- To provide modest, affordable housing appropriate to the needs of low- and moderate-income families and individuals
- To house mainly families whose incomes may be too high for public housing but who cannot compete in the open market for housing
- To encourage the integration of families and individuals of varying income
- Unilateral federal program
- Financing for 100 % of eligible project costs
- Eight per cent mortgage loan from Canada Mortgage and Housing Corporation (CMHC) with 50-year term and amortization period
- 10 per cent capital grant from CMHC, and, in Ontario, the province, earned over time
- Subsidy/surcharge system to ensure a mix of incomes (incomes verified at least once every 30 months)
- A minimum percentage of households, fixed by each operating agreement, must be subsidized.
- Rent supplements available for a proportion of units (typically 25 %) under separate federal/provincial cost-shared rent supplement program (certain provinces only)
CMHC Authority under Operating Agreement
- Right to approve changes to co-op’s occupancy charges and surcharges (requirement suspended)
- Right to inspect co-op’s books, records and accounts
- Right of access to co-op at any reasonable time to audit co-op or obtain statistical or other information on co-op’s operation
- Right to inspect property
- Right to call loan or raise interest rate to current CMHC lending rate in event of breach of agreement
- Right to approve any contract for management services
- May require co-op to make such annual or other reports to CMHC in such form and containing such particulars as CMHC may ask for
- May require co-op to supply such information as CMHC may want for statistical purposes
- Co-op may not mortgage or encumber property without CMHC’s approval.
- Co-op may not sell or otherwise dispose of all or part of property without CMHC’s approval.
- Co-op may not lend co-op funds or guarantee obligations of third parties without CMHC’s approval.
- Operating agreement
- Annual audited financial statement and information return
- Approval of housing charges (requirement suspended)
- Co-op fully responsible for operating results