After decades of limited new development, co-operative housing projects are again moving forward in Toronto and elsewhere in Canada as governments and housing providers seek models that can preserve affordability over the long term.

The Co-operative Housing Federation of Toronto’s (CHFT) development pipeline includes more than 1,900 homes, reflecting renewed interest in a model that combines rental housing with resident governance and non-profit ownership.

As the sector expands, a central question remains: Can co-operative housing be designed and governed to meet the needs of today’s students, families, and co-workers?

Construction Canada spoke with Anjala Kulasegaram, manager of co-op housing growth and development at the Co-operative Housing Federation of Canada (CHF Canada), and Tom Clement, executive director of the CHFT, about the model’s resurgence, its misconceptions, and the next generation of co-op development.

Those concerns are drawing renewed attention to co-operative housing. After roughly three decades of limited new development, several co-op projects have begun construction since 2024. The CHFT’s current development pipeline includes more than 1,900 homes.

In 2004, CHFT launched a scholarship for post-secondary students living in co-op housing. Since then, the program has awarded $2.7 million in scholarships. Several recipients have gone on to work in housing policy, co-op development, and related fields.

Ahead of the 2027 scholarship period, Construction Canada spoke with Kulasegaram and CHFT executive director Tom Clement about the resurgence of co-op housing.

What can co-op housing offer that conventional rental and ownership options may not?

Kulasegaram: Co-op housing offers something different: Homes that can remain affordable over the long term and communities where residents have a say.

Co-ops are built on principles that have always worked—shared responsibility, community control, and long-term affordability. The challenge now is to bring those principles into new developments in a way that meets today’s realities.

What does the renewed growth of co-op housing look like in Toronto and across Canada, and what is driving that growth?

Kulasegaram: Co-op housing is again being recognized as part of the response to Canada’s housing challenges. In Toronto and across the country, people are feeling the pressure of affordability, insecurity, and limited options.

Affordability pressures are driving some of this renewed growth, along with renewed interest in the co-op model. Governments, municipalities, non-profit housing providers, land trusts, and community partners are looking for ways to create housing that is not just affordable today, but protected for future generations.

What must the next generation of co-op housing offer to meet the needs of today’s students, families, and workers?

Kulasegaram: The next generation of co-op housing needs to reflect the way people live now. Students, families, and workers face different pressures than previous generations, and housing must respond accordingly. We need homes that are affordable, accessible, energy-efficient, and flexible enough to accommodate different household sizes and life stages.

Location also matters. Co-ops need access to transit, schools, services, childcare, employment, and community supports.

I also think the governance model must continue evolving. We should protect the heart of co-op housing—democratic control, community ownership, and resident voice—while making participation realistic for people who are balancing work, school, caregiving, and other responsibilities.

Clement: We need more housing in more communities right across the city. A recent co-op expansion project added 24 homes and drew more than 6,000 applications to its lottery. The response illustrates the scale of demand. People want to live in the city, and the city needs students, families, and workers to live here. Housing located far from employment, family networks, and essential services may not meet the needs of those households.

What are the most persistent misconceptions about co-op housing that you would like to correct?

Kulasegaram: One misconception is that co-ops are less formal or less stable communities than other housing options. My experience shows the opposite. Co-ops can be exceptionally well-governed communities where residents take their responsibilities seriously because they understand what is at stake.

Another misconception is that co-ops serve only one type of household. They serve students, seniors, families, newcomers, and workers with a range of incomes and life experiences. That diversity is a strength.

Finally, resident involvement is often misunderstood as a challenge. Participation can be complex, as in any democratic process, but when people are encouraged to engage, they build skills, accountability, trust, and pride. That sense of ownership transforms communities.

Clement: People often assume co-ops are exclusively low-income or social housing. In fact, many co-op communities are mixed-income. The St. Lawrence neighbourhood is often cited as an urban-planning success because it combines co-op, market-rental, condominium, and supportive housing.

