The Province of Nova Scotia is making another significant investment in the community housing sector while protecting affordable rent for existing and future tenants. A new $3.5 million Community Housing Capital Fund (NS-CHCF) will enable the preservation of affordable rental housing and grow the stock of community housing in the province. The fund will help preserve an estimated 117 affordable units over the next two years.
The Department of Municipal Affairs and Housing has entrusted the Community Housing Transformation Centre to deliver $3.5 million under this new fund starting in fall 2024.
“The government of Nova Scotia is setting a powerful example for the rest of Canada with this substantial investment in community housing. This initiative will not only preserve existing affordable rental housing but also expand and increase community housing stock, ensuring stability for current and future tenants. The Centre is proud to partner in this investment that will bring us closer to our goal of 20% housing market share for community housing.”
Lisa Ker, Acting Executive Director of the Centre
Growing community housing stock and capital
Community housing providers often face obstacles when trying to obtain financing from private lenders. This makes it difficult for them to purchase housing and provide more affordable homes.
The NS-CHCF will help remove barriers by providing a one-time capital contribution to non-profit housing providers and housing co-operatives who complete the prequalification process. These grants fill the financial shortfall to support the acquisition of existing, occupied, purpose-built rental multiplex properties (five units and above).
The fund will also help eligible organizations to obtain financing through the Community Housing Acquisition Program (CHAP) or other financial institutions and enable the sector to leverage these newly acquired assets to expand non-market housing across the province.
Racing to preserve affordable rental housing
The number of affordable rental housing units is eroding rapidly everywhere in Canada. Hundreds of thousands of affordable housing units have been lost over the last two decades. A 2022 research report from the Canadian Housing Evidence Collaborative (CHEC) demonstrates that since 2016, the annual loss of affordable housing units (46,000 units) has been more than double the number of new units added each year (less than 20,000) under the National Housing Strategy (NHS). In total, more than 550,000 units were lost between 2011 and 2021.
Conversions and demolitions are two significant factors contributing to this sharp decline. By helping community housing organizations to buy available affordable units, governments can begin to reverse this trend and help protect vulnerable renters from renovictions. The government of Nova Scotia is leading by example bringing much-needed relief to current residents of affordable homes and to future generations. British Columbia did the same with the Rental Protection Fund. Who’s next?
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