Boosting Canada’s Rental Market: How the Apartment Construction Loan Program (ACLP) Is Making a Difference

As Canada grapples with a persistent housing shortage, especially in the rental sector, the federal government’s Apartment Construction Loan Program (ACLP) is emerging as a game-changer. This innovative initiative is designed to fuel the creation of new rental homes by offering developers and non-profit organizations access to low-cost, repayable loans—helping to ease the pressure on renters and communities across the country.

What Is the Apartment Construction Loan Program (ACLP)?

The ACLP is a flagship program under Canada’s National Housing Strategy. Its primary goal is to jumpstart the construction of new apartment buildings, student residences, and seniors’ housing by providing financial support during the most challenging phases of a project—construction and the early years of operation.

Who Can Apply?

The ACLP is open to a wide range of applicants, including:

Private developers and builders
Non-profit housing organizations
Rental cooperatives
Municipalities and Indigenous governments

This inclusive approach ensures that a diverse mix of organizations can contribute to expanding Canada’s rental housing stock.

What Makes the ACLP Stand Out?

1. Flexible and Attractive Financing

Low-interest, fully repayable loans help cover up to 100% of the residential construction costs.
Interest-only payments during construction, shifting to principal and interest as the project becomes stable.
Long amortization periods (up to 50 years for top-scoring projects) reduce the burden on borrowers.

2. Broad Project Eligibility

New rental apartments
Conversions of non-residential buildings into housing
On- and off-campus student housing
Independent seniors’ residences

3. Social and Environmental Priorities

Projects are evaluated based on:

Affordability: Ensuring rents remain within reach for more Canadians
Accessibility: Making homes usable for people with disabilities
Energy efficiency: Supporting green building practices
Social impact: Prioritizing projects that serve vulnerable populations

Recent Improvements

The ACLP has been enhanced to be even more effective:

Extended timeline: The program now runs until 2031–2032.
Expanded eligibility: Student and seniors’ housing are now included.
Streamlined process: Experienced builders can get faster approvals and priority access to funding.

Impact and Success Stories

Since its launch, the ACLP has committed over $21.76 billion in loans, supporting the construction of more than 56,000 rental homes across Canada. The program is on track to help create over 131,000 new rental homes by 2031–2032—a significant step toward meeting the country’s housing needs.

Why the ACLP Matters

The ACLP is more than just a funding program—it’s a catalyst for change. By making it easier and more affordable to build rental housing, the program is helping to:

Increase the supply of affordable homes
Reduce pressure on renters
Support sustainable and inclusive communities
Drive economic growth through construction and related industries

In summary:
Canada’s Apartment Construction Loan Program is a powerful tool in the fight against the housing crisis. By providing flexible, low-cost financing and prioritizing social and environmental goals, the ACLP is helping to build a brighter future for renters and communities nationwide. Learn how the ACLP program differs from the MLI Select Program, please click here