Montréal
With skyrocketing prices in the real estate sector, home ownership seems increasingly out of reach for many Quebecers.
In some cases, being a tenant has also become more complicated due to the increasing unaffordability of rents. In the face of the ongoing housing crisis, social economy actors are taking action to propose collective and non-profit housing models based on solidarity rather than speculation.
Currently, non-profit housing accounts for 8 to 10% of Quebec’s housing stock, representing 1.6 million rental units, according to the Alliance des corporations d’habitations abordables du territoire du Québec (ACHAT). This is half the target of 20% of the market set at the end of the third Social Economy Summit, held last May.
Based on the province’s demographic projections, the organization estimates that 231,000 of these apartments will need to be added by 2030 and another 323,000 by 2050. For ACHAT, ending the crisis requires a “paradigm shift” in the rental market.
“We need to stop thinking that non-profit housing is only for poor people,” says Marie Depelteau-Paquette, executive director of the organization. “It’s for everyone: young people, seniors, students, professionals, families… It should be seen as just another way of providing housing, not just for social housing. By developing different models, we can meet the needs of as many people as possible.”
“We also need to rethink housing and view it as social infrastructure,” adds Martin Simoneau, the organization’s director of public and government affairs.
ACHAT has identified four pillars that would enable the 20% target to be achieved, starting with the consolidation and merging of ownership of the non-profit rental housing stock.
The next step is to professionalize the organizations that manage the housing and ensure their growth.
Currently, many organizations are considered too small or too young to have the capacity to develop a housing stock, notes ACHAT. “When financial institutions look at risk, they prefer to provide funds to cooperatives that have already proven themselves,” says Sandra Turgeon, Executive Director of the Confédération québécoise des coopératives d’habitation (CQCH). “And in the case of a small project, such as a group of about 20 people who want to start a cooperative, it is rejected by the government.”
“We also see that smaller initiatives don’t have the resources to build up sufficient reserves to cope with the rising cost of living,” she adds.
“By professionalizing them or merging them with other cooperatives, they give themselves the means to create more housing, and it snowballs,” adds Ms. Depelteau-Paquette.
Protecting achievements, growing, and forming alliances
Another pillar identified by L’ACHAT to increase the housing supply is the acquisition of existing homes to remove them from speculation, and the development of new homes.
“Yes, we need more affordable housing, but we mustn’t lose the homes we already have,” Ms. Turgeon points out. She points out that at the recent CQCH conference, members unanimously passed a motion to commit to preserving existing housing while working to expand the movement.
Finally, for ACHAT, the long-term success of the operation will depend on impactful partnerships. Far from wanting to exclude the private sector from the equation, social economy actors believe the opposite. “We’re not saying that the social economy should replace it,” Ms. Depelteau-Paquette clarifies. “There are families whose needs are met by these companies, but we need to make room for non-profit housing.”
“There are developers who are interested in non-profit housing. Our members want to build in the same way as these developers, except that they want to reinvest their profits in the creation of new units.” - Marie Depelteau-Paquette
ACHAT advocates for agility and flexibility in housing project planning. Currently, it can be difficult for organizations working to provide non-profit housing to obtain financing, particularly from the government, due to the rigidity of subsidy programs.
“What we often hear is that non-profit housing stakeholders want to develop differently, sometimes without going through the usual programs,” says Ms. Depelteau-Paquette. “They are looking for other ways to secure financing, but above all, they want the flexibility to innovate. However, current programs do not always allow for this.”
“The government could give us more freedom,” argues Ms. Turgeon. “For us, it’s about working on the architecture of a unique Quebec-based model for non-profit housing,” continues Mr. Simoneau.
He would also like to see asset management done by “portfolio” rather than by project. “If organizations were allowed to raise capital not for a single project, but based on what they already have, it would be a game changer,” he says. “This is a great opportunity for the social economy to take its rightful place in the market.”
Read the open letter in Le Devoir