Canada Housing Infrastructure Fund: Before you apply - Guide for Indigenous Applicants - Direct delivery stream (Fall 2024 intake)
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Copyright
© His Majesty the King in Right of Canada, as represented by the Minister of Housing, Infrastructure and Communities, 2024.
Catalogue No. T94-78/2024E-PDF
ISBN 978-0-660-74126-0
Table of contents
Who is this Guide intended for?
The purpose of this Before you Apply – Guide for Indigenous Applicants is to provide information on the Canada Housing Infrastructure Fund (CHIF) direct delivery stream and its Indigenous-specific features. This Guide can help potential Indigenous applicants better understand the program parameters that apply to them and to decide if their projects are a good fit for the direct delivery stream before preparing an application.
This Guide is intended for eligible Indigenous applicants as described in section 2.0.
CHIF has a general Applicant Guide for projects that are not led by Indigenous applicants. Municipalities, regional governments, or other eligible organizations should refer to the general Applicant Guide.
Preamble
The Canada Housing Infrastructure Fund (CHIF) direct delivery stream provides funding to invest in drinking water, wastewater, stormwater and solid waste infrastructure that are needed to provide reliable essential services and support increased housing supply.
The purpose of this Guide is to provide information on the CHIF direct delivery stream and explain the program features that are available to support Indigenous applicants, including First Nations, Inuit and Métis. This guide can help potential applicants decide if their project is a good fit for the direct delivery stream before proceeding with a full application.
In recognition of the unique infrastructure and housing needs that are present in Indigenous communities and guided by feedback and recommendations provided by Indigenous partners, CHIF strives to improve accessibility for Indigenous applicants by offering a number of customized program features.
This Guide will explain the program features available to Indigenous applicants for projects under the CHIF direct delivery stream, including but not limited to:
- a minimum of 10% of the direct delivery stream funding envelope designated for Indigenous recipients;
- an expanded list of eligible project objectives, including projects that aim to preserve existing capacity, or increase reliability and access to drinking water, wastewater, stormwater, or solid waste infrastructure to improve services for current and/or future populations;
- adapted eligibility requirements to reduce barriers to accessing funding (for example, housing conditions do not apply to Indigenous-led projects);
- an adapted list of eligible assets (including decentralized water and wastewater systems);
- no minimum project cost;
- potential to access advance payments, non-competitive contracts, or own force labour upon prior-approval from HICC; and
- expanded eligible costs with up to 100% in program cost share.
HICC is committed to working collaboratively with Indigenous partners to help advance infrastructure priorities in their communities.
1. About the Canada Housing Infrastructure Fund
1.1 Purpose of the Canada Housing Infrastructure Fund
Announced in Budget 2024, CHIF is a $6 billion fund that aims to accelerate new construction, rehabilitation and expansion of housing-enabling drinking water, wastewater, stormwater, and solid waste infrastructure, directly supporting the creation of new housing supply and improved densification.
Under the CHIF direct delivery stream, eligibility requirements and project objectives have been adjusted for Indigenous applicants to reflect the unique infrastructure and housing needs and realities in Indigenous communities.
Applicants who have a need to build more housing in their community are encouraged to submit projects that increase infrastructure capacity to directly enable increased housing supply. However, eligible projects for Indigenous applicants could also preserve existing capacity, or increase reliability and access to drinking water, wastewater, stormwater, solid waste infrastructure to improve the level of service for current and/or future populations.
For example, eligible projects for Indigenous applicants could include projects that aim to increase access to safe solid waste disposal; resolve or reduce drinking water advisories; increase the level of wastewater treatment; develop stormwater management systems; or provide other capital investments to ensure an adequate level of infrastructure service available to current and/or future community residents.
1.2 CHIF funding streams
CHIF is delivered through two funding streams:
- Direct delivery stream: $1 billion over eight years to be delivered by Housing, Infrastructure and Communities Canada (HICC). Funding is available directly to eligible applicants, including Indigenous applicants such as First Nations, Inuit and Métis communities, to address pressing infrastructure needs.
- A minimum of 10% of funding is designated to support Indigenous-led projects under the direct delivery stream.
- There are tailored eligibility requirements and features available to Indigenous applicants (see Program features for Indigenous applicants).
- Provincial and territorial agreement stream: $5 billion over 10 years to be delivered by the provinces and territories to support long-term priorities.
- To ensure funding reaches communities of all sizes, provinces must dedicate a minimum of 20% of their CHIF provincial agreement funding envelope to rural, northern and Indigenous communities. For more information, visit the CHIF webpage section CHIF in the provinces and territories.
This Guide is intended to support Indigenous applicants under the CHIF direct delivery stream.
