More than $500 million likely to be required annually for Calgary to meet affordable housing targets – Calgary

An annual investment of more than $500 million is likely to be required for it City of Calgary to meet its affordable housing targets in the next four-year budget, according to a briefing note for city councillors.

The information comes after city councilors learned last month progress had slowed for implementing the City of Calgary’s Home is Here housing strategy, which required a more refined implementation plan

IN information in the municipal councilThe administration outlined three funding options that councilors will consider as they discuss the next four-year budget in the fall.

An annual investment of $93 million would be required for the first option, titled “keeping the lights on.” This option aims to maintain the status quo by building 400 new non-commercial units, appropriating six development zones to support the construction of non-commercial housing projects while housing 1,040 Calgarians.

The second option, titled “base gain,” would increase the number of new non-market units to 1,050, while purchasing 15 sites to be developed for non-commercial housing housing 2,730 Calgarians. It would require an investment of 214 million dollars per year.

The city’s goal of 3,000 new non-market housing units per year would be met under the third option, called “build momentum,” according to the briefing note, which would require an investment of $526 million annually.

This option would allow the city to appropriate 30 development sites for non-market housing projects and is intended to house 7,800 Calgarians, the briefing said.

“When it comes to housing, 3,000 off-market homes a year come from the Home is Here strategy, a strategy endorsed by the council,” said the city’s housing chief Reid Hendry. “The non-commercial sector does not create itself, it requires investment not only at the local level, but also from other government orders.”

Funding coming from “external entities” such as the provincial and federal governments, as well as the private and not-for-profit sectors, is why it’s “difficult to quantify” the impact of these proposed investment options on Calgary taxpayers, Ward 10 Coun. said Andre Chabot.

“The question is: are we investing too much, not enough, or maybe we should push other government orders to invest more to provide a much-needed service,” he said.

$75 million has been invested annually over the past four years in non-market housing, according to a council report in May, which has enabled an average of 1,100 non-market units per year.

Others on the council, like Ward 13 Dan McLean, have questioned the conference and whether funding affordable housing projects falls within municipal jurisdiction.

According to Ward 2 Coun. Jennifer Wyness, Affordable housing costs are being offloaded to municipalities by other government orders.

“We really need to look at the cash flows of how you provide affordable housing in the third largest city in Canada with some of the greatest demand while being perceived as the most affordable market in Canada for you to own a property,” she said.

“Council is going to have some interesting conversations about that.”

“Per-door” costs for affordable housing projects are expected to rise, the briefing note said, meaning “fewer homes can be delivered per dollar than in previous years.”

A number 0f factors have been cited for the increased costs, including the price of land and earlier projects being at a more advanced stage of development when financed.

“Securing stable and predictable municipal funding remains critical to addressing the housing needs of Calgarians, both by enabling continued investment despite rising costs and by helping to unlock critical funding from other orders of government that typically invest where there is a clear municipal commitment,” the briefing note said.

In an interview with Global News, Norfolk Housing Association CEO Chris Bell said the city’s target for non-commercial homes will bring Calgary to the national average of non-commercial homes per capita.

“At the end of the day, if cities don’t make this level of investment, neither will the provinces and the federations,” he said. “Then we’re not going to get any more unprofitable housing and then we’re going to be stuck in this affordability crisis.”

Bell said the return on investment in affordable housing would come in the form of reduced homelessness, lower health care and justice system costs and increased economic productivity.

More details on the city’s housing budget will come “through the standard budget review process,” the conference memo said.

Budget discussions begin in November.

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