Federal Housing Minister Sean Fraser on Thursday launched a new $1.5 billion housing cooperative development program, promised by the Liberal government two years ago in its 2022 budget.
Mr. Fraser was in Winnipeg on Thursday to launch the program, which should allow the construction of “thousands of new cooperative housing units by 2028,” Ottawa hopes.
The federal government specifies that the program was designed jointly with the Co-operative Housing Federation of Canada – which represents more than 900 cooperatives across the country – as well as other players in this sector.
Housing cooperatives are administered by their residents, without an outside owner, and generally operate on the basis of a balanced budget.
This federal program is one element of a government plan released this spring to combat 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 prompting many of them to turn away from the Liberals.
Minister Fraser presented the program on Thursday as “the most significant investment in cooperative housing in 30 years”.
“By prioritizing people rather than profits, housing cooperatives help maintain housing prices at an affordable level in the long term,” the minister argued Thursday in a press release.
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. Other rounds are planned subsequently, indicates the government.
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 says 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 stressed Thursday that during the 1970s and 1980s, these cooperatives allowed Canada to meet its housing needs. “Cooperatives built several decades ago today offer affordable and safe housing to a quarter of a million Canadians,” supports the Federation in a press release.