Co-op housing with more affordable rents planned for Ontario and other parts of Canada

The federal government has announced plans to launch a new program that will create more cooperative housing in Canada.

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

Units in co-ops 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 co-op apartment rents were 60-70 per cent of market rent by 2020-21, with the average monthly one-bedroom co-op 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 Co-operative Housing Federation of Canada indicates that approximately 125,000 people live in more than 550 non-profit housing co‑ops across Ontario. 

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According to a news release, the federal government’s new $1.5 billion Co‑operative Housing Development Program–co-designed with CHF Canada and other leaders in the co-op sector—will provide loans and contributions to build and grow co-ops across Canada. 

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

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

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

“The launch of the new Co-operative Housing Development Program is a turning point. The program acknowledges the unique value of co-operative housing in providing affordable, secure homes, and fostering strong and inclusive communities,” said Tim Ross, executive director of CHF Canada, in a statement. 

“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.”

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