Amid a nationwide housing crisis, co-operatives should be central to expanding affordable supply across Canada because they are owned and governed for the benefit of members rather than investors and thus can preserve affordability over the long term.

Co-op members elect their boards and participate in major decisions that affect their homes, including rents and renovations. However, having this democratic structure does not always mean members can participate meaningfully in governing the co-operative. That needs to change.

Research has identified concerns (p. 75-78) about opaque decision-making and weak communication, uneven participation (p. 9-10) and board dynamics (p. 102-103) that can concentrate influence in relatively few hands, limiting how effectively the full membership can exercise democratic control.

As the federal government attempts to rapidly expand co-operative housing, strengthening its democratic governance can help ensure that public funding delivers durable affordability and a better experience for members.

There are multiple ways to do this, including ensuring neutral and effective ways for members to communicate; governance training; a plan to sustain member participation and leadership renewal; regulatory oversight that extends beyond annual financial audits; clear internal routes for raising governance concerns; and an independent option for complaints when internal approaches fail.

Ottawa already attaches conditions to the financing used to create co-operatives. The $1.5-billion co-op housing development program of the Canada Mortgage and Housing Corp. (CMHC) – the largest federal investment in new co-operative housing in more than 30 years – provides forgivable and low-interest loans, Its funding agreements already specify conditions and reporting requirements.

As of June 30, 2026, the program had committed $1.19 billion toward 2,788 new co-operative homes while CMHC is working with Build Canada Homes on further proposals. As this new generation of co-operative homes is financed and built, the federal government has an opportunity to use comparable policy safeguards to strengthen member control while preserving the autonomy of the co-operatives.

Making democratic rights usable

Members have legal rights to participate in their co-operative’s decisions, elect........

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