Section 61 Program (1973–1978)

Program Objectives

To provide modest, affordable housing appropriate to the needs of low- and moderate-income families and individuals
To house mainly families whose incomes may be too high for public housing but who cannot compete in the open market for housing
To encourage the integration of families and individuals of varying income

Unilateral federal program
Income-mixing
Financing for 100 % of eligible project costs
Eight per cent mortgage loan from Canada Mortgage and Housing Corporation (CMHC) with 50-year term and amortization period
10 per cent capital grant from CMHC, and, in Ontario, the province, earned over time
Subsidy/surcharge system to ensure a mix of incomes (incomes verified at least once every 30 months)
A minimum percentage of households, fixed by each operating agreement, must be subsidized.
Rent supplements available for a proportion of units (typically 25 %) under separate federal/provincial cost-shared rent supplement program (certain provinces only)

Right to approve changes to co-op’s occupancy charges and surcharges (requirement suspended)
Right to inspect co-op’s books, records and accounts
Right of access to co-op at any reasonable time to audit co-op or obtain statistical or other information on co-op’s operation
Right to inspect property
Right to call loan or raise interest rate to current CMHC lending rate in event of breach of agreement
Right to approve any contract for management services
May require co-op to make such annual or other reports to CMHC in such form and containing such particulars as CMHC may ask for
May require co-op to supply such information as CMHC may want for statistical purposes
Co-op may not mortgage or encumber property without CMHC’s approval.
Co-op may not sell or otherwise dispose of all or part of property without CMHC’s approval.
Co-op may not lend co-op funds or guarantee obligations of third parties without CMHC’s approval.