CANMORE – A transfer of $864,500 from the Town of Canmore’s vital homes reserves to Canmore Community Housing will be used towards working capital on 100 Palliser Lane affordable housing.
Canmore council approved the transfer, which is meant to begin the initial steps for four- and six-storey buildings in the Palliser Trail area structure plan.
Coun. Wade Graham said it was a “significant draw … but it is necessary” due to the community need for affordable housing.
A staff report highlighted that the Town is yet to receive a response from the federal government’s housing accelerator fund, the reserve is the lone source to build affordable housing projects run by CCH or the Town.
CCH further recommended reimbursing the funds in two stages, with the first being at the 90 per cent design stage once financing is secured for the project and expected by the end of 2024. The final payment will be done once the project is nearing completion, which is anticipated at the end of 2025.
Mayor Sean Krausert said it was a “very timely repayment” and he looked forward to discussions throughout the year to analyze different methods to financially support the building of affordable housing in the community.
He pointed to the ongoing advocacy of council to have municipal debt limits not include costs related to housing projects, while the Town is also exploring a phasing out of tourist homes and hiking taxes for vacant or second homes in Canmore with potential revenue going towards housing.
The Town also applied for the federal government’s Housing Accelerator Fund – a $4 billion nationwide federal initiative to drive housing construction – but has yet to hear back on it being successful or not.
A staff report noted council’s vital homes policy has its vital homes reserves allowed for use for working capital to build affordable housing or contract the building of affordable housing. However, any transfer requires council approval.
“In 2022, the decision was made by council of the day to limit the vital homes levy to fund only operating costs and those additional contributions were eliminated. Clearly, we need to be able to fund these types of projects,” said Therese Rogers, the Town’s general manager of corporate services.
Including the $250,000 transfer to CCH approved by council in the 2024 budget to help its operations, the vital homes reserve has roughly $2.6 million.
Council adopted the Palliser Trail area structure plan in November, which proposes roughly 1,300 units of housing. The plan, which is expected to take between 10-20 years to buildout, would have more than 1,000 affordable units.
The plan would be led by the municipality, meaning the bulk of housing-related costs such as water, sewer and stormwater infrastructure as well as the apartment builds, would need to be covered through municipal revenue and grants from upper levels of government.
CCH’s board passed a motion at its December meeting to recommend council approve the transfer.
“CCH administration recommended that CCH use the Town of Canmore vital homes reserve as working capital for the project to fund the prime consultant team, schematic design, design development and contract documents, up to the development permit stage prior to financing,” stated the staff report. “It is anticipated this allocation is a one-time withdrawal from the reserve for the 100 Palliser Lane project.”
According to the Town’s current planning applications, a land use amendment for 100 Palliser Lane is expected to come to council for first reading in May. The amendment would ask council to create a new direct control district for the two apartment buildings being proposed.
Jeff Mah, one of council’s four representatives on the nine-person CCH board, said the funding draw was important to move ahead.
“CCH has been moving very quickly and this is a big project with a heavy lift,” he said. “I know it’s a big price tag, but I’m looking forward to having it move forward.”