Applying to the direct delivery stream versus the provincial and territorial agreement stream
Indigenous applicants are eligible to apply under either the CHIF direct delivery stream or the provincial and territorial agreement stream. The following considerations may help applicants determine which stream suits their projects better:
Direct delivery stream:
- Indigenous applicants seeking to work directly with HICC;
- Organizations that have pressing infrastructure or housing needs and are ready to apply (see the CHIF webpage for most up to date information on program intake dates);
- Projects that can be substantially completed by September 2031.
Provincial and territorial agreement stream:
- Indigenous applicants who wish to work directly with their province or territory;
- Projects that exceed $100M in total eligible costs are encouraged to apply through the provincial and territorial agreement stream;
- Projects that can be substantially completed by September 2033.
Note: While applicants are eligible to apply for funding under either stream, they cannot receive funding under both streams for the same project (see information on stacking limits in the Project finances section of this Guide).
1.3 How does the CHIF direct delivery stream work?
The CHIF direct delivery stream provides merit-based contribution funding. The selection of projects is based on eligibility criteria and the achievement of a minimum merit score, as well as availability of funding (see sections 2 and 3 of this Guide for more details on eligibility and merit criteria).
CHIF uses a continuous intake, whereby project applications may be submitted at any time while the intake remains open. Project applications received before the final closing date may be reviewed and approved during the application intake period; therefore, applicants who have a high level of project readiness are encouraged to apply early. Please consult the CHIF webpage for program updates and intake information.
Program features for Indigenous applicants
- Eligibility of pressing infrastructure projects that support a community's existing population;
- No minimum project cost required;
- Up to 100% cost sharing of total eligible costs;
- Eligibility of certain legal costs;
- Consideration for advanced payments (requires prior approval from HICC); and
- A minimum of 10% of the CHIF direct delivery stream funding envelope reserved for Indigenous-led projects.
2. Eligibility requirements under the direct delivery stream
This section provides an overview of eligibility requirements under the CHIF direct delivery stream for Indigenous applicants. Before applying, please read this section carefully and ensure that the applicant and project meet all the required criteria to be eligible under the program.
2.1 Who can apply to the direct delivery stream?
The following Indigenous applicants are eligible under the CHIF direct delivery stream:
- An Indigenous governing body*, including, but not limited to:
- a band council within the meaning of Section 2 of the Indian Act;
- a First Nation, Inuit or Métis government or authority established pursuant to a self-government agreement or a comprehensive Land Claim Agreement between His Majesty the King in Right of Canada and an Indigenous people of Canada, that has been approved, given effect and declared valid by federal legislation;
- a First Nation, Inuit or Métis government established by or under legislation—whether federal, provincial or territorial—and incorporates a governance structure;
- A not-for-profit organization whose central mandate is to improve Indigenous outcomes;
- An Indigenous development corporation**.
* “Indigenous governing body” means a council, government or other entity that is authorized to act on behalf of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982. “Indigenous peoples of Canada” has the meaning assigned by the definition aboriginal peoples of Canada in subsection 35(2) of the Constitution Act, 1982.
** Indigenous development corporations are normally set up by an Indigenous community, organization or government. These corporations constitute the business or economic arm of Indigenous communities and governments and typically count the members of the community as their shareholders. Their primary role is to develop the economic activity of the Indigenous community that established them. Indigenous development corporations generally fall under two categories: for-profit and not-for profit. The for-profit corporation, however, is unique in that profits are then re-invested in the community.
Other applicants, such as municipal or regional governments, are also eligible for funding under the CHIF direct delivery stream (for more information, please see the list of eligible applicants in the general Applicant Guide).
When submitting a project for funding via the HICC Funding Portal, it is important to note that the person registering for the account becomes the primary contact. This person - and the person submitting the application - must be employees or officers of the applicant Indigenous governing body, who are duly authorized to:
- Complete the attestation contained in the application form; and
- Verify that the application is complete, accurate, true, and reliable, and that it complies with the CHIF criteria.
A secondary contact may be a third party engaged to support in the completion of the application. This person has to be given permission from the primary contact in order to be able to fill an application in the Funding Portal. For more information on account management please consult ‘Managing permissions – Account Administrator'.
Partnerships
In situations where multiple eligible recipients are working together, one lead applicant must be identified. The lead applicant will enter into the funding agreement with HICC and will be responsible for implementation of the project.
For projects involving a partnership with an Indigenous community or organization, the project is considered Indigenous-led if the lead applicant is an Indigenous governing body, not-for-profit organization whose central mandate is to improve Indigenous outcomes, or an Indigenous development corporation.
Note: Only projects led by an Indigenous applicant are eligible for the Indigenous-specific program parameters outlined in this Guide.
2.2 What types of projects are eligible for funding?
Eligible infrastructure projects must meet all applicable program requirements and support CHIF's objectives and expected outcomes.
