Guest author: Stephen Bennett, General Manager, Affordable Housing Societies

Presented April 30, 2025, at CHRA’s National Congress on Housing and Homelessness held in Saskatoon.

Canada’s housing sector is in transition. Demand for affordable housing continues to rise, yet the financial underpinnings that have sustained much of the community housing sector are shifting. Long-standing government subsidies are declining, operating agreements are expiring, and housing providers are faced with a dual challenge: scale up supply while safeguarding the affordability of their existing portfolio. 

In a recent presentation, Stephen Bennett, CEO of Affordable Housing Societies (AHS), offered a practical case study of how one provider is addressing these pressures head-on. AHS’s journey demonstrates that with bold strategies and policy innovation, housing organizations can remain mission-driven while adapting to a changing environment. 

The Shifting Policy Context 

For decades, AHS operated under a Rent-Geared-to-Income (RGI) model, with rents set at roughly 30% of household income and government subsidies filling the financial gap. In 2015, 92.5% of AHS’s budget was backstopped by the Province of British Columbia through BC Housing. Today, that figure has declined to 72%, and is projected to fall to just 55% by 2030. 

This trend reflects a broader reality across Canada: community housing providers cannot rely indefinitely on direct government subsidies. New models of financing and operations are required to ensure both growth and long-term viability. 

Strategic Growth in a Constrained Environment 

To meet a Board mandate of 5,000 units by 2030, AHS adopted a set of growth strategies designed to diversify funding and leverage partnerships: 

• Asset mobilization: By selling its head office and refinancing six properties, AHS unlocked $38 million in capital for reinvestment. 

• Private-sector partnerships: Recognizing that developers can achieve both profit and public good, AHS pursued collaboration. Its first Letter of Intent (LOI) with a developer in 2020 has since grown into partnerships delivering 452 new units. 

• Government programs and acquisitions: By actively responding to provincial RFPs and seizing acquisition opportunities, AHS will have delivered 1,291 new homes between 2019 and 2027, with more in the pipeline. 

Importantly, 577 of these new homes will be market or low-end of market units, generating $1.7 million annually in positive cash flow that is reinvested into the development pipeline. 

Operational Renewal for Long-Term Sustainability 

Growth is only half the equation. To ensure its housing remains viable, AHS has introduced operational reforms: 

• Rebalancing affordability: Up to 40% of units will shift to low-end of market rents upon turnover (with no impact on current tenants). New developments will introduce additional RGI units to offset this shift. 

• Reinvestment in renewal: AHS now directs 25% of surpluses from new developments into a dedicated capital repairs fund to preserve older housing stock. 

This two-pronged approach ensures that growth does not come at the expense of long-term sustainability or tenant affordability. 

Policy Lessons for Canada 

The AHS experience underscores several lessons for housing policy and practice across Canada: 

1. Diversified revenues are essential – Housing providers must blend RGI, low-end of market, and market units to stabilize operations while continuing to serve those most in need. 

1. Partnerships accelerate delivery – Constructive engagement with the private sector can unlock new supply faster, provided affordability targets remain central. 

1. Asset management is a policy tool – Leveraging existing properties to finance new growth, while earmarking revenues for repairs, ensures both renewal and expansion. 

1. Mission and adaptation can coexist – Protecting current tenants while modernizing financial models shows that social purpose and financial sustainability are not mutually exclusive. 

Conclusion 

As Stephen Bennett noted, “The best predictor of future failure is dependence on past success.” For community housing providers across Canada, the imperative is clear: adapt, innovate, and build resilience. 

From growth to renewal, the pathway forward requires organizations — and governments — to embrace new models of financing, partnership, and reinvestment. Only then can we ensure that affordable housing remains both sustainable and scalable in the years ahead.