Canada, British Columbia and the Municipality of North Cowichan broke ground on January 13, 2026, on 92 affordable co-operative homes at 3181 Sherman Road. The partners announced more than $65 million in combined funding. The Community Land Trust will own and operate the homes, which are expected to be completed in early 2028.
A first for the Mid-Island
Thom Armstrong, chief executive of the Co-operative Housing Federation of British Columbia and the Community Land Trust, called the project the first-ever Mid-Island non-profit housing co-op. In his remarks at the announcement, he said it takes commitment from all three levels of government and the community housing sector to deliver safe, secure and permanently affordable homes, and that the partners hope these 92 homes will be the first of many more co-op developments in British Columbia.
Co-operative housing works differently from a standard rental building. Residents are members of the co-op that runs their housing, and they take part in decisions about governance and upkeep. North Cowichan mayor Rob Douglas pointed to that record in his remarks, saying co-op housing has a track record across Canada of fostering mixed-income, inclusive communities where neighbours collaborate on governance, upkeep and shared values.
The homes will be a mix of townhouses and apartments. Douglas noted the site sits close to schools, parks and recreation facilities, along with other existing services in the community.
How the $65 million is divided
The federal government is the largest contributor, providing $44.7 million through the Affordable Housing Fund under the National Housing Strategy.
British Columbia is contributing $16.6 million through BC Housing. About $10.4 million of that comes from the Building BC Community Housing Fund, and about $6.2 million comes from a cost pressures grant. The province will also provide roughly $1.6 million a year in operating subsidy, which supports the homes after construction ends.
North Cowichan’s share is about $3.6 million. Most of it, $3.2 million, is land equity, meaning the value of the municipal land put into the project. The remaining $447,000 comes from waived municipal fees.
That structure is common in community housing. A municipality may not write the largest cheque, but contributing land in a serviced location can be the piece that makes the rest of the financing work.
Who announced the project
Stephanie McLean, secretary of state for seniors and the MP for Esquimalt-Saanich-Sooke, announced the funding on behalf of federal housing minister Gregor Robertson. She was joined by Juan de Fuca-Malahat MLA Dana Lajeunesse, speaking for B.C. housing minister Christine Boyle, and by Mayor Douglas.
McLean said the federal government is committed to helping municipalities like North Cowichan build more affordable housing, and that projects like the Sherman Road homes provide safe and stable options for Canadians. Boyle’s remarks focused on stability for seniors and families, while Cowichan Valley MLA Debra Toporowski said the homes will make a real difference for families, seniors and individuals who need a safe and secure place to live.
What happens next
Construction is expected to run until early 2028, when the Community Land Trust takes on ownership and operation of the finished homes. That is a longer wait than a funding announcement can sometimes suggest. Residents will not be moving in this year, and the project’s value to local households will be measured when the doors actually open.
Even so, the groundbreaking marks the point where a plan discussed through years of partnership becomes a building site. For a municipality of North Cowichan’s size, 92 homes is a significant single addition to the non-market housing stock, and because the homes are co-operative and held by a land trust, they are designed to stay affordable rather than return to market rents over time.
