The Federal Community Housing Initiative is a $500 million fund to support federally administered community housing projects reaching the end of their operating agreements from past social and affordable housing programs.
The initiative has two phases:
- FCHI-Phase 1, provided $38 million in federal funding over a two-year period.
- FCHI-Phase 2 will provide $462 million in funding from September 1, 2020 to March 31, 2028.
The two FCHI-2 funding streams are:
- Rental Assistance: The rental assistance stream provides financial assistance for low-income households. Housing providers may apply for this rental support, which aims to fund the gap between 30% of an assisted household’s gross monthly income and the occupancy charge.
- Transitional Funding: The transitional funding stream is available to housing providers having trouble transitioning to the new program. The temporary funding will cover eligible operating costs for up to 24 months following the expiration of past federal agreements. This funding stream has a limited budget and is reserved for the most vulnerable groups, such as deep subsidy projects or urban Indigenous projects. Transitional funding is provided alongside the rental assistance stream as a separate, additional form of assistance.
Once the transitional funding ends, housing providers will continue to receive rental assistance until the end of the FCHI-2 agreement.