Montreal bylaw expands social-economy grants

Summary#

Montréal’s city council unanimously set its position in favour of adopting a bylaw that would amend the existing social-economy building grant program, RCG 21-019. The agglomeration council makes the final decision at a later meeting. City staff say the goal is to extend the program and adjust its funding and eligibility rules.

  • The proposed change would add $7.5 million to the program, raising its total maximum assistance from $12.55 million to $20.05 million. The added funding is split across 2026, 2027 and 2028.
  • It would open new eligibility periods for grants to buy buildings and to build, renovate or expand buildings used by social-economy enterprises. The existing grant rates and per-project caps remain: 40% of acquisition costs, or 40% of eligible construction costs plus 50% of eligible professional fees, up to $400,000.
  • It would require eligible enterprises to have at least 20% of their revenue from their own activities.
  • For the new construction, renovation and expansion period, applications would be due by June 30, 2029. Work must be substantially complete within 18 months of the eligibility notice or by June 30, 2030, whichever comes first.
  • The program would end June 30, 2030, unless its funds run out sooner or an order ends it earlier.

What it means for you#

  • Social-economy enterprises: If the bylaw is adopted, eligible enterprises could apply for grants under the new periods, subject to the 20% own-revenue threshold and the relevant deadlines. The program does not guarantee a grant: funding is capped and may run out.
  • Enterprises buying a building: For new-period acquisitions after June 30, 2026, the sale document must be sent within six months of the eligibility notice and no later than March 30, 2030.
  • Enterprises doing building work: They would face the new completion deadline and must provide documents for the second payment by June 30, 2030.
  • Taxpayers: The proposed increase would authorize a larger total grant envelope. The materials do not say how many projects would receive grants or how much each year would actually be paid.

Money#

The proposed maximum program envelope is $20.05 million, including an additional $7.5 million; no estimate of actual spending is provided.

  • The added $7.5 million would come from Réflexe 3: $2.5 million per year in 2026, 2027 and 2028.
  • The existing grants provide up to $400,000 per project under each of the two program streams, subject to the grant formulas and eligibility rules.
  • City staff say the shorter completion deadline is intended to help use available funds sooner and avoid credits being tied up for too long.

What is unclear#

  • The materials do not explain how “own revenue” will be calculated or assessed.
  • They do not give application procedures, decision timelines, appeal rights, or criteria for choosing between eligible projects if requests exceed available funds.
  • The materials do not provide expected annual payments, administrative or staffing costs, or the number of enterprises likely to receive grants.
  • The proposed rules would not apply until the agglomeration council adopts the bylaw; that final decision is not included in these materials.

Case for#

  • City staff say demand for the existing program remains strong and that social-economy enterprises need help financing buildings.
  • Extending the program and adding funds could let more eligible enterprises seek support for buying or improving buildings.
  • The 18-month work deadline could help move funded projects forward and limit the time grant funds are reserved for unfinished work.

Case against#

  • The new 20% own-revenue threshold could exclude enterprises that do not meet it, even if their projects otherwise fit the program.
  • The 18-month deadline may be difficult for some projects; the materials do not explain whether exceptions are possible.
  • The added funding is capped at $7.5 million. If applications exceed the available envelope, some eligible projects may receive no grant.