Deep-Need Programs (1982-1989)

Exterior of Westridge Estates housing co-operative

This general outline applies to these deep-subsidy programs, with exceptions noted: Prince Edward Island Non-profit and Pre-86 and Post-85 Urban Native.

Program Objectives

To provide modest, affordable housing that meets the needs of low-income families and individuals (under the Urban-Native Program, those of native ancestry)

Program Features

  • A unilateral federal program where Canada Mortgage and Housing Corporation (CMHC) provides funds to bridge the gap between the co-op’s revenues and approved expenses
  • The co-op’s duties are to market units and collect housing charges; pay mortgage, taxes and other expenses; verify residents’ incomes; maintain and insure the property; and set aside funds in a conservatively invested capital replacement reserve.
  • Agreement in force for the lesser of 35 years, the length of the mortgage or the useful life of the property
  • All occupants pay a housing charge geared to income (either the maximum shelter component, if receiving social assistance, or the amount determined through the application of the federal rent-geared to income scale).
  • Sub-letting is not permitted.
  • Resident incomes verified annually, or more frequently (for the Urban-Native Program, native ancestry also verified annually)
  • Annual subsidy from CMHC equal to the difference between the eligible costs and the co-op’s revenues

CMHC Authority under Operating Agreement

  • Right to review, change and approve the co-op’s annual operating budget
  • Right to request statistical or other reports in whatever form may be required
  • Right of access at any reasonable time to audit the co-op, meet with board, staff and committees or obtain information about the co-op’s operations
  • Right to inspect the property and require the co-op to improve its maintenance or effect repairs
  • Right to suspend or terminate the federal assistance if the operating agreement is breached or the mortgage in default
  • Right to prior approval of any management agreement
  • Right to require a change in management if the co-op is not well managed and maintained
  • Right to ask the co-op to train or replace directors if governance is poor
  • Right to approve spending from the capital replacement reserve
  • Co-op not to change non-profit status without CMHC’s written approval
  • Co-op not to mortgage or encumber property without CMHC’s approval
  • Co-op not to sell or otherwise dispose of all or part of its property without CMHC’s approval
  • Co-op not to lend its funds or guarantee third-party obligations without approval

Accountability Framework

  • Operating agreement
  • Annual audited financial statement and filing of Annual Information Return (AIR) and associated documents
  • Annual budget submission and approval

Program Guidelines for Post-85 S95 Non-Profit Co-operative Housing Program

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Tip of the Month

No Vacancy Loss

28% of Agency clients lost no money to vacancies last year. Good, if this means members chose to stay in their units. Bad, if new members moved into units that hadn’t been refreshed.