What is the difference between a market-rate co-op and a subsidized non-profit housing co-op in Ontario?

Within many Ontario non-profit co-ops, members can fall into two different categories that affect what they pay, even though they hold the same kind of membership and occupancy rights. A market-rate member pays the co-op's full cost-recovery housing charge, calculated to cover the co-op's actual operating and mortgage costs, without any government subsidy. A subsidized member, by contrast, pays a reduced, income-geared housing charge, with the difference funded through a government housing subsidy program, so their monthly payment is tied to their household income rather than the co-op's full costs.

Both types of members have the same membership rights, the same right to participate in governance, and the same occupancy protections under the co-op's bylaws — the distinction is purely financial, based on whether that particular unit or member is receiving a subsidy. Not every co-op offers subsidized units, and where they exist, they're often limited in number and allocated through a separate application and waiting list process administered in coordination with the local municipal housing system. Anyone applying to a co-op should ask directly whether subsidized units are available and what the eligibility and application process looks like, since it differs from the co-op's general membership application.