More than $500M likely required annually for Calgary to meet affordable housing targets

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

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

In the briefing to city council, administration outlined three funding options that councillors will be considering as they deliberate the upcoming four-year budget in the fall.

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

The second option, titled “gaining footing,” would increase the number of new non-market units to 1,050, while acquiring 15 sites to develop for non-market housing with 2,730 Calgarians housed. It would require an investment of $214 million annually.

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

That option would allow the city to acquire 30 development sites for non-market housing projects, and aims to house 7,800 Calgarians, the briefing said.

“When it comes to housing, that 3,000 non-market homes per year is from the Home is Here strategy, a council-approved strategy,” said the city’s chief housing officer Reid Hendry. “The non-market sector doesn’t create itself, it requires investment not only locally but from other orders of government.”

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Funding coming from “external entities” like the provincial and federal governments, as well as the private and non-profit sectors, is why it’s “hard to quantify” the impact of these proposed investment options on Calgary taxpayers, Ward 10 Coun. Andre Chabot said.

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

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

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

According to Ward 2 Coun. Jennifer Wyness, costs for affordable housing are being downloaded on municipalities from other orders of government.

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

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

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

A number 0f factors are cited for the increased costs, including the price of land and previous projects being at a more advanced stage of development when funded.

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

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

“Ultimately, if cities don’t put in this level of investment, the province and the feds won’t either,” he said. “Then we won’t get any more non-profit housing, and then we’ll stay stuck in this affordability crisis.”

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

More details on the city’s housing budget will come “through the standard budget deliberation” process, the briefing note said.

Budget deliberations begin in November.