CHF Canada and NBNPHA recommendations for the New Brunswick election

Published September 26, 2024

Over 1,000 households in New Brunswick have a safe, inclusive, and affordable home because they live in a housing co-op. Co-op housing is a key solution to New Brunswick’s housing crisis.

Ahead of the provincial election on October 21, CHF Canada and the New Brunswick Non-Profit Housing Association (NBNPHA) have put together the following recommendations for the next provincial government:

1.     Double the number of co-op and non-profit homes in New Brunswick by providing dedicated funding.
2.     Support the purchase and conversion of private rental housing to co-op housing, by creating a Community Housing Acquisition Fund
3.     Encourage the development of  co-op and non-profit housing by providing an HST rebate on construction costs 

Recommendation 1: Double the number of co-op and non-profit homes in New Brunswick by providing dedicated funding.

With rising housing costs and a growing population, New Brunswickers need more affordable, secure housing options. Co-op housing is an at-cost solution, where housing charges are only raised to cover costs.  This results in affordability over the long-term and fosters strong communities. Many co-op members raise their families in their co-op, and then continue to live there through their retirement years. Not only can seniors age in place, but they can also age in community, surrounded by neighbours who care.

Growing co-op and non-profit housing in New Brunswick requires resources. Dedicated, stable funding is critical to get co-op and non-profit housing built. Building more co-op and non-profit housing will generate more wealth for everyone by increasing labour mobility, providing economic stability and encouraging investment. 

Recommendation 2: Support the purchase and conversion of private rental housing to co-op housing by creating a Community Housing Acquisition Fund

Some existing private rental housing is relatively affordable for households in New Brunswick. But tenants who live in this type of housing are not secure; a sale, rent hike or renoviction is always possible.  We have seen this happen in communities across the province. This is why converting this type of housing into co-operative or non-profit housing is the most effective way to preserve affordability.

Data from across Canada estimates that for every affordable unit built with government support up to fifteen relatively affordable units in the private sector are lost. We recommend the creation of a Community Housing Acquisition Fund to assist co-operative and non-profit housing providers purchase appropriate properties, which will help households and grow the number of affordable homes in the province.

Recommendation 3: Encourage the development of co-op and non-profit housing by providing an HST rebate on construction costs

It is costly to build new homes, including co-operatives. That’s why it is necessary for the provincial government to incentivize residential construction. We need more co-op and non-profit homes built in our communities; the co-operative and non-profit housing sector can build more if the province reduces the HST on construction costs. Other provinces, such as PEI and Nova Scotia, have acted on this opportunity to help add much-needed housing by committing to a HST rebate program for non-profit and co-op developments.