Latest news with #BILDCalgaryRegion
Global News
3 days ago
- Business
- Global News
Calgary may speed up building new neighbourhoods if it doesn't require upfront costs
A city committee endorsed a move to fast-track approvals for new communities on Calgary's outskirts, but only if they don't require capital investments from the city. Currently, developers submit applications throughout the year to build new subdivisions, but a final decision from city council only comes once a year, during budget deliberations in November. According to city administration, this is because applications are reviewed to determine the capital costs required to enable construction, which could include roads, utilities and water, as well as emergency services like fire stations. However, city administration says some of the applications for new neighbourhoods only require operating investments for the city services and not new capital costs, as they leverage previously installed infrastructure. On Wednesday, the city's Infrastructure and Planning committee unanimously endorsed a proposal that would speed up approvals for new subdivisions, provided they only require operating costs. Story continues below advertisement 'We talk about removing red tape, and this is an opportunity to remove red tape,' said Ward 1 Coun. Sonya Sharp, who chairs the committee. As part of the proposal, administration is also recommending city council approve six new subdivisions. View image in full screen The six new subdivisions the City of Calgary is recommending get fast-tracked as they only require operating funding. Courtesy: City of Calgary Operating costs, which are supported by property taxes, for the neighbourhoods are $140,000 per year to expand Calgary Transit service to the areas. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy But the city's report on the proposal warns council's approval of a new community commits the city to future long-term operating and capital investments 'as a community develops and services are provided to future residents.' Story continues below advertisement City administration estimates at full buildout, the six new subdivisions will require $3 million in tax-supported funding annually for city services. The communities will also eventually require $609 million of capital investment, with $189 million supported by taxes, $109 million coming from off-site levies and development fees, and $311 million coming from utilities to be repaid by user fees. 'When you look at full buildout you have to look at the return on investment and how much those houses and that area will bring money back into the city as revenue generation,' Sharp said when asked about the potential future costs. The move is getting support from the development industry with representatives from BILD Calgary Region noting the current process can create delays. 'It better aligns approvals with infrastructure readiness, reduces uncertainty for investors, and supports a more responsive approach to Calgary's growing housing needs,' Deborah Cooper with BILD Calgary told committee. 'That small shift helps manage costs and risk more effectively and supports a more reliable housing supply.' However, it follows a slew of spending commitments from city council outside of budget talks, including $20 million in surplus Enmax dividends for city facility upgrades, and $15 million to retrofit Calgary Transit buses with improved shields to protect operators. 'There are times that you have to look at making decisions that are outside of the budget cycle in the best interest of the people you serve,' Mayor Jyoti Gondek said. Story continues below advertisement 'When we are trying to deliver on housing, sometimes those ideas need to come forward ahead of a budget cycle.' The six new communities as well as proposed change to the approvals process will now go to city council as a whole for a final decision later this month.
Calgary Herald
21-05-2025
- Business
- Calgary Herald
How does Calgary keep market housing affordable and in supply?
Article content Calgary's market housing is at the tipping point of affordability. But does home ownership have to slip out of reach or can the situation be reversed? Article content Building Industry and Land Development Calgary Region brought together independent industry experts for a summit, Unlocking Doors: Housing Supply and Affordability Summit, earlier this month to discuss ways to prevent market housing from escaping the reach of would-be homebuyers. Article content Article content 'We're the second most affordable metropolitan area in Canada. That is great, but that will also draw people here, so we have to redouble our efforts,' says Brian Hahn, CEO of BILD Calgary Region. Article content Article content Canada Mortgage and Housing Corp. describes housing as affordable when a household spends less than 30 per cent of its pre-tax income to cover mortgage, property tax and utilities. That number has hovered above 40 per cent in the Calgary area for the past three years, show RBC's Thought Leadership Series on Canadian Housing quarterly reports. By comparison, the latest report shows the average across Canada was 58.4 per cent in the fourth quarter of 2024. Vancouver reflected the most unaffordable metropolis at 92.8 per cent, while Toronto was at 70.8 per cent. Edmonton came in as the most affordable of the group at 33.6 per cent. Article content Article content While the solution to tight demand and high prices might be simple in theory — build more homes — the reality of increasing market housing and affordability involves many moving parts. Article content 'The biggest challenges are the time from dirt to door, and cost. Every bit you can shorten up on time helps on the cost side, and everything you can do on the cost side helps,' Hahn said. Article content SHORT ON HOUSING Article content According to CMHC, Alberta needs 130,000 more housing units by 2030 to meet demand created by so much in-migration in the past few years. Article content There's an argument to be made that Alberta's builders and developers are up to the challenge. The province marked record building starts topping 46,000 in 2024. However, it's not quite that simple, points out Hahn. Top of mind is the aging skilled labour force. Article content 'We need to make sure that people are entering the fields that are the skill sets that support land development and housing,' Hahn said. 'Trades are one, and we're grateful for what the province and the federal government has done in terms of supporting that. But also we would like to see focused programs in terms of immigration and making sure that amongst those who come to Canada are those who have experience in construction, and home construction, in particular.'
