A coalition of community investment leaders is calling on the federal government to modernize Canada’s tax system to unlock billions of dollars in private investment for affordable housing, clean energy, and community infrastructure.
The Canadian Coalition for Community Capital says targeted federal reforms would allow more Canadians to invest directly in the infrastructure and resources their communities need, furthering the federal government’s mission to mobilize private capital for priorities like affordable housing and renewable energy.
Five Policy Changes Proposed
The coalition proposes five policy changes that would enable Canadians to invest registered savings—such as Tax-Free Savings Accounts (TFSAs), Registered Retirement Savings Plans (RRSPs), and First Home Savings Accounts (FHSAs)—in community projects while generating positive returns for government.
While Canada’s retail investment market is valued at approximately $4 trillion, and Canadians continue to direct substantial capital into registered investment vehicles, community organizations that build critical local infrastructure continue to face significant barriers to accessing affordable capital.
Community Investment Already Showing Potential
Community investment is already demonstrating potential. Charities, nonprofits, and cooperatives have already raised over $170 million from more than 6,000 Canadian investors using an investment vehicle called community bonds. And cooperatives have raised hundreds of millions more in investment via shares owned by members.
“Canadians consistently report a desire to align their investments with their ethics and values, but there’s a lack of investment vehicles allowing them to finance high-impact, local projects,” says Suzanne Faiza, the coalition’s coordinator, and policy and research manager for founding coalition member Tapestry Community Capital. “Meanwhile, charities, nonprofits, and cooperatives are building infrastructure like affordable housing and community spaces, but they struggle to find capital. It’s a gap that smart policy change can close, with positive results on a significant scale.”
Ottawa Community Land Trust Example
The Ottawa Community Land Trust (OCLT) is one example of community capital in action. It’s an organization dedicated to buying on-sale residential buildings where the rent is affordable but at risk of being hiked by new owners. In June, the organization purchased its third building after the seller approached OCLT with a desire to keep rent affordable for the building’s tenants.
A portion ($1.2 million) of the money for the purchase came from community bond investors. OCLT has been selling community bonds to finance its acquisitions since 2024. Investors are everyday individuals, local businesses, nonprofits, and foundations who want to align their investments with their values and make fair financial returns.
“We know that people are keen to invest their capital right here in the community to advance housing security for their neighbours,” says Mike Bulthuis, OCLT’s executive director. “Since 2024, more than 200 investors have invested over $4.5 million with the OCLT through purchasing Housing Forever Bonds, enabling us to acquire and preserve four multi-unit residential apartment buildings—ensuring that tenants stay housed and that rental homes are retained as affordable in perpetuity. This work advances Canada’s housing objectives.”
Potential Impact of Reforms
The coalition estimates that the proposed tax reforms could unlock over $800 million in community investment, directing capital to affordable housing, clean energy, and community infrastructure projects across Canada. The changes would allow Canadians to use their registered savings to invest in local initiatives while earning returns and receiving tax benefits.
