Financing

How we are funding the Future of Community-Owned Housing

Table of Contents

TMDC’s financial model is designed for community resilience, economic fairness, and long-term stewardship. We’ve created a system where money, land, and buildings are treated not as assets to extract from—but as tools to circulate value within a community.

Our approach replaces speculative, profit-driven development with community-controlled financial pathways that support the creation, operation, and sustainability of co-operative housing.

The Financial Ecosystem

TMDC’s financing framework works through a network of values-aligned institutions:

Institution Responsibilities
Development Co-op Handles early-stage capital, planning, and land acquisition
Finance Co-op Raises and distributes ethical capital through bonds and mortgages
Operating Co-ops Hold and manage buildings for the benefit of their residents
Credit Union (future partner) Safeguards reserves and escrow accounts for long-term stability
Community Land Trust (CLT) Holds land outside the speculative market, in trust for future generations

This creates a system where the community builds housing for itself, and nobody profits from the transaction except the people who live there—and the public. Together, these actors form a closed-loop system for building and sustaining affordable, co-operative housing.

How the Money Works

Each multiplex moves through three financial phases. Each phase has distinct funding mechanisms and stewardship responsibilities:

Phase Uses Capital Sources Notes
Startup Phase Legal setup, early planning, community engagement, initial staffing

Member Loans (~$2,000 per participating household)

Grants or Crowdfunding (where aligned)

Laying the foundation for development—Funds are held and administered by the Development Co-op, which is governed by waitlist members.

These early contributions create trust and demonstrate community readiness.
Development Phase Land acquisition, design finalization, and construction

Community Bonds short-term, fixed-rate debt issued by the Finance Co-op to values-aligned investors

Turning plans into buildings—Funds are directed through the Finance Co-op, which exists to raise ethical capital and insulate housing projects from market volatility.

This phase carries no rental income, so bonds are crucial for bridging the gap.

Land may be acquired by the Development Co-op and then transferred to a Community Land Trust, such as the Toronto Indigenous Community Land Trust, to ensure it remains permanently outside the speculative market.
Operational Phase Long-term operation, maintenance, and mortgage repayment

Member Equity (~5% of unit cost per household)

Mortgages from the Finance Co-op, backed by long-term community bond sales

Stable housing, cost-based governance—Mortgage terms are designed to be stable and fair, often indexed to inflation with a modest premium (e.g. CPI + 2.25%).

Funds are used strictly to cover costs—not to generate profit. Rents are predictable and capped by the real expenses of running the co-op.

From Contributions to Collective Assets

In the TMDC model, money isn’t consumed—it’s transformed. Member loans, bond purchases, and equity contributions don’t just pay bills; they create lasting, community-held infrastructure.

Input Contributions

Here’s how each input becomes part of the system that builds and preserves housing for the long term:

Member Loans

Early participation = enabling development

Paid by households joining the waitlist.

Used to fund early legal, design, and coordination costs.

Held by the Development Co-op, governed by those same members.

Repaid over time or converted into equity once housing is secured

Impact:
These loans activate the co-op. They’re not a fee—they’re a first stake in what’s being built.

Community Bonds

Aligned capital = construction power

Sold to public supporters or institutional allies.

Used to acquire land and fund construction.

Repaid through long-term mortgage payments by residents.

Issued and managed by the Finance Co-op, a specialized financial body.

Impact:
These bonds convert community trust into tangible buildings—without relying on banks or developers.

Member Equity

Resident commitment = housing ownership

Paid by households moving into completed buildings (typically ~5% of cost).

Used to cover initial operating capital and finalize construction debt.

Combined with a mortgage from the Finance Co-op to complete the financing stack.

Held collectively through the Operating Co-op.

Impact:
These contributions ensure residents have both skin in the game and a say in how the home is run.

Produced Assets

Money becomes housing, but also governance

When funding is deployed through this model, it produces more than just physical structures:

Input Becomes Held By
Member loans Organizational capacity Development Co-op (governed by members)
Bonds Buildings + land Finance Co-op + Land Trust
Member equity Community-owned homes Operating Co-op

In many cases, the land itself is transferred to a Community Land Trust (CLT) to ensure permanent affordability. The building sits atop that land and is operated by the co-op.

Want to Support the Financial Ecosystem?

We are seeking:

Together, we’re creating a housing system rooted in dignity, transparency, and long-term care. To explore how you can participate, get in touch.