Canada’s Finance Department published its annual Fall Economic Statement on 16 December, highlighting a series of measures that will impact co-operatives.
These include a proposal to provide CA$362.7m to the Federal Community Housing Initiative (FCHI) over five years, a programme that was scheduled to end in 2028. A $618.2m fund, the FCHI supports community housing projects, including co-operative housing, with the funding they need to keep rent low and keep up with maintenance.
Another $50m over two years (starting in 2025-26) would be allocated for pre-development work to assist affordable housing providers.
“These measures are essential in maintaining and expanding co-operative housing across Canada, helping to keep rent affordable and ensure long-term housing sustainability,” said Co-operatives and Mutuals Canada.
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The Co-operative Housing Federation (CHF) of Canada also commented on the announcement.
“The commitment to extend the FCHI reflects an understanding and appreciation of the inclusive nature of the co-op housing model,” said executive director Tim Ross. “Co-ops are relieved to be able to continue to offer secure and affordable homes to households with a range of incomes into the future, especially persons with disabilities, seniors and young families, because of this program extension
“Co-op housing changes lives, and the deeply affordable co-operatives homes made possible by the Federal Community Housing Initiative will be a lifeline for many, especially at a time when 57% of Canadians fear losing their home if their financial situation were to change.”
“The financial stability provided by the extension of FCHI will also allow co-ops to pursue refinancing to undertake repairs and renewal, as well as development,” added Cassia Kantrow, president of CHF Canada. “Going forward, we hope this programme can be made permanent and extended to new co-ops being developed. We also hope rental assistance programmes can be as strengthened in jurisdictions where provinces hold responsibility.”
CHF Canada is also calling more investments in co-operative and non-profit housing across the country.
The statement also suggests modifying certain design elements of the national carbon rebate for small businesses in respect of the 2024-25 and later fuel charge years to ensure that smaller businesses are receiving the most support by creating a new base payment. Under the proposal, small businesses that have between one and 20 employees would qualify for a payment amount that is equivalent to having 20 employees, while larger businesses that have over 300 employees would have their payment amounts gradually reduced as their number of employees reaches 500.
This rebate would be newly available to co-operatives and credit unions.
Another measure that would impact credit unions is a proposal to provide FCAC with $44.3m over three years, beginning in 2025-26, on a cash basis, to implement the consumer-driven banking framework. This includes developing a consumer awareness campaign on consumer-driven banking and to create a public registry of the banks, credit unions, financial technology, and other financial services providers participating in the framework.
CMC said continued use of tax policy to encourage a strong business sector aligns with its policy priorities.
The apex said it would continue to build on its priorities through ongoing federal advocacy. Read CMC’s full analysis of the statement here.
