GOVERNMENT
FUNDING

Co-ops are independent organizations, but to achieve their missions they often work in partnership with other co-ops and with government. Most non-profit housing co-ops were created under funding programs established by the federal government or by the provinces. Some forms of support were general (directed at the co-op as a whole); others have targeted low-income households residing in the co-ops. From time to time, there have been programs that supported capital projects.

Where Things Stand in 2026 | Rental Assistance Program (FCHI-2) | RAP Resources | Provincial Green Programs | Greener Microgrants | BC RAHA | Co-op Programs

Where Things Stand in 2026

The launch of the National Housing Strategy in late 2017 signaled the creation of several federal funding programs able to support housing co-operatives across the country.

These included supports directed to low-income households and support for capital projects, mostly connected with energy efficiency improvements. By early 2026, some of the programs had been phased out.

The most important program targeting low-income households is still active. The Federal Community Housing Initiative (Phase 2) and its Rental Assistance Program (see below), continues to have funding. It is expected to last to the end of March 2028. Although there have been some suggestions of a successor, this has not been confirmed.

The most important funding for building studies and capital projects are now all closed. These included CMHC Preservation Funding (for building condition assessments, energy audits, etc.), the Canada Greener Affordable Homes program (for studies and capital projects), and the Affordable Housing Fund (capital projects). Even program support through the Federation of Canadian Municipalities is no longer an option.

 

Rental Assistance Program (FCHI-2)

The Rental Assistance Program—part of the Federal Community Housing Initiative, Phase 2 (FCHI-2)—is the successor to CMHC's Section 95 and ILM programs.

The program targets low-income households that can’t afford a co-op’s maximum housing charges without exceeding 30% of their household income. As income fluctuates, the level of support may also fluctuate, but the total number of supported households is generally fixed at the time of program sign-up.

The program may not be compatible with some grants offered by municipal governments, but was generally open to co-ops that previously had a section 96, section 61 or ILM agreement.

Note: the program does create some obligations for co-ops including some around reporting and filing action plans.

RAP Resources

Here are some additional resources:

Note 1:  The Agency has confirmed that the BC Recovery Benefit is excluded from income under FCHI-2/RAP.
Note 2:  The CMHC and Agency materials  may be updated as needed to clarify any program guidelines. Please ensure you use the most recent versions available.

Provincial Green Programs

The BC government and provincial utilities offer various programs to target improvements in energy performance. These programs can change quickly, and may only run for short periods. Check regularly for what's available.

Learn more generally about various programs: Better Homes BC/CleanBC (https://betterhomesbc.ca/); GoElectric (https://goelectricbc.gov.bc.ca/); Fortis BC (which has particular information about “Saving energy for non-profit organizations“) and BC Hydro Powersmart.

There are some specific programs to be aware of:

  • Social Housing Energy Savings Program (SH-ESP) — provides support for studies and for capital project supports. There are options for Opportunity Assessments, Feasibility Study Funding, and Equipment Upgrade Funding.
  • For for those with BC Housing operating agreements, there are the Energy Efficiency Retrofit Program (EERP) and Capital Replacement Fund (CRF) programs

Scoop story on EV incentives

Greener Microgrants

CHF Canada is a sector organization, not an arm of government, but it will fund small projects from $500 to a limit of $4,000 to support the protection of the environment.

This program has been operating from some years and many co-ops have benefited from it. In a given year, an individual co-op can only make one application, but you can apply again in other years (even if you’re a previous recipient). There are some reporting requirements and all CHF Canada member housing co-ops can apply.

The application window can vary, but is generally open March and April. Funds are limited,  Visit CHF Canada for more.

BC RAHA

The BC Rebate for Accessible Home Adaptations (BC RAHA) is an updated version of the Home Adaptations for Independence Program (HAFI). BC RAHA launched in March 2021. It provides financial assistance for low-income households to carry out adaptations for independent living.

BC RAHA is open to housing co-operative members through a “Homeowner” application. For individuals, there are maximum income and asset restrictions.

For the associated co-operative, there are also eligibility criteria. Co-ops receiving operating assistance from government will not be successful. Co-ops that have paid off their ILM mortgages but still have an active rent supplement agreement may be considered on a case by case basis. Co-ops that have seen their original Section 95 agreement expire and are in CMHC’s Rental Assistance Program would generally be eligible.

Find more information on the BC Housing BC RAHA webpage.

Co-op Programs

Over the years, both the federal and provincial governments have created programs to support the development of non-profit housing co-ops.

The Community Land Trust also fosters co-op creation.

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The first federal co-op housing program was in place from 1973 to 1978. The Section 61 (formerly 34.18) program offered co-ops a 50-year mortgage at a fixed interest rate (usually 8%) along with a 10% capital grant that was earned over time. Housing charges varied between members. Some members paid more than the break-even 'rents' so that other, low-income members, could pay less (i.e. housing charges geared to income).
The second federal co-op housing program was in place from 1979 to 1985. Canada Mortgage and Housing Corporation (CMHC) provided co-ops developed under the Section 95 (formerly 56.1) program a monthly subsidy to assist a minimum number of low-income members. The amount of subsidy available varied by co-op. The Section 95 program was the most successful in creating co-ops: more than 160 in BC were developed. (Many benefited from agreement extensions that ran between 2016 and 2020, and the successor Rental Assistance Program.)
The third federal co-op housing program was in place from 1986 until 1992. It featured an innovative financing instrument known as the Index Linked Mortgage, a monthly mortgage subsidy from CMHC, and rent assistance for low-income members delivered by the province and cost-shared with CMHC for 30% to 50% of each co-op's households.
After a couple of decades' absence, the Federal government created the Co-op Housing Development Program. It was co-designed by CHF Canada and included a combination of forgivable and repayable loans. It began in 2024/25 and was anticipated to last for about four years.
The provincial government funded the development of 14 more co-ops with 1,047 homes under the HOMES BC program. HOMES BC co-ops house a mix of low- and moderate-income members.
The scheduled expiry of federal programs created uncertainty for co-ops across the country, as those expiries could mean the end of subsidies. Following a sustained campaign from CHF BC, individual co-ops and members, and CHF Canada, the federal government's Federal Community Housing Initiative (FCHI) included measures to extend support for low-income co-op households. FCHI - Phase 1 offered temporary supports that targeted low-income households in Section 95 co-ops with operating agreements expiring between April 2016 and August 31, 2020. FCHI - Phase 2 (also known as the Rental Assistance Program) takes over From September 1, 2020 to March 31, 2028. It is open to the former FCHI-1 co-ops and other Section 95 co-ops as their agreements come to a conclusion. Other co-ops may be able to benefit from the Rental Assistance Program as it develops.
A growing number of co-ops are starting without a formal program offered by senior government. The Community Housing Sector is actively promoting co-op creation through its own resources. The Community Land Trust plays a major role and has its own rules in helping establish viable mixed-income communities.