By John Chenier
The francophone community in Lowertown was decimated by the urban renewal scheme in the 1960s. Homeowners and renters alike were forced to vacate their homes, which were subsequently bulldozed to make way for new housing. Much of the “cleared” land was designated for publicly funded rent-geared-to-income housing. Other parcels of land and single lots were placed for sale on the open market.
For many francophone families that had been displaced, the best, if not the only viable way to return to Lowertown was through a co-op housing project. The federal government, through Central Mortgage and Housing Corporation (CMHC had instituted a program for financing co-operative housing. In the early 1970s, groups wanting to build co-operative housing were required to have to a 5% down payment on towards the cost of project.
Planning for the first housing co-operative in Lowertown started in 1968. Fifty-six families paid $900 each to come up with the $50,000 needed to secure the required $1,000,000 to build houses on land leased from the City. In 1973, Parc Beausoleil Coopérative d’habitation at 10 Heney Street became the first francophone co-operative housing in Ontario. The Beausoleil co-op was followed by Coopérative Brébeuf in 1976, situated off Desjardins Avenue, and Co-op d’habitation De LaSalle in The Wedge in 1982. Both of these co-ops purchased their parcels of land from the City.
In total, the three co-ops provide housing for 190 families. Beausoleil has 56 townhouses: 37 three-bedroom and 18 four-bedroom units and one unit that serves as an office. Brbeuf has 52 townhouses: 14 two-bedroom, 26 three-bedroom and 12 four-bedroom units. De LaSalle, the largest of the three with 82 townhouses, is the only one with one-bedroom units: 15 one-bedroom, 34 two-bedroom, 28 three-bedroom and 7 four-bedroom units.
The CMHC program for co-operative housing used by the three Lowertown co-operatives stipulated that a percentage of the units had to be let to low-income families at a subsidized rent. How these rents were to be subsidized varied over the years depending on the initial conditions of the mortgage, the bylaws of the individual co-ops and the many federal and provincial subsidy programs that were introduced and subsequently withdrawn over the years as the mortgages were renegotiated.
Today, none of the co-ops have an outstanding mortgage with CMHC. Beausoleil transferred its mortgage over to the Caisse Populaire when it was offered a better interest rate. Brébeuf moved to the Caisse Solidaire when it took out a sizeable loan to finance building improvements. The De LaSalle mortgage is fully paid off. Consequently, none has an ongoing obligation to provide subsidized units. However, Brébeuf and De LaSalle still have a percentage of their units let to low-income families at a subsidized rent.
The co-op housing model has frequently been compared with private or public subsidized housing projects such as Ottawa Community Housing (OCH) as a means of providing housing for low-income families. Both models are meant to provide a mix of housing at subsidized and market rates in an effort to encourage mixed-income neighbourhoods. However, faced with the overwhelming demand for affordable housing in the city, OCH is under constant pressure to reduce the number of units let to those who could afford to rent elsewhere.
The benefits of the co-op model are often summarized as:
- Affordability. Monthly housing charges are set the by the members to cover the costs of running the co-op.
- Security. A member’s right to live in the co-op is protected as long as they’re following all of the rules.
- Community. There is a strong sense of community because members actively participate in all aspects of running the co-op.
That last point is probably the most important difference in terms of outcomes, and leads many to argue that co-ops are the preferable model as they are more successful in promoting safe, affordable, well-maintained housing than the publicly subsidized alternative offered by OCH.
Back in 1969, the Task Force on Housing and Urban Development , led by Paul Hellyer, recommended that: “Greater encouragement be given to the use of limited dividend, non-profit and co-operative projects as a means of providing adequate accommodation for lower income groups.”
Nevertheless, several studies have shown that money allocated to co-operative housing is very small compared to the funds directed at subsidized housing projects, home ownership or other measures to stimulate housing over the years.
While the co-op model may achieve better social and economic outcomes, it is difficult to imagine this model replacing the subsidized-housing model. Co-op housing doesn’t just emerge out of thin air. It is a bottom-up approach that requires a few dedicated individuals willing to provide leadership, recruit members that are ready to make a commitment to a co-op way of living and have the money for a down payment.
It is unreasonable to expect that many of the people in immediate need of subsidized housing have the resources needed — money, connections to a like-minded community or time to wait — to create a co-operative housing project. However, it is conceivable that some of the OCH developments could be converted into housing co-ops, as has happened in Toronto. But that would require new public policies and programs as well as considerable private initiative for that to happen.
Things have changed markedly since the 1970s. Back then, people were deserting the inner core of cities in droves. Since then, demographics and preferences have changed and the price of land and housing in the inner-cities has increased markedly, making it less likely that any more co-ops will be built in communities like Lowertown.
A recent story from CBC Vancouver noted that the leases for 57 co-ops accounting for 3700 units built on city land are due to expire. The question is, what should the city do? The options under consideration range from renewal of the current leases to complete redevelopment of the land.
According to the CBC report, the city’s director of strategic operations has stated: “We are going through an affordability crisis and we want to ensure that the people who are … using public land are the ones who have demonstrated need.”
Obviously that issue will arise in Ottawa in the future. The only co-op on leased land in Lowertown is Beausoleil. Its lease expires in 2033.
Things to know
Coops are governed by rules set out by their own bylaws and by provincial legislation. In Ontario, the major legislation is the Co-operative Corporations Act, RSO 1990, c. C-35. Section 171.
The legislation covers a lot of areas such as means of selecting new members (renters) and the process and procedures for rescinding membership and evicting people from their unit. There are others that relate specifically to the co-ops in our community.
All coops are operated and administered according to the following principles:
Each member has only one vote.No member may vote by proxy.The co-op operates as closely as possible at cost and any surplus is:
- used to maintain or improve the service to its members;
- donated for community welfare; or
- used to spread co-operative principles.
The articles of incorporation of a non-profit housing co-op must state that:
- the primary object of the co-op is to provide housing to its members;
- the co-op’s activities must be carried out without the purpose of gain for its members;
- upon the dissolution of the co-op and after it has paid is debts and liabilities, the remaining property must be transferred or distributed to one or more non-profit housing co-ops or charitable organizations.