City offers discounted land for affordable housing

Non-profits could build 350 homes

The city plans to sell seven parcels of land to local non-profit organizations for a steep discount in an attempt to increase Calgary’s desperately needed affordable housing stock.

Together, the sites — located close to amenities such as transit and groceries in Saddleridge, Forest Lawn, Albert Park/Radisson Heights, Hillhurst and downtown — could yield 350 new affordable homes within a few years.

“Today marks a really important day for affordable housing in Calgary,” said Sarah Woodgate, director of Calgary Housing at the city and president of the Calgary Housing Company, at an announcement unveiling the planned sale.

“This is the most significant city-owned land sale for affordable housing providers in the city of Calgary, in our full history.”

Beginning Wednesday, nonprofit affordable housing providers have three months to put together applications and submit proposals to the city for the seven lots, which will be sold for a steep discount, said Doug Cassidy, director of real estate and development services at the city.

“Each parcel of land will be sold at what the city calls book value, which essentially is the money we have invested in the land, substantially below market value,” said Cassidy.

The lots range in size and price, from a parking lot in Hillhurst that’s listed for $42,000 to three adjoining properties across from the Saddletowne LRT Station listed for $553,965. Together, the prices listed for the seven lots total $1.8 million.

The city made the decision to sell the land below value (rather than earn a profit from it and use that money to build affordable housing) because a lack of land is currently restricting the ability of non-profit organizations to increase their housing supply.

“We’ve heard from housing providers that access to land is one of their biggest barriers. Paying full market value for land is typically a real challenge for many of the providers,” said Cassidy.

Once the city chooses the winning applicant for each lot, successful non-profits will have to complete community engagement before starting construction, with shovels expected to be in the ground within two years.

The city expects more than 60 non-profit affordable housing providers in Calgary may apply to purchase the lots, with applications set to be evaluated on criteria including project readiness and previous experience with development.

ELIGIBLE FOR FUNDING

The non-profit applicants chosen will also be eligible to receive funding from city programs and the Canada Housing and Mortgage Corp.

“Successful applicants will receive support from several programs, through a single application process, reducing the time and effort required by proponents,” said Cody Krause, affordable housing consultant at the CMHC.

Woodgate said the program is a step forward in addressing an urgent and pressing issue facing the city.

Calgary has half the amount of affordable housing as the national average, and zero new units were opened from 2013 to 2016, despite ballooning wait lists.

“It’s anticipated this initiative could create up to 350 new homes, which will help move us toward our goal to reach the national average of non-market supply in cities, which is six per cent. We need to double the current supply,” said Woodgate.

The seven development sites are located at: 198-206 Saddleback Road N.E., 902-912 36th Street S.E., 3725 10th Avenue S.E. and 1104 36th Street S.E., 1305 and 1313 36th Street S.E., 1523-1527 36th Street S.E., 344 14th Street N.W., 933 5th Avenue S.W.