The end of mortgage issue.
21,000 co-op homes in Ontario are at risk.
Housing Services Act (HSA) co-ops across the province are near the end of their mortgages. This would seem like a good thing. But an outdated funding formula means that this could put the co-op – and the low-income residents who live there – in a worse position.
The current formula means that without mortgage costs, a co-op may fall into a “negative operating subsidy" position and lose crucial government assistance that covers the cost of rental assistance and property tax. This will leave co-ops with not enough money to repair their homes putting the entire co-op at risk. It may also lead to a loss assistance for low-income households.
Learn more about the funding formula.
The cost of doing nothing.
As mortgages mature, so do the buildings.
While it was possible to fund basic maintenance and repairs under the current formula, buildings that are over 30 years old require costly renovations to remain in operation. Not changing the funding formula will put at risk tens of thousands of affordable co-op and non-profit homes across Ontario.
After 35-years Maple Glen Co-op’s capital repairs cost $2.1 million
See how one HSA co-op has been impacted.
Fix the formula.
A simple solution to the end of mortgage problem.
Under a new funding formula, when an HSA co-op reaches end of mortgage, rental assistance and property tax support would continue but operating subsidy would not. This would allow co-ops to use mortgage savings to help fund crucial investments in capital repairs. We are calling on the Ontario government to fix the formula in the new service agreement regulation to address the end of mortgage issue.
Ensuring we fix the formula is key to the sustainability of our HSA co-ops – and the security of the low and moderate-income households who live there. The future of these affordable, good-quality homes depends on this.
Simply removing operating subsidy, and including rental assistance and property tax subsidy for low-income households in the new service agreement regulation would fix the formula.
Stay informed with email updates.
Pass a Fix the Formula resolution at your co-op
- December 4 – Letter to Minister Clark regarding the Ontario Municipal Social Services Association report on End of Mortgage.
- December 2 – Letter to York Regional Council with recommendations for the end of community housing mortgages.
- October 21 – Co-op Housing Day Note on building support for affordable housing.
- July 21 – Ontario government passes legislation with an improved framework for community housing under Community Housing Renewal Strategy.
- July 13 – Submission to the Standing Committee on Finance and Economic Affairs
- June 25 – Submission to Bill 184, Protecting Tenants and Strengthening Community Housing Act
- January – Pre-budget submission with recommendations on building up Ontario’s housing.
- October 16 – Understanding End of Mortgage Briefing Note.
- September – Ontario releases Technical backgrounder on End of Mortgage issue.
- January – Pre-budget submission outlining ideas to help build and support affordable housing in Ontario.
- April 30 – Response to the Social Housing Modernization Technical Discussion for the Ministry of Housing.