Housing crisis: Desjardins commits to delivering more than 10,000 affordable housing units by 2028
In the face of a housing crisis that is currently impacting thousands of families, students and people living alone, Desjardins Group has announced that it is expanding its commitment to help create more than 10,000 affordable and deferred-affordability housing units in Quebec over the next three years. This new ambition marks a significant evolution in Desjardins’s affordable housing initiative, which was first announced in 2022 with a pledge to deliver 3,000 units by 2028.
Among these 10,000 housing units, the vast majority will be affordable units owned by community developers. The current housing crisis is no longer limited to low-income individuals and now impacts a growing number of households. That is why Desjardins has decided to add deferred-affordability housing to its initial commitment. These units will be managed by municipal housing bureaus, non-profit organizations and housing cooperatives. Rent increases will be subject to the guidelines set by the Tribunal administratif du logement (TAL).
Rents for these new units will rise much slower than for the market-rate ones—a difference that will compound year after year. As a result, the new rentals will meet affordability standards over the medium term.
“In concrete terms, we’re looking to expand the number of housing units available to increase the housing supply as quickly as possible, thus meeting the needs of thousands of people who are struggling to find homes in today’s market. By adding deferred-affordability units to the mix, we can create housing with below-market rents in the short term, knowing that in a few years these units will officially meet the affordability standards set by the Quebec Affordable Housing Program (QAHP). Because the housing crisis is driven by multiple factors, there’s no one-size-fits-all solution,” stated Denis Dubois, President and CEO of Desjardins Group.
Cooperation means we can build more
To help build these 10,000 units, Desjardins will:
Release additional patient capital
Continue its partnership with the Société d’habitation du Québec (SHQ) and the Government of Canada, and team up with Qualified Developers from the SHQ network, like the Mission Unitaînés and the Société de développement Angus
Mobilize private investors and governments to provide additional sources of financing
Optimize public contributions for affordable housing
To reach this goal, Desjardins will build on its innovative one-stop-shop model, which centralizes sources of financing and helps get projects off the ground quickly, through streamlined processes and support from a dedicated team. This approach will reduce project delivery times, multiply available funding sources and reduce the number of government subsidies needed, thanks to optimized financing structures and commitments from public and private partners.
Moreover, the $50M Amplifier fund that was announced earlier this fall highlights Desjardins’s capacity to bring people together and inspire them to be a part of the solution. The fund is managed by Desjardins Capital and is sponsored by six philanthropic foundations as well as the SHQ. The Affordable Housing Innovation Fund, which was delivered to the FCDQ through Canada Mortgage and Housing Corporation (CMHC), is another example of this.
“Our role is to rally public and private parties, mobilize resources and support initiatives that will create different types of housing, quickly and efficiently, in a way that reflects people’s actual financial means. Everyone has the right to live with dignity. And at Desjardins, we have the ability to optimize public contributions and mobilize the right partners to get the job done,” said Denis Dubois.