Federal government unveils $1.5 billion Canada co-op housing program

A new $1.5 billion fund to provide financial support for the construction of co-operative housing is being called the largest Government of Canada investment to build co-op housing in the last 30 years.

“By focusing on people over profits, co-operative housing is able to keep housing affordable for the long term,” said Sean Fraser, federal minister of Housing, Infrastructure, and Communities, in a statement.

“It will help build thousands of new homes and create a new generation of co-operative housing across Canada.”

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The  Co‑operative Housing Development Program will provide a combination of low-cost repayable loans and direct non-repayable funding contributions to build and expand co-ops, which are managed by the residents who live in the co-op complex, without any outside landlord.

According to the Co-Operative Housing Federation of Canada, recent data suggests over 2,200 non-profit housing co-ops across the country, providing homes for over 250,000 people in over 90,000 households. There are currently about 275 co-ops with nearly 16,000 units in British Columbia, about 130 co-ops with over 6,700 units in the Prairie provinces, over 550 co-ops with over 44,000 units in Ontario, and more than 1,100 co-ops with over 22,500 units in Quebec.

Previous CMHC studies suggest non-profit co-ops cost about 14% less to operate than conventional non-profit housing.

“The program acknowledges the unique value of co-operative housing in providing affordable, secure homes, and fostering strong and inclusive communities. The program will kick-start the construction of the next generation of co-op housing, which is part of how we will solve the housing crisis. The co-op housing sector is once again ready to build,” said Tim Ross, the executive director of the Co-Operative Housing Federation of Canada.

According to the federal government, the new program could help catalyze a new wave of co-op homes by 2028. The program will focus on projects that offer affordability for those most in need.

The application process for co-op housing providers begins on July 15, 2024, with the first intake round remaining open through the middle of September.

This adds to the federal government’s low-cost loan and direct funding programs, which are designed to catalyze secured purpose-built rental housing projects across the country. It is part of the various new initiatives announced just before and during this year’s federal budget.

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• Trudeau announces $2 billion in federal financing for BC Builds housing program
• Number of construction workers in Canada reaches all-time high, but housing starts lag
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