Dec 7, 2023
In July of 2021 Administration was directed by the previous City Council to develop a replacement approach for City Policy C582 - Developer Sponsored Affordable Housing Policy. From that direction, Administration developed a four-part work program that commenced in April of 2022 and was completed in September of 2023. IDEA has participated in the engagement associated with this work program over all four phases. This week Urban Planning Committee received Administration’s report on this work which presented four policy options. At Committee and in a letter to Council IDEA shared their position on each option:
Option 1 - Affordable Housing Partnership Program: IDEA believes there is merit in this option. As noted in the report there are a variety of different ways the partnership could be structured but, ultimately, it allows each stakeholder to play to their strengths. The report does not reflect the extent to which the RESOLVE Campaign and the success it achieved was discussed during engagement and therefore makes it difficult to make a decision on the viability of the option on the merit of the report alone; however, IDEA does believe that under certain models this option could be supported.
Option 2 - Affordable Housing Investment Fund: IDEA would like to explore this option further. Industry’s suggestion of the option was very much inspired by similar tools used by the Canada Housing and Mortgage Corporation. It is not entirely clear how the fund would be seeded. We see the leveraging of city-owned land to generate funds as one potential option.
Option 3 - Inclusionary Housing Program: IDEA vehemently opposes this option. The cost of creating affordable housing through an inclusionary housing program is the erosion of housing affordability. In transferring the cost of building affordable housing to the developer, the owner must raise the price on at-market units to subsidize affordable units, unduly burdening at-market renters and new homebuyers. Administration comments on these negative impacts as part of their risk assessment. Furthermore, as noted in Administration’s report, it is quite possible that the Government of Alberta will remove the City Charter’s authority to implement an inclusionary housing program.
Option 4 - Off-Site Levy: IDEA vehemently opposes this option for the same reasons that it opposes an inclusionary housing program. Anything that imposes additional fees on the developer is simply passed on to the homeowner therefore eroding affordability in the process. Administration notes these negative impacts on the market as part of their risk assessment of an off-site levy option.
Following discussion, a motion was approved by Committee directing Administration to continue exploring all four options but to give priority to options 1 and 2.
IDEA believes this to be a positive outcome for industry and will result in more focused engagement to the ways in which industry may offer its expertise in the creation of affordable housing in Edmonton.