Co-operative Housing Archives : VCIB

Phoenix Housing Co-op: Overcoming the challenge of mortgage refinancing

Posted on May 29, 2023April 16, 2025 by Cecilia Bermeo

Phoenix Housing Co op

Between the 1970’s and 90’s, thousands of housing co-operatives were set up across Canada to provide affordable housing options for their communities. In exchange for mortgage financing, many newly created co-ops entered long-term operating agreements with the Canadian Mortgage and Housing Corporation (CMHC).

Today, the co-operative housing movement is entering a new phase. As those original mortgages mature and operating agreements expire, many co-ops are looking to refinance their mortgage.

In 2014, Phoenix Housing Co-operative (pictured above) was the third co-op in Canada to refinance their mortgage for the first time, with help from Canada Housing Federation (CHF).

“Refinancing a mortgage can be an overwhelming task, especially for those who’ve never done it before,” explains Tanya Taylor, Phoenix Housing Co-operative’s coordinator, pictured right.

“The first step is to get all the documents needed starting with preservation funding, which is a grant that then helps you get a building condition assessment and energy audit. After you have these documents, you’ll have a better understanding of how much money your co-op needs.”

This year, Tanya and the team at Phoenix took the next step in their financing journey by renewing their mortgage through Vancity Community Investment Bank (VCIB).

“Getting all the documents ready can be daunting, that’s where I found VCIB to be very personable” Tanya explains.

“Whenever I had a question my account manager answered right away, and she gave me a step-by-step checklist of what I needed which made things very easy for me. Many coordinators have told me that this process took them a year, and I re-iterate, it took us three months.”

A values-aligned partnership

VCIB is part of the Vancity Group, a group of values-based financial institutions that use finance as a tool to drive positive impact and accelerate the delivery of affordable housing across Canada. Since 2009, Vancity Group has funded investments of more than $1.48 billion to support affordable housing across Canada. And VCIB’s parent company, Vancity Credit Union, has been supporting Canada’s cooperative movement for decades.

“Today the need for more affordable housing options is greater than ever, and housing co-operatives are critical,” said Eric Visser, Director of Commercial Real Estate at VCIB. “They provide not only a more affordable option but also foster an incredible sense of community, so offering tailored financing to support co-ops is an important part of our mission.”

Since co‑ops charge their members only enough to cover costs, repairs, and reserves, they can offer housing that is much more affordable than an average private sector rental.

Phoenix has 59 renovated 3-bedroom townhouses available at market rent, for the low price of 760 dollars a month – with a few members paying reduced monthly rent based on income. As Tanya explains, these 3-bedroom townhouses are well suited for families or young couples starting a family;

“Our co-op is a family-oriented co-op. With the rising cost of housing right now, it is very difficult for families (specially starting out families) to be able to afford a home, let alone 3-bedroom units like these ones.”

For Tanya, one of the most rewarding parts of working at Phoenix is the community they have built, and she looks forward to seeing how the children continue to grow.

“I’ve been here over 13 years, and the children that I met that were 8 or 9 are now adults and getting their own units! And they’re all trying to stay within the community.”

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Learn more about VCIB’s social purpose real estate financing in our website. If interested in chatting with VCIB about your financing needs, get in touch.

For housing co-operatives, land trusts and non-profits, specialized financing is the missing piece to scale affordable housing

Posted on March 22, 2023September 9, 2025 by Cecilia Bermeo

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Unaffordable purchase prices, rapidly increasing rents, and rising interest rates are just a few of the many obstacles Canadians currently face when trying to secure a place to call home.

For housing to become more affordable and accessible, systemic changes must take place. But the government and the market on their own can’t solve the complex housing problems we face.

Many land trusts and non-profit organizations are making a difference by preserving or creating new affordable homes. But before they do that, they’re often stuck with the same old problem: accessing financing fast enough to be able to quickly react to a competitive housing market.

Other entities, like housing co-operatives, face their own financing hurdles. Housing co-operatives are not a new concept by any means, they have existed in Canada for decades offering a middle ground between owning and renting – housing tenure that doesn’t require a down payment.

