MEDIA: CHF Canada welcomes investments for co-op and affordable housing supply in Federal Fall Economic Statement
Published November 21, 2023
(November 21 2023) – Today, Deputy Prime Minister and Minister of Finance Chrystia Freeland presented the Fall Economic Statement focused on accelerating the construction of new rental housing and addressing growing cost-of-living concerns. New funding announcements included a $1 billion over three years for the Affordable Housing Fund for co-op, non-profit, and social housing development, along with a change that makes non-profit co-op housing development eligible for the GST rental rebate.
“We appreciate these investments to build more co-op homes; now it is time to focus on implementation,” said CHF Canada Executive Director, Tim Ross. “CHF Canada encourages the federal government to launch the Co-operative Housing Development Program as soon as possible. We know there are co-op housing projects waiting for this funding. In a housing crisis, we need to act quickly and develop a diversity of housing options for all people in Canada.”
Since Budget 2022, the government has recognized the need for more co-op housing and supported the co-operative housing movement in Canada. In Budget 2022, the federal government announced the first significant funding for co-operative housing development in thirty years. The new dedicated $1 billion for the Affordable Housing Fund demonstrates a continued commitment to develop more community housing, including co-operative housing.
Building more co-op homes will foster inclusive, sustainable communities while effectively addressing the housing challenges faced by Canadians.
“The co-op advantage ensures housing is delivered as economically and affordably as possible, while maintaining buildings in good repair and supporting strong communities,” says Tim Ross, Executive Director. “We are encouraged by these investments to spur more co-op and community housing, and we are eager to do our part to address the housing crisis.”
Key highlights from the statement include:
- GST rental rebate now available for new co-op housing construction. Co-op housing projects that begin construction between September 13, 2023 and the end of 2030, will now be eligible for the GST rebate. Including co-operative housing in the GST rebate program recognizes the need for more non-market housing options, like co-ops. Reduced project costs translate to diminished debts, resulting in lower housing charges from the outset.
- $1 billion Affordable Housing Fund, formerly the National Housing Co-Investment Fund. This fund will support community housing providers, including co-ops, to build 7,000 new homes by 2028. Details will be announced in early 2024 to make the program more accessible with faster approvals to meet Canada’s growing housing need.
- $15 billion in new loan funding for new rental housing construction. Formerly the Rental Construction Financing Initiative (RCFI), the new Apartment Constructions Loan program will provide $15 billion in new loan funding beginning in 2025.
- Recommitment to Indigenous Housing. The government is recommitting to work with Indigenous partners to co-develop and launch the urban, Rural and Northern Indigenous Housing Strategy, first announced in Budget 2023.
- New Department of Housing, Infrastructure and Communities. The government will be introducing legislation in 2024 to set the duties and function of this department as the federal lead for improving housing outcomes and enhancing public infrastructure.
For media inquiries, please contact:
Associate Director, Public Affairs and Policy
About CHF Canada:
The Co-operative Housing Federation of Canada (CHF Canada) is the national voice of the Canadian co-operative housing movement. CHF Canada represents more than 900 non-profit housing co-operatives and other organizations across the country. CHF Canada’s mission is to inspire, represent, and serve our members in a united co-operative housing movement.
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