In MLN's interview with Housing Minister Sean Fraser last week, he noted how the government should offer more builders lower financing costs to spur development.
One way that Ottawa is already doing that—and a program the Liberals might increase funding for—is the Rental Construction Financing Initiative (RCFI).
If you're interested in building a 5+ unit rental building, read on because this program offers developers exceptional benefits—including but not limited to fantastic interest rates, flexible construction draws, easy payment terms and more forgiving underwriting than a typical lender.
This is a government program one can get behind—for three good reasons:
- It barely costs taxpayers a thing (it's not a subsidy in the traditional sense)
- It aims to help mostly middle-class renters (who all too often get lost in affordable housing discussions focused on low-income brackets)
- Imperfections aside, it's pretty developer-friendly.
One might even say the government's RCFI program is making rental construction financing great again. Here are the highlights...