On-Reserve Non-Profit Housing Program (section 95)

This program assists First Nations in the construction, purchase and rehabilitation, and administration of suitable, adequate and affordable rental housing on-reserve. CMHC provides a subsidy to the project to assist with its financing and operation.

Who is Eligible?

All First Nations are eligible to apply. Aboriginal Affairs and Northern Development Canada (AANDC) must approve a First Nation's application for a Ministerial Loan Guarantee.

How Does the Program Work?

Canada Mortgage and Housing Corporation (CMHC), AANDC and First Nations work in partnership nationally and at the regional level to determine allocations of funds for eligible reserves

• CMHC delivers the program and may provide direct loans for First Nations to construct, purchase and rehabilitate projects. These loans, for up to 100 per cent of the total eligible capital cost of a project, are insured under the National Housing Act and are guaranteed by the Minister of AANDC.
• Approved lenders such as Aboriginal Capital Corporations (ACC), banks, trust companies and other financial institutions may also act as lenders in some cases.
• A subsidy is provided to the First Nation for a maximum of 25 years or the duration of the project loan amortization period, whichever is less. The amount of subsidy is determined as follows: Project Subsidy = Loan Repayment + Operating Expenses - Revenue.
• Interest-free, repayable loans under Proposal Development Funding are also available from CMHC to assist First Nations in developing a project
• First Nations are responsible for determining who lives in the project.

Where can I get More Information?

Contact your local CMHC office