Co-operatives Act

Today, October 1st, new provisions of the Co-operatives Act concerning housing co-operatives take effect. The application of section 221.2.3 involves new obligations concerning the sound management of the co-operative property assets.

These obligations apply to all housing co-operatives that had a building constructed, bought, restored or renovated as part of a government housing subsidy program, whether federal or provincial. These obligations remain even after the end of the operating agreement between the co-operative and CMHC or the SHQ.

According to section 221.2.3, Quebec housing co-operatives are now required to establish a reserve sufficient enough to ensure the sound and safe management, the maintenance and the preservation of their buildings. They must also have their buildings inspected by an expert at least every five years and submit the report of the expert to the co-operative’s following general assembly.

The article also provides the obligation for the co-operatives to establish a five-year plan for the maintenance work and preservation of their buildings along with their budgets. Also, the co-operative must make a report of its maintenance and preservation work on its buildings and of the budgets related to its five-year plan in its annual report.

FECHIMM welcomes this new disposition of the Law which is necessary for the sound management of the co-operative housing sector. The Federation notes that, despite its outreach efforts over the past ten years, some co-operatives have not done or diligently updated their work planning or the maintenance of their buildings.

Support from FECHIMM

According to the director of the services to co-operatives, Louis-Philippe Myre, the Montreal metropolitan housing co-operatives can count on the support of their federation to help them comply with the dispositions of section 221.2.2. “FECHIMM has inspected more than 5000 units as part of a health check process since the launch of the support for planning and construction work service, and was able to demonstrate its expertise”, he said.

The expertise of the team of management consultants can also be put to use by the co-operatives as part of the financial planning exercises and refinancing procedures, also specified the director of FECHIMM’s services to co-operatives.