Coalition calls on Federal Government to Unlock over $800 million in Community Investment Through Targeted Tax Reform

Five policy changes would enable Canadians to invest registered savings in affordable housing, clean energy, and community infrastructure while generating positive returns for government

OTTAWA, Ontario, July 09, 2026 (GLOBE NEWSWIRE) -- A coalition of community investment leaders is calling on the federal government to modernize Canada’s tax system to unlock billions of dollars in private investment for affordable housing, clean energy, and community infrastructure.

While Canada’s retail investment market is valued at approximately $4 trillion, and Canadians continue to direct substantial capital into registered investment vehicles such as Tax-Free Savings Accounts (TFSAs), Registered Retirement Savings Plans (RRSPs), and First Home Savings Accounts (FHSAs), community organizations that build critical local infrastructure continue to face significant barriers to accessing affordable capital.

The Canadian Coalition for Community Capital says targeted federal reforms would allow more Canadians to invest directly in the infrastructure and resources their communities need, furthering the federal government’s mission to mobilize private capital for priorities like affordable housing and renewable energy.

“Canadians consistently report a desire to align their investments with their ethics and values, but there’s a lack of investment vehicles allowing them to finance high-impact, local projects,” says Suzanne Faiza, the coalition’s coordinator, and policy and research manager for founding coalition member Tapestry Community Capital. “Meanwhile, charities, nonprofits, and cooperatives are building infrastructure like affordable housing and community spaces, but they struggle to find capital. It’s a gap that smart policy change can close, with positive results on a significant scale.”

Community investment is already demonstrating potential. Charities, nonprofits, and cooperatives have already raised over $170 million from more than 6,000 Canadian investors using an investment vehicle called community bonds. And cooperatives have raised hundreds of millions more in investment via shares owned by members.

The Ottawa Community Land Trust (OCLT) is one example of community capital in action. It’s an organization dedicated to buying on-sale residential buildings where the rent is affordable but at risk of being hiked by new owners. In June, the organization purchased its third building after the seller approached OCLT with a desire to keep rent affordable for the building’s tenants.

A portion ($1.2 million) of the money for the purchase came from community bond investors. OCLT has been selling community bonds to finance its acquisitions since 2024. Investors are everyday individuals, local businesses, nonprofits, and foundations who want to align their investments with their values and make fair financial returns.

“We know that people are keen to invest their capital right here in the community to advance housing security for their neighbours,” says Mike Bulthuis, OCLT’s executive director. “Since 2024, more than 200 investors have invested over $4.5m with the OCLT through purchasing Housing Forever Bonds, enabling us to acquire and preserve four multi-unit residential apartment buildings — ensuring that tenants stay housed and that rental homes are retained as affordable in perpetuity. This work advances Canada's housing objectives.”

“While this response is incredible, we know that other investors would come forward if investing in community was easier, or if they could add Housing Forever bonds to their RRSPs, TFSAs or First Home Savings Accounts,” Bulthuis adds.

Outdated federal tax rules limit the growth of this market. The Coalition for Community Capital is urging the federal government to adopt five targeted policy reforms:

1. Open registered accounts to community investments. Allow Canadians to hold eligible unsecured community investments in TFSAs, RRSPs, and First Home Savings Accounts (FHSAs), up to an annual limit of $20,000.
2. Provide loss deductibility for community investments. Allow investors to claim 75 percent of any losses on eligible community investments, recognizing their public benefit and reducing investment risk for everyday Canadians.
3. Introduce a 30 percent Community Investment Tax Credit. Create a tax incentive consisting of a 20 percent non-refundable credit and a 10 percent refundable credit to improve investment accessibility for Canadians across income levels.
4. Expand capital-raising opportunities for cooperatives. Remove restrictions that limit most cooperatives to raising investment capital solely from their members.
5. Invest in the institutions that support community investment. Establish national accreditation for issuers, incubators, and intermediaries, and create a $250 million federal fund to strengthen technical assistance, guarantees, first-loss capital, and low-interest financing.
   
   

Independent economic modelling by Canadian research firm Nordicity suggests that three of the proposed measures alone—registered account eligibility, the tax credit, and loss deductibility—would generate significant economic benefits while producing a positive return for the government.

Over five years, modelling shows the reforms would:

• Mobilize up to $831 million in community capital over five years
• Support up to 11,000 affordable housing units
• Create up to 22,600 jobs and generate up to $3.0 billion in GDP
• Generate a net fiscal benefit of $144 million over five years, at an average annual cost to government of just $24.6 million under the moderate growth scenario
  
  

Moreover, across all modelled scenarios, every $1 of government investment is projected to mobilize between $3.51-$4.90 in community capital, return at least $1.91-$2.52 in federal tax revenue, and produce between $13 and $17 in economic output.

The coalition says these reforms represent an opportunity for the federal government to act on its goal of de-risking high-impact Canadian projects for private investors.

About the coalition

The Canadian Coalition for Community Capital, co-founded by Tapestry Community Capital, is an advocacy network of more than 30 organizations dedicated to strengthening the policy environment for community investment across Canada. The group includes charities, nonprofits, cooperatives, intermediary organizations, and funders from across the country.

Media contacts

Suzanne Faiza
Coordinator, Canadian Coalition for Community Capital
Policy and Research Manager, Tapestry Community Capital
suzanne@tapestrycapital.ca

Kylie Adair
Marketing and Communications Manager, Tapestry Community Capital
kylie@tapestrycapital.ca
367-330-6157

Mike Bulthuis
Executive Director, Ottawa Community Land Trust
mike.bulthuis@oclt.ca
613-222-9831

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7a2285a7-d636-4a4a-8202-d14b0893f688

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