John LaRochelle, a seasoned real estate investor, sought to develop a 50-unit rental apartment building in Toronto, On. His goal was to create a sustainable and accessible housing complex that offered affordable units while ensuring long-term profitability.

The Challenge

Securing competitive financing while balancing affordability, environmental sustainability, and accessibility was John’s biggest challenge. Traditional lending options didn’t provide the flexibility or incentives needed to support such a comprehensive project.

Solution: Applying for MLI Select

John applied for CMHC’s MLI Select Program, drawn by its unique point-based system that rewards commitments to affordability, energy efficiency, and accessibility.

Key Project Commitments:

• Affordability: 30% of units set aside at below-market rents for 10+ years.
• Energy Efficiency: Achieved 25% greater energy efficiency than building code requirements.
• Accessibility: 10% of units designed for individuals with mobility challenges.

Results

After qualifying for MLI Select, John received:

• Lower Borrowing Costs: A reduced mortgage insurance premium, lowering overall financing expenses.
• Extended Amortization: A 40-year amortization period, reducing monthly debt servicing costs.
• Improved Cash Flow: Enhanced cash flow due to lower monthly payments, allowing reinvestment into future projects.

Impact

The project was completed ahead of schedule, offering 50 energy-efficient, affordable, and accessible rental units. The development’s success reinforced John’s business reputation while contributing to Vancouver’s housing supply.

John’s Takeaway

“MLI Select enabled me to build a project that balances profitability with social impact. The program’s flexibility and incentives helped turn my vision into reality.”