- What The federal government launched the $1.5bn Co-operative Housing Development program
- Why To help build thousands of new co-op homes by 2028 through loans and contributions
- What next Applications for the first round of funding open on July 15
The federal government launched a $1.5bn fund on Thursday to support the development of co-operative housing in Canada.
The Co-operative Housing Development program will provide forgivable and low-interest repayable loans and contributions to eligible builders. The goal is to build thousands of units by 2028.
Forgivable loans can amount to the total funding needed for a project to be financially viable or one-third of the total contract amount — whichever is lower. They will be forgiven over 20 years, with forgiveness earned annually.
Repayable loans can go up to two-thirds of the project cost and can be amortized up to 50 years.
Eligible applicants include non-profit housing co-operatives, land trusts and Indigenous governments and organizations. Projects can include construction, densification and the conversion of non-residential buildings, but they must have at least 75 units for large urban centres and 30 units for small to medium urban centres.
Projects that provide homes for those in need of support, including women and children, Indigenous groups, and people with disabilities, will be prioritized for funding.
The program marks the largest government investment to build new co-op housing — which is generally more affordable than private rental housing — in the last 30 years.
“The launch of the new Co-operative Housing Development Program is a turning point,” said Tim Ross, executive director of the Co-operative Housing Federation of Canada. “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.”
Applications for the first round of funding opens on July 15 and will remain open until Sept. 15. Additional rounds of applications will be announced at a later date.
