CHAC Affordable Housing Review Panel Submission
The Community Housing Affordability Collective (CHAC) works to improve housing affordability in Calgary. We are a network of over fifty organizations representing non-profit, public, and private sectors.
We call on the government to ensure Albertans have access to appropriate housing and integrated support. We also know governments cannot do this alone. With this in mind, we are pleased to provide this submission to the Affordable Housing Review Panel, which includes eleven recommendations:
Increase funding for rental assistance programs
Rental assistance programs are essential for people living on low incomes, especially those who rely on social assistance as benefit levels fall short of market rents. Operationally, rental assistance programs are also attractive to the private sector – allowing residents to pay market rates with the help of a rent supplement to bridge the affordability gap.
Introduce low-cost financing options
Access to low-interest financing can mean the difference between a project idea and shovels in the ground. Accessing capital at financing rates lower than typically available, provided the purpose of housing is affordable, will bring many more projects from concept to action.
Make land available
Land is a non-cash way the Province should invest. The provision of provincially-owned land for affordable housing development will catalyze action among housing developers. Investing in this way can also unlock investment from other orders of government.
Develop a predictable and transparent process to access capital grant funding
We urge the Ministry of Seniors and Housing to collaborate with the Ministry of Infrastructure to define a clear, transparent and intentional path forward for housing investment. This investment will have a multiplier effect – attracting funding from other orders of government.
Support policy that promotes mixed-income housing models
Transformation to mixed-income models where tenants across the portfolio pay different levels of rent is necessary as housing providers seek to operate sustainably. We ask that the government implements policy and operating agreements that enable mixed-income models.
Improve tax exemption regulation
Current regulation acts as a disincentive for non-profit providers as any additional revenues achieved by transitioning to a mixed-income model would be eaten up by taxes paid on market properties. The City and Province must work together to re-visit the regulation and how it is interpreted in order for property tax regulation to enable mixed-income housing models.
Work with the private sector
We see significant opportunity with the private sector when it comes to the development and construction of projects on behalf of non-profit organizations. The Calgary Community Advocacy Plan highlights 22 shovel-ready affordable housing construction projects that will create 2,800 jobs for the private sector.
Transfer housing assets
The province currently has a portfolio of 26,700 units – most of which are over 30 years old with decades of underfunded maintenance. Experienced non-profit providers are nimble, entrepreneurial and good stewards of their assets. Province should implement an asset transfer program to capable non-profits to support quality and sustainability of housing assets.
Reduce red tape for housing providers
Providing capital funding process clarity and predictability, cleaner agreements, and aligning with federal financing programs will enable housing providers to run business more effectively.
Ensure regulatory environment that drives development, construction and operating costs low
The costs to build and operate rental housing have been steadily increasing in Alberta over the last decade, eroding our Alberta Advantage. Costs such as insurance and property taxes have skyrocketed: in many instances 50% to 100%. The provincial government should prioritize implementation of policies that ensure Alberta remains a low-cost province to do business.
Address the gap in the Indigenous Housing Capital Program (IHCP)
Given the critical importance of housing for Indigenous communities, we are concerned about the July 2020 announcement indicating that the Alberta government will invest 32 million in IHCP over three years1 representing an 88 million funding gap for the program.
For detailed information on included recommendations, please see the included Backgrounder. In alignment with the Panel’s mandate, these recommendations will:
Create value for the taxpayer by creating a powerful multiplier effect: unlocking investment from other funding sources for housing providers to deliver housing solutions
Drive Alberta’s economic recovery by creating thousands of jobs and homes
Save millions of dollars on healthcare system: housing is health care
Transform the role government plays in housing investment to achieve better value while meeting critical housing need for Albertans