Funding Your Co-op Could Qualify For

Date
25 January 2022

CMHC’s National Housing Co-Investment Fund hasn’t drawn great interest from Agency clients so far. In fact, it may be the most overlooked funding source in Canada for housing co-ops. We’re hoping to change that.

The fund supports building repair and renewal, as well as new construction, with forgiveable and repayable loans. An important feature is that co-ops need to spend the money on projects that will increase their environmental and financial sustainability.

Over the past few years, the Agency has been pleased to learn that CMHC has approved several of our clients for this funding. To qualify, these co-ops had to show that they were in good financial shape, with solid management. Financial statements and projections had to prove that the proposed project would not force them to operate at a loss. CMHC also looked for evidence that these co-ops could cope with such common constriction risks as cost over-runs and repairs that took longer than expected.

 The ideal applicant for co-investment funding is a well-run housing co-operative with a good record of low arrears and vacancy loss and a history of increasing contributions to a capital replacement reserve. Its main weakness is that it spends more on energy and water than its peers—just what this fund is intended to help correct. It provides a great incentive for these co-ops to catch up with neighbours that have focused more on sustainability.

In applying for money from the Co-Investment Fund, applicants must demonstrate to CMHC that they will achieve a 25 per cent reduction in energy use and greenhouse gas (GHG) emissions, compared to past performance. At the same time, if members pay for their own utilities, new energy savings through lighting upgrades, condensing boilers and heat pumps will leave them with more money at the end of the month.

If you think your co-op might qualify, a good place to start would be with an energy audit. (Grants may be available to cover the cost.) Your federation can help you find a local company to assess your co-op’s needs. Once you know this, you can start your journey toward more sustainable, affordable operation.

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