Posts Tagged ‘CMHC’

Expiring co-op housing operating agreements: An opportunity for housing innovation

September 25th, 2014 by Celia Chandler

Canada Mortgage and Housing Corporation’s (CMHC) operating agreements with non‑profit housing co‑operatives and rental housing providers have begun to expire across Canada at a rapid rate. These agreements with their related mortgages, entered into under various federal programs between 1970 and 1994, supply housing providers with between 25 and 40 years of annual subsidy money to provide reduced monthly charges to a specified percentage of tenants and members who qualify for support. With the conclusion of these agreements and their related mortgages, housing providers will cease making mortgage payments, but at the same time, they will no longer receive housing subsidy payments — payments that subsidize some 200,000 households in Canada comprising half a million people. While not all subsidized housing providers in Canada get their subsidies through CMHC operating agreements, the potential loss is a big blow to the sector. This, on top of an already serious affordable housing shortage, is cause for concern.

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