Spread the love

Ottawa is investing $1.5 billion to stimulate the creation of housing cooperatives

Photo: FHCQ – Arnau Cunties Farràs The federal government says that for a first round of funding, housing co-op providers will be able to submit their applications between July 15 and September 15.

Nojoud Al Mallees – The Canadian Press in Ottawa

Published at 12:27 p.m. Updated at 1:32 p.m.

  • Canada

Federal Housing Minister Sean Fraser on Thursday launched a new $1.5 billion housing co-op development program, promised by the Liberal government two years ago in its budget of 2022.

Mr. Fraser was in Winnipeg on Thursday to launch the program, which should enable the construction of “thousands of new co-op housing units by 2028,” Ottawa hopes.

The federal government says that the program was designed jointly with the Co-operative Housing Federation of Canada – which represents more than 900 co-ops across the country – as well as other players in this sector.

Also read

  • Rate cut: What impact on the housing market?

Housing co-ops are run by their residents, with no outside landlords, and generally operate on a balanced budget.

The federal program is one element of a government plan released this spring to tackle high housing costs in Canada.

Prime Minister Justin Trudeau’s government is trying to woo young voters by tackling key economic issues like housing, which polls show are driving many of them away from the Liberals.

Minister Fraser billed the program Thursday as “the most significant investment in co-op housing since 30 years old.

“By prioritizing people rather than profits, housing cooperatives help maintain housing prices at an affordable level in the long term,” the minister argued in a press release on Thursday.

The federal government says that for a first round of funding, housing co-op providers will be able to apply between July 15 and September 15. Further rounds are planned thereafter, the government says.

The program, which will provide $1 billion in loans and $500 million in grants, will be administered by the Canada Mortgage and Housing Corporation.

The government specifies that projects will be prioritized for funding if they aim to provide housing for those who need support, “including indigenous groups and women and children, as well as people with disabilities.”

The Co-operative Housing Federation of Canada highlighted Thursday that during the 1970s and 1980s, these cooperatives allowed Canada to meet its housing needs. “Cooperatives built decades ago now provide affordable and safe housing for a quarter of a million Canadians,” the Federation said in a press release.

Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116