A similar mix is being developed in the Don Summerville community in Toronto’s Beaches neighbourhood. The project includes condominiums, Toronto Community Housing units, market-rental housing, and co-op homes.

CHFT has 32 units, many of them designated for artists, included in this development.

Another misconception is around price. People familiar with co-ops tend to expect them to be

much below market. But most of the co-ops in Toronto today were built decades ago. What

people do not realize is that at the time, those units would have been at or close to market rates.

The key is that, over time, housing charges increase only to cover the community’s costs.

Because a conventional landlord does not operate co-ops, members are not subject to landlord-driven renovictions or profit-driven rent increases. Co-ops offer people a sense of stability and long-term affordability that grows the longer they live in their co-op.

Anjala, you received a CHFT scholarship in 2004 and later built a career in co-op housing development. How did living in a co-op shape your interest in housing and prepare you for work in the sector?

I moved into Woburn Village Co-op Homes Inc. in Scarborough, Ont., with my mother when I was 12. At first, I did not understand how co-op housing differed from renting, but I quickly learned that it was more than a place to live. It was a community built on participation, shared responsibility, and mutual support.

Watching my mother join the board and contribute her skills showed me what community governance looks like in practice. Later, serving on the board myself helped me build leadership skills, understand financial decision-making, and appreciate the care required to manage housing that people depend on.

Receiving the CHFT Diversity Scholarship in high school was a turning point. It connected me to the broader co-op sector. It opened doors—from summer roles at CHFT and Housing Services Corporation (HSC) to managing co-ops and serving on CHF Canada’s Ontario Council. Those experiences grounded my understanding of housing and continue to shape how I approach new co-op development.

Housing development requires practical experience in project management, governance, and community engagement. Can co-op housing help create a talent pipeline for the sector?

Clement: Co-op housing creates opportunities for young people to be engaged in their community and be exposed to co-op governance. This early exposure can open people’s eyes to housing-related fields that they were previously unaware of.

The CHFT Diversity Scholarship can also introduce recipients to careers in co-ops and the broader housing sector. We have had several winners pursue careers in housing policy, in urban planning, property management, or adjacent fields such as engineering or social work. The scholarship does not direct recipients’ academic or career choices. However, people who become involved in co-ops often remain interested in housing and community governance.

The scholarship’s interview process also allows us to create opportunities for people. The relationships we build with scholarship recipients also allow us to introduce career paths they may not otherwise have considered.

Even scholarship winners who pursue other career paths remain involved and connected in co-op governance. That is because people who live in co-ops tend to become quite knowledgeable about them. In 22 years, we have had four scholarship winners become CHFT president. Countless others have taken board positions in their own co-ops. More recently, former recipient Cyesha Ford joined the board of CHFT Development Society, CHFT’s development arm.

Beyond financial assistance, what impact has CHFT’s scholarship program had on recipients and co-op communities?

Kulasegaram: The scholarship meant much more to me than financial assistance. It allowed me to live and study outside of my community and gather new experiences to bring back. For many young people and adult learners in co-op communities, the scholarship is not only about paying for school.

It builds confidence and creates momentum. It tells people that their community is invested in their future. In my case, it also connected me to a sector that became my career. That is the broader impact of the program. Scholarships help people advance their education, but they also help build leadership, confidence, and connections.

Clement: The scholarship encourages and rewards people’s community involvement over simply academic performance. One eligibility requirement is that students demonstrate volunteer involvement in three activities, whether at school, in a faith community, or in their co-op. The point is that there is a diversity of experiences, not just involvement in the communities they represent. An A-plus student who has not contributed to the community will not receive the scholarship.

The application process is also quite rigorous and prepares students for real-world experiences. Applicants must write an essay about their experiences without using AI and participate in an in-person interview. For many applicants, this is their first formal interview. So, we focus on developing communication and interpersonal skills.

Financial literacy and personal budgeting training are a mandatory part of the scholarship. By introducing financial literacy, we can help them understand how best to spend their money.