Ministerial Loan Guarantee toolkit for First Nation housing projects
Process to apply for First Nation housing projects
- If your housing project falls under the Canada Mortgage and Housing Corporation (CMHC) On-Reserve Non-Profit Housing Program (Section 95) work with your CMHC Program Advisor to complete the program's 301A application form. If the housing project is not under this program, skip Step 1.
- Obtain a housing loan/mortgage pre-approval by working with a financial institution. CMHC Direct Lending Program is an authorized lender.
- Chief and Council provide an original Band Council Resolution (BCR) or equivalent authorizing document requesting an MLG from Indigenous Services Canada.
- Obtain a letter of intent from your lender.
- Complete the Ministerial Loan Guarantee application form and if approved, finalize the loan with your lender.
- Submit an MLG package to Indigenous Services Canada through the housing sector of the band council, once it has been finalized with your lender. The applicant is responsible for all costs associated with work undertaken prior to approval.
First Nation housing projects checklist
The following need to be included in your MLG package:
- original BCR or equivalent authorizing document
- MLG application form
- project description for the purposes of an Environmental Assessment, if applicable
- site map of project
- copy of a letter of intent or a copy of a Loan Agreement from a lender or a copy of a Commitment letter from CMHC
- CMHC On-Reserve Non-Profit Housing Program (Section 95) 301A application form, if applicable
- Certificate of Insurance from CMHC
Once you have all the items, send the completed package to your regional office. For more information please contact your lender. If you live in Yukon, consult the Yukon office for more information about your specific requirements under the Yukon Environmental and Socio-economic Assessment Act.
Please note that your First Nation must ensure that Indigenous Services Canada’s Financial and Capital Reporting is up to date, as this is a requirement for approval.
If the First Nation has an MLG, they are expected and required to pay the loan to their financial institution.