Credit unions are helping meet Canada’s affordable housing needs
In 2011, Canada's largest community credit union, Vancity, identified creative ways to address the affordable housing issue.
It partnered with its Community Foundation to create the Vancity Affordable Housing Accelerator Fund. Since its inception, the fund has built 4,407 units of affordable rental housing, provided 81 loans to community organizations and invested $31.5 million to develop affordable housing.
It’s an example of how Canadian Credit Union Association members contribute to economic growth and help Canadians to live better, said Bolu Omidiji, CCUA’s Community Impact & ESG manager.
“As a member of the Coalition, we recognize and commit to working together to achieve a more inclusive, sustainable and prosperous Canada. We understand we need a stronger economy to produce rising incomes, afford social programs, and finance Canada’s transition to a cleaner environment,” she said in an interview for the Coalition’s Member Spotlight.
“Many credit unions in Canada have made giant efforts to execute sustainable practices and initiatives to improve the quality of living for Canadians in their community. Vancity Credit Union, a credit union in B.C., believes that banking differently builds affordable homes. By working closely with community partners and with the support of more than 560,000 Vancity members, they have supported the increase in the supply of affordable rental and owned housing.”
Omidiji highlighted another example of a credit union working towards growing sustainably and taking action to get to a net-zero economy.
“Among the many projects we are proud of is the 2022 recipient of the CCUA National Environment, Social and Governance (ESG) Award by East Coast Credit. They received the Award for a phenomenal project which contributed to the community of St. Andrews Branch in Nova Scotia reducing their carbon footprint,” she said.
The credit union built a ground-mount solar system on the land behind the St. Andrews Senior Housing Authority to improve heating efficiency and make it more affordable for residents. Additionally, the credit union chose to expand the St. Andrews walking and biking trail to reduce vehicular traffic and promote healthy living for residents in the community. In its first 11 months of operation, the Solar PV System generated 37,957 kWh to create an estimated 20.1 tonnes of carbon reduction.
“CCUA is committed to promoting and supporting credit union initiatives that benefit communities, in line with the Coalition's Scorecard pillars of living better, growing sustainably, and winning globally,” Omidiji said. “At CCUA, we understand that economic prosperity cannot be achieved if certain individuals are left behind.”
That’s why, she said, CCUA itself has also worked toward providing opportunities for its employees and members to participate in the economy. This is done through educating members on important ESG-related topics, including climate change, diversity and inclusion, and Indigenous reconciliation. In fact, over the past year, approximately 2,000 credit union employees, including board directors, have completed ESG courses on the CCUA campus, Omidiji said.
Furthering its community objectives, credit union employees have provided more than 75,000 volunteer hours, and more than 8,855 Canadians have been reached through financial literacy programs in 2021.
Additionally, when it comes to the Coalition’s Scorecard indicator of financing of SMEs, credit unions are also doing their part, Omidiji said.
“As recently reported by the Canadian Federation of Independent Business, credit unions represent 20.6 per cent of small business loans,” she said.
Nurturing young leaders for a better future is also an important priority for the CCUA, she said, pointing to the National Young Leaders Committee and CCUA’s sponsorship of the Co-operative Young Leaders Camp organized by the Ontario Co-op Association.
“The NYLC offers a platform for young leaders in credit unions to collaborate and exchange their perspectives on challenges and opportunities facing the system. The aim is to ensure that the next generation of senior leaders is confident and competent in leading the credit union system into the future,” Omidiji said.