A non-profit developer is seeking support from Hamilton residents to kickstart a new affordable housing initiative. On December 3, individuals can invest in “community bonds” for a 164-unit property on King Street East. This project is one of the initial endeavors by Gather Housing Communities, which was established in May under the umbrella of social housing provider Indwell. Michael Brathwaite, the senior associate of impact investing, mentioned that the minimum investment required is $1,000, with varying rates of return between 3.75 to 4.85 percent based on the investment amount and term.
The primary aim of Gather Housing is to address the gap in affordable housing known as the “missing middle,” catering to individuals who work but earn below Ontario’s median income of $90,000. The target for the inaugural Hamilton project is to secure $15 million within two years to cover preliminary expenses like design work and regulatory approvals for the proposed 10-story apartment building at 1907 King St. E. Most rental rates are anticipated to be 30 percent of the household income, with a third of the units qualifying for city subsidies to enhance affordability.
Traditional financing options for non-profit housing projects are often costly or difficult to obtain from banks. Typically, government funding becomes available only when a construction-ready site is in place. Indwell and Gather Housing leverage community bonds to raise initial funds, which can be replaced with government financing once secured, allowing the organizations to advance with additional projects. The success of community bond programs has been demonstrated in the past, as seen in Indwell’s previous initiative in Hamilton in 2024, where they surpassed their fundraising goal.
Community bond programs are gaining traction across Canada, not only for affordable housing but also for ventures in music, renewable energy, and other sectors. Patti Dolan, a portfolio manager, emphasized the importance of researching organizations before investing in community bonds to ensure financial stability. While community bonds lack independent evaluation from credit rating agencies, organizations like Gather Housing rely on projected government funding as their revenue stream, with no repayment obligations.
Looking ahead, the Hamilton housing secretariat is exploring the feasibility of establishing a municipal bond program similar to Toronto’s social debenture framework. Updates on this initiative are expected in 2026.