Under the CHIF direct delivery stream, project eligibility and objectives have been adjusted for Indigenous applicants to reflect the unique infrastructure and housing needs and realities in Indigenous communities. Funding is available for Indigenous-led projects that meet one of the following objectives:
- The applicant demonstrates a housing need and the project aims to increase capacity of drinking water, wastewater, stormwater or solid waste infrastructure, to enable increased housing supply,
- The applicant demonstrates an infrastructure need to service current housing stock and support the community's existing population. In this case, the project may aim to preserve existing capacity, or increase reliability and access to drinking water, wastewater, stormwater, or solid waste infrastructure to improve the level of services for current and/or future populations.
and/or
Given the role that drinking water, wastewater, stormwater and solid waste infrastructure play in supporting housing, applicants who have both a housing need and an infrastructure need are encouraged to demonstrate how the project will address both of these needs.
Overview of eligible projects for Indigenous applicants
Types of Eligible Projects |
Eligibility Step 1: |
Eligibility Step 2: Applicant demonstrates how the project will address the need |
---|---|---|
Applicant demonstrates a housing need
|
Applicant demonstrates that there is a housing need, or that growth is expected in the community where the project will take place. |
Applicant must demonstrate that the project aims to increase the capacity of drinking water, wastewater, stormwater, or solid waste infrastructure to enable increased housing supply. |
Applicant demonstrates a need to improve levels of infrastructure service for current and/or future populations |
Applicant demonstrates that there is an infrastructure need related to providing adequate drinking water, wastewater, stormwater, or solid waste infrastructure services to support current and/or future populations. |
Applicant must demonstrate that the project will preserve existing capacity, or increase reliability and access to drinking water, wastewater, stormwater, or solid waste infrastructure to improve the level of services for current and/or future populations. |
Both capital and planning projectsFootnote 1 are eligible under CHIF.
- Capital infrastructure projects include new construction, rehabilitation, retrofit, upgrade or expansion projects that result in tangible infrastructure, including hybrid and natural infrastructure.
- Planning projects primarily consist of studies, plans or design work. For a planning project to be eligible for funding, it must support a future capital project that would be considered eligible under CHIF and align with program objectives. Indigenous applicants interested in submitting a planning project should contact the CHIF team at chif-fcil@infc.gc.ca before submitting an application.
Examples of eligible projects
This list provides examples of eligible assets and projects:
- Drinking water systems, including drinking water treatment facilities, storage assets, pump stations, local piped distribution systems, transmission mains, utilidors, cisterns, water trucks, service connections, and natural infrastructure.
- Examples:
- A project that increases the capacity of a water treatment plant to accommodate existing population or future growth.
- Constructing a new water treatment plant in a community to ensure clean, safe and reliable drinking water.
- Expansion of water pipes to connect housing units to a drinking water source.
- Rehabilitation or upgrades to resolve or reduce drinking water advisories or other public-health risks.
- A project that reduces water losses (e.g., leakage) in a drinking water network through the replacement of ageing, leaking or otherwise inefficient pipes.
- Wastewater systems, including wastewater storage and treatment facilities, lagoon systems, pumping or lift stations, sanitary force mains and sewer pipes, combined sewer pipes, septic pumping trucks, utilidors (e.g., above-ground insulated conduits), and natural infrastructure.
- Examples:
- A project that expands the capacity of a sanitary sewer system by expanding its wastewater treatment plant or sewage lagoons—or by adding linear infrastructure in the form of sewer pipes—to accommodate the existing population or future growth.
- Building a wastewater treatment plant to support a new housing development.
- Upgrading existing infrastructure systems to ensure regulatory compliance or to increase the level of wastewater treatment.
- Development of a utilidor for sewer mains needed to remove wastewater from new or underserviced housing in areas with permafrost.
- Rehabilitation or upgrades to address inadequate infrastructure and to mitigate environmental and public health risks.
- Stormwater systems, including stormwater drainage pump stations, management facilities, pipes and natural infrastructure.
- Examples:
- A project that increases linear stormwater capacity (e.g., sewer separation, culverts, ditching and natural infrastructure) that would result in less stormwater entering the wastewater network.
- A project that increases non-linear stormwater capacity, such as the use of dry ponds, or naturalized stormwater ponds in proximity of housing. This would result in less stormwater entering the wastewater network, extending the system's capacity to support existing housing and accommodate community growth.
- Solid waste management systems, including landfills, organic waste processing, waste sorting, collection and transfer vehicles, thermal treatment, and landfill decontamination, decommissioning, and rehabilitation.
- Examples:
- Construction of waste processing, collection and sorting systems to ensure community members have access to safe solid waste disposal.
- A project that diverts construction and demolition waste from a community's landfill.
- Development of a regional landfill and the local transfer stations required to move waste from smaller communities to a centralized location.
- Removal or relocation of derelict waste to increase the landfill capacity and improve safety.
- A waste diversion project that diverts organic waste (e.g., food or yard waste) away from a landfill. This would increase the lifespan of the landfill to process waste from the growing communities it services.
2.3 Eligibility checklist
Before starting an application, applicants should ensure that they have the authority to create an application on behalf of their organization. Applicants should also confirm that their project meets each of the minimum eligibility requirements listed belowFootnote 2 .
