In this issue:
- Economic and Market Commentary Q2 2025 — how tariffs, interest rates, and market performance shaped the quarter
- Building Co-op Capacity — Interview with Elana Harte of the Central Ontario Co-operative Housing Federation
- Test Your Investment IQ — See how much you know and pick up some practical tips along the way
- Keep Your Signers and Directors List Up to Date — Avoid Delays and Ensure Compliance
- Where We’ve Been — Encasa on the Road
Economic and Market Commentary – Q2 2025
Each quarter, Encasa prepares an Economic and Market Commentary to help our clients stay informed about what’s happening in the economy, financial markets, and with our investment funds. In this issue we cover how policy changes, tariffs, interest rates, and market performance shaped the quarter — and what it could mean going forward.
Short on time? You can now view a shorter, visual summary at a glance (Encasa Market Minute) along with our full written commentary.
Building Co-op Capacity: Interview with Elana Harte of the Central Ontario Co-operative Housing Federation
The Central Ontario Co-operative Housing Federation (COCHF) is one of five regional federations in Ontario. Its membership includes 40+ co-ops in Brantford, Cambridge, Guelph, Kitchener and Waterloo, representing roughly 3,000 housing units.
Elana Harte has been the Executive Director of COCHF over the past three years. However her involvement with the co-op movement extends back many years – starting as a member and then as a manager and a consultant. Elana also brings to her work experience in the private sector, having served in a leadership role at the Canadian subsidiary of a major American multinational. Elana also serves of Encasa’s Advisory Committee, providing insight into how we can better meet the needs of co-operative and non-profit housing providers.
What Does COCHF Do?
EH: COCHF’s traditional mandate has been to provide governance support, advocacy and education for our members.
I really believe in partnerships and their power to produce positive change. So, in the time that I’ve been in this role, we have expanded the mandate — broadening advocacy efforts; working with non-profits and outside partners; and getting involved with Encasa.
Right now we’ve got a development team working with the City of Cambridge on new builds. We have three buildings on the go with a potential fourth one. We’ve also established a partnership with Meridian Credit Union and are finding ways for COCHF co-ops to be better supported and smarter financially. We’re also working with Tapestry Community Capital to see if we can bring a community bond to market.
Unlike non-profit boards, co-op boards are largely (if not exclusively) composed of members. Can you tell us a bit about these boards based on your work with them?
EH: Typically, co-op bylaws state that board members have a two year or three-year term, which can be renewed for a second term – a fairly short cycle. As with any board, the degree of their financial knowledge is dependent on the directors who are serving on it at the time. To make sure financial knowledge is retained, staff will hold that knowledge and make sure it transitions to new boards.
However, I sometimes find that the boards may not have the financial expertise to understand what’s happening to the depth that they should, given that these are multimillion-dollar organizations. That’s an issue, but it’s important to appreciate that they may not view the world the same was you’d expect a CEO or CFO of a multimillion-dollar organization – this is affordable housing, and in some cases, people are struggling to make ends meet for food or to pay housing charges.
Our job is to find ways to bridge that gap, to make sure that we’re empowering people to make good decisions for the betterment of their co-op, while recognizing that they may require a deeper understanding of financial and asset management. This is also where our members benefit greatly from organizations like Encasa, who provide that insight in a way that they can understand and then apply.
But it’s not always like that. Sometimes the same people stick around for a while due to various circumstances, and they want to continue contributing to the community. In these cases, you sometimes see folks who start without any housing, board or financial experience and then they become the secretary and then the treasurer and then the chair. In the end, their knowledge is so robust that they’re able to play an important role in strategic planning at an organizational level, which is awesome to witness.
Do you think the long-term sustainability of co-ops is something front of mind for co-ops? Or are they more focused on keeping up with the day-to-day — keeping their heads above water?
EH: That’s a tough one to answer! The short answer is a bit of both. In my experience, co-ops are often characterized by different segments, which have different priorities.
There’s the segment of the community that was there at the beginning — the folks who went through the struggle of building the co-operative and creating its identity and purpose. They hold the longevity of the organization to heart and they won’t let it go because for them that’s what they fought for. They didn’t only fight for themselves, they fought for the future.
And then you have a segment of members that join in later that don’t know that struggle. They may initially be more focused on an affordable place to live and perhaps need more education on the vision of co-ops and the model. This is something we work on.
Then there’s always a segment of the community that is forward-thinking. Today, what I’m finding is that there’s a younger generation that’s becoming much more focused on the longevity of their co-ops – possibly because opportunities for them don’t seem very bright or they feel more threatened by what’s happening around them that they cannot control.
We see a lot of housing providers keep all their money in the Encasa’s Short-Term Bond Fund even though it may not be the best long-term investment strategy. Why do you think this is the case?
EH: I think this has to do with the scarcity mindset that co-ops have given chronic underfunding. Because of this, quick, short-term returns are attractive, even though they may not generate the dollars they need in the end – and would get from diversified investments.
End of Mortgages/Operating Agreements will be transformative for co-ops because there will be massive changes in the way that they’re being funded and how they operate. Now they need to be run more like a business. How do you do that? Well, COCHF spends a lot of time coming back to that. It’s built on people. We need to first engage them, get them excited and thinking strategically, and then we move forward. Capital planning and thinking about investments is part of that.
