Thank you.
I'm very pleased to be here.
As you introduced me, I'm Patricia Tessier. I'm the acting executive director for the Co-operative Housing Federation of Canada, or CHF Canada, for short.
CHF Canada is the national voice of housing co-operatives. As some of you may know, there are more than 2,200 housing co-operatives located across every province and territory in Canada, which are home to a quarter of a million Canadians.
Co-operative housing is a well-documented success story. Co-op housing is affordable because it is operated at cost, meaning that housing charges—we call them housing charges, not rent—are increased only to cover the costs of operating and maintaining the buildings. Co-op housing is secure because there is no outside landlord who might hike up the rent, sell the building or renovate it. Co-op housing is inclusive as almost all operate on a mixed-income model. It brings people of all backgrounds together to make decisions about their housing together and to support each other.
In a world of growing housing insecurity and social isolation, co-op housing offers proven solutions to these financial and social struggles, but we need more and we need to protect what we have.
Here are our budget asks. This upcoming budget is an opportunity to solidify and further scale the existing federal commitment to build more co-op housing. I have four recommendations.
First and foremost, we need to build significantly more co-op homes. Canada must, at minimum, double the proportion of non-market community housing. By this, I mean co-ops and non-profit housing. The recently launched co-operative housing development program—it's wonderful, thank you—is playing a critical role in enabling the development of the next generation of co-op housing. However, the demand is exceeding availability. This existing program and funding will help, but the program should grow in its ambitions with a larger envelope. I can tell you the sector is ready.
Secondly, we also need to protect existing affordable rental homes and the tenants who live there. We can do this through an accelerated and sector-led Canada rental protection fund. We are losing affordable housing more than we are building affordable housing at a rate of 15:1. If you'll permit me to repeat that, we are losing more affordable housing than we are building at a rate of 15:1. This is because a lot of relatively affordable housing in Canada is actually in the private rental market, where affordability is not guaranteed like it is with co-op housing; rather, renters are one rent hike or a renoviction away from losing affordability, which is then lost forever.
It is not lost on me that the previous witnesses have talked of things that are very much impactful and relate to this.
The recently announced Canada rental protection fund is an important first step to enable co-operative and non-profit housing to purchase rental properties that are relatively affordable and are for sale. Tenants, both current and future, would be protected this way because that housing could be converted into a co-op or non-profit, therefore guaranteeing its affordability long term. A co-operative housing model does that. It guarantees affordability long term. Now we need to see the rapid implementation of a sector-led fund.
My third recommendation is that we must also advance indigenous housing rights by fully implementing the urban, rural and northern indigenous housing strategy. Providing culturally appropriate and affordable housing is an important way for Canada to advance reconciliation, so an urban, rural and northern indigenous housing strategy is essential. Implementation of the committed $4.3 billion in federal funding for this strategy, led by indigenous housing providers, is urgently needed. The funding should lead to continued deeper investments aligned with the need.
My fourth and final recommendation is that we invest in long-term rental assistance for low-income households. Through the federal community housing initiative that exists now, low-income households living in co-ops and non-profits receive modest rental assistance. Their housing charge for rent or for co-ops does not cost more than 30% of their incomes. Typically about a third of co-op members receive rental assistance, but this expires in 2028. This is what enables co-ops to be diverse, mixed-income communities.
The federal government should commit to extending this program past 2028. This would support 40,000 households with low incomes who live in co-ops and non-profits across the country. Rental assistance is a cost-effective program for government because housing charges in co-ops are far less than market rents—we have a research paper that demonstrates this. Also, homelessness is much more expensive.
To conclude, a housing system that works for all people in Canada must include more co-op housing. Co-ops are ready to grow to help remedy Canada's housing supply and affordability crisis.
Thank you for your time.
I look forward to any questions.