- The applicant is an eligible recipient for CHIF;
- The applicant owns or will own the asset or assets, or the applicant has or will have secured all necessary rights and interest in the asset or assets;
- The project is for planning, new construction, rehabilitation or expansion of drinking water, wastewater, stormwater or solid waste infrastructure that is primarily for public use or benefit;
- The project will increase system capacity or efficiency to enable increased housing supply, and/or improve water, wastewater, storm water or solid waste infrastructure services for current and/or future populations;
- The total eligible cost for the project is less than $100 million*;
- All requested eligible costs and expenditures will be in accordance with CHIF program guidance and are direct and necessary for the successful implementation of an eligible project (see Project Finances in section 4 of this Guide for an explanation of eligible and ineligible costs); and,
- The project will be substantially completed (see Glossary for definition) no later than September 30, 2031.
* Projects above $100M in total eligible costs will be considered on a case-by-case basis. Please contact the CHIF team at chif-fcil@infc.gc.ca to discuss your project before submitting an application above $100M in total eligible costs.
Projects not meeting the above criteria will be deemed ineligible.
Need more help determining if your project is eligible?
If, after consulting this Guide, you are still unsure if your proposed project is eligible under the CHIF direct delivery stream, please send an email to the CHIF team at chif-fcil@infc.gc.ca.
2.4 Federal requirements and reporting
In order to be considered eligible, and as a condition of funding, applicants must attest to their intention to meet applicable federal requirements for their projects. Measures taken to comply with requirements will be validated prior to signing an agreement with HICC or through project reporting (as applicable). The requirements that may apply to projects are outlined below. Additional information on these requirements is provided in the Application Form and the Step-by-Step Application Instructions, which are available via HICC's Funding Portal.
Greenhouse gas mitigation
CHIF's greenhouse gas (GHG) mitigation approach focuses on areas where the most significant GHG emissions reductions are possible by addressing operational emissions from wastewater treatment infrastructure; supporting solid waste projects with reduced methane emissions; supporting the use of low-carbon construction materials; and reporting on GHG emissions mitigation actions and reductions.
If project assets include mechanical wastewater treatment plants, applicable solid waste projects (including landfills, organic waste processing or thermal treatment) or anaerobic lagoons, the project may be subject to GHG mitigation reporting requirements.
Climate resilience
Climate resilience requirements support federal commitments, including those in the National Adaptation Strategy, to build climate-resilient communities by investing in low-carbon, resilient infrastructure and by reducing risks to the asset and community. Meeting resilience requirements is a two-phased process:
Phase 1 - Climate Hazard Identification and Hazard Treatment Attestation: Completed during the application process, this requires the identification of climate hazards that could have an impact on the asset (based on best available climate data, which can include Indigenous knowledge) and an attestation to commit to implementing climate adaptation measures, also referred to as treatment measures, to lessen the effects of the identified risks; and,
Phase 2 - Hazard Treatment Reporting: This requirement only applies to projects that receive funding, and includes reporting details on treatment measures identified during project planning and design for implementation during construction. It also requires the identification of climate design data used to determine appropriate treatment and adaptation measures.
If climate hazards are identified as having the potential to have an impact on a project, applicants are required to attest that they will implement appropriate treatment measures to lessen the impact of these climate risks and use future climate design data (or the best available data) to inform their approach. Committing to these measures is a requirement for projects to be considered for funding.
HICC's Climate Toolkit Helpdesk for infrastructure and housing projects
Applicants can access support and guidance on CHIF's climate requirements through the Climate Toolkit Helpdesk. The Climate Toolkit Helpdesk is a dedicated service where communities can access guidance, valuable resources, and information on sector best practices for incorporating low-carbon and climate resilience measures in infrastructure and housing projects. The Climate Toolkit Helpdesk will also provide applicants with clear and comprehensive responses to questions related to CHIF's climate requirements.
Contact the HICC Climate Toolkit Helpdesk by: i) webform: HelpDesk; ii) email: Climate-Infra-Climat@infc.gc.ca; or iii) toll-free telephone: 1-833-834-0243.
Environmental assessment
Applicants may be required to complete a questionnaire at a later stage of project review to help HICC determine whether the project has federal environmental or impact assessment requirements under the Impact Assessment Act (IAA), modern treaties, or northern regulatory regimes. Under the IAA, designated projects may be subject to a federal impact assessment (Section 8) and projects on federal lands may be subject to an environmental effects determination (Section 82). HICC will inform funding recipients of any such requirements. No construction can start, and no funding can flow, until environmental assessment requirements are met.
The provinces and territories may also have environmental assessment requirements. More information is available on HICC's website: Environmental Impact Assessment.
