Banff Lake Louise Hotel Motel Association is voicing support for the Town of Banff developing rental housing to ease the resort town’s housing crunch – but the group wants the municipality to push for discounts on land from the federal government and access favourable lending rates.
The Town of Banff is considering an additional tax on residents to fund future housing projects, including a potential $9.3 million 36-unit apartment housing complex on the 300 block of Banff Avenue. The development is on the capital plan books for the 2015.
BLLHMA officials say they are agreeable to the municipal government entering the housing market and are aware a housing levy will be required for the Town to construct new housing units over the next three years.
“Firstly, the Town has the potential to negotiate with the federal government for discounts on land that simply would not be available to the private sector; secondly, the Town has access to very favourable lending rates,” said Darren Reeder, the group’s executive director.
“BLLHMA is supportive of the Town’s plan so long as it can secure favourable lending rates to finance the project(s); and, so long as it can secure a significant discount on lands under consideration.”
Housing has been identified as council’s number one priority to try to address Banff’s zero vacancy rate. There is currently a significant shortfall in housing and predictions the shortfall will be anywhere between 450 and 700 units by 2022.
Based on the economic prosperity strategy, 2012 housing needs study and 2014 community housing strategy, the Town of Banff seeks to develop 100 rental housing units over the next three years.
This number represents 25 per cent of a target suggested to council by Banff Lake Louise Hotel Motel Association, and relies on the private sector to develop the remaining 300 housing units.
Reeder said BLLHMA has recommended an ambitious target of 400 rental-style units over the next two years to address labour recruitment and retention challenges made worse by recent federal government changes to the Temporary Foreign Worker program.
He said 400 units is viewed as the median target required to stabilize Banff’s housing market, and to move closer to maintaining a healthy vacancy rate of three to five per cent on an ongoing basis.
“BLLHMA believes the Town’s strategy to develop 25 per cent of the recommended housing units required is an important first step,” he said. “The Town should also pursue options – for example, policy and financial incentives – that would assist the private sector in developing the remaining 75 per cent of targeted housing units.”
Banff Housing Corporation, created in 1993 as a not-for-profit developer, is out of the development business and the Town of Banff will be the developer of housing moving forward, but BHC will likely oversee the operation and maintenance of any housing constructed.
BHC had purchased two lots on Banff Avenue – 338 and 340 Banff Avenue – before the major mandate change and now there may be an option for the Town of Banff to purchase one adjacent lot at 342 Banff Avenue.
There are four options for the development for council’s consideration in the capital plan. All would be financed 100 per cent through 30-year Alberta Capital Finance Authority (ACFA) debentures.
The Town is looking at establishing a new housing levy at a level required to fund a housing sustainability coordinator, including wages and associated operational costs, plus the operating deficit associated with each specific housing project.
The rate, to be charged separately to taxpayers on their bill, would change each year to match the requirement. No decision has been made on whether rents would be charged at market price, or below market price.
