Calgary introduces program to incentivize more downtown developments

The city is launching an incentive program in a bid to encourage the creation of more than 1,500 new homes in Calgary's downtown.

More details were released Wednesday.

The initiative is the Downtown Density Bonusing Offset Program, which is set up to offer a financial incentive for building new homes as a way to more quickly build up Calgary's housing supply in the city's core.

The program's aim is to reduce the cost of construction and encourage more high-density residential development in downtown Calgary, the city said on Wednesday. It works through density bonusing, a tool that allows developers to add suites, floors or square footage in exchange for investments benefiting the greater community.

The city said it would consider investments in community amenities like parks or public art, in heritage conservation, as well as community funds or affordable housing. The program would offset the cost of these contributions.

"With the explosive growth we are seeing here, it's clear that Calgary needs to build more homes," Mayor Jyoti Gondek said in a news release on Wednesday. "Building homes downtown ensures we're meeting demand, boosting affordability, providing options for Calgarians, and creating a more connected and livable city for everyone."

The new program is meant to support the city's downtown and housing strategies, alongside other programs like the office-to-residential conversions. It's open for applications as of June 1.

Thom Mahler, Calgary's director of downtown strategy, told CBC News the city would take applications from any developer who has included density bonusing in their development plan, who meet a minimum bar of financial viability for the city to carry it forward.

"We're looking at how many housing units can we get out of this, what's the variety of housing units that we have, is there affordable housing as part of it? Those would be some of the considerations in terms of which projects might be eligible for funding," Mahler said.

Because the bar to develop downtown is expensive, because the land there is typically more expensive than many other parts of the city, Mahler said this program will mostly be working with well-financed developers.