Calgary selling seven sites below market value for affordable housing groups

Housing officials with the City of Calgary say they’re listening to the need for land from the non-profit sector to build affordable housing units.

The City announced Wednesday it will be selling seven sites to non-profits below market value, with a vision of building 350 units near transit and grocery stores.

Director of Real Estate and Development Services Doug Cassidy said they’ll be selling at a price far below what they could make on the open market.

“We’ve heard from housing providers that access to land is one of their biggest barriers, paying full market value for land is typically a real challenge for many of the providers,” he said. “This is an opportunity for the City to support our Affordable Housing Strategy through a contribution of land in kind to a certain extent.”

Bidders now have three months to prepare applications and submit proposals and after the City selects successful bidders, they will have to submit development permits, possibly with land use agreements, with a goal of beginning construction in two years.

There’s over 60 providers of affordable housing in Calgary, many providing homes to one building.

Calgary Housing Director Sarah Woodgate said similar sales have occurred in other cities such as Vancouver, Toronto and Hamilton and if the project is successful, it could become a more embedded City initiative.

“We’re really working with them (providers) to try to scale up the non-profits to say go from 500 units to 2,000 units,” she said. ”

The sites are located in Forest Lawn, Raddisson Heights, Saddleridge, Hillhurst and one in the downtown, some with buildings on the parcel.

Cassidy said existing structures would be demolished for redevelopment to occur and that bidders would have to conduct appropriate community outreach for their projects.

To avoid non-profits getting into a bidding war for a particular parcel, Cassidy said they won’t base their decision-making on cost.

“We will be evaluating on the basis of development experience, project readiness, that the applicant has funding available and is able to move forward with the projects in order to deal with, what will be some level of competition,” he said. “We’re aware that having non-profits bidding against each other is probably not a productive scenario.”

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