Projects located on federal lands
HICC will review the applications of proposed projects located on federal lands (including First Nations reserve lands) to determine if Section 82 of the IAA applies and if an environmental effects determination is required. HICC will work with the funding recipients and other federal government departments to determine whether the project is likely to cause significant adverse environmental effects and to develop appropriate mitigation measures.
Indigenous consultation
Applicants may be required to complete a questionnaire at a later stage of a proposed project's review to help HICC determine whether the project requires consultation with Indigenous peoples. The Government of Canada has a duty to consult and, where appropriate, accommodate Indigenous peoples when it contemplates a decision or activity that might have an adverse impact on Aboriginal or treaty rights. HICC will inform funding recipients of any such requirement. No construction can start, and no funding can flow, until Indigenous consultation requirements are met.
While the duty to consult rests with the Crown, HICC asks selected applicants to carry out certain procedural aspects of consultation, where appropriate. If the recipient cannot carry out consultation activities with other Indigenous communities, other options will be discussed after the project is approved for funding. More information is available on HICC's website: Consultation with Indigenous Peoples.
Engagement with Indigenous peoples prior to applying
HICC encourages applicants to start a dialogue with all other Indigenous communities potentially impacted by the project as early as possible, ideally during project planning and before applying for funding. When a project triggers a duty to consult, early discussions may mitigate potential impacts to rights and streamline consultation requirements at later stages. This can help ensure timely project implementation, as HICC cannot process claims until consultation requirements have been met. Review the Project Activities List and Guidance for Engagement with Indigenous Peoples, which can be found in the Step-by-Step Application Instructions (available via the HICC Funding Portal) for examples of projects that may invoke a consultation requirement and other guidance.
Project reporting
Applicants may be required to complete a questionnaire at a later stage of project review to help HICC determine appropriate oversight and monitoring activities.
For successful projects, all funding recipients must report to HICC on the various commitments for data and information throughout the life of the project. The terms of reporting requirements will be set out in project funding agreements. These may include progress reports and a final report that include information on project status, updated financial and risk information and validation of results data.
3. How will my application be assessed?
Under the CHIF direct delivery stream, projects that meet all mandatory eligibility criteria will be further assessed and scored against merit criteria in the following areas:
- Project rationale: Applications that clearly demonstrate how the project aligns with CHIF program objectives and is the most appropriate solution to address the community's housing and infrastructure needs will receive a higher score.
- Housing needs addressed: Applications will be assessed against the following sub-criteria, in accordance with the type of eligible project submitted. Not all criteria may apply.
- Housing need: the extent to which a project would support communities with a housing need. This may be demonstrated by the proportion of the community living in core housing need (lack of affordable, adequate and suitable housing supply), the availability of housing supply versus demand, and the number of additional housing units required to support near-term population growth.
- Number of housing units enabled: the proportion of additional housing units enabled as part of the project. While not required for Indigenous-led projects to be eligible, projects that address a community's housing need by enabling increased housing supply may receive a higher score.
- Number of existing units benefitting from the project: the proportion of existing housing units benefitting from improved infrastructure services as a result of the project.
- Infrastructure needs addressed: Applicants are expected to demonstrate that projects will address the community's infrastructure needs and provide infrastructure services to the community. Applications will be assessed against the following criteria:
- Infrastructure access and capacity: the extent to which access to, or capacity of, drinking water, wastewater, stormwater, or solid waste infrastructure is a barrier to supporting the existing community and/or enabling increased housing supply.
- Improved levels of infrastructure services: the extent to which a project improves levels of drinking water, wastewater, stormwater, and solid waste infrastructure services to support the current or future population.
- Infrastructure benefits: the extent to which a project provides an improvement in drinking water, wastewater, stormwater, or solid waste infrastructure services. This includes improvements in the asset's physical condition, increase in the asset's useful life, and impacts on health and safety, such as increasing the level of wastewater treatment or resolving frequent or active drinking water advisories.
- Benefits to environment and community: Projects that support the advancement of federal priorities may receive a higher score. Assessors will consider benefits such as mitigation of GHG emissions, natural infrastructure integration, and addressing the needs of underserved and equity-deserving groups.
See the application form and Step-by-Step Application Instructions available through the HICC Funding Portal for detailed information and explanations to support applicants in completing each section of the application form, including considerations for Indigenous-led applications.
Assessment of Indigenous-led projects under CHIF direct delivery stream
While all applicants complete the same application form, HICC will reflect on the unique circumstances, jurisdictional considerations, and differing priorities and realities of many Indigenous communities while assessing Indigenous-led applications. As such, Indigenous applicants should not be concerned if they have to answer 'not applicable' to some questions. However, HICC encourages applicants to attempt to answer all questions and provide as much information as possible in order to ensure that HICC has all the information needed for assessment purposes.
4. Project finances
4.1 Program and federal contributions
Program contribution
The maximum level of program funding (federal cost share) that CHIF may contribute toward a project is based on recipient type. For Indigenous recipients, CHIF will fund up to 100% of total eligible costs.
