Housing Minister Sean Fraser has announced the rollout of a $1.5 billion co-operative housing development program, a key commitment from the federal government’s 2022 budget.
Speaking in Winnipeg on Thursday, Fraser outlined the program’s aim to build thousands of new homes by 2028. The initiative was co-designed with the Co-operative Housing Federation of Canada, which represents over 900 co-ops nationwide, and other sector leaders.
RAED ALSO: Canada Extends Ban on Ownership of Housing Amid Affordability Crisis for foreigners
Co-op housing, typically managed by residents without external landlords and operating on a break-even basis, is seen as a crucial part of addressing housing affordability.
This program is a component of the federal government’s broader plan to tackle housing affordability, released earlier this year.
Prime Minister Justin Trudeau’s administration hopes to engage younger voters by addressing economic issues like housing, which polls indicate are driving many away from the Liberal Party.
READ ALSO: Canada Extends Ban on Ownership of Housing Amid Affordability Crisis for foreigners
Fraser highlighted the program as the most significant federal investment in co-op housing in three decades. “By focusing on people over profits, co-operative housing is able to keep housing affordable for the long term,” Fraser stated in a news release.
The federal government announced that co-op housing providers could apply for the first round of funding from July 15 to September 15. The program will be administered by the Canada Mortgage and Housing Corp., offering $1 billion in loans and $500 million in grants.