Regina to apply for fund that could provide $36M, drive 1,100 new housing unit permits by 2026
Alexander Quon | CBC News | Posted: May 31, 2023 6:57 PM | Last Updated: May 31, 2023
Housing Accelerator Fund would further council's goals while also increasing housing diversity city-wide
Regina's executive council has approved a plan to try to take part in the federal government's Housing Accelerator Fund (HAF), which could allow the city to access $36.2 million and drive 1,100 permit approvals for housing units in the city over the next three years.
The plan must now be approved by city council next week, as the application must be submitted to the federal government's Canada Mortgage and Housing Corporation (CMHC) by June 14, 2023.
The HAF is a federal initiative aimed at increasing the housing supply across Canada. Successful applicants are expected to use the money on housing and infrastructure that supports it. It is unclear how likely Regina would be to get the funding if it applies.
The action plan approved on Wednesday would have the city adopt 11 initiatives, including:
- Enabling high-density development in the city centre.
- Advancing development of missing middle housing in central neighbourhoods.
- Supporting conversion of non-residential buildings to residential use.
- Reducing the necessary council approval for housing related to discretionary use applications.
- Increasing affordable housing stock in partnership with non-profit housing providers.
Chad Jedlic, the City of Regina's director of economic and business development, said the goal is to "build more homes, faster," primarily in the city's central neighbourhoods, while prioritizing revitalization, affordable housing and multi-unit buildings.
Housing stock and the chance for growth
City administration said that based on 2021 census data, Regina's estimated housing unit stock is 100,518.
Without access to the Housing Accelerator Fund (HAF), the city believes the total number of new housing units that could be permitted by September 2026 would be 2,772.
With the HAF, that number would increase by 1,100.
Administration believes 420 of the new spaces would be multi-unit housing and the other 680 would be missing middle housing units.
City administration says 15 per cent of the target, or 165 units, would be considered affordable housing.
The proposal was endorsed by Stu Niebergall, president of the Regina & Region Home Builders' Association.
On Wednesday he told council he was excited for the possibilities presented in the fund.
Aligns with city goals
Council has previously committed itself to multiple initiatives that would increase housing supply in the city centre and central neighbourhoods.
The HAF would further those goals, according to a report presented to council on Wednesday, while also increasing housing diversity and housing supply city-wide.
If the application is successful, city administration would immediately use $1 million from the funding to develop the plan for the rest of it.
"There is plenty of work to be done on the details," said Barry Lacey, executive director of financial strategy and sustainability.
Importantly, the potential funding from CMHC would not require matching funds from the city. That's been a sticking point with council on major projects in the past.
One of the requirements of the HAF is that Regina must set a housing supply growth target. Administration says it is looking to have an average annual growth rate of at least 10 per cent, and the housing supply growth rate must exceed 1.1 per cent.
That translates to 1,100 housing units being built by fall 2026.
If the proposal is accepted by CMHC, the $36.2 million in funding would be provided to the city in four instalments.
A quarter would come this fall once the city finds out if its proposal is approved, with the other three quarters coming annually in the fall until 2026.
It would be up to city how to best use the funding it receives, whether that be incentivization, a pilot program or some other process, city administration told council. Those details are among the other issues that will be resolved later in the process.
However, if the initiatives or the housing supply growth target were not met, CMHC could require the city to give the money back.