The Apartment Construction Loan Program (ACLP), offered by CMHC, provides low-cost financing for purpose-built student housing. Eligible borrowers include post-secondary educational institutions, for-profit developers, non-profit developers, and other levels of government. Below is a streamlined summary of the program’s key requirements for eligibility, affordability, and location criteria.
Eligibility Requirements
To qualify for funding under the ACLP, projects must meet several key eligibility requirements. Among the primary criteria, projects must address a demonstrated need for housing, be permanent in nature to ensure long-term stays and meet the program’s minimum documentation requirements. These are some of the foundational eligibility requirements, along with others, that ensure the project’s alignment with the program’s objectives and overall feasibility.
Affordability Criteria
Affordability is central to the ACLP program, and projects must meet one of two affordability requirements for a minimum period of 10 years. The first option is Comparable Market Rents, where rents must align with local on-campus housing rates or appraisal benchmarks supported by a Market and Demand Study. The second option is Affordable Housing Initiatives, where rents must comply with affordability criteria established under approved federal, provincial, territorial, or municipal programs. Additionally, rent increases are capped for the entire affordability period to ensure long-term affordability for tenants.
Location Guidelines
Both on-campus and off-campus student housing projects are eligible under the ACLP program; however, CMHC’s application scoring gives preference to on-campus projects, making them more likely to receive approval. On-campus projects are eligible for both self-contained and non-self-contained units, with no maximum bedroom limit for self-contained units. In contrast, off-campus projects are limited to self-contained units with a maximum of four bedrooms per unit. Additionally, off-campus projects must be located near public transit or within walking distance of campus and require a partnership with a post-secondary institution, such as funding contributions, leasing agreements, or tenant selection services.
What Are My Next Steps
Demonstrating satisfaction of the ACLP requirements is critical for a successful application, and Scion is here to help every step of the way. We can walk you through the entire application process, ensure you meet the minimum documentation requirements, and act as a liaison between you and CMHC to address any questions, ensuring a strong and competitive application is put forward for funding.
A Market and Demand Study is a key ACLP requirement, demonstrating the need for student housing and alignment of rents with market benchmarks. Scion specializes in preparing comprehensive studies that meet CMHC standards, showcasing your project’s viability and affordability.
Scion can guide you through every step of the ACLP process. Contact us at advisory@thesciongroup.com for more information.
For more details on program requirements, click here
