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Good news for leaky co-ops
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We are very pleased to report the results of discussions between CHF BC, CHF Canada and Canada Mortgage and Housing Corporation (CMHC) on how best to help federally assisted co-ops suffering from premature building envelope failure (leaky co-ops).
CMHC has enhanced its workout framework for federally assisted CMHC-insured co-operatives committed under the Pre-86 Program with confirmed premature building envelope failure. A more flexible workout framework will help more co-ops return to financial viability over the long term
“Helping co-ops with serious building envelope problems has been CHF BC's top priority for many years. These enhancements are a significant step forward in that effort.” Thom Armstrong, Executive Director, CHF BC.
A number of these enhancements will also be applied where helpful and appropriate to other federally administered CMHC-insured projects in difficulty across Canada.
“This new workout framework is very good news, not only for the leaky co-ops in BC that will now be able use it to finance their building repairs, but also for federally administered CMHC-insured co-ops elsewhere in Canada,”” said Nicholas Gazzard, Executive Director, CHF Canada.
The enhancements to be implemented immediately, where more flexibility can lead to a viable long-term workout arrangement.
“For eligible co-ops, the enhanced framework will increase the amount of borrowing permitted in a workout and offer more flexible repayment terms for those loans” said Sharon Matthews, Vice-President of Assisted Housing for CMHC. “We are grateful to CHF Canada and CHF BC for co-operating with us on this initiative.”
Where redevelopment of existing co-ops is a more cost effective solution, Enhanced Assistance will still be available, along with Seed Funding to help cover the costs associated with the early stages of redevelopment.
These enhancements build on work already undertaken by CMHC and the co-operative housing sector to find workable, affordable solutions to help members of housing co-operatives continue to live in safe, affordable co-op homes.
For more details...
