New CCUA report shows how credit unions can help close the affordable housing financing gap—and keep housing affordable

OTTAWA, Ontario, Nov. 03, 2026 (GLOBE NEWSWIRE) -- By partnering with community-based non-profits, credit unions can help grow the currently rare supply of permanently affordable housing in Canada. A new study from the Canadian Credit Union Association (CCUA), Closing the Affordable Housing Equity Gap, examines some of the practical ways credit unions can adapt existing financing tools, expertise and resources to help community land trusts (CLTs) overcome funding barriers and preserve affordable housing projects.

CLTs, community-based corporations that hold properties for social benefit, play an important role in keeping housing affordable over the long term. But below-market rents can limit the mortgage financing available to acquire existing buildings. The resulting equity gap can leave projects without the capital needed to proceed.

To explore ways of addressing this challenge, CCUA led a solutions lab of experts from credit unions and CLTs to identify barriers along the property acquisition and financing journey and develop and test potential innovative financing solutions. The lab was funded by the Canada Mortgage and Housing Corporation (CMHC) under the National Housing Strategy Solutions Lab and facilitated with support from Scaled Purpose.

“Community land trusts are an important part of the affordable housing ecosystem, but access to equity can be a significant barrier to bringing projects forward,” said Jeff Guthrie, President and CEO of CCUA. “This work demonstrates how credit unions can build on their existing products, expertise, and resources to explore practical financing solutions that help more affordable housing projects move forward.”

The lab produced nine financing and capacity-building prototypes:

• Blended Finance for Higher Loan-to-Value - combines a conventional first mortgage with additional subordinated and impact capital to increase financing available to a CLT;
• Refinance Extractive Tenant Debt - connects tenants experiencing financial difficulty with lower-cost credit union financing to help reduce arrears and turnover;
• Small Business Tenant Loans - uses existing government-insured lending programs to support commercial tenants and strengthen building income;
• Advocacy and Training - builds CLT capacity through existing financial-literacy resources while improving credit-union staff’s understanding of the CLT model;
• Standard Community Capital Documents – aims to simplify community capital raises and support more consistent underwriting;
• Financing for Retrofits - explores financing structures based on the additional income or savings generated through building improvements;
• Community Finance Product – redesigns an initial retail Guaranteed Investment Certificate (GIC) concept as an accredited-investor fund
• Pooled Foundation Guarantees – explores how foundation capital could be pooled to help distribute risk; and
• Equity Fund & Project Aggregator - explores a larger shared vehicle to provide patient capital and aggregate CLT projects
  

The first four are currently being piloted, while the remaining five are at various stages of development. Each solution can be implemented by individual credit unions or scaled through a network of credit unions, offering flexibility for different markets and project needs.

“Collaboration between credit unions and community land trusts is essential to understanding both the financing challenges and the opportunities,” said Bolu Omidiji, CCUA's Manager of Social Purpose & Community Impact. “By bringing both sides of the transaction together, the lab has helped turn potential solutions into prototypes that can be tested, refined and advanced.”

While no single solution can address all the financing challenges CLTs face, the lab demonstrates that the capital, expertise, and institutional infrastructure needed to close the gaps already exist within Canada’s co-operative financial system. Through continued collaboration, credit unions and CLTs can help address financing gaps, expand access to affordable housing, and strengthen the communities they serve.

Read the executive summary for more details.

About the Canadian Credit Union Association

The Canadian Credit Union Association is the national trade association for Canada’s credit unions and caisses populaires, excluding the Desjardins Group. These 156 credit unions and caisses populaires serve more than 6.2 million Canadians and hold $334 billion—equalling over 6% of all domestic assets among Canadian deposit-taking institutions. Credit unions operate from 1,594 locations nationwide and are the only financial institution in more than 340 communities.

For media inquiries:
Canadian Credit Union Association
Email: communications@ccua.com