Federal co-op housing funding should strengthen democratic governance, experts say
As Ottawa invests $1.5 billion in new co-operative housing, experts say funding agreements should protect member communication and leadership renewal.
The federal government is investing $1.5 billion in new co-operative housing, the largest such investment in more than 30 years.
As the Canada Mortgage and Housing Corp. works to expand the affordable housing supply, experts say the funding agreements should include safeguards to strengthen democratic governance within the co-ops.
"Having this democratic structure does not always mean members can participate meaningfully in governing the co-operative," according to a policy analysis. "That needs to change."
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Research has identified concerns about opaque decision-making and weak communication, uneven participation and board dynamics that can concentrate influence in relatively few hands, limiting how effectively the full membership can exercise democratic control.
As of June 30, 2026, the CMHC program had committed $1.19 billion toward 2,788 new co-operative homes.
The agency is working with Build Canada Homes on further proposals.
One key recommendation is that CMHC require a fair, privacy-protecting way for members and board candidates to communicate with the full membership as a condition of funding.
For example, a co-op could distribute a member's or candidate's message through its existing email, newsletter or notice system without releasing private contact details.
"This would make an existing democratic right usable in practice without telling members how to vote or co-ops how to govern," the analysis states.
Existing law provides little protection for member communication. In Ontario, obtaining a membership list requires a formal statutory process where a member must file an affidavit and may have to pay a fee.
Another recommendation is for CMHC to require directors to complete governance training and for co-ops to maintain a member engagement and leadership-renewal plan.
Training should be open to any interested member, with reasonable training costs eligible for support.
"The challenge for the new generation of co-operatives is to make leadership renewal part of governance from the beginning by training current directors and meaningfully engaging members," the analysis says.
It also suggests CMHC could add a small set of governance indicators to mandatory reporting, building on existing models like the Federal Community Housing Initiative, Phase 2 program.
These indicators could include whether directors completed orientation, whether member communication and participation processes are functioning and whether major financial and asset management decisions receive documented board oversight.
The results should be available to members, and persistent problems could trigger additional support or independent review.
Co-operatives are owned and governed for the benefit of members rather than investors and can preserve affordability over the long term.
Members elect their boards and participate in major decisions affecting their homes, including rents and renovations.
CMHC's co-op housing development program provides forgivable and low-interest loans, with funding agreements that already specify conditions and reporting requirements.
The federal government has an opportunity to use comparable policy safeguards to strengthen member control while preserving the autonomy of the co-operatives as this new generation of homes is financed and built.
Strengthening democratic governance can help ensure that public funding delivers durable affordability and a better experience for members, the analysis concludes.
With files from Policy Options