Since they operate on a break-even basis, housing co-ops are often much more affordable than market rentals. But because most co-ops were built in the ’70s and ’80s, the cost of needed repairs can be prohibitive and challenge a co-op’s existing level of affordability.

“When searching for financing, housing co-operatives tend to go to CHF Canada, which provides valuable advice and resources for co-ops. After consultation CHF Canada usually refers them to impact lenders like VCIB for financing,” says Eric Visser, Director of Commercial Real Estate at Vancity Community Investment Bank (VCIB).

“Since co-ops are often searching for smaller and more flexible loans, they struggle to get support from big banks as it can be a lot of work for a lender. But VCIB doesn’t shy away from putting that extra effort.”

A values-aligned financing partner

Born from Vancity Credit Union’s co-operative roots and values, VCIB offers financing tailored for impact-driven organizations to preserve and scale Canada’s affordable housing stock.

“We’re the only bank in Canada that has a 100% impact mandate, which means we only provide financing to organizations and projects driving positive change,” says Eric.

Two years ago, VCIB and Canada Mortgage and Housing Corporation (CMHC) announced a first-of-its-kind agreement to accelerate the delivery of affordable housing across Canada, providing financing for more than 1,100 units of affordable homes in 2021.

VCIB’s long-standing relationship with CMHC enables them to work together to provide housing co-operatives and affordable housing developers with uniquely structured loans that meet their specific financing needs.

More recently, VCIB supported Union Co-operative’s purchase of two apartment buildings to preserve the affordability of the buildings’ 58 units in perpetuity.

“The financing Union Co-op required was very unique and required a tailored solution. We dove into the details and really helped structure the loan in a way that was flexible for the borrower,” said Chloe Wong, Commercial Account Manager at VCIB.

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Learn more about VCIB’s social purpose real estate financing in our website. If interested in chatting with VCIB about your financing needs, get in touch.

Union Co-operative permanently preserves 58 affordable homes

Property purchase made possible through community ownership

Posted on November 15, 2022April 16, 2025 by Cecilia Bermeo

REQUESTED BY IAN scaled

Tuesday, November 15, 2022, Traditional territory of multiple Indigenous nations, including the Haudenosaunee and the treaty territory of the Mississaugas of the Credit/Toronto, ON – Union: Sustainable Development Co-operative (Union Co-operative) has purchased two apartment buildings at 475-477 Lancaster Street West, Kitchener, to preserve affordability for tenants. This is Union Co-operative’s first property purchase, a milestone that reflects its mission to buy residential and commercial properties in Waterloo Region for permanent affordability through community ownership.

An established community with many long-term tenants, the Lancaster buildings have 58 two-bedroom units. Union Co-operative plans to add another two accessible apartments within the existing buildings, and to undertake projects that reduce the buildings’ environmental impacts and energy consumption.

More than 200 individuals who live, work, or have a connection to Waterloo Region have chosen to become members of Union Co-operative. Members were able to invest in the purchase of the Lancaster buildings.

In addition to member investments, a number of impact investors came on board to support the purchase: Waterloo Region Community Foundation, Lyle S. Hallman Foundation, Canadian Co-operative Investment Fund, Vancity Community Foundation, Atkinson Foundation, Fairmount Foundation, VERGE Capital, Bealight Foundation, Forthlane Partners, Nexus Church, Kelly and Mike Peasgood, and Allyson and Dave Kroetsch. By bringing together community members and impact investors to purchase this property, Union Co-operative has built a unique model to serve as Waterloo Region’s community land trust.

Vancity Community Investment Bank (VCIB) provided first mortgage financing of $8.45 million and helped the project secure additional impact investment funds from the Affordable Housing Accelerator Fund at Vancity Community Foundation. “We are grateful for the opportunity to work with VCIB, as they have a deep understanding of affordable housing and their values-based approach means they work with you to make these projects a success,” said Union Co-operative’s Executive Director, Sean Campbell.

Union Co-operative received an additional $1.5 million in fixed-interest bridge financing from the Canadian Co-operative Investment Fund (CCIF). This bridge financing allowed Union Co-operative to complete the purchase on market timelines and continue raising funds after closing.

