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Ottawa’s community land trust purchases its first property

Piecing the financing together was key to Ottawa Community Land Trust’s first property acquisition

Posted on December 1, 2023April 16, 2025 by Cecilia Bermeo

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Widespread gentrification, evictions, and a rampant cycle of rent increases has left many people feeling anxious about the future of their neighbourhoods. To prevent long-time tenants from being priced out of their communities, Ottawa’s community land trust is taking action.

“In Ottawa we have government programs to fund new affordable housing developments, but none that cater to the acquisition of existing housing,” explains Mike Bulthuis, executive director of Ottawa Community Land Trust (OCLT).

“Our aim is to preserve affordability by acquiring at-risk rental homes and placing them under community ownership. But acquisitions take a blending of capital, so the challenge is gathering the financing fast enough to secure the properties.”

Unlike private developers who can easily compete in a hot real estate market, land trusts and non-profits usually need to secure government funding, raise money from investors, and put all the pieces in place before they’re able to place an offer.

Earlier this year, OCLT made its first attempt to purchase a property. With support from the City of Ottawa, community residents, and Vancity Community Investment Bank (VCIB)’s Preserve and Protect Guarantee Program, OCLT announced the success of its acquisition – a six-unit rental property on Kirkwood Avenue in Carlington (pictured above).

Addressing the gap in affordable housing funding

Back in 2020, VCIB launched the Preserve and Protect Guarantee Program in partnership with Parkdale Neighbourhood Land Trust – a first-of-its-kind impact investment program that would help the land trust access necessary funds to acquire at-risk affordable rental buildings.

“Supporting the land trust movement is key to protect housing affordability,” said Eric Visser, VCIB’s Director of Commercial Real Estate.

“Our aim with this program was to leverage VCIB’s capabilities as a financial institution to reduce costs, timelines and other barriers for land trusts to access capital – including the amount that would typically be required as equity to secure bank financing.”

For OCLT’s first purchase, Mike was glad to have found a values-aligned banking partner;
“We were very grateful for VCIB’s willingness to work with us when things were new and when hiccups came up. The impression that I had of VCIB coming into this was that it’s a very values-driven financial institution, that comes through in their work.”

Now that their first property has been secured, OCLT is working on its next big step: growing an acquisitions fund through a community bond campaign.

Building a community movement

Through the land trust’s Housing Forever Bonds, managed by Tapestry Community Capital, OCLT will leverage its community of supporters to continue to purchase and preserve affordable rental housing in Ottawa.

“These are not donations, these are loans that will be paid back offering a financial return accompanied by social impact. So we see our community bonds as a really important strategy grounded in community engagement,” said Mike.

“But we’re also trying to build a community movement. If each of us are working alone it’s really hard to make a dent in the housing crisis, but if each of us brings something – even a small amount – we can actually raise quite a bit and use that to make acquisitions.”

Over time, OCLT’s portfolio will facilitate the leverage needed for the land trust to grow and collectively expand Ottawa’s affordable housing supply.

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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.

Non-profit moves from renter to owner to preserve affordability

Posted on October 10, 2023April 16, 2025 by Cecilia Bermeo

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After more than a year of uncertainty, celebratory cheers rung out down the halls. Residents had just learned that St. Jude Community Homes was officially the new owner of their leased building at 1845 Gerrard Street East in Toronto. Everyone could now rest easy, knowing they could continue to live in their home with their community of friends and supporters. Yet the path to ownership and the preservation of this affordable home on Gerrard Street East wasn’t straightforward.

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St. Jude Community Homes provides permanent, safe, affordable housing for people living with mental illness. A non-profit mental health agency, St. Jude Community Homes operates four residential sites with self-contained and affordable rental units in various Toronto neighbourhoods. By creating a sense of community and offering support when needed, they have created a space where residents not only build their independence but thrive.

The St. Jude Community Homes Gerrard Street site in Toronto’s east end opened in 2007. After many years of successful operation, in 2020 the landlord indicated that they were looking to sell the building. A deep feeling of uncertainty took root as their lease was coming due, and the organization was not in a financial position to make an offer. That was set to change though, thanks to ingenuity, hard work and the right partnerships.

With the support of their board, staff and residents, plus the guidance of a development consultant, St. Jude Community Homes successfully applied to the City of Toronto’s Multi-Unit Residential Acquisition (MURA) program. They are a perfect fit for MURA, which is intended to help not-for-profit housing providers buy their at-risk buildings and preserve existing affordable rental housing in the city. In addition to MURA funding, the city also granted a 99-year residential property tax exemption on the Gerrard Street East building.

Buying a building in a hot real estate market is not easy, particularly if your focus is typically managing a care agency. “When trying to acquire our building, we found the expertise of a development consultant to be invaluable,” says Carol Zoulalian, Executive Director at St. Jude Community Homes. “He helped us find grants, ensured our finances were in order, made sure our financing application was supported by the right documentation, and generally helped me and our board navigate some very unfamiliar waters.”

