Housing Incentive Program

The Housing Incentive Program has been updated with a renewed focus on enhanced access to funding and ensuring that available funds support project needs.

The HIP is primarily funded under the Service Plans budget and provides two kinds of financial assistance:

A grant of up to $200,000 towards pre-development activities for a non-market housing project (Pre-Development Grant- PDG);
A rebate on eligible City development fees for a non-market housing project (Development Fee Rebate).

If you have questions or want more information, please email housingincentiveprogram@calgary.ca.

Qualifications

This program is only available to non-profit organizations for non-market housing projects in Calgary. Both affordable rental and affordable homeownership projects are eligible.

Affordable rental criteria

The average rent in the building must not exceed 90 per cent of the average market rent listed in the most recent Canada Mortgage and Housing Corporation (CMHC) rental market report for Calgary or;
The project is a “long-term care” or “designated supportive living” facility under applicable legislation and accommodation charges are offered at no more than the maximum as set by the Government of Alberta for these types of facilities;
Affordable rental units must be operated as affordable for a minimum period of 20 years and a maximum period of 40 years;
For mixed-market projects, funding will be pro-rated based on the number of units that qualify as non-market.

Affordable homeownership criteria

The prices for the properties must be below 90% of the median home prices and household income must be less than the Calgary median income;
The project must include an agreement with some restriction clause that prevents resale at market price for a minimum period of 20 years.

Frequently Asked Questions (FAQs)

Learn more about the Housing Incentive Program.

How did the program get started?

The Housing Incentive Program was approved by Calgary City Council on Feb. 22, 2016. It was originally funded by the Community Economic Resiliency Fund. On May 29, 2017, Council approved the extension of the program and we continue to accept applications. The HIP supports some of the outcomes in the City of Calgary's Housing Strategy.

Who is eligible to apply for this funding?

Applicants must be legally registered as non-profit organization and demonstrate compliance with all applicable federal, provincial and municipal legislation and bylaws. First Nation or Inuit Band Councils or Tribal Councils or its delegated authorities in Treaty 7, the Otipemisiwak Métis Government (Metis Nation of Alberta) Districts 5 & 6 or its delegated authorities, as well as wholly owned subsidiaries of The City are also eligible to apply.

Can the private sector apply for this funding?

At this time, Housing Incentive Program funding is only available for non-market housing providers that meet the eligibility requirements.

Is the program available only for new projects?

The Housing Incentive Program funding can be utilized for new projects, the redevelopment of existing units, and conversion projects as long as the application meets all the requirements and documentation.

Why is this a valuable program?

The Housing Incentive Program offers the following benefits:

Accommodates a wide range of housing projects with a flexible approach.
Supports non-market housing projects like youth housing, housing for women fleeing domestic violence, seniors housing, assisted living, Indigenous housing, affordable homeownership and more.
Provides early-stage support for non-market housing pre-development (feasibility) work, when it is generally harder for organizations to obtain funds.
Provides a significant dollar contribution (typically ranging from $50,000 to $800,000), which makes a difference to non-market housing providers.
Meets a requirement to obtain grants and funding from other levels of government, and some private financial institutions.
Helps eligible housing providers get projects shovel ready sooner as it is considered first in funding. Increasing the supply of non-market housing in Calgary has a positive impact on the rate of homelessness and contributes to overall housing affordability.

How has this funding impacted the success of a project?

The Housing Incentive Program provided early funding for the construction of Boro Block - a 196-unit affordable housing development in the Haysboro neighborhood in the Southwest of Calgary. The Development Fee Rebate also supported Trellis Foundation for Community Impact in the development of 50 units of non-market housing in the Northwest area of Calgary. These reduced development costs allowed the non-profits to make their housing more affordable for qualifying Calgarians.

Is there long-term demand for this program?

As Calgary’s population grows, so does the need for non-market housing. Historically, the magnitude of demand for non-market housing far exceeds the rate of increase in non-market housing supply. Through programs like the Housing Incentive Program, The City aims to support and enable the housing sector to meet this demand, and ensure all Calgarians have an affordable place to call home.

The Housing Incentive Program has existed for ten years, with an increase in applications over time, showing that a long-term demand is already here.

Is this program available for stacking funds with other municipal programs?

Housing Incentive Program funds can be stacked with funds from other municipal programs if the combined amount does not exceed 30% of total project costs. Some grants may be exempt from inclusion in this calculation. Funds provided by other municipal program will be taken into account when determining how much and what type of HIP funding you may be eligible for.