Mr. Speaker, the shared equity mortgage providers, or SEMP, fund supports existing shared equity mortgage providers. Repayable loans are offered to eligible proponents to commence new housing projects where shared equity mortgages will be provided, under stream one, or to fund lending directly through shared equity mortgage providers to first-time homebuyers, under stream two. The fund aims to assist in the completion of 1,500 new units and help at least 1,500 homebuyers buy their first home.
The program offers to eligible proponents repayable loans from one of two possible funding streams. Preconstruction loans, under stream one, provide funding for preconstruction cost loans to commence new housing projects in which shared equity mortgages will be provided to homebuyers via SEMPs. Shared equity mortgages, SEM, under stream two, provide loans to SEMPs to fund shared equity mortgages that they provide directly to first-time homebuyers.
For more details visit https://www.cmhc-schl.gc.ca/en/professionals/project-funding-and-mortgage-financing/funding-programs/all-funding-programs/shared-equity-mortgage-providers-fund.
In response to part (a), Canada Mortgage and Housing Corporation has received nine applications under the shared equity mortgage providers fund, and five applications have been approved in the amount of $17 million.
In response to part (b), $1.3 million has been distributed to date through the SEMP.
In response to part (c), this will support the creation of 700 new housing units.
The data used in the response is as of December 31, 2021.