Canada's Apartment Construction Loan Program (ACLP): Your Complete Guide to Securing Rental Housing Financing in 2025

Canada's housing crisis continues to intensify, with rental vacancy rates at historic lows and construction costs soaring. Enter the Apartment Construction Loan Program (ACLP) – a game-changing government initiative that's helping developers and non-profit organizations build the rental housing Canada desperately needs.

What is the Apartment Construction Loan Program (ACLP)?

The ACLP is Canada's flagship rental housing financing program, offering low-cost, fully repayable construction loans to eligible developers and organizations. As part of the National Housing Strategy, this program provides crucial funding during the riskiest phase of development – from construction through to stable operations.

Key Benefits:

• Loans up to $55 million or 100% of residential construction costs
• Interest rates significantly below market rates
• Flexible repayment terms up to 50 years
• Support for standard rental, student housing, and seniors housing projects

ACLP Eligibility Requirements: Who Can Apply?

Eligible Borrowers

The ACLP welcomes applications from diverse organizations committed to increasing Canada's rental housing supply:

• Private developers and builders
• Non-profit housing organizations (public and private)
• Rental cooperatives (excluding equity co-ops)
• Municipalities and government bodies (including Indigenous governing bodies)

Project Requirements

To qualify for ACLP financing, projects must meet specific criteria:

• Minimum loan amount: $1,000,000
• Minimum units: 5 fully self-contained residential units
• Mixed-use projects: Non-residential component cannot exceed 30% of total gross floor space or cost
• Project types: New construction, building conversions, student housing, and independent seniors housing

ACLP Loan Terms and Financing Details

Loan Structure

• Loan-to-Cost Ratio: Up to 100% for residential components, 75% for non-residential
• Amortization Period: Up to 50 years (based on project scoring)
• Interest Rate: Fixed rate locked at term start
• Payment Structure: Interest-only during construction, principal and interest post-stabilization

Application Fees

• Residential projects: $200 per unit (first 100 units), then $100 per unit (maximum $55,000)
• Non-residential components: 0.30% of loan amount if over $100,000

Recent ACLP Program Enhancements (2024-2025)

The Canadian government has significantly strengthened the ACLP with several key improvements:

Extended Timeline

Program duration extended from 2027-2028 to 2031-2032, providing long-term certainty for developers and housing providers.

Expanded Eligibility

New project types now eligible:

• On-campus and off-campus student housing
• Independent seniors housing

Streamlined Scoring System

Projects are evaluated based on:

• Affordability commitments
• Energy efficiency standards
• Accessibility features
• Social impact outcomes

Frequent Builder Framework

Experienced housing providers can now access:

• Priority resource allocation
• Expedited approval processes
• Simplified application procedures for multiple projects

ACLP Impact: Real Results for Canadian Communities

The numbers speak for themselves about the ACLP's transformative impact:

• $21.76 billion in committed loans (as of December 2024)
• 56,000+ rental homes supported to date
• 131,000+ new rental homes projected by 2031-2032

These figures represent real solutions to Canada's housing affordability crisis, providing homes for students, seniors, families, and vulnerable populations across the country.

How to Apply for ACLP Funding

Step 1: Project Assessment

Evaluate your project against ACLP eligibility criteria and determine your financing needs.

Step 2: Documentation Preparation

Gather required documents including:

• Detailed project plans and specifications
• Financial projections and feasibility studies
• Environmental assessments
• Municipal approvals and permits

Step 3: Application Submission

Submit your complete application through CMHC's online portal or work with a qualified housing consultant.

Step 4: Review Process

CMHC will evaluate your application based on the scoring system, considering affordability, sustainability, and social impact factors.

Maximizing Your ACLP Application Success

Focus on Affordability

Demonstrate clear commitments to affordable rental rates and tenant protections.

Emphasize Sustainability

Incorporate energy-efficient building systems and sustainable construction practices.

Highlight Accessibility

Include universal design features and accessibility improvements beyond minimum requirements.

Document Social Impact

Clearly articulate how your project will benefit the local community and address housing needs.

ACLP vs. Other Housing Programs: Why Choose ACLP?

The ACLP offers several advantages over traditional construction financing, compared to the MLI Select Program:

• Lower interest rates than commercial lenders
• Longer amortization periods improving cash flow
• Flexible terms accommodating diverse project types
• Government backing providing stability and credibility

Future of Rental Housing Development in Canada

With the ACLP's recent enhancements and extended timeline, the program is positioned to play a crucial role in addressing Canada's housing shortage. The focus on student housing and seniors housing reflects changing demographic needs, while the streamlined application process makes it easier for experienced developers to plan multiple projects.

Getting Started with Your ACLP Application

Ready to explore ACLP financing for your rental housing project? Consider these next steps:

1. Contact CMHC directly for preliminary discussions about your project
2. Engage qualified consultants experienced with ACLP applications
3. Network with other ACLP recipients to learn from their experiences
4. Stay updated on program changes and new opportunities

The Apartment Construction Loan Program represents Canada's commitment to solving the housing crisis through innovative financing solutions. Whether you're a seasoned developer or a non-profit organization with a vision for affordable housing, the ACLP provides the tools and resources needed to bring your rental housing project to life.

For the most current ACLP information and application guidelines, visit the Canada Mortgage and Housing Corporation (CMHC) website or contact their housing programs team directly.