Feds give co-operative housing providers extra help to ease rental costs
The federal government is giving co-operative housing providers millions in funding to ease rental costs, pledging relief for a sector that has sought to find new ways to provide help to tenants.
The $118.2 million over seven years is the second phase of funding for providers whose federal housing agreements expired before April 2016.
Housing Minister Ahmed Hussen said non-profits and co-operative housing providers had asked for extra help after temporary funding ran out.
The money is expected to help co-operative housing providers support low-income tenants in 18,000 units by reducing their monthly payments.
The funding also creates what Tim Ross, executive director of the Co-operative Housing Federation of Canada, described as long-term support for households who otherwise couldn't afford their rent.
Co-operatives set monthly rents at a level that lets them cover operating costs as well as current and future capital repairs, which still sets rates above what some member tenants can afford.
"There is still a gap in what some households need in order to be affordably housed in a co-op," Ross said.
He added that the federal funding "helps to fill that gap for the most vulnerable members of co-op housing and non-profit housing communities," and gives co-operatives a foot in the door to the national housing strategy.
He also said the funding unveiled Thursday will work in tandem with efforts by providers to secure new mortgages on their properties at vastly lower rates than the ones the federal government once charged them.
The 40- and 50-year mortgage agreements were signed in the 1970s and 1980s and came with interest rates of up to 13 per cent, and what Ross described as "killer" pre-payment penalties that "would have made tapping into today's low-interest environment impossible."
Interest rates have fallen further since the Liberals first flowed money to the sector in 2016 to help pay off the debts and test the private market. That has allowed co-operatives to get lower-cost financing and invest in upgrades to their properties, he said.
But those same rates have also driven up home prices nationally as buyers try to lock in low-interest mortgages amid low supply.
The Canadian Real Estate Association estimated last month that the average home price would hit $687,500 by the end of 2021, and reach around $739,500 by the end of this calendar year.
Households added at least $121.5 billion in mortgage debt last year, and Statistics Canada still has to calculate what happened in the final three months of 2021.
The House of Commons finance committee decided this week to hold hearings to determine what specifically is driving up housing prices, as part of a broader look at what is fuelling inflation.
"Answering that question, solving that riddle, will explain why this balloon is inflating so fast and abruptly and allow us to halt the inflation before the balloon bursts altogether, with devastating consequences for families and our overall economy," Conservative finance critic Pierre Poilievre said at the outset of the committee's meeting on Wednesday.
His NDP counterpart, Daniel Blaikie, added that rising costs were a concern for buyers pre-pandemic, but the affordability crunch has become worse over the last two years.
Hussen on Thursday noted the need to build more supply, pointing to federal, provincial and municipal efforts to speed up construction of new units. He said the government is also looking at a number of options to discourage investors from accumulating a large portfolio of investment properties.
"I have no doubt that our upcoming budget will address some of these pressing concerns that Canadians have," Hussen said, adding a moment later that he expects the finance committee "to be constructive to help us bring forth ideas and not engage in partisan rhetoric that merely is out of touch with reality."
All of the measures will be on the agenda later this month when Hussen meets with his provincial and territorial counterparts, followed by what he called a national housing summit.
This report by The Canadian Press was first published Jan. 13, 2022.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Trump escalates attacks on Harris' mental fitness and suggests she should be prosecuted
Republicans on Sunday sought to distance themselves from Donald Trump's latest insults of Democratic nominee Kamala Harris during a rambling weekend rally in Wisconsin in which he called her 'mentally disabled.'
Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.
John Ashton, 'Beverly Hills Cop' actor, dies at 76
John Ashton, the veteran character actor who memorably played the gruff but lovable police detective John Taggart in the 'Beverly Hills Cop' films, has died. He was 76.
A fire at a Georgia chemical plant is forcing evacuations and road closures
A fire at a Georgia chemical plant apparently caused by a sprinkler head malfunction Sunday morning is forcing evacuations and road closures in the area, according to Rockdale County officials.
‘It's very unfair’: International students face uncertain future in Canada after rule change
Migrant groups are pushing the federal government to reverse its cap on international study permits and tightening post-graduate work permit qualifications, claiming it will leave many students 'in limbo.'
opinion How to make the most out of your TFSA
The Tax-Free Savings Account can be a powerful savings tool and investment vehicle. Financial contributor Christopher Liew explains how they work and how to take full advantage of them so you can reach your financial goals faster.
British Columbia saw a rare unanimous vote in its legislature in October 2019, when members passed a law adopting the United Nations Declarations on the Rights of Indigenous Peoples, setting out standards including free, prior and informed consent for actions affecting them.
An Ottawa driver has been charged with stunt driving after being caught going 154 km/h on Highway 417, according to the Ontario Provincial Police (OPP).
What is open and closed this National Day for Truth and Reconciliation
This Monday, Sept. 30 is the National Day for Truth and Reconciliation (NDTR), a federal statutory holiday and day of remembrance for the Indigenous children who never came home from Canadian residential schools, as well as those who survived them.
Local Spotlight
When a group of B.C. filmmakers set out on a small fishing boat near Powell River last week, they hoped to capture some video for a documentary on humpback whales. What happened next blew their minds.
A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.
A pizza chain in Edmonton claims to have the world's largest deliverable pizza.
Sarah McLachlan is returning to her hometown of Halifax in November.
Wayne MacKay is still playing basketball twice at Mount Allison University at 87 years old.
A man from a small rural Alberta town is making music that makes people laugh.
An Indigenous artist has a buyer-beware warning ahead of Sept. 30, the National Day for Truth and Reconciliation.
Police are looking to the public for help after thieves broke into a Lethbridge ice creamery, stealing from the store.
An ordinary day on the job delivering mail in East Elmwood quickly turned dramatic for Canada Post letter carrier Jared Plourde. A woman on his route was calling out in distress.