiative!
Overview:
The following is an overview of the RHI program and a summary of key features and considerations. For full details on the program, and to learn more about the application process, you should consult the CMHC site:
Program Purpose:
New construction of multi-unit rental housing projects which may include the acquisition of land.
All units must serve priority populations as identified in the National Housing Strategy. These are people who are, or otherwise would be, in severe housing need or experiencing, or at imminent risk of homelessness.
- Up to 100% of capital contribution funding is available to pay for eligible residential construction costs.
- To support the acquisition and conversion of a non-residential building to an affordable rental project.
- To support the acquisition of an existing building in state of disrepair or abandoned, for the purpose of rehabilitation where units were previously lost from the housing stock.
- Renovictions not permitted. Must result in net new units.
- Units must serve and be affordable to targeted people and populations who are vulnerable and who are also, or otherwise would be in severe housing need or people experiencing or at high risk of homelessness.
- Affordability must be maintained for a minimum of 20 years.
ELIGIBILITY CRITERIA
Eligible Applicants
- Provincial, territorial, and municipal governments
- Indigenous governing bodies and organizations
- Non-profit organizations
Eligible Types of Housing
New Construction
RHI funding will support the new construction of single, scattered units up to larger multi-unit rental projects, which can include the acquisition of land. Traditional construction methods and modular housing will be accepted if the units can be delivered within the timelines that apply to the projects’ location.
Traditional Construction refers to construction techniques (for example: wood-frame, steel frame, concrete, etc.) in which the work and construction activities are primarily performed on site.
Modular Housing units are defined as housing units which are partially or fully built off-site (for example: a factory, warehouse, or similar facility) by a qualified manufacturer and delivered to the site in whole or in parts and installed on an appropriately zoned and serviced lot. This may range from single, scattered units up to larger multi-unit housing projects. The modular housing units are expected to meet code compliance for permanent year round occupancy of the authority having jurisdiction.
Project Viability
- RHI funding is not available for Operational expenses and supports.
- Proponents must ensure they have the capacity to fund the construction risks as well as the ongoing operational expenses.
- Proponents must have access to Liquidity and equity to cover cost increases, overruns and change orders. Additional RHI funding will not be available.
There are additional specific requirements used to determine project viability. More information is available here:
Key Elements of Application Readiness:
- Land secured.
- Site readiness
- Expediency
- Eligible project costs
- Confirmation of cost sharing sources
- Viability
Types of land status:
- Secured
- Not secured
- secured by an agreement of purchase and sale.
- secured by a land lease from another level of government, minimum 20-year term
Site readiness:
Is the project shovel-ready?
Shovel-ready means:
- Adequately zoned.
- Serviced
- Advanced stages of pre-development
- Planning is almost complete, municipal approvals underway.
- Imminently ready to start construction and incurring hard costs
- ESA Considerations (is cleanup needed?)
RHI objective is quick creation of housing, so only shovel ready projects will get funded.
Expediency:
Recipients are expected to deliver completed units within 18 months (within 24 months for those in the North, or in remote or special access communities).
Furthermore:
- Must show ability to deliver units within 18 months from the agreement effective date.
- Northern, remote, and special access projects have up to 24 months to complete.
- It is important to consider municipal timelines well in advance of your application.
- CMHC RHI Construction and Development Schedule template must be completed. It is available once you begin the online application process here: https://www.cmhc-schl.gc.ca/en/professionals/project-funding-and-mortgage-financing/funding-programs/all-funding-programs/rapid-housing
- Detailed plan describing how the project will be completed within the proposed timeline
- Milestone dates must correspond with the other information in your application (class of budget review, prioritization scoring)
Eligible costs:
May include:
- Land acquisition
- Pre-development, pre-construction costs
- Hard and soft construction costs
- Infrastructure expenses related to the project land only.
RHI funding cannot cover operational expenses or support services.
Proponents are fully responsible for cost increases / overruns / change orders.
Cost sharing:
- Grants
- Contributions
- Concession of property taxes / levies
- Waiver of development cost charges or other provincial/municipal fees
- Waiver of community amenity contributions, etc.
- All cost sharing sources must be confirmed, no funding gaps are permitted.
- Loan components are not permitted and will render the application ineligible.
Project Buildings:
A separate application will be required for each build if the building type for each building if the building type, location /community, type of intervention, or evaluation criteria are different.
For identical buildings only one application is required.
How will applications be prioritized?
Applications will be assessed and prioritized for RHI funding based on the scoring criteria, in addition to other considerations such as projects targeting women and/or women and their children and geographic representation.
Additionally, Compliance with previous RHI funding agreements and other initiatives may impact RHI eligibility and/or total confirmed prioritization score.
Key Documentation Required
Applies to both government and non-goverment entities:
- RHI Construction and Development Schedule
- Integrity Declaration
Applies only to non-government entities:
- Confirmation of 5 years housing operational experience
- Confirmation of 5 years property management experience
- Audited Financial Statements (previous four years)
- Company ownership documents
- Identification of Operational and Capital Funding
- Identification of Program Support and other support
- Financial records and Proforma
- Confirmation that land is secured, zoned, has municipal approvals and cost estimates.
- Class B Cost estimates (or higher) prepared by PQS including contingency allowance review.
- Environmental site assessment (if available)
- Copy of any registered encumbrances or agreements on title
- Confirmation of Energy Efficiency, Accessibility (if applicable)
Key Dates:
December 12, 2022: Application portal opens.
March 15, 2023: Application window closes.
July 1, 2023: Reviews of all applications in the Projects stream are expeced to be completed. July 1st is the date to be used for expediency scoring.
March 31, 2024: All funds to be committed, no further funding available
Modern modular buildings that maximize your vision and ROI.