Note: This cost-share could be less, depending on the project and other sources of funding.
Federal contribution
The maximum level of total federal government funding from all Government of Canada sources for a project will not exceed 100% of total eligible expenditures. As such, if a project is financed under two different Government of Canada programs, the total of the reimbursed eligible expenses cannot exceed 100% of eligible costs under those respective programs.
Cost shares
Cost shares only apply to eligible project costs. Any project costs that are not eligible (refer to section 4.2 below), including cost overruns, will not be reimbursed by HICC and the recipient will be responsible for those costs.
Contribution stacking limits
Total funding from all levels of government (including municipal, provincial, territorial and federal) cannot exceed 100% of total project costs. If actual total Government of Canada funding for a project exceeds the stacking limit, HICC may adjust its allocation of funds or will seek reimbursement so the stacking limit is not exceeded.
Applicants are responsible for considering HICC funding program eligibility criteria and funding limits, as project costs cannot be duplicated across multiple programs and the lowest stacking limits of other programs may apply to the project.
4.2 Budgeting for project expenses (eligible and ineligible costs)
The total eligible costs for a project under the direct delivery stream should not exceed $100 million. Projects above $100 million in total eligible costs will be considered on a case-by-case basis. If applicants intend to apply for a project with total eligible costs above $100 million, please email the CHIF team at chif-fcil@infc.gc.ca before submitting an application.
What costs are eligible?
Eligible costs are those considered by HICC to be direct and necessary for the successful implementation of an eligible project. Eligible expenditures for contribution funding under CHIF's direct delivery stream are as follows:
- costs that are incurred after project approval and before September 30, 2031;
- capital costs, construction costs, design and planning costs, cost for professionals, technical personnel, consultants, and contractors specifically engaged for the purpose of the project;
- for natural infrastructure only, land acquisition (see the Step-by-Step Application Instructions in the Funding Portal for more information);
- costs of environmental assessments, monitoring and follow-up activities, as required by the Impact Assessment Act or equivalent legislation;
- legal fees incurred by Indigenous recipients, excluding those related to litigation or to the purchase of real property (land or building);
- costs associated with a public announcement and official ceremony or required temporary or permanent signage that includes the cost of creating and posting signage;
- costs for the purpose of Indigenous consultation or engagement activities; and,
- other costs that are considered direct and necessary for the successful implementation of the project and that are approved in advance by the government of Canada.
What costs are ineligible?
The following costs are not eligible under CHIF:
- Project costs incurred prior to project approval—except for expenditures associated with meeting federal requirements related to environmental assessments and Indigenous consultation—and, where appropriate, accommodation (see section on Environmental assessment and Indigenous engagement and consultation costs below);
- Costs incurred for cancelled projects;
- Costs for leasing land, buildings and other facilities;
- Costs for leasing equipment other than equipment directly related to the construction of the project;
- Real estate fees and related costs;
- Recipient employee and overhead costs, except:
- those for the purpose of Indigenous consultation and engagement activities; and
- incremental costs related to the recipient's employees, if approved in writing by Canada (see textbox on Own Force Labour below)
- Costs associated with on-going operating expenses and regularly scheduled maintenance work, unless otherwise noted;
- Financing charges, legal fees, mediation or alternative dispute resolution fees, collateral on mortgage financing, and loan interest payments, including those related to easements (e.g., surveys), except for:
- legal fees incurred by Indigenous recipients, excluding those related to litigation or to the purchase of real property (land or building);
- legal fees incurred by Indigenous peoples whose rights may be impacted by project activities funded by the program and that are reasonable, as determined by Canada;
- construction finance costs incurred for public-private partnership projects.
- Any goods and services costs which are received through donations or in kind;
- Provincial sales tax, goods and services tax, and harmonized sales tax for which the recipient is eligible for a rebate, and any other costs eligible for rebates;
- Cost related to furnishings and non-fixed assets, unless approved by Canada;
- All capital costs, including site preparation and construction costs, until HICC has confirmed that environmental assessment, other applicable federal environmental legislation, and Indigenous consultation and accommodation obligations have been met and continue to be met;
- Land acquisition costs not directly linked to the development of natural infrastructure.
Cost overruns
Eligible costs are costs outlined in the project budget that may be reimbursed under the CHIF program. Please note that HICC will not reimburse ineligible costs or cover cost overruns, even under an agreement with 100% cost-sharing. Cost overruns refer to a situation in which actual costs exceed the approved project budget. Therefore, it is strongly recommended that applicants prepare a detailed budget with contingencies. For more information on preparing a budget with contingencies (e.g., incidental expenses), please see the Step-by-Step Application Instructions in the HICC Funding Portal.
Environmental assessment and Indigenous engagement and consultation costs
If the applicant expects the project to have environmental assessment or Indigenous consultation requirements, or plans to engage with Indigenous peoples or communities, potential related costs must be included in the project budget. Subject to project approval, these costs may be retroactively eligible up to two years prior to project approval, but no earlier than September 10, 2024.
