Is your organization interested in creating new affordable rental housing units?
The Affordable Rental Housing Program aims to increase the supply of affordable rental housing units for low- and moderate-income households in New Brunswick. The program provides financial assistance to private entrepreneurs, private non-profit corporations (includes off-reserve Indigenous population), and co-operatives for the construction, rehabilitation, and conversion of rental housing projects.
Funding is in the form of a forgivable loan and is based on the cost of eligible work and the number of eligible self-contained units within a project. The maximum forgivable contribution for projects is outlined in the table below. Non-profit groups may receive funding for up to 100% of the units within a project. Private entrepreneurs are limited to funding for no more than 50% of the total units within a project. Projects will also be eligible to receive an additional $15,000 per funded accessible unit built through ARHP. Borrowers will enter into a Mortgage Agreement with Housing NB to ensure that units remain affordable to low and moderate income households.
|
Unit Type |
Non-Profits |
Private Entrepreneurs |
|
Bachelor |
$70,000 |
$60,000 |
|
1 – Bedroom |
$77,000 |
$66,000 |
|
2 – Bedroom |
$83,000 |
$72,000 |
|
3 – Bedroom |
$88,000 |
$77,000 |
Mixed-income developments are encouraged and/or may be required.
Borrowers enter into a Mortgage Agreement with Social Development to ensure that units remain affordable to low- and moderate-income households. Interest-free proposal development funding loans are provided to assist eligible non-profit and co-operative sponsors of projects in completing the activities required to develop a project proposal to the point where a commitment of assistance can be made.
Rental subsidies are provided to ensure units are affordable to low-income households. Tenants qualifying for assistance through the Rent Supplement Program will have their rents reduced to 30% of the adjusted household income. For more information on the Rent Supplement Program, click here. Landlords will receive the difference between the rent paid by the tenant and the market rent agreed to under a rental agreement.
A development proposal may be eligible if it meets the following requirements:
• The project creates basic affordable rental units that would rent at or below median market housing rents for comparable housing in the community.
• Projects may be developed through new construction, the rehabilitation of existing housing, and the conversion of non-residential buildings.
• Eligible tenants include families, seniors, non-elderly singles, people who live with a disability and persons with special needs. Supportive housing programs may also be used to assist vulnerable seniors and adults to help them maintain or resume independent living in their own homes.
• All new construction projects must meet current design and building standards, including the Province’s Green Building Policy, which you can view by clicking here. Existing buildings must meet acceptable standards, as determined by Social Development.
• Private non-profit organizations must be incorporated.
Ineligible projects that do not meet the criteria of the program include:
• residential care facilities
• nursing homes
• emergency shelters
Social Development works closely with applicants at every step of the application and approvals process for the Affordable Rental Housing Program.
To begin, call Social Development at 1-833-733-7835. Press 1 for English, 2 for French. Press 2 to talk to someone about housing services. Tell the agent that you would like help with the Affordable Rental Housing Program.
Please be ready to share basic information, including details about your organization and the address of the property you are interested in developing.
If you meet the basic eligibility criteria, the agent will advise you of the next steps to apply. Development of a proposal includes information on the sponsoring group, development, plans and schedule, local market research, estimated capital and operating costs. Don’t worry if you don’t have this information when you first call. We welcome inquiries at all project stages, including initial questions at the idea stage or calls from first-time applicants.
Please be ready to share basic information about your project, your organization and the address for the property you’re interested in developing.