The City of Edmonton announced a new affordable housing grant available for non-profits that exempts them from paying property tax on their affordable housing properties.
In a media release issued on Thursday, the city said this grant will offset $6 million in taxes in 2023 and by 2026 will offset taxes by $7.5 million. Funding for this grant was approved in the 2023 to 2026 budget after many council debates. The city said it will be investing $27 million for the grant.
The grant is said to cover 100 per cent of municipal property taxes for all affordable housing owned by non-profits within Edmonton. However, it does not cover the provincial education tax assessed in the yearly property tax process.
To be considered an eligible non-profit residential unit, it must be owned by a non-profit or be part of a partnership where a non-profit owns at least 50 per cent of the property.
“One in four renters in Edmonton pay more than they can afford on housing. With costs rising, we need to address the housing gap and protect our existing affordable housing stock,” said Mayor Amarjeet Sohi.
Provincial legislation says affordable housing is taxable. Previously, city council would provide exceptions on a case-by-case basis and they were subject to appeal.
The grant’s goal is to create an “even playing field” for organizations that provide affordable housing to Edmontonians who would otherwise be spending more than 30 per cent of their income on housing.
“This new grant program provides certainty and stability to our organization, which is exactly what we strive to provide to our residents,” said Rob Appleyard, executive director of Brentwood Community Development Group. “Housing is the foundation of community, and these grants will help us to continue building a high quality of life for low-income seniors, families and people living with disabilities.”
Gord Johnston, CEO of Civida, an affordable housing non-profit, said this grant will help them to find money for the repairs and maintenance their residents need.
“Civida will reinvest these funds in repairs and upgrades such as new flooring, new appliances, new lighting and new paint, among other items, to benefit Edmontonians who live in these approximately 900 homes across the city. We also look forward to continuing to reinvest these funds as they are made available in future years.”
The City of Edmonton is encouraging all interested organizations to apply for the grant, adding that the city will be directly in charge of the online application process. The city added that it will be able to, at its discretion, waive any need to apply annually.
To apply for the grant, contact the City of Edmonton at AHIPgrant@edmonton.ca and respond within three business days.
Comments