Canadian Housing Minister Sean Fraser announced the launch of a $1.5 billion cooperative housing development program promised by the federal government in its 2022 budget.

Fraser was in Winnipeg yesterday, Thursday, to announce the program, which is expected to build thousands of new homes by 2028.

The federal government confirmed that the program was designed in collaboration with the Canadian Cooperative Housing Federation – which represents more than 900 cooperative associations across the country – as well as other leaders in the sector.

The program is one of the elements of the plan released this spring that outlines the federal government's strategies to address housing affordability.

Fraser described the program as the largest federal investment in cooperative housing in 30 years.

He stated in a press release: “By focusing on people over profits, cooperative housing can keep housing affordable in the long term.”

The federal government stated that cooperative service providers will be able to apply for the first round of funding between July 15 and September 15.

The program, which will provide $1 billion in the form of loans and $500 million in the form of grants, will be administered by the Canada Mortgage and Housing Corporation.