The April 3rd, 2024 announcement confirmed that the Apartment Construction Loan Program (formerly RCFI) will receive new funding and program requirements will be revised to provide more flexibility. These are positive changes, considering the RCFI program was instrumental in supporting new purpose-built rental homes for several years prior to changes in the market. We have recommended more flexible requirements for some time, and we’re pleased that the Federal Government is proposing to move in this direction rather than restricting access.  

The main changes include: 

• A $15 billion funding top-up with a target of adding another 30,000 homes. This would bring the overall program targets up to building 131,000 new homes within the next decade. 
• Program reforms such as: 
  • Extending loan terms; 
  • Opening the program to housing projects geared to students or seniors; 
  • Introducing a “portfolio approach” to eligibility, to enable builders to advance multiple projects simultaneously; 
  • Flexibility of several key requirements including affordability, energy efficiency, and accessibility; and 
  • A fast-track stream for “proven home builders.” 

The announcement also previewed the launch of the Canada Builds program, modeled on B.C.’s similarly named program which got underway this year. Canada Builds proposes to partner with provinces and territories to accelerate new rental homes. 

The program will focus on partnerships with provinces and territories, provided they meet certain benchmarks established by the Federal Government. These include: 

• “Complementing federal funds with provincial or territorial investments into housing; 
• Building on government, non-profit, community-owned, and vacant lands; 
• Streamlining the process to cut development approval timelines to no longer than 12 to 18 months; and 
• Meeting all criteria included in the Apartment Construction Loan Program, including affordability requirements.”