Coop housing with more affordable rents planned for Ontario and other parts of Canada

ONTARIO, June 21, 2024 – The Canadian government has announced plans to launch a new programme that will create more cooperative housing in Ontario and other cities in the country.

Cooperative housing, often referred to as “coops,” is unique in that it is managed by the residents and not a landlord or outside management company. Cooperatives are owned by members who elect a board of directors to oversee the management of the property. Residents who want to live in a cooperative must apply for membership and, if selected, must take part in running the facility.

Units in coops are typically more affordable than private rental housing, with some offering rent-geared-to-income units and suites reserved for people with special needs.

According to a 2022 report by the Canadian Mortgage and Housing Corporation, Toronto coop apartment rents were 60-70 percent of market rent by 2020-21, with the average monthly one-bedroom coop rent costing about $450 less than a market apartment by 2019-2021.

According to a recent National Rent Report, the average asking rent in Canada hit $ 2,202 last month.

Data from the Cooperative Housing Federation of Canada [CHF Canada] indicates that approximately 125,000 people live in more than 550 non-profit housing coops across Ontario.

According to a news release, the federal government’s new $1.5 billion Cooperative Housing Development Programme–co-designed with CHF Canada and other leaders in the coop sector—will provide loans and contributions to build and grow coops across Canada.

The government says this is the largest investment in new coop housing in the last 30 years and that the funding will create “thousands of new coop homes by 2028.”

Projects focusing on providing homes for those most in need will be prioritised, including Indigenous groups, women and children, and persons with disabilities.

The government says coop housing providers can apply for funding starting on July 15, with the first intake round running from then until September 15.

“The launch of the new Cooperative Housing Development Programme is a turning point. The programme acknowledges the unique value of cooperative housing in providing affordable, secure homes, and fostering strong and inclusive communities,” said Tim Ross, executive director of CHF Canada, in a statement.

“The programme will kick-start the construction of the next generation of coop housing, which is part of how we will solve the housing crisis. The coop housing sector is once again ready to build.”

The federal government says the programme consists of approximately $500 million in contributions and $1 billion in loans to build new coops and grow existing ones.

https://thecooperator.news/canada-cooperative-housing-development-programme-launched/

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