Affordable Housing Development Programs

In Canada, housing is considered affordable if it costs less than 30% of a household’s before-tax income. Many people think the term affordable housing refers only to rental housing that is subsidized by the government. In reality, it’s a very broad term that can include all types of housing provided by the private, public and non-profit sectors.

Under City of London programs, affordable housing is a dwelling unit for which the rent is at or below 80% of Canadian Mortgage and Housing Corporation’s (“CMHC”) average market rent for a unit in the City of London. 

Housing that is affordable is a nation-wide issue and increasing the supply is one of Municipal Council’s strategic priorities. Affordable housing is in alignment with the City’s Housing Stability Action Plan (2019) and Roadmap to 3,000 Affordable Units Action Plan (2021).  

• The maximum funding amount is $45,000 per affordable rental housing unit constructed.
• Eligible projects include new development, redevelopment, and/or renovation that create a minimum of five affordable rental units. Funding is per affordable unit created.
• Program funding is available retroactively for permits issued after September 8, 2024 to align with Housing Accelerator Fund (HAF) reporting requirements.
• Eligible applicants are private for-profit organizations, charitable and non-profit organizations, and Indigenous-led housing providers.
• Applicants must enter into a loan agreement registered on title for the units to remain affordable for a minimum period of 25 years.
• Units are capped at 80% of the CMHC Average Market Rent, as adjusted annually.
• Tenants will be referred from, but not mandated, from the City’s Housing Stability Services list.
• In the event of a default, the funding converts into a loan and becomes fully payable to the City on demand, along with accrued interest up to the default date.

Applications are on first come first served basis provided they meet all the minimum criteria. Once you’ve read the program guidelines, please contact: housingprograms@london.ca.

• The maximum funding amount is $45,000 per highly supportive rental housing unit created.
• Eligible projects are capital costs associated with development and/or redevelopment, as well as development-related fees associated with new highly supportive housing units.
• Program funding is available retroactively for permits issued after September 8, 2024 to align with Housing Accelerator Fund (HAF) reporting requirements.
• Operations and services associated with highly supporting housing units are not eligible.
• Highly supportive housing units must be constructed in accordance with the design and functional elements outlined in the London’s Health & Homelessness Response: Highly Supportive Housing Plan.
• Applicants must enter into a loan agreement registered on title for the units to remain affordable for a minimum period of 25 years.
• Units are capped at 80% of the CMHC Average Market Rent, as adjusted annually.
• Tenants will be referred from, but not mandated, from the City’s Housing Stability Services list.
• In the event of a default, the funding converts into a loan and becomes fully payable to the City on demand, along with accrued interest up to the default date.

Applications are on first come first served basis provided they meet all the minimum criteria. Once you’ve read the program guidelines, please contact: housingprograms@london.ca.

CMHC offers several programs aimed at improving the availability and affordability of housing in Canada. These programs are designed to support both the construction of new affordable housing units and the maintenance or improvement of existing ones. Financing programs include: 

• Apartment Construction Loan Program: The Apartment Loan helps support the construction of rental housing by providing low-interest loans to developers and organizations committed to providing affordable rental units for Canadians.
• Affordable Housing Fund: This fund is designed to reduce the construction cost of affordable housing by providing financial contributions to eligible projects, making it easier to offer lower rents to tenants.
• Mortgage Loan Insurance (MLI) Select: MLI Select offers competitive, low-cost financing with flexible terms and conditions, making it an attractive option for developers looking to build or renovate rental housing that meets specific affordability criteria.
• Canada Greener Affordable Housing program: Canada Greener Affordable Housing helps affordable housing providers complete deep energy retrofits on existing multi-unit residential buildings.

For more information, visit CMHC Funding Programs for New Construction and Renovation Projects. 

The Green Municipal Fund, administered by the Federation of Canadian Municipalities (FCM), is a key program that supports municipalities and non-profits in their efforts to create environmentally sustainable and affordable housing. This fund helps communities across Canada invest in innovative and green building solutions for affordable housing projects.

The Green Municipal Fund:

• Offers grants and low-interest loans for projects that prioritize energy efficiency, waste reduction, and sustainable building materials in affordable housing construction. This helps lower utility costs for residents and minimizes the environmental footprint of new homes.
• Encourages municipalities to integrate climate resilience into their housing strategies, making homes more energy-efficient and better prepared for changing weather patterns.

For more details, visit Green Municipal Fund.

Enbridge Gas provides a series of incentives aimed at improving the energy efficiency of affordable housing developments. By helping developers integrate energy-saving technologies, these incentives reduce both environmental impact and operational costs for affordable housing.

Incentives include:

• Savings by Design Affordable Housing: Enbridge offers financial incentives to support the installation of energy-efficient heating systems, insulation, and energy-efficient appliances in new or renovated affordable housing projects. These upgrades can reduce energy consumption and decrease monthly utility bills for tenants.
• Building Retrofit Support: Enbridge also offers financial support for retrofitting existing affordable housing buildings to improve energy efficiency, helping to reduce the carbon footprint and long-term costs of maintenance.

These incentives are available to both residential and multi-unit residential buildings across Ontario. For more information, visit Enbridge Programs & Incentives.