Changes to Rental Construction Financing Initiative were announced in Budget 2022
The federal government has yet to tighten affordability rules under a program that provides billions of dollars in low-cost loans to developers to create rental housing, despite changes that were announced more than a year ago.
Under RCFI, housing developers can secure low-cost loans, and in return, they have to fulfill several criteria, which include renting at least 20 per cent of a project’s units at what the government considers affordable rates. “Those discussions and design decisions are still ongoing,” said Romy Bowers, president and chief executive officer of CMHC. “When the government makes a decision about that, we’ll implement” the changes.
“We think the program’s great from the perspective of just being able to level out the playing field on doing a rental project versus doing a condo project,” said Brad Jones, senior vice-president of development. The proposed changes would drastically reduce rents. A greater proportion of a project’s units would need to be leased at no more than 80 per cent of average market rates in the community.
“Making it a pure supply program, without any affordability criteria, would be a logical thing for them to do.”
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