The Government of Alberta has proposed amendments to the Municipal Government Act (MGA) to support the construction of affordable and attainable housing. If passed, the Municipal Affairs Statutes Amendment Act (Bill 20) will exempt non-profit subsidized affordable housing from municipal and education property taxes. The changes to the MGA will also enable municipalities to offer multi-year residential property tax exemptions to encourage more housing development.

“The need for affordable housing has never been greater and it is up to all levels of government to do what we can to meet this urgent demand,” said Ric McIver, Minister of Municipal Affairs. “The changes we’ve made, and that we plan to make, are steps in the right direction toward improving housing availability for all Albertans.”

While the Community Revitalization Levy (CRL) program is already used to help neighbourhoods reach their development potential, Alberta is seeking to expand the criteria to spur additional housing development. If the Bill 20 passes, municipalities will be able to support the capital costs of privately-owned affordable or attainable housing, such as office-to-residential conversions, as long as the development is appropriate for the area and will lead to more homes.

“Mid-sized cities are among Alberta’s fastest-growing communities,” said Jeff Genung, Chair, Alberta Mid-sized Cities Mayors’ Caucus and Mayor of Cochrane. “Addressing the challenge of building more affordable homes for Albertans is one of our biggest priorities, and we welcome efforts to increase the housing supply. We look forward to working with the province to ensure that all municipalities, regardless of their size, are included in the development and rollout of these housing policies in a manner that works for our communities.”

City charter updates

City charters are in place to help address the unique needs of Alberta’s two largest cities, Calgary and Edmonton. The Province of Alberta is proposing the following updates to limit the potential for barriers to affordable housing projects in these jurisdictions:

• removing inclusionary housing provisions that have not been used by either city and could cause housing supply to decrease while potentially increasing costs of new homes;
• removing bylaw-making authority for cities to require energy efficiency standards that are more stringent than Alberta’s building code, as this could drive up construction costs; and
• clarifying the rules for off-site levies to ensure transparency and accountability.

“Changes to city charters restore critical levels of transparency and accountability to the governing rules and municipal authorities that affect housing in this province’s two largest markets,” said Saheb Dullet, director of government relations, BILD Alberta Association. “These changes support housing affordability and provide industry with certainty and predictability provincewide to build attainable housing for all Albertans as our province continues to grow at a record-breaking pace.”

For more on Bill 20, visit www.alberta.ca/release