A proposal to rapidly protect renters and housing affordability by the Canadian community housing sector
January 26, 2024
The Honourable Sean Fraser, P.C., M.P.
Minister of Housing, Infrastructure and Communities
Sent by email: minister-ministre@infc.gc.ca
Subject: A proposal to rapidly protect renters and housing affordability by the Canadian community housing sector
Dear Minister Fraser:
Canadians are deeply concerned about the urgency of the housing crisis. Recent federal leadership to increase housing supply is welcome and necessary, however we must not overlook the need to act swiftly to protect existing affordable rental housing supply.
Renters make up one-third of households in Canada, but account for two-thirds of core housing need. Newly-built market rental housing supply is not affordable to low- and middle-income households, and we are losing affordable rental housing faster than we are building new supply. As a result, too many renters face economic eviction and more precarious housing situations due to loss of affordable rental housing supply.
The National Housing Strategy lacks policy and programming to efficiently protect affordability and availability of affordable rental housing at-scale. That is why the Canadian community housing sector, impact investors and the private sector have come together to propose that the federal government act rapidly to capitalize the Canadian Housing Acquisition Fund Inc. (the “Fund”).
The Canadian community housing sector has a strong track record of protecting and building housing supply that is affordable in perpetuity. That is why the pan-Canadian non-profit, co-operative, and urban, rural, and northern Indigenous housing sectors have come together to establish the Fund to rapidly protect renters and preserve affordable housing. We aim to acquire and protect 10,000 affordable rental homes by 2026, and scale to 100,000 homes by 2034.
The Fund is prepared to implement rapidly by partnering with the British Columbia Rental Protection Fund to scale nationally, with broad support from the community housing sector, social impact investment community and private real estate sector.
We ask that the federal government rapidly capitalize the Fund by providing an initial investment of $2.5 billion in low-interest loans and $500 million in contributions delivered as a grant to the Fund. Alongside federal investment, we expect to raise $400-600 million from private social impact investors, and we also anticipate the ability to leverage provincial, territorial, and municipal support.
Canada urgently needs to protect and build significantly more affordable housing supply. While new supply takes years to produce, the Fund can immediately protect renters and preserve affordable housing supply in perpetuity. We hope that you will champion our proposal in the 2024 federal budget process, and we look forward to working with you and your officials to bring this proposal to fruition.
Sincerely yours,
Jill Atkey, Rental Protection Fund
Ray Sullivan, Canadian Housing and Renewal Association
Tim Ross, Co-operative Housing Federation of Canada