Saskatoon’s planning and development committee looked at a report on Wednesday with recommendations on how to incentivize developers to build more affordable housing in the city.
City administration is proposing that approximately $35 million from the housing accelerator fund be allocated to incentive programs that will support affordable housing, multiple-unit dwellings in priority growth areas and housing development on city-owned land.
The total available funding through the program is $41.325 million, granted on a yearly basis from now until 2027.
Administration recommended capital grants be provided per unit for the three types of development and permit fee rebates be available upon issuance of a final building permit. Eligibility criteria would consider whether the applicant is a qualified non-profit or Indigenous organization and target population as well as the level and term of affordability.
Jason Mercredi, director of social infrastructure with Métis Nation Saskatchewan, said it’s important that council’s focus be based around community and Indigenous organizations.
“When we are talking about truth and reconciliation, we can have all of the land acknowledgements that we want but money talks and I think this is going to go a long way to help the Indigenous population in Saskatchewan and in Saskatoon specifically,” he said.
Affordable rental units and city-owned land developments would also be eligible for a five-year incremental tax abatement subject to city council approval.
Administration noted that other cities, including Regina, Edmonton, Calgary, Kelowna, B.C., and Winnipeg, are currently using very similar housing incentives as those recommended on Wednesday.
Kristen Thoms with Quint Development Corporation said her company would have to look at stacking the incentives with other funding initiatives with the province.
“The incentive itself doesn’t really have legs to stand on its own,” she said.
Thoms added that the incentives would also have to cover a good portion of the upfront costs to be sustainable long-term.
“Sustainable for the housing provider, but affordable for the tenants moving into those units,” she explained.
Cameron Choquette, CEO of the Saskatchewan Landlord Association, said without significant levels of investment from government, operating agreements tied to the incentives might scare some landlords away.
“The notion of affordability is important but what providers don’t want to be saddled with is 20-year control agreements that prevent them from raising rent at all and not being able to maintain the investment in their properties,” Choquette said.
He suggested 10-to-15-year agreements would be more appropriate.
Saskatoon resident Karen Kobussen said the city should focus on funding housing that is currently not utilized in already existing neighbourhoods.
“I don’t think (housing growth) can be accomplished by just building ‘new’ all the time,” she said.
Kobussen suggested the city look into “asset-based community development.”
“Maybe it’s looking at some of the vacant lots in Meadow Green or Mount Royal or Pleasant Hill or where people need. There are a lot of ways that we can collaborate.”
The city’s planning and development committee voted to bring administration’s recommendations to council. They will be presented at a later date.