- Environmental assessment costs: Include costs for environmental assessment, monitoring, and follow-up activities as required by the IAA, modern treaties, or northern regulatory regimes. For projects on federal lands, applicants should plan for a potential environmental effects determination (Section 82 of the IAA) and include forecasted costs in their project budget.
- Indigenous engagement and consultation costs: Costs may include providing ceremonial offerings, organizing meetings, and distributing project information to Indigenous community members. Costs may also cover funding for Indigenous peoples to participate in activities that involve a review of the project (e.g., costs associated with attending meetings, providing feedback on documents, and conducting separate studies on archaeological, health or socioeconomic interests). The total costs will depend on the number of consultation activities required based on the nature of the project and the number of communities or organizations that need to be consulted. Costs may vary from one region to another.
Non-competitive procurement
All contracts must be awarded in a way that is fair, transparent, competitive, and consistent with value-for-money principles. In addition, when applicable, contracts must be awarded in accordance with the Canadian Free Trade Agreement and international trade agreements (see Glossary for the definition of competitive contract).
When non-competitive contracts are necessary for the implementation of a project, and they are above the specified thresholds, HICC's approval of the contract as an eligible expenditure is required for the expense to be considered eligible under the CHIF program. No additional approval is required for non-competitive contracts that have an estimated value below $40,000 for construction or goods contracts, or $100,000 for service contracts.
HICC may approve funding for CHIF projects involving non-competitive contracts that:
- are for less than $500,000;
- are with a public-sector entity;
- can only be performed by one person or entity;
- are with an Indigenous recipient;
- are with an Indigenous organization or governing body and there is a benefit to an Indigenous community; or,
- addresses a state of emergency that has been declared.
For applicants seeking a non-competitive procurement process outside of these parameters, HICC will need to seek approval from the Treasury Board of Canada. Obtaining Treasury Board approval may take several months and will require a strong rationale for the non-competitive procurement process, as well as more complex and in-depth information requirements.
Eligibility of own-force labour
In certain instances, provisions may be made for Indigenous recipients for the use of own-force labour (e.g., costs related to work undertaken by the applicant's employees or hiring of additional staff related to construction of the project). In order for these costs to be eligible, the recipient will need to receive prior approval from HICC.
Non-competitive procurement and own-force labour
In order for expenses related to non-competitive procurement or own-force labour to be eligible, applicants must receive prior approval from HICC. Applicants that are unsure whether they will be able to use non-competitive procurement or own-force labour can contact the CHIF team at chif-fcil@infc.gc.ca for guidance.
5. Additional information
5.1 Supporting documents
Applicants may be required to submit additional documents to support their application:
- A Keyhole Markup Language (KML) file showing the location of proposed project activities is required with every application. Instructions on how to create a KML file are included in the Step-by-Step Application Instructions available in the HICC Funding Portal.
- Letters of support may also be required under certain circumstances, such as to confirm an eligible partner's role in the project.
- While not required, other documents may be included to support an application. Examples include a housing needs assessment to substantiate a community's housing need or an engineering report that confirms the project as the best option to meet the infrastructure need.
Note: HICC reserves the right to contact applicants to request additional documents and information that are required to support assessment of the application.
5.2 For more information
The Step-by-Step Application Instructions is a companion guide intended to support applicants with navigating the HICC Funding Portal, and completing and submitting an application. It provides section-by-section guidance for answering questions in the application form. This Guide is available to applicants on the HICC Funding Portal.
Applicants are encouraged to consult the CHIF webpage for up-to-date information, including Frequently Asked Questions and information on how to register to attend an upcoming webinar.
If applicants still have questions about the program after consulting these resources, please send an email to the CHIF team at chif-fcil@infc.gc.ca.
Annex A: Glossary of terms
A.1 Acronyms
ATRIS – Aboriginal and Treaty Rights Information System
CHIF – Canada Housing Infrastructure Fund
GHG – Greenhouse Gases
HICC – Housing, Infrastructure and Communities Canada
IAA – Impact Assessment Act
KML – Keyhole Markup Language
A.2 Definitions
Affordable housing: For the purposes of CHIF, affordable housing refers to a dwelling unit where the cost of shelter, including rent and utilities, is a maximum of 30% of before-tax household income; where the household income is defined as 80% or less of the Area Median Household Income (AMHI) for the metropolitan area or rural region of the recipient.
Asset: Physical infrastructure that is necessary to support and deliver public services. This may also include natural infrastructure.
Competitive contract: A contract awarded in connection with the solicitation of bids, that is, a) giving public notice of a call for bids on a contract, or b) inviting bids on a proposed contract from specific suppliers (two or more) on a supplier's list. If a solicitation of bids results in a single bid and the contract is with the lone bidder, then it is deemed to be a competitive contract. Inversely, if there was no solicitation of bids, it is considered a non-competitive contract.