The population of the Kitchener-Cambridge-Waterloo area grew by 9.9% from 2016 to 2021. That growth, alongside galloping price increases in the housing market and recent inflationary pressures, has meant that the cost to rent a vacant two-bedroom unit in Kitchener has increased by 24% in the past year to $2,300 per month. While there are much-needed government programs to build new affordable units, there are currently no programs to preserve existing low-rent apartment units.

“Preserving affordability is just the first step,” said Campbell. “We’re excited to invite tenants to become co-op members, join the board, and collaborate on sustainable property improvement decisions.” The co-operative is also planning to create a rent relief fund, connect with community organizations to establish supports for tenants in need, and develop policies that will guide the intentional selection of tenants facing barriers to accessing housing. “Union Co-operative is working to make a difference in our community, and we’re thankful to our members, impact investors, funders, and VCIB for helping to make the acquisition of our first property a reality.”

Waterloo Region Community Foundation (WRCF) was the first foundation impact investor to join the project. “WRCF continues to focus on taking action to create and preserve affordable housing across our region,” said John Bowden, WRCF’s Director of Financial Services. “We applaud Union Co-operative for their innovative approach in our community and we are extremely pleased to be joined by other impact investors on this journey.”

“The partnership between Union Co-operative, impact investors, and Vancity Community Investment Bank is an inspirational example of what can be done to solve the affordability crisis,” said Jennifer Hutcheon, Vice President at VCIB. “I’m so pleased that VCIB could support this impactful deal, which will result in real—even life-changing— benefits to the individuals and families who call the Lancaster buildings home.”

Learn more about Union Co-operative and its commitment to preserving affordability in Waterloo Region at unionsd.coop. Details on the Vancity Group’s commitment to affordable housing and the Affordable Housing Accelerator Fund can be found on Rethink and vahaf.ca.

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About Union: Sustainable Development Co-operative (Union Co-operative)

Union Co-operative is working to buy residential and commercial properties in Waterloo Region for permanent affordability through community ownership. The co-operative was founded in response to rising rental rates in Waterloo Region that are becoming unaffordable for a growing share of residents and local businesses. Learn more about Union Co-operative at www.unionsd.coop.

About Waterloo Region Community Foundation (WRCF)

Waterloo Region Community Foundation collaborates with partners to create sustainable, equitable and thriving communities. We connect regionally and locally, working with three cities and four townships – to include the people and places across our region. Together, we develop forward-thinking innovative solutions and seize opportunities to meet current and future needs of our community. We make philanthropy easy for individuals and companies to support organizations and issues they care about. WRCF is focused on Granting, Impact Investing and Convening to make measurable and sustainable impacts. Gifts are directed to WRCF’s endowed funds that drive positive change through grants with the income generated being distributed in partnership with Fundholders to support a wide range of charitable causes within our community. A portion of the endowed funds are also used for impact investments that deliver both financial returns as well as positive social or environmental outcomes. As a leading community-building organization we also work to amplify voices and issues of importance by convening conversations and sharing information, while approaching our work with an equity mindset.

About the Canadian Co-operative Investment Fund (CCIF)

The Canadian Co-operative Investment Fund is an impact investment fund created to support the capital needs of co-operatives across sectors, across Canada. CCIF provides debt, bridge financing, hybrid and equity financing for non-profit and for-profit co-operatives to start up and to help them grow. To find out more about CCIF and the financing available to help co-operatives, visit ccif.coop or email info@ccif.coop.

About Vancity Community Investment Bank (VCIB)

Vancity Community Investment Bank is an Ontario-based, Schedule I federally chartered bank and a subsidiary of the Vancity Group. As the only values-based bank in Canada, VCIB provides specialized financing solutions for impactful projects like social purpose real estate and clean energy projects. For purpose-driven businesses and organizations, VCIB offers banking, investing, and financing solutions tailor-made to increase their growth and impact. VCIB is a Certified B Corporation and a member of the Global Alliance for Banking on Values. To learn more about our partnership-based approach to banking, visit vcib.ca, tweet us at @BankVancity and connect with us on LinkedIn.

