FCHI-2 is the new rental-assistance program for federally administered co-ops and non-profits, announced as part of the federal government’s National Housing Strategy. With all of Canada battling to slow the spread of COVID-19, CMHC has delayed its launch of the new program to September 1, 2020. However, preparations for the program are now underway. On April 3, CMHC e-mailed the first wave of program agreements to co-ops whose current rent-geared-to-income assistance has been extended to August. These mailings will continue as individual co-ops inch closer to the end of their operating agreement.
The first group of co-ops will have until July 15 to return their signed agreement. This generous allowance of time should mean that co-op boards can review, sign and return the FCHI-2 agreement to CMHC, while maintaining physical distancing. Please keep in close contact with your relationship manager if your co-op needs assistance in getting the agreement signed. CMHC is your best source for any clarification of the agreement and also plans to offer training resources towards the end of April.
How does the rental-assistance program work?
When your co-op opted into the program, you completed an annex form that CMHC used to determine the initial number of assisted households in your co-op and the initial amount of rental assistance you would need. The annex form helped to set your co-op’s funding for the first program year. When you receive your e-mailed agreement from CMHC, check Schedule B for the amount of assistance you will receive.
After the first year, CMHC will confirm a guaranteed amount for your co-op, based on the amount used. This amount will then be fixed for the term for the agreement, and your co-op will receive a revised Schedule B from CMHC.
Careful management of your rental assistance in this difficult time will be extremely important. Your co‑op can stretch the assistance across more than the base number of households if the overall cost falls under the total amount of assistance guaranteed by CMHC. However, if your co-op overspends the amount you received from CMHC, you will have to cover the costs from your operations. The only exception to this is if your co-op spends more than the guaranteed amount in assisting your base number of households who are paying an assisted charge of 30 per cent of income. In this case only, CMHC is committed to making up the difference. Your co-op will be able to apply for a permanent increase in your guaranteed amount, which will remain tied to spending on your base number of units.
Watch our social media channels for more details about the program, as well as any information sessions and online training. As always, we will continue to share what we know with our clients, when we know it.