The community housing sector in Atlantic Canada faces persistent challenges that demand innovative, scalable solutions. A new initiative, supported by the Centre, in partnership with Davis Pier and in collaboration with several non-profit housing organizations and associations, is tackling this issue with a feasibility study exploring alternative financing models tailored to the region’s unique needs. Here’s a look at the preliminary framework for this groundbreaking project and its significance for sustainability and growth of the community housing sector.
Addressing regional challenges
Atlantic Canada’s housing sector is at a critical juncture. Aging housing stock, increasing demand for affordable options, and financial barriers are some of the most pressing issues. For many organizations, securing the necessary financing to grow, renovate, or maintain their stock remains a significant hurdle.
Traditional funding streams, while vital, are no longer sufficient to address the scale of these challenges. Housing providers often face limited access to private investment and tailored financial tools compared to other regions in Canada. This initiative aims to fill that gap by exploring creative and flexible solutions.
The feasibility study: objectives and approach
The study seeks to provide actionable insights for the sector by focusing on three key objectives:
- Assess sector readiness: Understand the capacity of housing providers to adopt alternative financing models.
- Engage key stakeholders: Foster collaboration between housing providers, financial institutions, and government bodies.
- Develop financial tools: Create solutions tailored to the unique needs of Atlantic Canada’s community housing sector.
The project involves a series of workshops and consultations designed to align the insights and aspirations of partners. This collaborative approach ensures the development of practical, sustainable solutions.
Learning from proven models
This initiative draws inspiration from innovative financing models developed both in Canada and globally. Notable examples include:
- Community bonds: A social financing tool that allows nonprofits, charities, and co-ops to raise funds from their community. Not only can these bonds provide critical pre-development funding, but they can also foster stronger relationships with investors, many of whom become long-term financial supporters or participants in an organization’s governance structures.
- PLANCHER Fund (Quebec): By leveraging dormant equity in community housing assets, this model creates a pooled financing solution. It enables housing providers to access below-market-rate loans for renovation, acquisition, and new construction.
- MORHomes (UK): This borrowing vehicle pools the capital needs of housing providers and raises funds through bonds issued on the London Stock Exchange. This approach has enabled significant scaling, with over $1 billion in loans issued to date.
- Housing Australia: This model aggregates loans across the country, offering long-term, fixed-interest financing to community housing providers. By reducing financial risks and increasing access to capital, it has supported the development of over 17,500 new and existing homes.
Designing solutions for Atlantic Canada
The feasibility study involves extensive stakeholder engagement across all four Atlantic provinces. Workshops and consultations will focus on:
- Market analysis: Identifying assets, financial gaps, and potential partners in the region.
- Solution co-creation: Collaborating with housing providers, financial institutions, and governments to design tailored financing tools.
- Actionable recommendations: Delivering a roadmap for implementing innovative financing models that meet the sector’s needs.
- Proof testing: Identifying pilot initiatives to test and implement new approaches.
A call to action for community housing professionals
The success of this initiative depends on the active participation of housing professionals in Atlantic Canada. The challenges of securing financing are well-known, particularly during the pre-construction and early development phases, where funding gaps often stall projects. The feasibility study seeks to address these pain points by building financial tools that align with the sector’s needs and realities.
As community housing professionals, your insights and experiences are invaluable. Whether it’s through participating in workshops, sharing organizational data, or contributing to the vision for new financing models, your involvement will shape the outcomes of this initiative.
Looking ahead
This project represents a pivotal moment for the community housing sector in Atlantic Canada. By exploring innovative financing models, let’s unlock the potential for significant growth and sustainability. With the final feasibility study expected in early 2025, the time to engage is now.
If you would like to receive more information on the progress of this study, please sign up here.
