CMHC Apartment Construction Loan Program (ACLP)
Eligibility & Details
What this program funds and who can apply
Program Description
Provides low-cost CMHC-insured construction loans covering up to 100% of the residential component of project cost for new purpose-built rental housing, student housing, and independent seniors housing across Canada. Part of a $55B program envelope extended to 2028-29; over $29B committed to 74,500+ new rental units as of late 2025. Minimum loan size $1M; converts to permanent MLI Select financing at project stabilization.
Eligibility Requirements
- For-profit developers, non-profit housing providers, Indigenous housing organizations, institutional investors, post-secondary educational institutions, and other levels of government
- Project must be new construction of purpose-built rental housing — standard rental, student housing, or independent seniors housing
- Project must be located in Canada with demonstrated need for additional rental supply in the market
- Minimum 5 fully self-contained rental units
- Non-residential component may not exceed 30% of total gross floor space or project cost
- Minimum loan size of $1,000,000
- Frequent Builder status available for established housing providers with multi-residential delivery track record and no CMHC defaults in past 10 years
Quick Assessment
Funding Details
- Amount
- Minimum $1M; up to 100% of residential component project cost (no cap — project-sized)
- Type
- Loan
- Level
- Federal
- Co-Funding
- Up to 100% of eligible costs
- Deadline
- Ongoing
Program Scorecard
Competition, effort, and approval at a glance
Everything you need to win ACLP — $19
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 7 rejection pitfalls reviewers flag — so you catch them first
- 11-document checklist with what each reviewer is actually checking
- 8-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 4-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what reviewers score on
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe ACLP is most competitive when your project targets markets with measurably low vacancy rates — CMHC explicitly prioritizes projects where rental supply shortfall is documented. Apply for Frequent Builder status if your organization has completed 2+ CMHC-financed multi-residential projects with no defaults in the past 10 years; it dramatically reduces processing time. The guaranteed conversion to MLI Select permanent financing at project stabilization eliminates refinancing risk at construction completion — this is one of the most valuable features of the program. Stack with provincial affordable housing programs (e.g., BC-CMHC ACLP Collaboration Agreement signed January 2025) where available for combined low-cost financing.
Rejection Pitfalls 7
- Project is not purpose-built rental — condominiums for sale are explicitly ineligible
- Fewer than 5 fully self-contained residential units
- Non-residential component exceeds 30% of gross floor space or project cost
Success Profile
Experienced real estate developer, non-profit housing provider, or institutional investor with a 5+ unit purpose-built rental project in a Canadian market with documented rental demand and low vacancy. Established developers with a CMHC track record qualify for the Frequent Builder framework with faster processing. Non-profits and Indigenous housing organizations are strongly supported, particularly for affordable and community housing projects.
Evaluation Criteria
CMHC underwriting assesses: (1) market demand — rental need and vacancy rate in the target market from a commissioned market study, (2) project feasibility — construction cost estimates, realistic timeline, and architectural plans, (3) borrower financial capacity — balance sheet strength, equity contribution, and delivery track record, (4) project economics — pro forma showing viable rental returns at market rents, (5) Frequent Builder status for expedited track. CMHC underwriters conduct full appraisal and independent cost review before issuing a Letter of Intent.
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 11
Eligible Expenses 7
- Hard construction costs (labour, materials) for the residential component
- Soft costs — architectural, engineering, legal, and project management fees
- Land costs (typically included up to appraised value)
- Construction contingency allowance
- Interest during construction (capitalized into the loan)
- Conversion costs for non-residential to residential projects
- Prefabricated or modular construction components
Ineligible Expenses 5
- Condominium units for sale (not purpose-built rental)
- Non-residential costs exceeding 30% of total project gross floor area or cost
- Speculative residential development not intended as long-term rental
- Projects with fewer than 5 self-contained units
- Renovation of existing rental buildings (unless conversion from non-residential to rental)
Intake Periods
Ongoing — accepts applications continuously year-round. Program extended to fiscal year 2028-29.
Deadline Notes
Program accepts applications continuously. Extended to fiscal year 2028-29. CMHC processes within 265 days of receiving complete required documentation. No intake windows — apply when project is ready. Contact a CMHC regional specialist before applying.
Open Application Portal →Ineligible Organizations
- Individuals applying without a corporate or legal entity
- Developers with unresolved CMHC defaults within the past 10 years
- Developers of condominiums for sale rather than purpose-built rental
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Not-applicable RiskThis is a fully repayable construction loan that converts to permanent mortgage financing. Full repayment is required per the loan and mortgage terms. Default triggers standard CMHC mortgage recovery procedures. No grant-style clawback.
How ACLP Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| CMHC Apartment Construction Loan Prog... | Minimum $1M | Hard | Loan | Ongoing |
| Union Training and Innovation Program | Up to $2 million | Moderate | Reimbursement | Ongoing |
| OCI Critical Industrial Technologies ... | Up to $10,000 | Moderate | Reimbursement | Rolling intake — verify... |
| Green Construction Through Wood (GCWo... | Up to $5,000,000 | Hard | Milestone-Based | Periodic Calls for... |
| Manitoba Climate and Economy Solution... | Up to 35% of eligible project costs | Hard | Reimbursement | Second intake opened... |
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Frequently Asked Questions
Quick answers to the questions founders most often ask about ACLP