Carol then contacted Vancity Community Investment Bank (VCIB) to finance the purchase costs that were outstanding even after the significant MURA contribution. “I’d heard about VCIB through our non-profit housing network,” Carol added. “Once we started working together, VCIB’s experience with the sector and their people-first approach became very clear.”

Chloe Wong, a VCIB Commercial Real Estate Account Manager, underscores the bank’s commitment to advancing affordable housing: “We want to make it easier for housing providers to continue doing their work and making a difference in peoples’ lives.”

Rising interest rates and other factors complicated the application process, resulting in timeline changes that might have derailed their opportunity to purchase the building. “These deals can be a lot of work for a lender, because non-profits and co-ops often need smaller more flexible loans,” Chloe adds. “We understand the sector’s needs, and we don’t shy away from putting in that extra effort.”

VCIB’s willingness to consider the MURA grant funding as equity was another key element of St. Jude Community Homes’ successful lending application. “As an impact-driven lender, we’re familiar with the granting process and the non-profit landscape, plus we’ll work directly with funders,” notes Chloe. “That allows us to see grant money as a source of equity when crunching the numbers. Not all lenders look at it that way,” she adds.

VCIB provided St. Jude Community Homes with a fixed-rate term mortgage of $1.2 million to finalize the purchase of the building at 1845 Gerrard Street East, Toronto. The sale closed in early September 2023.

“It was so wonderful to be able to share this news with our residents,” says Carol. “The teamwork this process required was unbelievable, and we are proud that we did it.” Closing the door on renting, St. Jude Community Homes was able to preserve the 20 units at their Gerrard Street site as affordable housing in perpetuity.

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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.

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

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

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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.

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

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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.

Media Relations
mediarelations@vancity.com
T: 778-837-0394

Tried-and-true financing model preserves and protects Toronto’s affordable housing

Posted on November 7, 2022March 1, 2024 by Cecilia Bermeo

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To Parkdale’s lack of affordable housing options, a neighborhood land trust offers an inspiring response: community ownership and stewardship of land.

Parkdale Neighbourhood Land Trust (PNLT) is Ontario’s first-ever community land trust, created to preserve land for affordable housing as well as affordable working spaces for nonprofits, social enterprises, and businesses run by new immigrants.

In 2017, the organization began monitoring at-risk affordable housing properties to purchase them when they came up for sale. However, this proved to be a difficult task.

Unlike private developers who can swiftly react to a hot real estate market, land trusts and non-profits usually need to secure government funding, raise money from investors, and put all the pieces in place before they’re able to place an offer on a property.

“Our biggest challenge [was] mobilizing financing to compete on the market. In some cases, we were successful in getting offers in, but then couldn’t get the funding together quickly enough,” said Joshua Barndt, PNLT Executive Director.

Innovative financing fills the gap needed to scale affordability

Against all odds, PNLT was able to purchase a 15-unit rooming house in 2019 with support from the City of Toronto, residents, and Vancity Community Investment Bank (VCIB).

“This exciting and impactful accomplishment got us thinking about what role the Bank could play in enabling more affordable housing acquisitions, and what other players we needed around the table. We began engaging with PNLT around ideas to leverage impact investments to streamline the fundraising and financing process so that they could respond faster to market opportunities,” said Trish Nixon, Managing Director of Commercial Impact Banking, VCIB.

In October 2020, VCIB and PNLT partnered to launch the Preserve and Protect Guarantee Program – a first-of-its-kind impact investment program that would help the Neighbourhood Land Trust rapidly acquire at-risk affordable rental buildings in Parkdale.

Through the program, VCIB accepts and holds funds from values-aligned investing organizations in Impact GICs, which are used to guarantee a portion of the financing facility made available for PNLT to purchase at-risk affordable rental properties as they are put up for sale.

The goal of the program was achieved in April 2021 when VCIB provided PNLT with an $8.5 million loan, supported by over $2.6M in guarantees from investors, to finance 100% of the purchase price of an at-risk 36-unit apartment building in Parkdale.

Photo by Adam Krawesky, 36-unit affordable housing building at 22 Maynard Avenue.

First-of-its-kind program becomes a tried-and-true financing model

“The innovation here was leveraging VCIB’s capabilities as a financial institution to reduce costs, timelines and other barriers for PNLT to access capital, including the amount that would typically be required as equity to secure bank financing. Ultimately though, participating impact investors were betting on PNLT’s ability to secure the necessary grants and long-term financing that would ensure the property remained permanently affordable and that they received their expected return on investment,” said Eric Visser, VCIB’s Senior Manager of Business Development, Commercial Real Estate.

“And it worked!”

A year after the property was purchased, PNLT was able to buy out their investors’ 30% equity through a grant from the City of Toronto’s Multi-Unit Rental Acquisition (MURA) program. The land trust refinanced the $8M+ Preserve & Protect Guarantee Program acquisition loan and replace it with a $2.79M conventional first mortgage with VCIB.

For Joshua, Executive Director of PNLT who led the charge to make it all happen, having a supportive financing partner made all the difference.