Are there any co-ops that you feel are doing particularly well in terms of their capital planning and their investment decision-making?
EH: I’m never naming names, but there’s a COCHF co-op that about 10 years ago was very close to the edge. Now they have a very robust capital reserve and they’re looking at expansion. For any organization to do that within a 10-year span, that’s remarkable – but particularly so when you’re dealing with outside pressures and the other things that go on in a co-op. But that’s a testament to steady staff and good governance, which is very thoughtful and careful with its support.
What would your advice be to co-ops to ensure that they are making good investment decisions?
EH: I like graphs and pies and all that stuff as much as everybody else, but co-ops really have to plot their future (and their investment path) on their own. You started here and this is where you are now. And your Building Condition Assessment says you need to be over here. How are you going to get there?
I find when you show somebody something, they might say “that’s nice,” but when you take them through the stuff beneath the surface that’s when things really happen. In terms of some of the specifics, I would encourage co-ops to look at their short, medium and long-term goals to see what they’re going to need; their seven-year, historic expenses; their capital expenditures outlook; and what they have in liquid assets. Then you can make decisions on how much you can afford to sock away.
Then, what do you have that you can leverage? How are you going to grow your investments to ensure that you will have what you need? How close are you now? It’s a conversation that many co-ops need to be taken through – and the co-op federations can help.
Finally, use Encasa to help you maximize the dollars – take advantage of the one-to-one conversations you can have with them and their sector knowledge and involvement.
Test Your Investment IQ – See how much you know and pick up practical tips along the way
Think you know the basics of investing with Encasa? Take our short quiz to see how much you know!
Whether you’re new to investing or simply looking to brush up on the fundamentals, understanding a few key concepts can go a long way toward making informed decisions. No pressure — just a quick way to build your confidence as an investor.
Keep Your Signers and Directors List Up to Date — Avoid Delays and Ensure Compliance
A friendly housekeeping reminder: keeping your organization’s list of directors and authorized signers current is not just a best practice — it’s essential for smooth and timely transactions.
Why This Matters
One of the most common causes of delays occurs when we receive a trade instruction but the listed signing officers are no longer valid.
Without up-to-date signer information, we’re required to pause transactions until new authorized individuals are confirmed. This not only delays service but can also impact your organization’s ability to act quickly when it matters. To prevent this, we ask that you notify us of any changes to your board or signing officers as soon as they occur.
Purpose of the “Signer Change” Process
The signer change form helps us confirm the identity and authority of individuals acting on behalf of your organization. This ensures that only approved representatives can access and manage your account.
The information we request—such as names, contact information, and ID verification—is required either by law (e.g., FINTRAC or securities regulations), or is essential for operational reasons, such as sending documents via DocuSign or confirming trades by phone.
We may occasionally ask for internal supporting documents (e.g., meeting minutes) to verify changes, especially if anything is unclear. If your organization has specific signing requirements, we can accommodate special instructions — but in general, the simpler the setup, the smoother things run.
Tips for Completing the Signer Change Form
To avoid delays, please watch for these common issues:
- Incomplete ID
- Only one piece of ID provided
- Expired ID or outdated supporting documents
- Unsigned Form
- Page 2 not signed and dated
- Missing Information
- Missing addresses, phone numbers, or investment knowledge fields
Note: The ID section is typically only needed when we verify identity in person. For remote ID, we accept documents using either the dual process method (most common for remote verification) or a credit check.
Instructions for Updating Your List of Directors and Officers
For all signing officers, please provide:
- Full Name
- Position
- Address
- Telephone Number
- Email Address
- Investment Knowledge
- Signature
- ID Verification using dual process method – new signing officers must provide ID. The two most commonly used options are:
- Option A: Two pieces of government-issued ID (e.g., Driver’s License and Passport), scanned in color and high-quality
- Option B: One piece of government-issued ID and one additional document showing your name and either your date of birth, address, or confirmation of a financial account. Examples include:
- Insurance documents (home, auto, life)
- Benefits statements (Federal/provincial/municipal)
- Utility bills
- Bank or investment account statements
- Birth or marriage certificates (long form)
- Loan or credit card statements
- Note: Ontario Health Cards are not accepted as ID. Let us know if you’d like to confirm whether a document is acceptable.
The remaining directors, that are not authorized to sign on the account, should be listed on page 2.
Notes and Reminders:
- The bottom of page 2 must be signed and dated by a signing officer or secretary.
- If you plan to use e-signatures, please let us know and we can send out the document with DocuSign. We are not able to accept other e-signatures.
Keeping your records current helps us serve you better, ensures compliance with regulatory requirements, and avoids unnecessary delays. If you have questions or need help with the form, don’t hesitate to contact us at information@encasa.ca
Thank you for your attention to this important housekeeping item!
Where We’ve Been
Thank you to everyone who stopped by the Encasa booth at the Co-operative Housing Federation’s 2025 Annual General Meeting in Toronto back in June! We enjoyed connecting with many of you, putting faces to names and discussing investment priorities related to your capital plans.
