In early January 2023, the City of Edmonton notified some affordable housing providers that their properties will not be exempt from this year’s property tax. Recognizing that additional municipal taxes could affect existing affordable housing, City Council approved funding for a new grant as part of the new 2023-2026 Budget.
The Affordable Housing Tax Grant will offset municipal property taxes for non-profit entities operating bridge housing, supportive housing, government-supported housing and other permanent affordable housing. A program guide is currently being developed and will be available in coming weeks.
At its discretion, the City will be able to waive the annual application process for any given property in future years, minimizing impacts and ensuring predictability.
The proposed grant would see the City provide 100% of the municipal portion of property taxes for eligible housing units.
- Be a non-profit entity, or a partnership in which a non-profit entity owns at least 50% of the property
- Not currently exempted through provincial legislation
- Not be facing any tax arrears associated with the property
Background on Property Taxes
This grant is intended to bring the City’s tax policies in line with provincial legislation, while ensuring that a fair and consistent process exists for affordable housing providers.
With a few exceptions, affordable housing is taxable under the existing provincial legislation governing municipal property taxes. Over the years, some affordable housing providers have received property tax exemptions from the City, while others currently pay property taxes.
At a City Council meeting in February 2022, Administration presented options to create a more consistent and flexible approach, including proposed criteria. Funding for the grant was approved during the 2023-2026 budget.
While the new Affordable Housing Tax Grant will cover the municipal portion of the tax levy apart from non-residential or commercial uses, non-profits will still be responsible for covering the provincial education tax portion for the entire property. The City has been in conversations with the Government of Alberta about this issue.
More information will be posted in coming weeks, but if you have any questions please email email@example.com.