What are the issues?
In order to have strong, affordable, democratically controlled housing co-ops we need to have resources and support from government partners. We need programs that recognize our model of self-management. We need the resources to assist our members on low income and we need resources to keep our homes well maintained and environmentally sound.
Rent-Geared-to-Income now and in the future
Section 95 co-ops losing RGI units
Many Section 95 co-ops have been struggling to manage their income-tested assistance – the subsidy they get to help low-income households with their housing charges. Subsidy is scarce because of low mortgage interest rates and the way subsidy has been calculated over the years.
Some Section 95 co-ops have had to reduce the numbers of households they can RGI households they can house. Others have created internal subsidy pools and deferred needed capital repairs to make up for the loss of government revenue.
The end of the operating agreements
Many housing co-ops in Canada are rapidly approaching a time when things are going to change very dramatically for the co-ops and the members who live in them.
Operating agreements will end by the year 2020 for all of the Federal Section 95 and most of the Federal Co-op Housing Program (ILM) co-ops. Some 55,000 co-op homes in Canada will be operating without any contract with government agencies.
Some co-ops will be able to manage just fine and provide long-term, well maintained housing for their members. They may be able to create internal subsidy pools to continue to provide RGI supplements for members who need it most. Other co-ops will struggle to continue operate well and assist members without on-going government support.
Upload municipal co-ops
CHF Ontario has been working with politicians to gain support for a proposal to unite Ontario co-ops. The proposal calls on the Ontario government to upload municipally administered co-ops to the provincial level, amend the rules in the Social Housing Reform Act, and enter into an agreement with the Agency for Co-operative Housing for program administration.
Co-op administered by municipalities under the SHRA have experienced lots of problems and this proposal will help to address them.
Sustainability and maintenance
Greening our co-ops
Co-ops want to make sure that their operations are as environmentally friendly as possible. In order to do this we need programs that we can access to make changes to how our buildings and equipment function.
Capital replacement
Capital replacement reserves are under funded for municipally administered co-ops. This means that co-ops will have a lot of problems making necessary upgrades to aging buildings and equipment in the future.
This problem is not the result of poor management by co-ops. The formula used by government to calculate the replacement reserve needed is wrong.
Governments need to address this issue, fix the formula and provide co-ops with money to fund their replacement reserves.