“Even before we had a project, VCIB was there,” said Joshua. “The team was always available to problem solve and help us understand the challenges and opportunities, and when Maynard came up for sale, we were ready.”

Looking towards the future, VCIB is working to replicate and scale this financing model to support other land trusts across Ontario.

A record of profitability: Dream’s sustainability journey

Posted on February 18, 2022April 16, 2025 by Cecilia Bermeo

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For a long time, the relationship between sustainability and profitability in the real estate industry has been uncertain. Yet, as the industry continues to evolve, more and more real estate developers and owners are recognizing the value of investing in the sustainability of their buildings. The question remains, however, of whether sustainability can have a direct impact on revenue.

Early on, Dream – now one of Canada’s leading for-profit real estate companies – came across an answer.

Tenants showed a desire for high-quality office spaces, and Dream realized they could meet this need by offering sustainable spaces that contribute to tenants’ health and wellness. By proactively investing in spaces with these qualities, Dream discovered their assets were in higher demand, had lower operating costs, and consistently generated strong financial returns, all while building better communities for their tenants, customers, and stakeholders.

“We have always focused on great design and community building. Sustainability creates superior assets and helps people in our communities lead better lives,” said Jamie Cooper, Portfolio Manager of the Dream Impact Fund. “When you invest in the sustainability of a building, you’re extending its life cycle and decreasing your operating expenses.”

From the very beginning, Dream’s business model was built on the notion that the real estate industry has a big part to play in “making the change that we want to see in our communities” explained Cooper.

But after the COVID-19 pandemic hit, highlighting the depth of the inequities in our society, Dream realized it needed to take its impact standards to a new level.

A major sustainability milestone

In the fall of 2020, Dream became a pioneer in Canada’s real estate industry by becoming the first Canadian real estate company to formally implement and measure an impact framework.

“The pandemic shed a light on Canada’s already existing social inequalities,” said Cooper. “Plus, not long ago, in 2019, the IFC’s Operating Principles for Impact Management were published. This provided a method for evaluating impact investing as an asset class and it was a game changer – these events prompted us to think about creating our own impact framework.”

Right after implementing their impact measurement framework, the Dream Hard Asset Alternatives Trust changed its name to ‘Dream Impact Trust’, turning its focus to impact investing.

In 2021, with financing from Vancity Community Investment Bank (VCIB), Dream made its first acquisition under its dedicated impact investing approach – a building located at 68-70 Claremont Street in Toronto’s trendy Queen West neighborhood.

Partnerships with purpose

Securing a financing partner that shared Dream’s vision for sustainable real estate was of paramount importance for Jamie Cooper and his team.

Motivated by Dream’s mission and impact journey, VCIB provided a $14,500,000 loan to assist in the acquisition and renovations of the Claremont building.

“The Claremont Project is a very meaningful property for us. It was the very first building that we bought under our new impact lens, so for us to have been able to partner with VCIB was extremely helpful,” said Cooper. “This is the impact bank. VCIB understood the value created by the remediation work that we’re doing in the building, and I think that was really wonderful.”

The Claremont Project

“We have a big vision for this building,” said Cooper. “We’re planning to offer a curated ecosystem of amenities and services that promote health and well-being in the community. Ramps will be installed to improve the building’s accessibility and we’re going to increase the water efficiency by replacing existing water fixtures with high-efficiency, low-flow fixtures.”

In addition, to increase the energy efficiency of the building and reduce greenhouse gas emissions, Dream will upgrade its HVAC system and windows, and install LED lighting.

For Dream, the tenants play an important role in managing the sustainability performance of their assets. “We want to create a very sustainable building and we’re hoping to attract tenants that value that,” continued Cooper. “Like-minded tenants can potentially help us achieve more than we otherwise could.” Dream engages its tenants through training and feedback sessions focused on increasing tenant awareness of sustainability issues.

Old partnerships, new vision

Dream’s partnership with VCIB didn’t stop there.

When Dream joined forces with BlackTusk – a Toronto-based and minority-owned real estate asset management firm – VCIB provided their joint venture with the financing needed to acquire a three-storey building located at 34 Madison Avenue, Toronto. This quaint old building is the future site of a Montessori school.

“It’s a beautiful building but it needs a lot of capital to reposition it and make it relevant,” said Cooper. “And we’re happy to have partnered with BlackTusk – this makes the project have double the impact as we see this as an opportunity to help grow their real estate private equity group while creating a school in Toronto.”

VCIB’s financing will also cover the renovations needed to create a high-quality learning centre. In keeping with Dream and BlackTusk’s building restoration policies, the property renovations will respect the essence and history of Toronto’s Annex neighborhood, where it’s located.

The Claremont Street and Madison Avenue projects illustrate Dream’s approach to impact investing and demonstrate that sustainability, community interests, and profit need not be at odds with each other. Across Canada, Dream is developing buildings that serve the community, embody a sense of place, and meet business objectives – without compromise.

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As Canada’s only values-based bank, VCIB provides construction, term, and acquisition financing for commercial real estate projects that drive lasting positive change in our communities. 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.

Click here to learn more about Dream’s sustainable approach to real estate development.