The Canadian Government has Announced New Initiatives to Provide Support to Housing Cooperatives

…The provisions in the federal budget were welcomed by the Co-operative Housing Federation of Canada

The Canadian government’s recent announcement of new initiatives is a game-changer for housing cooperatives. These initiatives are designed to provide vital support to cooperatives, enabling them to better serve their members. By offering much-needed funding and resources for the development and maintenance of housing units, these initiatives are a crucial step toward making housing more affordable and accessible across the country. Let’s applaud this important effort by the Canadian government to create a brighter future for all Canadians.

Canada’s deputy prime minister and minister of finance, Chrystia Freeland, delivered her 2023 Fall Economic Statement on 21 November, which included some measures that will benefit housing co-ops.

To mitigate the impact of higher interest rates on the housing sector, Freeland has announced plans to speed up the construction of new rental housing. As a part of this initiative, the government will allocate CA$1 billion over three years to the Affordable Housing Fund for co-operative, non-profit, and social housing development. The funding will support community housing providers, including co-ops, in building 7,000 new homes by 2028.

The government has introduced a new policy to provide relief to co-op housing projects. Under this policy, co-op housing projects that start construction between 13 September 2023 and the end of 2030 will be eligible for a goods and service tax rebate. This initiative is expected to reduce project costs and debts and make housing more affordable for residents from the beginning.

The government is also pledging $15bn in loan funding for rental housing construction as part of a new Apartment Constructions Loan programme.

The budget announcements were welcomed by the Co-operative Housing Federation (CHF) of Canada. “We appreciate these investments to build more co-op homes; now it is time to focus on implementation,” said executive director, Tim Ross. “CHF Canada encourages the federal government to launch the Co-operative Housing Development Program as soon as possible.

“We know co-op housing projects are waiting for this funding. In a housing crisis, we need to act quickly and develop a diversity of housing options for all people in Canada.”

The measures announced in the 2022 budget to support the housing co-op sector have been expanded.

“By taking advantage of the co-op model, housing can be delivered economically and affordably, while also ensuring that buildings are well-maintained and communities are strong,” explained Ross. “We are optimistic about the investments being made to promote the development of more co-op and community housing, and we are committed to doing our part in addressing the current housing crisis.”