CanadaHow does CMHC promote affordable rental housing construction?
CMHC promotes affordable rental housing construction primarily by making or insuring loans for rental housing projects under the National Housing Act.
What the Law Says
The National Housing Act authorizes CMHC to directly support the development of rental housing through financial tools — specifically, by making or insuring loans for rental housing projects.
Under section 27 of the National Housing Act, CMHC is legally empowered to provide financing for rental housing. This includes both direct lending and loan insurance, which reduces risk for lenders and encourages private investment in purpose-built rental units.
This authority enables CMHC to partner with developers, non-profits, co-ops, and municipalities to build new affordable and market-rental housing across Canada.
Statutory TextCMHC may make or insure loans for rental housing projects.
— National Housing Act, s. 27 — Rental housing
What to Do
Identify eligible rental housing project (e.g., purpose-built, non-market, or mixed-income)
Apply through CMHC’s Rental Construction Financing Initiative (RCFI) or other current programs
Meet eligibility criteria including affordability requirements, environmental standards, and governance structure
Secure CMHC loan or loan insurance approval
Proceed with construction and ongoing compliance reporting
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.