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CMHC recently announced that, following the completion of its first annual review of the Multi-Unit MLI Select product, there are no changes to the product criteria at the current time.
This means the point system, scoring and benefits remain the same.
Operating expenses benchmarks
CMHC, however, has released new operating expenses benchmarks for 2023-'24. These changes will be effective for all applications received on or after June 19 (which is the same date that CMHC premiums will be increased).
Wood Frame:
| R&M/Salaries/Appliances | Additional Costs (Wall pump/AC/Elevator) | % EGI (Management Fee) | |
| Atlantic | +$120-$150 PUPA | +$60 PUPA | +0.25% of EGI |
| Provinces & Territories | +$150-$180 PUPA | +$60 PUPA | +0.25% of EGI |
| Ontario | +$155-$185 PUPA | +$60 PUPA | +0.25% of EGI |
| B.C. | +$160-$190 PUPA | +$60 PUPA | +0.25% of EGI |
Concrete:
| R&M/Salaries/Appliances | Additional Costs (Wall pump/AC/Elevator) | % EGI (Management Fee) | |
| Atlantic | +$155-$185 PUPA | +$40 PUPA | +0.25% of EGI |
| Provinces & Territories | +$160-$190 PUPA | +$40 PUPA | +0.25% of EGI |
| Ontario | +$170-$200 PUPA | +$40 PUPA | +0.25% of EGI |
| B.C. | +$170-$200 PUPA | +$40 PUPA | +0.25% of EGI |
PUPA = Per Unit Per Annum
Application and Review Process
Additionally, CMHC shared a few updates that will affect the application and review processes:
- A clarification has been made for MLI Select applications that have an affordability component. Please note that increases based on the Consumer Price Index (CPI) or legislative measures are not allowed during the construction phase. Further, it's important to bear in mind that rent roll changes are not permitted once an application has been submitted to CMHC.
- Resubmissions of applications for properties where a certificate of insurance (COI) has already been issued will not be accepted, unless the original COI is cancelled prior to the resubmission.
- Accuracy in file submission is crucial. Going forward, only minor changes post-approval (such as typos, legal name changes, loan term adjustments, etc.) and one significant interest rate adjustment will be processed.
- In cases where post-approval requests could influence the overall risk of the application, a new application submission will be necessary. This includes major changes like alterations in social outcomes, revenue/expenses/vacancy changes, or significant structural modifications. Note that new CMHC application fees will apply upon application resubmission.
Nadeem Keshavjee is the president and founder of GreenBirch Capital - a commercial mortgage brokerage with combined experience of $6 billion in commercial mortgages and over five decades of combined experience. The firm has deep experience with CMHC multifamily mortgages, having obtained 64 approvals in CMHC's MLI Select program as a single origination team.
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