Community Bonds are a way for Propolis to borrow money from the community, and pay it back with interest after a period of time. They are similar to a government bond yet issued in the name of an organization – like Propolis! The funds invested will support our community project and we will issue interest payments to you, the investor. Community bonds are used successfully by not-for-profits, charities and co-operatives, typically used in conjunction with other forms of financing like mortgages and lines of credit.

Not only can investors (both individuals and institutions) support a project that directly benefits the community, they can also earn a great financial return. Our investors will have a strong sense of community ownership and engagement, which will help us grow the co-operative and continue to provide much-needed affordable housing in Kamloops.

For Propolis, the ability to set investment terms based on our financial structure and capacity to pay investors back is very valuable.

Many other social enterprises and charities across Canada have used community financing and community bonds successfully. Tapestry Community Capital, our community bond partner, has supported other organizations to raise over $100 million dollars from over 4000 investors.

Other not-for-profit or co-operative organizations including the Centre for Social Innovation, Earth Day Canada, Sketch Working Arts, SolarShare, ArtScape, Kingsway College School, YWCA Toronto, and Innovation Works have issued community bonds.

There are so many upsides to supporting our project:

Affordability

The availability of affordable housing is a huge issue for most people. Anyone that’s recently moved homes has felt the pressure of skyrocketing housing costs. As a non-profit co-op, Propolis is not profiting from our basic need for shelter. Monthly housing fees paid by resident members will only cover the building, maintenance costs and a bit to invest in future Propolis projects so we can help make affordable housing a reality for everyone.

Net-Zero

Our buildings are net-zero! Through solar, wind, good insulation, and passive heating and cooling, our buildings will provide for all our energy needs!

With global climates becoming ever more extreme, our housing will maximize the self-reliance of our members on a daily basis. Rooftop gardens provide food security, net-zero buildings provide energy security, and building design that doesn't rely on complex repair and maintenance schedules means our buildings will function with minimal reliance on external supply chains.

Community

We’re a cooperative, which means that the people who live in our buildings make all the decisions! As a community we can shape the future of the place we call home without being beholden to the profit motives of far off stakeholders.

Everyone at Propolis is an active member of our community, doing our part to make it a more beautiful place! We’re creative and thoughtful, and our buildings are set up to encourage natural interactions. With all kinds of shared community amenity spaces we can all inspire each other on a daily basis.

Investing in Propolis Bonds and becoming a member of Propolis are separate processes, but an individual can do both! Currently, we are not accepting membership applications since our first building is still in the planning stages. If you are interested in membership, make sure you have signed up for our newsletter so you’ll hear when our membership application is open!

Propolis intends to secure grant funding and financing from a number of partners and lenders. This includes the Canadian Mortgage and Housing Corporation’s Co-Investment Program, the Federation of Canadian Municipalities’ Sustainable Affordable Housing Fund, the ChildcareBC New Spaces Fund, and bridge financing through lenders such as Credit Unions.

Propolis Bonds are asset-backed by the purchase of 422/424 Tranquille Rd. Given the high demand for redevelopment properties in Kamloops and the overall strength of the commercial real estate market in Kamloops, we anticipate that the property will increase in value over time, so that if the property needs to be sold, we will be able to pay back the bond investments in full.

Propolis Bonds will be available for purchase by completing the investment application via DocuSign. Complete this form and you will be emailed the details and a link to the application. The investment process is managed by Tapestry Community Capital.

Individuals, organizations and businesses are eligible to purchase Propolis Bonds.

Our limit for investments is $1.1 million. When we reach this target, we will stop accepting investments. Aside from this, there is no limit for individual investors.

Yes! It is slightly different than purchasing a bond for yourself. Email us at info@propoliscooperative.com to get the process started.

Yes. On an annual basis and upon written request.

Interest is paid annually or at the end of your investment term, depending on the bond series you purchased. Propolis has gone through extensive financial planning to make sure the annual interest payments can be disbursed and principal can be repaid to investors within the allotted time.

When bonds mature, Propolis will reach out to its investors. For those that are interested, we plan to have an opportunity to reinvest. Otherwise, we will disburse payment for the principal and the interest owing.

Bondholders may request a repayment of bond principal in times of hardship, subject to the availability of replacement capital and/or funds within the organization and at the discretion of Propolis’ Board of Directors.

Interest earned from a community bond is taxed as regular Investment Income from Canadian Sources. Consult with a tax accountant for your individual case.

Tapestry Community Capital will support the organization in preparing, filing and issuing T5 Statements of Investment Income and will send them annually to investors via a secure electronic PDF or by mail according to the investors’ consent on behalf of the organization.

For our first investment campaign, Propolis Bonds will not be eligible to be held in RRSP/TFSA. However, we do plan to do more campaigns for future building projects, and we expect we’ll be able to offer RRSP/TFSA eligible bonds for our next campaign!

The Propolis Bond Purchase forms are prepared and executed in DocuSign. DocuSign eSignature protects highly confidential information by encrypting and making every document tamper-evident.

Tapestry’s Investment Management system is a closed, encrypted system. All traffic between the client and server is SSL-encrypted with a signed certificate issued by a third-party certificate authority (COMODO RSA Domain Validation Secure Server CA). All database files on the server are encrypted at rest. The server is hosted in a secure data centre in Canada. All data changes are logged in an audit trail and only key Tapestry staff have access to this data.

For more information on Tapestry’s Privacy Code please visit: http://tapestrycapital.ca