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GTA housing co-op tenants thrilled by “hotel-quality” repairs

Posted on December 3, 2021September 9, 2025 by Cecilia Bermeo

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When staff at Community Housing Management Network (CMHN) took over the property maintenance and management at Innisfree Housing Co-op in Scarborough, they knew the complex needed major repairs.

The roads through the 71-unit, affordable housing property had “miniature sinkholes everywhere,” said Don Jones, CHMN’s onsite property manager. Moreover, the doors and windows let gusts in from outside. And the toilets, faucets, and tubs often leaked because of the poor quality of previous patch repairs.

“The members had been without a decent home standard for years due to the difficulty of getting the right capital plan and funding in place,” said Jones. And the clock on completing these renovations was ticking. “If we were to leave these repairs any longer, the cost of replacement would have been astronomical,” he said.

Jones knew a major renovation was in order to bring the buildings up to CHMN’s “decent homes” standard. But there was just one problem: finding the money.

Accessing funds to offer a “decent home” standard to co-op members

Innisfree is a rental housing co-op. This means that every significant new change — like approving a new loan to complete major repairs — needs to go through the tenant members. At Innisfree, the majority of members are working-class families from Caribbean and east and west African diaspora communities. Many families have lived in their rental units since they were built in 1983.

To prepare for the member’s’ vote, Jones secured loan proposals from multiple different lenders — banks, credit unions, and a specialty housing co-op loan provider.

His preferred option was a $2.9 million non-revolving term loan offered by Vancity Community Investment Bank (VCIB).

“With VCIB, there was no comparison,” he said. “They had the best rate and the most flexibility… It was a slam dunk, so we recommended it to the board.”

To Jones’ delight, the board agreed and so did the co-op’s’ tenant members. With this decision made, the work could begin in earnest.

But what co-op members didn’t know at the time of their vote was the behind-the-scenes story — how VCIB could offer such a competitive rate and such a short turnaround time.

VCIB and CMHC partnering to offer affordable housing across the GTA

In late 2020, as housing prices kept rising, VCIB staff became increasingly aware of the challenge that many community members were facing in securing housing they could afford.

“We’re just at a point where the housing crisis is peaking,” said Eric Visser, senior manager of business development at VCIB.

To try and tackle the problem at scale, VCIB struck a groundbreaking partnership with Canada Mortgage and Housing Corporation (CMHC), the federal agency tasked with providing safe and affordable housing for all Canadians.

Through the partnership, VCIB committed to providing a minimum of $100 million to finance affordable housing initiatives in partnership with CMHC over the following year.

This meant that when Jones inquired about financing to support building upgrades at Innisfree, VCIB was ready. Their loan was approved quickly and repairs could get started in a hurry.

“Flabbergasting” tenants with dignified service

When fixing up the place, Jones first turned his attention to the roads, repairing the “sinkholes” and fixing sidewalks. With the first phase of this project well underway, he turned his attention to the units’ bathrooms, where old tiling was in need of replacement.

To begin, he asked tenants a simple question —their preferred tiling colour.

“They were actually flabbergasted,” he said. “Because for the first time, somebody’s actually asked them to get involved with things happening with their [rental] unit.”

This kind of service wouldn’t have been possible, he said, without the flexibility of the loan offered by VCIB. “We wouldn’t have been able to offer our decent home standard, if we had restrictions on how we used the loan. I can’t emphasize enough how important that is,” he said.

Unlike many competitors, VCIB allowed Jones and the team at Innisfree to allocate their funds where they deemed them to be most important. When COVID-19 hit and wood prices rose, for instance, Jones put off a planned fence upgrade and prioritized air conditioning installations instead.

This kind of service is good for members, but it’s also good for their property manager. “For me it’s great,” said Jones, with a laugh. “I get all of the kudos [from members].”

Surpassing planned commitment to affordable housing with $183 million investment

Over the course of the pandemic, it wasn’t only Innisfree that VCIB supported in this manner.

