Posts Tagged ‘CMHC’

Update on CMHC’s reno/retro program

September 6th, 2017 by Celia Chandler

In its 2016 budget, the federal government announced a renovate and retrofit (reno/retro) program of forgivable loans administered by the Canada Mortgage and Housing Corporation (CMHC).  CMHC issued a one‑time call for applications in June 2016 and made its final decisions on applications in June 2017.   Not surprisingly, the demand for funding greatly outstripped the available funds; we’re told that highest priority was given to projects in greatest financial need for work that addresses the risk of losing units (due to health and safety issues, regulatory or legislated requirements). By now, those who were lucky enough to be given the nod are busy working towards starting their projects quickly – all funds are to be spent by Nov 30, 2017.

We’re busy helping many with the paperwork to register these forgivable loans as mortgages on the title to their property.  If you’re a housing provider looking for legal support on these, please give us a call.

Expiring co-op housing operating agreements: An opportunity for housing innovation

September 25th, 2014 by Celia Chandler

Canada Mortgage and Housing Corporation’s (CMHC) operating agreements with non‑profit housing co‑operatives and rental housing providers have begun to expire across Canada at a rapid rate. These agreements with their related mortgages, entered into under various federal programs between 1970 and 1994, supply housing providers with between 25 and 40 years of annual subsidy money to provide reduced monthly charges to a specified percentage of tenants and members who qualify for support. With the conclusion of these agreements and their related mortgages, housing providers will cease making mortgage payments, but at the same time, they will no longer receive housing subsidy payments — payments that subsidize some 200,000 households in Canada comprising half a million people. While not all subsidized housing providers in Canada get their subsidies through CMHC operating agreements, the potential loss is a big blow to the sector. This, on top of an already serious affordable housing shortage, is cause for concern.

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