Building affordability over time: a study of three innovative nonprofit organizations on off-market housing in Montreal (Quebec, Canada)

Affordability plays a crucial role in combating climate change by influencing households' housing, transportation, and consumption choices, while offering numerous benefits for their health and quality of life. Integrating affordability into urban policies promotes sustainable densification and social diversity, thereby reducing cities’ carbon footprints. However, creating and maintaining affordability over time requires adopting a governance model, management practices, and investment strategies tailored to the needs of future generations. The transformation of housing into a financial asset has exacerbated declining of affordability, urban sprawl, and evictions, fueling real estate speculation with little consideration for tenants beyond their ability to pay. To counter this trend, nonprofit organizations (NPOs) have developed alternative governance and business models that are less affected by market fluctuations, aiming to provide affordable housing while ensuring long-term quality. Supported by public and private partnerships, these NPOs help stabilize prices and combat speculation. In Montreal, for instance, the goal of achieving 20% off-market rental housing by 2050 reflects this ambition. A case study conducted between 2024 and 2025 analyzes three Quebec-based nonprofit organizations — UTILE, Interloge, and Mission Unitaînés — operating more than 3,100 units in the affordable housing sector in 2024 as developers, owners, and managers of buildings. The objective is to compare their governance models, organizational practices, and innovative business models for developing and managing off-market housing, as well as to document their financing structures based on capital needs at both the company and project portfolio levels. These NPOs face several challenges in effectively addressing the housing crisis while ensuring housing sustainability and quality. The first challenge is building affordability over time, which is achieved with property ownership and also requires rigorous control of capital and operational expenses throughout the entire building's lifecycle to ensure affordable rents for tenants and limit their increase over time without compromising housing quality. Government subsidy programs to support tenant payment capacity are also an important solution to maintain affordability over time and cope with inflation. NPOs therefore include these programs in their business model. The second challenge lies in their reliance on subsidies, making their recognition as credible and legitimate market actors essential to securing financial sustainability. They also face increasing competition from for-profit companies. For some large NPOs, internalizing real estate development expertise and strengthening of internal organization is crucial for accelerating projects and consolidating their social acceptability. Another key issue is strengthening their legitimacy with lenders and investors, which necessitates attracting talent and innovating in financing and development practices. Given the high demand for affordable housing, some NPOs must pool their efforts by forming innovative alliances to share resources and knowledge while increasing their political influence and reducing costs. Finally, managing tenants with specific needs requires partnerships with psychosocial workers and the promotion of suitable housing located near essential services and public transport. This research maps Quebec’s affordable housing ecosystem and explores government definitions of affordability and their implications for NPOs. International case studies could provide inspiration for innovative solutions. Further research is needed to explore other innovative models and to understand how to reconcile housing affordability, quality and sustainability.