Introduction:
The Canadian Mortgage and Housing Corporation (CMHC) introduced significant policy changes in November 2024, impacting developers, lenders, and investors in the multi-family housing sector. These updates aim to address affordability, accessibility, and environmental concerns while ensuring financial stability in the housing market.
Key Changes:
- Appraisal Requirements: All multi-unit applications now require appraisals, ensuring transparency and accurate valuations.
- Environmental Site Contamination: CMHC now allows financing for sites with known contamination, provided they are remediated before funding.
- Accessibility Standards: Updated criteria align with CSA B651:23 and Rick Hansen Foundation Accessibility Certification standards.
- Rental Achievement Holdbacks: Developers must meet rental or income goals before receiving full funding, impacting project timelines and equity requirements.
Impact on Ontario’s Multi-Family Housing:
These changes encourage sustainable and accessible housing development, particularly in high-demand areas like Toronto. However, they also increase upfront costs and require developers to adapt their strategies.
Conclusion:
CMHC’s updates reflect a commitment to addressing housing challenges while maintaining financial prudence. Developers and investors must stay informed to navigate these changes effectively.
