What is Affordable Housing?
As outlined in our section on What is a Housing Co-op, the land and building(s) of Bannerman Green will be owned by the co-op. There will be two major components to the housing costs for residents of the co-op.
- The initial membership share price which will be set based on the size of the desired unit. Shares will be redeemed at the same price when the member ceases to be a resident of the co-op.
- A monthly housing charge to cover operating costs (including taxes, mortgage payments, and utilities) and to build a reserve fund to cover future repairs and improvements. This charge will also be based on the size of the unit.
In Canada, housing is considered “affordable” if it costs less than 30% of a household’s before-tax income. Bannerman Green has applied for funding from Canada Mortgage and Housing Corporation (CMHC) and, if successful, will allocate a minimum of 30% of our units as “affordable units”. The CMHC funding would provide for a very favourable interest rate, a lengthy amortization period and a capital grant, which we are assuming can be used to reduce the affordable share price dramatically.
CMHC funding would also require that at least 30% of our units would have monthly housing charges that are less than 80% of the median rents in our neighbourhood. We are also seeking out Rent Subsidy programs to enable us to provide these affordable units without placing undue financial strain on the Co-op.
To qualify for one of these affordable units, the member would need to meet maximum household income levels that will be set in accordance with guidelines established by the rent subsidy program secured. Once all funding sources have been finalized, our pricing structure for market and affordable units will be published on this site.