Feds add $16.6 million for affordable housing in downtown Calgary

The federal government announced that it will invest $16.6 million into an affordable housing project in downtown Calgary.

The project, located at 706 7 Ave. S.W., will add another 82 permanent affordable housing units to the city. The building will also be transformed into a multi-family hub with shelter and support services, transitional housing, permanent supportive housing and child-care services in one space.

The building will be operated by HomeSpace Society, a local affordable housing provider, and Inn from the Cold, an emergency shelter. The building is set to open by winter of this year, according to a press release from the City of Calgary.

“We all know that safe, stable housing is the foundation of a bright and prosperous future. There’s a need for affordable housing in Calgary and converting an existing building, working with local community experts and coming up with creative solutions is very important,” said Minister of Seniors and Housing Josephine Pon.

The federal government is investing in the project through the Canada Mortgage and Housing Corporation’s Rapid Housing Initiative (RHI), a $2.5-billion program that aims to create 10,000 new affordable housing units across Canada. The project builds on the federal government’s previous investment of $24.6 million to support the creation of 176 housing units in Calgary through the first phase of the RHI.

1:35 Canada on track to create more than 10,000 affordable housing units

The province provided $2 million through an agreement under the National Housing Strategy, a federal housing program that will invest more than $70 billion into affordable housing over the next 10 years. It is part of the province’s 10-year strategy to improve and expand affordable housing in the province, according to a press release from the Alberta government.

The City of Calgary previously committed $5.5 million towards the project as part of its downtown strategy to convert extra office spaces to housing.

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“Revitalizing the downtown area goes hand-in-hand with ensuring housing for all, which are both key priorities for city council and the city,” Mayor Jyoti Gondek said.

But more work needs to be done to make sure Calgarians have a safe place to call home. Existing housing issues have been exacerbated by the pandemic and all levels of government need to work together to find solutions for affordable housing, said Gondek.

Bernadette Majdell, chief executive officer of HomeSpace Society, echoed similar sentiments.

“Housing is one of the biggest factors that determines the health of Canadians, but there are many people in this city who do not have access to safe, affordable homes,” she said.

According to Vibrant Communities Calgary, the city’s stock of affordable housing doesn’t meet the current need.

A report conducted by the group on poverty in the city showed 81,240 households are in need of affordable housing because those households spend 30 per cent of their income on shelter and earn less than $63,267 annually.

“We know once you spend more than 30 per cent of your income that you are at risk of being precariously housed, or homeless,” Vibrant Communities Calgary’s executive director Meaghon Reid told Global News.

“Additionally, we rank among the lowest cities in the country in terms of affordable housing stock, and that’s a real challenge, particularly as our population size grows in the city.”

Currently, there is a gap of between 15,000 and 20,000 affordable housing units in Calgary compared to the averages in other Canadian cities, according to the city’s affordable housing lead.

Bruce Irvine , the City of Calgary’s affordable housing manager, told Global News that affordable housing makes up six per cent of housing in most Canadian cities, but that number is only around three per cent in Calgary.

But he said construction on new units continues to speed up.

“We used to be at about 100 units per year only five years ago, now we’re 400 per year; the problem is that’s still insufficient,” Irvine told Global News. “We need to try to get up to about 2,000 to 2,500 units per year to close the gap and help vulnerable Calgarians.”

To get there, Irvine said more partnerships with the federal government, the province and non-profit organizations are needed.

Gondek said the city is “sorely lacking” in providing affordable housing for those who need it, but is hopeful more projects like Sierra Place could become a reality in the future.

“I’m very optimistic that with the success of this project, we’ll start to see others,” she said. “There is a great interest from the private sector as well in making sure that as we’re doing conversions of spaces, we’re having the types of mixed uses that allow for everyone to succeed.

“So I think this is a great example of an initial partnership that will go much further.”

According to the HomeSpace Society, doors are set to open at Sierra Place this fall.

–With files from Adam MacVicar, Global News