Government Introduces $1.5 Billion Initiative to Expand Co-op Housing Availability
Housing Minister Sean Fraser has announced the launch of a $1.5-billion co-operative housing development program that the federal government promised in its 2022 budget.
Mr. Fraser was in Winnipeg on June 6 to announce the program, which is expected to build thousands of new homes by 2028.
The federal government said the program was co-designed with the Co-operative Housing Federation of Canada—which represents more than 900 co-ops across the country—as well as other leaders in the sector.
Co-op housing is managed by residents with no outside landlord and typically operates on a break-even basis.
The program is one element of a plan released this spring outlining the federal government’s plans to tackle housing affordability.
Prime Minister Justin Trudeau’s government has been trying to reinvigorate younger voters by trying to address key economic issues, such as housing, that polling suggests are causing many of them to turn away from the Liberals.
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Mr. Fraser touted the program as the largest federal investment in co-op housing in 30 years.
“By focusing on people over profits, co-operative housing is able to keep housing affordable for the long term,” he said in a news release.
The federal government says co-op providers will be able to apply for the first round of funding between July 15 and September 15.
The program, which will offer $1 billion in loans and $500 million in grants, will be administered by the Canada Mortgage and Housing Corp.
