Union Sustainable Development Co-operative Part II: Preserving Affordable Rents in Waterloo Region

Sean Campbell founded Union: Sustainable Development Co-operative (Union Co-op) in 2018 to preserve affordable rents in Waterloo Region, Canada. Canada was in the middle of an unprecedented housing crisis and Waterloo Region was among the most affected parts of the country. After experiencing pandemic-related delays, Union Co-op purchased its first property in 2022. Almost a year later, in 2023, it was setting up the project for long-term affordability, with plans to expand in 2025. However, these plans were interrupted when a group of long-term tenants from another property approached Union Co-op to buy their building from the retiring landlord. The rents at the property were as much as 70 per cent below market rates. They feared that if Union Co-op did not step in, a new landlord would follow the common practice of renoviction: evicting the existing tenants, renovating the units, and increasing rents to market values. Campbell and Union Co-op wanted to help the tenants, but the property was worth more than Union Co-op could sustain while maintaining the existing rent structure. Government regulations prevented Union Co-op from raising the rents to a more sustainable level, despite tenants proposing the idea.

The case asks students to examine three possible solutions to the dilemma that were explored by the tenants, landlord, and Campbell between August and December 2023 and to determine which is the most feasible from Union Co-op’s perspective. This case will introduce undergraduate students to stakeholder theory and business ethics within a share-issuing co-operative business model.

Part I is available from Ivey Publishing, product no. W41630.