Project Overview

Client: James Carter, Real Estate Investor
Location: Calgary, Alberta
Project Type: New construction of a multi-family residential complex
Objective: Develop a profitable, sustainable, and accessible multi-family property while addressing the growing demand for affordable housing in Calgary.

Challenges

James Carter, an experienced real estate investor, faced significant challenges in bringing his vision to life:

• Financing Costs: High upfront costs and interest rates presented obstacles to achieving a feasible return on investment.
• Affordability Targets: Ensuring rental affordability while maintaining profitability.
• Sustainability Goals: Meeting modern energy efficiency standards to future-proof the property.
• Accessibility Requirements: Designing a property that meets the needs of diverse tenants, including seniors and individuals with disabilities.

Solution: MLI Select Program

James utilized CMHC’s MLI Select program to overcome these barriers and maximize his project’s impact. By participating in the program, he committed to three key priorities:

• Affordability: Reserved 25% of units for below-market rents, ensuring housing for low-to-moderate-income families.
• Energy Efficiency: Installed advanced insulation, high-efficiency windows, and a geothermal heating system, achieving a 30% reduction in energy consumption.
• Accessibility: Designed 15% of units to include universal accessibility features, such as wider doorways, step-free entrances, and accessible bathrooms.

Implementation and Benefits

1. Financial Incentives

• Secured a 50-year amortization period, significantly reducing monthly debt servicing costs.
• Qualified for reduced mortgage insurance premiums, lowering the project’s overall financing expenses.

2. Enhanced Cash Flow
The financial flexibility provided by MLI Select allowed James to invest in high-quality materials and additional tenant amenities, such as a fitness center and shared outdoor spaces.

3. Social and Environmental Impact

• Delivered 80 multi-family units, including 20 affordable housing options, directly addressing Calgary’s housing shortage.
• Achieved energy efficiency goals, reducing utility costs for tenants and contributing to environmental sustainability.
• Provided an inclusive living environment, fostering a sense of community among tenants with diverse needs.

Results

• Increased ROI: The extended amortization and reduced financing costs boosted long-term profitability.
• Community Impact: The project contributed to Calgary’s affordable housing goals, benefiting both tenants and the local community.
• Environmental Leadership: The energy-efficient design lowered operating costs and aligned with Alberta’s sustainability initiatives.
• Tenant Satisfaction: High-quality, affordable, and accessible units led to strong tenant retention and positive community feedback.

Conclusion

MLI Select by CMHC empowered James Carter to bring his vision of sustainable and affordable multi-family housing to life in Alberta. The program’s financial incentives and focus on affordability, energy efficiency, and accessibility allowed him to achieve his investment goals while making a lasting positive impact on the community.

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