Purpose Built Rental is an Uphill Battle
The high cost of development land in Canmore is one of the biggest challenges for private development of Purpose-Built Rental Housing (PBR) that can be supported by Canmore residents. By reducing the excessively high land costs, we can rely less on other location-specific incentives, such as increases in density and height, or reductions in parking requirements, although these incentives should still be considered.
A possible solution to the high-priced land is to use vacant and developable lands owned by the Town of Canmore (TOC) and the Community. These lands are available and can enhance the local experience and provide housing opportunities while maintaining community functionality. BOWDA believes it is appropriate to use these lands for housing, and the TOC should support the development of these land assets. Reserving land for a park is not practical if there are no local kids to enjoy it. There are lands within the town limits that are not designated as formal parks or are presently underutilized parks. Using some of these lands for housing will not harm the community, as there is plenty of open space surrounding Canmore. In fact, over 70% of the land within Canmore’s municipal boundaries is open space in one form or another.
When public lands are used for housing, all rental inventory should be managed by Canmore Community Housing Corporation (CCHC). If there is not enough local demand under the CCHC program, flexible interim use could be considered. For example, shorter-term rentals at market rates could be permitted while waiting for increased demand by CCH qualifying applicants. Partnerships with local business owners to provide reliable employee housing should also be considered as an alternative when there is low demand from CCHC qualifying applicants.
There needs to be a broader community discussion on incentives for purpose-built rentals that relieve landowners or developers (private and public) from collective costs of living, including municipal taxes, offsite levies (OSL), or local improvement fee collection. It is important to consider the impact on the community and residents who may be struggling with the cost of living in the Town of Canmore. Before providing any incentives, a clear policy should be created to guide decisions regarding reduced municipal taxes or the use of incentives to promote a certain type of development. Consistent, fair, and transparent decision-making is essential.
Nationally, PBRs will be built in communities where it makes economic sense to take the risk. PBRs were extensively built in the past due to favorable federal tax incentives that encouraged investment in this type of development. However, with changes to tax policies that favored ownership, the construction of PBRs declined in favor of condominium development. It is evident that federal tax policy influences the type of construction that occurs. Currently, there are new federal incentives that support the provision of PBRs, such as the 5% GST rebate on certain types/sizes of rental housing.
In the coming weeks, we will discuss actions and incentives that can contribute to the construction of more PBR in Canmore and the Bow Valley.