Federal Fall Economic Statement includes investments for new co-op and affordable housing

Published November 29, 2023

On November 21, the Federal Government presented its 2023 Fall Economic Statement, which focused on housing and affordability.

CHF Canada was pleased to see new funding announcements for co-op and affordable housing supply, along with a change that makes non-profit co-op housing development eligible for the GST rental rebate.

While we remain steadfast in our focus to see the Co-op Housing Development Program launched as soon as possible, we welcome these new actions that acknowledge the important role of co-op housing in addressing the growing housing crisis.

Key highlights from the statement include:  

1. 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 lower project debts, resulting in lower housing charges from the outset.
2. $1 billion for the 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.
3. $15 billion in new loan funding for new rental housing construction. Formerly the Rental Construction Financing Initiative, the new Apartment Constructions Loan program will provide $15 billion in new loan funding beginning in 2025.
4. 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.
5. 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.

Thank you to co-op members, federations, partners and champions who helped make some of these wins possible.