Ottawa announces $1.5B program to build co-op housing

Key Takeaways:

• The federal government has launched a new $1.5 billion program, the largest investment in co-op housing in 30 years, to build thousands of affordable co-op homes by 2028.
• The program prioritizes co-op projects that target providing affordable housing for those who need it most, including Indigenous groups, women and children, and people with disabilities.
• It offers a combination of loans and contributions to help co-op housing providers build new co-ops and expand existing ones. Applications for the first funding round open July 15,2024.

The Whole Story:

The federal government has launched a new Co‑operative Housing Development Program to support a new generation of co-op housing in Canada and help make housing more affordable.

The new $1.5 billion program – co-designed with the co-operative Housing Federation of Canada and other leaders in the co-op sector – will provide loans and contributions to build and grow co-ops across Canada. 

“By focusing on people over profits, co-operative housing is able to keep housing affordable for the long term,” said Sean Fraser, minister of housing. “This is the largest investment in co-op housing in 30 years. It will help build thousands of new homes and create a new generation of co-operative housing across Canada.”

The program aims to build thousands of new co-op homes by 2028. Projects that focus on providing homes for those most in need will be prioritized.

Co-op housing providers will be able to apply for funding starting on July 15, 2024, and the first intake round will remain open until September 15, 2024. Additional intake opportunities will be announced at a later date. To start preparing an application and to receive updates, visit the Co-operative Housing Development webpage.

“Our government’s plan to build nearly 4 million new homes is the most ambitious housing plan in Canadian history,” said Chrystia Freeland, minister of finance. “We’re doing this to ensure every generation, especially Millennials and Gen Z, can find an affordable place to call home. Today’s investment to build more co-op housing—the largest investment in co-ops in three decades—will help us build more of the homes Canadians need.”

Co-operative housing, often referred to as “co-ops”, are managed by the people who live in it, with no outside landlord. Co-ops are generally more affordable than other private rental housing.

The program consists of approximately $500 million in contributions and $1 billion in loans to build new co-ops and grow existing ones. CMHC will administer the Co-operate Housing Development Program on behalf of the federal government. 

Projects will be prioritized for funding if they focus on providing homes for those in need of support, including Indigenous groups, women and children, and persons with disabilities.