Affordable Housing Project Viability Assessment

There is increasing awareness of the need for affordable housing across Canada. This has created a heightened desire for many non-profit organizations to help fill the gap of available affordable housing. As Canada's Housing Agency, CMHC has been pro-active in the area of affordable housing via the Canadian Centre for Public-Private Partnerships in Housing and the programs it administers. One of the services of CMHC's Canadian Centre for Public-Private Partnerships in Housing is to work with client groups on assessing a project's viability. In April 2003, the Minister responsible for CMHC announced a number of enhancements to existing policies as well as several new products that would help create new affordable housing in Canada.

Following the introduction of these new products and enhanced policies, CMHC developed a tool to help external clients assess proposed affordable housing projects and determine the financial requirements to ensure their viability. The assessment model allows potential project sponsors to run different financial scenarios by providing some information regarding the proposed project, such as costs, financing and sources of equity. This tool allows clients to become more informed of the options available to them. Although much more complex underwriting is required when an application is formally submitted this gives potential sponsors sufficient information to explore possible alternatives which they can discuss with the Canadian Centre for Public-Private Partnerships in Housing members.

CMHC is committed to ensuring affordable housing is accomplished with a certain degree of ease. With increased awareness of CMHC's eligibility criteria and guidelines with respect to the enhancements to facilitate affordable housing through partnerships, successful partnerships will lead to an increased supply of affordable housing for Canadians.

Use the Affordable Housing Project Viability Assessment Tool

Legal Disclaimer and Notice

The Affordable Housing Project Viability Assessment Tool provided by CMHC is for general illustrative and estimation purposes only. The amounts it projects are based upon the information provided and the assumptions and estimates made by the model.

CMHC does not guarantee these projections. They are not intended to provide financial or other advice on particular housing projects and they should not be relied upon in that regard.

Neither CMHC nor any of its employees or advisors shall have any liability for the accuracy of the projections contained on this page or for any damage caused by the use of the information.

The use of the Affordable Housing Project Viability Assessment Tool and its results with regard to any housing project do not oblige CMHC to insure the project financing nor provide funding for the housing project under the Public-Private Partnerships initiative or under any other CMHC program or initiative.

You are encouraged to contact your local Principal, Business Development Multiples or Partnership Representative for assistance with this tool. As this tool is not appropriate for properties providing additional care such as food, medical service, etc., the assistance from CMHC staff will be necessary. For further assistance, contact your CMHC Partnership Representative.