Since the initial partnership was struck with CMHC, VCIB provided $183 million in financing for over 1,100 affordable housing units — nearly doubling its planned $100 million commitment.

And there’s more support to come.

“COVID-19 exposed a lot of inequalities and shone a light on the need for more affordable, high-quality housing for populations who are marginalized,” said Visser.

In the coming months, VCIB and CMHC will continue to offer flexible support, offering people dignified and respectful service while enabling tenants to live in comfortable and safe homes.

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Our real estate financing team has decades of experience supporting Canada’s affordable housing providers. If you require financing for your housing co-operative, get in touch.

Hamilton’s Winkleigh Co-op: Financing for the next era of co-operative housing

Posted on July 10, 2020September 12, 2024 by Alvaro Amaro

Winkleigh Coop Ariel Overlay

In 1982, the Winkleigh Housing Co-operative was founded by a group of neighbours in Hamilton, Ontario. Their goal was to create affordable housing while building a community where members share common values and work to support one another.

They weren’t alone in their vision. Between 1973 and 1991, thousands of housing co-ops were set up across Canada with the help of federal funding programs. In exchange for mortgage financing, subsidies and grants, newly created co-ops entered long-term operating agreements with the Canadian Mortgage and Housing Corporation (CMHC), lasting from 30-50 years.

Guided by co-operative principles like inclusivity and co-operation, Winkleigh Co-op has since developed into a thriving community with 77-units of at-cost housing, managed democratically by its member-residents.

“Having a safe, affordable community is something everyone should have a right to,” said Kelly Jackson, the property manager for Winkleigh. “Members at Winkleigh co-op are proud of their homes and want to ensure that our units are still here for future members.”

An arial view of Winkleigh Housing Co-operative

Values-aligned financing to maintain and scale co-ops

Today, the co-operative housing movement is entering a new phase, as those original CMHC mortgages mature and operating agreements expire. For many co-ops, the transition to self-sufficiency has been a challenge, one made easier by a supportive financial partner.

With their own mortgage coming to maturity March 2020, Winkleigh Co-op turned to Vancity Community Investment Bank (VCIB) for support.

VCIB was able to provide Winkleigh with mortgage refinancing that met the community’s needs. As part of the financing, VCIB also helped the co-op leverage some of its equity to finance repairs and upgrades allowing it both maintain its building stock and affordability for member-residents.

“Securing a new loan with VCIB has enabled us to lower our mortgage payments and carry out improvements and upgrades that our members appreciate,” said Jackson.

As Director of Lending Caroline Rauhala explains, the motivation to support co-ops comes in part from the fact that VCIB is owned by one of Canada’s largest financial co-operatives, Vancity Credit Union.

“Vancity is a long-time supporter of the co-op movement in British Columbia,” said Rauhala. “While VCIB itself is not structured as a co-op, we’re a wholly-owned subsidiary of the credit union with a mandate to bring values-based banking to the rest of Canada. Partnering with co-ops like Winkleigh is one way we’re delivering on that mandate.”

Housing co-ops as a model for an equitable recovery

While the co-operative housing movement adjusts to change, its grounding in the principles of inclusivity, democracy and concern for community, are leading some to view co-ops as a model for the post-pandemic economic recovery.

“Co-ops have a lot to contribute to conversations about ‘building back better’ and how the recovery could address long-standing challenges like economic inequality,” said Rauhala, who oversees a commercial real estate lending team that focuses exclusively on affordable housing, green buildings and social purpose real estate.

Because co‑ops charge their members only enough to cover costs, repairs, and reserves, they can offer housing that is much more affordable than an average private sector rental. A unit at Winkleigh is available at approximately 67% of market rent for a comparable unit in the area. In addition, some members pay reduced monthly rent based on income.

Today, with so many people out of work, the need for affordable housing is even greater than ever. Finding ways to use the tools of finance to maintain and scale-up co-operative housing is a challenge Rauhala’s team is excited about.

“The time is right for a rebirth of the co-operative movement, and we want to be there to support that.”

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The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances. The customer endorsements that appear on this page were solicited by VCIB.