Update for Post-1991 ILM Co-ops in BC and Alberta

14 March 2024

We are happy to share the news that CMHC has changed its position on surcharges for post-1991 ILM Co-ops in British Columbia and Alberta. 

CMHC previously decided that co-ops in the program must continue to collect a surcharge if they have an operating agreement, even though their ILM mortgage has been paid off. Instead of sending the surcharge to CMHC, co-ops were instructed to transfer the funds to their capital replacement reserve. 

CMHC has now decided to cancel this requirement. Beginning on 1 April 2024, affected co-ops do not need to collect a surcharge from higher-income member households.  

However, until the end of the agreement, affected co-ops will continue to receive a letter setting out the income ceiling for people applying to move in. We will no longer be providing those co-ops with a market-rent letter. 

Effected co-ops must save a copy of the letter they receive indicating this change for their auditors to review in preparation for their audit. Those co-ops should also check their Membership By-laws, and any other relevant by-laws, in case there is a need to remove this requirement.  

Tip of the Month

Directors in Arrears

8% of Agency clients have board members in arrears. Good work, especially in a COVID year. In 2007,  28% reported director arrears.