ACLP · CMHC direct

Apartment Construction Loan Program.

ACLP is CMHC's direct-lending construction program — formerly known as the Rental Construction Financing Initiative (RCFI) and renamed in November 2023. Unlike MLI Standard and MLI Select (where approved lenders originate and CMHC insures), ACLP provides the loan itself, with insurance integrated at no additional premium cost to the borrower.

The program is backstopped by a $55 billion budget targeting more than 131,000 new homes by 2031-32. As of June 2025, CMHC had committed $24.9 billion supporting 63,500+ homes — roughly halfway through deployment.

Headline benefits include below-market fixed rates, up to 100% of residential construction cost (75% of non-residential), 50-year amortization, and interest-only payments during the build that are capitalized into the loan. Principal and interest begin at stabilization, with the permanent takeout placed through a CMHC-approved lender.

Key features

ACLP at a glance.

The core construction-phase terms. Permanent takeout terms depend on the lender placing the post-stabilization mortgage.

LTV / LTC — residential
Up to 100%
LTV / LTC — non-residential
Up to 75%
Max amortization
Up to 50 years
Interest rate
Below-market fixed
Insurance
Integrated — no premium paid by borrower
During construction
Interest-only, capitalized
From stabilization
P+I payments begin
Minimum affordability
≥20% of units at ≤30% MFI
Takeout
With a CMHC-approved lender
2024 enhancements

The program broadened substantially in 2024.

Two waves of changes — a mid-year Frequent Builder framework and a November package removing prerequisites plus adding dedicated allocations — materially expanded who and what ACLP will finance.

July 2024
Frequent Builder framework

Streamlined underwriting pathway for experienced repeat builders, reducing approval cycle times on subsequent projects.

November 2024
Minimum energy / accessibility requirements removed

These are no longer prerequisites — they shifted from mandatory thresholds to incentive-based considerations, broadening access for more projects.

November 2024
$500M for prefabricated / modular construction

Dedicated allocation to accelerate industrialized construction methods.

November 2024
$100M for building above existing shops

Targeted capital for mixed-use infill above existing retail — a low-displacement densification pathway.

Eligibility

Open to all borrower types.

ACLP is available to for-profit developers, non-profits, co-operatives, Indigenous governments, municipalities, and provincial/territorial housing bodies. The minimum affordability requirement — 20% of units at rents no higher than 30% of median family income — applies across the board and is shallower than AHF's deep-affordability thresholds.

Non-residential space is permitted but financed at up to only 75% LTC, versus 100% for the residential portion — meaning more equity is required for mixed-use components.

Program deployment (as of June 2025)
$55B

Total program budget

$24.9B

Committed — supporting 63,500+ homes

131,000+

Target homes by 2031-32

Considering MLI Select instead?

ACLP delivers below-market rates but moves through CMHC directly. MLI Select uses market-rate insured financing and typically closes faster. The comparison matrix shows both side-by-side.