Pre-existing, multi-year contracts or standing offers may be considered competitive if all apply:
- The original contract was tendered through the solicitation of bids
- The contract contains an option to increase the length or expand the scope of the project, and
- The contract option was signed after federal project funding approval was confirmed in writing
Core housing need: A household is considered to be in core housing need if it meets the following two criteria:
- A household is below one or more of the adequacy, suitability and housing affordability standards.
- Adequacy – Housing is considered adequate when it isn't in need of major repairs. Major repairs include defective plumbing or electrical wiring, or structural repairs to walls, floors, or ceilings.
- Suitability – Housing is considered suitable when there are enough bedrooms for the size and make-up of resident households. This is according to National Occupancy Standard (NOS) requirements.
- Housing affordability – Housing is considered to be affordable when housing costs less than 30% of before-tax household income.
- The household would have to spend 30% or more of its before-tax household income to access local housing that meets all three standards.
Equity-deserving group: A group of people who, because of historical or systemic discrimination, face barriers that prevent them from having the same access to resources and opportunities that are available to other members of society, and that are necessary for them to attain just socioeconomic outcomes. In Canada, this is generally considered to include women, Indigenous people, people with disabilities, people who are part of 2SLGBTQI+ communities, religious minority groups and racialized people. The types of equity-deserving groups may vary based on factors such as geography, sociocultural context or the presence of specific subpopulations.
Expansion: The process of increasing the capacity, size, scope, or reach of an existing infrastructure project, system, or network to accommodate growing demands, population growth, or evolving needs. It encompasses activities such as building new infrastructure components, extending existing networks, and implementing scalable solutions to meet the evolving provincial and federal requirements.
Housing need assessment: A report informed by data and research that describes the current and future housing needs of a municipality or community (see the Housing Needs Assessments website for more information). It includes both:
- Quantitative research, such as analysis of economic data, population and household forecasts
- Qualitative research, such as interviews, policy analysis, and stakeholder engagement
Natural infrastructure: An interconnected set of natural and constructed ecological systems, green spaces, and other landscape features that deliver ecosystem services, as well as hybrid/grey-green infrastructure which combines engineered and natural features to mimic ecosystem services. For example, naturalized stormwater management ponds; wetlands; restored flood plains; rain gardens; permeable land cover; infiltration basins; etc.
New construction: Construction of entirely new capital assets.
Rehabilitation: Any work undertaken on an existing asset that will encourage its continued use. The work on the existing asset ultimately must extend the life or improve the quality, functionality or safety of the asset.
Rural: For the purposes of CHIF, the definition of a “rural” community is a community with a population of 30,000 or less, regardless of its geographic location.
Substantially complete: Substantially complete means that the project infrastructure can be used for its intended purpose (as described in the agreement between HICC and the funding recipient).
Underserved communities: Refers to communities that received subpar services in many aspects, including in infrastructure and the built environment. They face barriers to and challenges in accessing and using resources due to geographic location, religion, sexual orientation, gender identity, race and ethnicity. Underserved populations usually encounter unique challenges (such as language, geographical and cultural barriers, physical or cognitive ability, etc.).
Waste: refers to any material, non-hazardous or hazardous, that has no further use, and is managed at recycling, processing, or disposal sites.
Annex B: Privacy and confidentiality
The information provided by applicants in their applications or in any other form will be used by the Government of Canada for 1) review, evaluation and selection of applications under the Canada Housing Infrastructure Fund (which is administered and managed by Housing, Infrastructure and Communities Canada) or 2) for confirming past federal funding sought by applicants.
Federal government institutions are bound by the requirements of the Access to Information Act and the Privacy Act, as well as the Library and Archives Canada Act. These laws apply to the use, disclosure and retention of information (such as personal, confidential or other) under the control of federal government institutions.
Applicants should note that Housing, Infrastructure and Communities Canada may consult and share the information provided in applications with other federal government institutions or other organizations for the purpose of assisting the department with project reviews and evaluations, determining eligibility under other federal government programs, and confirming past federal funding sought by an applicant. Housing, Infrastructure and Communities Canada may also use and disclose the information to external experts (e.g., scientific, technical, financial, marketing, or commercialization), hired by the Government of Canada under contract with confidentiality obligations, for the purpose of assisting the department with project reviews and evaluations or determining eligibility under other federal government programs.
In submitting an application, applicants are consenting to such uses, sharing and disclosures of the information for the purposes described above. Applicants are invited to clearly identify in their application the provision of any information that contains trade secrets, is confidential or that if disclosed, could reasonably be expected to result in material financial loss or gain to, or to prejudice the competitive position of, a third party, or, to interfere with contractual or other negotiations of a third party, as outlined in section 20 of the Access to Information Act. Once a funding agreement is signed, the name of the successful applicant, location, date of approval, the funding amount, and the project description may be proactively disclosed to the public.
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