Two decades into the Agency’s oversight of federally administered housing co-ops, we’re proud to say that many are doing better than ever.
Our 2024 Biannual Portfolio Performance Review shows housing co-ops that are well-managed, financially stable and more resilient.
And, even better, we are seeing the pattern holding as these co ops pay off their mortgages and reach the end of their operating agreements.
Risk Down, Stability Up
In 2024, 60 per cent of client housing co-ops were rated Low or Moderate risk, up significantly from just 39 per cent in 2007. Only four per cent of co-ops are now at High risk of falling into difficulty. Still more encouraging, 80 per cent of our clients show a stable or strengthening risk trend.
These gains reflect some of the good financial practices that we have recommended to co ops over the years through our annual risk rating.
Efficiency and Accountability
We’ve also seen steady decline in revenue leakage from arrears, bad debts and vacancies. Median arrears and bad debts per unit have dropped from $97 in 2007 to $60 in 2024.
Vacancy losses have also decreased, with co-ops reporting a much reduced financial impact from empty units. Though some vacancy loss is inevitable as housing co-ops refresh units on turnover, these losses have dropped over time to a median of $115 per unit annually.
Co-op board members in arrears are now rare, with their total debt falling 86 per cent to just $72,471 across our entire client group.
Investing for Tomorrow
As housing co-ops pay out their mortgages, we’re encouraged to see that many are reinvesting in their aging buildings. With most properties over thirty-five years old, nearly three times as many are spending $4,000 or more per unit annually on maintenance and upgrades, compared to 2007.
Contributions to capital replacement reserves have more than tripled, and 76 per cent of co-ops now hold over $6,000 per unit in reserve—up from just 33 per cent in 2007.
Looking Ahead to the Future
With 78 per cent of housing co-ops now out of their original operating agreements, the Agency’s role as an administrator is evolving.
As co-ops look to sustain themselves into the future, we have a valuable resource in the deep well of data that has filled up over 20 years of monitoring their performance. These data offer insights into financial health, good governance practices and long-term sustainability. With continuous inputs, this information can help co-ops make informed decisions as they chart their own course.
We look forward to supporting co-op boards and managers in strengthening their communities for this generation and the next.