Canada Putting $1 billion behind Modular Construction
Modular construction is growing all around the world. The Modular Building Institute (MBI) and its members have been working with the Canadian Mortgage Housing Corporation (CMHC) to open up opportunities for modular social housing projects in Canada for more than 2 years.
Although modular doesn't fit into the Canadian underwriting and financing process, new underwriting guidelines specific to modular projects are being developed as soon Q4. This comes in time for the Rapid Housing Initiatives. The Rapid Housing Initiative aims to create new affordable housing for people and populations who are vulnerable.
These initiatives will provide capital contributions under 2 streams for faster delivery of affordable housing. The RHI will:
Support the creation of up to 3,000 new permanent affordable housing units
Cover the construction of modular housing, as well as the acquisition of land, and the conversion/rehabilitation of existing buildings to affordable housing
Aim to commit all funds before March 31, 2021, and ensure housing is available within 12 months of agreements.