Project Overview

Client: Summit Builders Inc.
Location: Edmonton, Alberta
Project Type: New construction of a multi-family residential complex
Objective: Develop a modern, energy-efficient, and affordable multi-family property to meet Edmonton’s growing housing demand.

Challenges

Summit Builders Inc., a family-owned construction company in Alberta, faced several challenges:

• Rising Construction Costs: Material price increases and labor shortages added pressure to project budgets.
• Affordability Commitment: Balancing profitability with the delivery of affordable housing units.
• Sustainability Standards: Integrating advanced energy-efficient technologies to reduce environmental impact.
• Financing Obstacles: Accessing competitive financing solutions to reduce upfront and ongoing costs.

Solution: MLI Select Program

By leveraging CMHC’s MLI Select program, Summit Builders Inc. unlocked tailored solutions to address these challenges. The program offered:

• Affordability: Reserved 30% of the complex’s 120 units for below-market rents, providing housing options for middle-income families.
• Energy Efficiency: Installed solar panels, energy-efficient HVAC systems, and LED lighting, achieving a 40% reduction in energy consumption compared to standard buildings.
• Accessibility: Designed 20% of units with barrier-free features, including wider doorways, step-free pathways, and fully accessible bathrooms.

Implementation and Benefits

1. Financial Incentives

• Qualified for a 50-year amortization term, reducing monthly financing obligations.
• Secured reduced mortgage insurance premiums, saving tens of thousands of dollars over the project’s lifecycle.

2. Improved Cash Flow
The financial flexibility provided by MLI Select enabled Summit Builders to allocate resources toward high-quality construction materials and tenant-focused amenities, such as a community lounge and outdoor green spaces.

3. Community and Environmental Impact

• Delivered 120 units, including 36 affordable housing options, addressing Edmonton’s housing affordability crisis.
• Significantly reduced the building’s energy footprint, contributing to Alberta’s sustainability goals.
• Fostered inclusivity through thoughtful accessibility features, making the property welcoming to seniors and individuals with disabilities.

Results

• Financial Success: Lower borrowing costs and extended amortization improved the project’s long-term profitability.
• Positive Tenant Feedback: High-quality, energy-efficient units attracted tenants quickly, ensuring full occupancy within weeks of project completion.
• Sustainability Leadership: Achieved substantial energy savings, aligning the project with modern environmental standards.
• Community Growth: Delivered affordable housing options to a diverse group of tenants, fostering a vibrant and inclusive community.

Conclusion

MLI Select by CMHC empowered Summit Builders Inc. to overcome financial and operational hurdles while delivering a sustainable and affordable housing project. By aligning with affordability, energy efficiency, and accessibility goals, the company achieved both financial and social success.

Are you a builder looking to transform your housing projects? Contact us today to see if you qualify.