Tenant association purchases apartment building from landlord and establishes Caroline Co-op, preserving 21 affordable units
For Immediate Release – Hamilton, ON – November 2, 2024 – Caroline Co-op celebrated its official founding today, marking the culmination of a tenant-led initiative to purchase the apartment building and preserve affordable rentals. The tenant association launched the campaign in response to the landlord listing the building for sale, motivated by a fear of rent hikes or renovictions if it was purchased by an investment company.
In June, the tenant association successfully closed on the purchase of 272-280 Caroline Street South, establishing the not-for-profit rental housing co-operative and ensuring long-term housing affordability and stability for its members. Since its formation, the group has elected a dedicated board of directors and established committees to collectively manage the Co-op’s finances and building maintenance. The Co-op comprises 21 units, serving a diverse membership that includes new immigrants, single-parent households, and pensioners.
The purchase was made possible with the financial support of multiple partners. This includes down payment assistance from New Market Funds and CMHC’s Innovation Fund; a mortgage from FirstOntario Credit Union under CMHC’s MLI Select program; and operating funding from the City of Hamilton in the form of an operating subsidy and housing charge subsidies. The Community Housing Transformation Centre, Hamilton Community Foundation, Co-operators Foundation, Catherine Donnelly Foundation, Fairmount Foundation, Co-operative Housing Federation of Canada, and local housing co-ops also provided grants and donations towards acquisition-related costs, including building inspections, legal fees, and land transfer tax.
For over 50 years, co-ops have been providing good-quality, affordable housing owned and managed by the community members who live there. Co-ops foster a vibrant sense of community by encouraging resident participation in decision-making and shared responsibilities.
There are 2,200 housing co-oops across Canada, home to over 250,000 people. Hamilton has 22 housing co-ops, with over 1,200 units. Co-operative housing is a well-documented success story, where inclusive communities are fostered, working-class people’s homes are secure, and affordability deepens over time.
Caroline Co-op envisions the apartment-to-co-op model as a blueprint for other tenants struggling with housing insecurity in Hamilton. The group will be publishing a case study report and documentary film, to give inspiration and practical advice to other tenants looking to establish their own housing co-operatives.
The prospects for co-operative housing and acquisitions have been improving, with more government funding anticipated. This includes a $1.5 billion federal Co-operative Housing Development Program, launched in June of this year. As well, a $1.5 billion Canada Rental Protection Fund was announced in this year’s federal budget. The City of Hamilton is developing an Acquisition Assistance Fund, expected to launch in 2025, modelled after the City of Toronto’s Multi-Unit Residential Acquisition (MURA) program which is funded at $21.5 million annually and provides grant funding up to $200,000 per unit.
Quotes:
“Tenants across Hamilton are facing rent hikes and renovictions as buildings change hands from ‘mom and pop’ landlords to investment companies,” said Emily Power, President of Caroline Co-op. “The apartment-to-co-op model is a common sense solution that allows working-class people to take control of our homes, keep housing costs low, and grow the stock of social housing for future generations. If we can do it in our building, others can too.”
“The story of Caroline Co-op shows that, with government investment, we can protect renters while expanding co-op housing,” said Tim Ross, Executive Director of the Co-operative Housing Federation of Canada. “Many relatively affordable rental homes in the private market are lost when buildings are put up for sale. By converting rental buildings into co-operative housing, we can safeguard affordability, ensure security of tenure, and strengthen communities.”
“This new co-op provides a most welcome example of how to create permanently affordable housing,” said Andy Broderick, Managing Partner at New Market Funds. “The power of the residents’ commitment to gain control of their housing was nurtured by the community and supported by investors demanding both a good investment and a more just and equitable Canada.”
“Affordable and sustainable housing awareness is one of FirstOntario Credit Union’s strategic priorities and we’re pleased to play a supportive role in the development of the Caroline Co-op,” said Andrew Mantecon, Director & Team Lead, Commercial Services at FirstOntario Credit Union. “As a financial co-operative ourselves, it’s important we support other co-operatives as well as initiatives that preserve affordable housing options in our communities. We look forward to participating in future initiatives that align with this goal.”
For more information, please contact:
Emily Power
President, Caroline Co-op
epower@carolinecooperative.com
289-788-3205
For more details on the project and the co-op housing model, see the attached Caroline Co-op Backgrounder.
-END-