Government relations

For over five decades, housing co-operatives have showed that they are a prove solution as they have built inclusive, resilient communities across Canada. At a time when Canada faces a housing affordability crisis, Canadians are clear: 73 percent see co-op and non-profit housing as a viable solution, and 61 percent say increasing access should be a top federal priority. Growing co-op housing at scale requires dedicated federal investment to ensure projects are viable. In the recent period, this has largely come from the Co-operative Housing Development Program (CHDP). Catalyzed by CHDP, the sector is actively building. There are billions of dollars’ worth of shovel-ready projects that have been created, with land, partners, and community support secured. However, there are not enough CHDP funds to support all these projects. They require investment to be viable. As Build Canada Homes is being developed, letting these projects stall would be a costly missed opportunity, especially as we see private developers pulling back. To capitalize on a large co-op housing pipeline, CMC and CHF urge the government to recapitalize federal programs that work in the near-term, including CHDP, and to subsequently prioritize co-op and non-profit housing development into Build Canada Homes.  

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Canada’s food security and rural economic resilience are increasingly under pressure from rising input costs, global supply chain disruptions, and extreme weather linked to climate change. Agricultural and Agri-food co-operatives play a crucial role in addressing these challenges by anchoring local food systems, strengthening producer bargaining power, and reinvesting in regional economies.  

The Tax-Deferred Co-operative Share (TDCS) Program, first introduced in 2005 and renewed twice since, is a small but high-impact fiscal tool that supports the capitalization and resilience of Canada’s agricultural co-operatives. By allowing patronage dividends to be issued as shares with deferred tax inclusion until redemption, the TDCS helps co-operatives stabilize operations, invest in innovation, and respond to market volatility. At an annual cost of just $3 to $5 million, the program delivers strong returns. With its expiry set for December 2025, making the TDCS program a permanent feature of Canada’s tax system through legislation or budget inclusion is a cost-effective way to strengthen Canada’s agricultural and agri-food sector and deliver on food security and inclusive economic growth for Canadians.  

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Canada is on the cusp of a generational wave of small and medium-sized business (SME) transitions, with over 75% of business owners expected to retire in the next decade. Without succession planning and accessible business transfer tools, thousands of viable local businesses risk closure—putting jobs, services and economic resilience at risk, especially in rural and underserved areas. At the same time, Canada lacks a federal mechanism to support the creation, expansion, or succession of co-operatives, which are ideally suited to preserve local ownership and foster inclusive entrepreneurship.   

A Canadian Co-operative Capacity Building Program (CCBP) would address this gap by providing non-repayable federal support for co-op development services, employee or community buyouts, and business succession planning. The CCBP would help safeguard local economies, maintain essential services, and give Canadians more tools to build wealth in their communities. CMC recommends launching a pilot program with a minimum investment of $30 million over five years to retain to retain and grow locally rooted businesses through the co-operative model.   

Access to equity capital remains a persistent barrier for co-operatives, which lack the same tools as investor-owned firms to raise funds. Without a framework for community-based investments, many co-ops struggle to scale, innovate or expand into underserved markets.  

To address this long-standing gap, CMC urges the Government of Canada to commit to exploring and establishing a Federal Co-operative Investment Plan. Modeled on Quebec’s Co-operative Investment Plan, which has been active since 1985, the program would promote the capitalization of co-operatives by granting targeted tax incentives to eligible individuals–such as members, employees, or partners—who invest in preferred shares of qualifying co-ops or federations. A federal plan would unlock new capital streams, and boost growth in strategic sectors.   

Canada’s co-operative sector lacks a central coordination point within the federal government—resulting in policy fragmentation, inconsistent program access, and underutilization of co-operative solutions. From 1987 to 2013, the Co-operatives Secretariat helped address this gap by advising Cabinet, coordinating interdepartmental efforts, and serving as a resource for evidence and best practices. Stakeholders across the country—including during the Motion-100 consultations—have called for a modernized, well-resourced federal focal point to improve government understanding of the co-operative model and unlock the co-op potential across sectors. A modernized Co-operative Centre housed at Innovation, Science and Economic Development Canada (ISED) would serve as a policy innovation hub that coordinates cross-departmental action and ensures that co-ops are recognized as leveraged as partners to deliver national priorities.   

Despite their strong performance in consistently delivering affordable, community-based solutions across sectors, co-operatives are often excluded from federal programs due to unclear eligibility criteria, risk assessment models designed for investor-owned firms, and limited staff awareness. These barriers limit co-ops’ access to financing, procurement, and innovation support, limiting the sector’s ability to contribute fully to national priorities.   

In contrast, jurisdictions such as Quebec and several Organization for Economic Co-operation and Development (OECD) countries have adopted tailored frameworks for social economy enterprises that improve program efficiency, expand reach to underserved communities, and strengthen public return on investment. To align with these best practices and unlock the full potential of co-operatives, CMC asks that the federal government initiative a targeted review—led by ISED—to update eligibility criteria, risk assessment approaches, and training across relevant departments and agencies.