Alberta’s Housing Accelerator Fund: Progress and Pitfalls

In an era where housing affordability is a pressing concern across Canada, Alberta’s largest cities, Calgary and Edmonton, have emerged as beacons of success through the federal Housing Accelerator Fund (HAF). Launched in the spring of 2023, this initiative aims to streamline the housing approval process and mitigate bureaucratic hurdles. As of now, it has facilitated the approval of nearly 30,000 residential building permits, paving the way for 70,000 new homes. While this progress is commendable, the program’s execution raises important questions about the actual needs of communities and the adequacy of the housing provided.

A Closer Look at the Housing Accelerator Fund

The HAF was designed to address Canada’s housing supply crisis by improving efficiency across all levels of government. Carolyn Whitzman, a housing researcher and adjunct professor at the University of Toronto, notes the program’s strengths, particularly in fostering intergovernmental coordination. However, she cautions that it ultimately falls short of addressing deeper issues related to housing adequacy.

Despite the HAF’s success in expediting building permits, Whitzman points out significant omissions in its agreements. Essential factors like unit size, affordability, and accessibility have not been adequately addressed, raising concerns that the housing produced may not meet the needs of the most vulnerable populations. This shortcoming is particularly evident in urban settings with limited access to essential services.

An Imbalanced Distribution of New Dwellings

Though both Calgary and Edmonton have seen a surge in permitted dwellings, the majority are being developed in suburban areas, often characterized by limited public transit and amenities. Recent data indicate that about 60% of the new homes in Calgary are destined for these car-oriented neighborhoods, increasing the financial strain on households through elevated transportation costs.

Reid Hendry, Calgary’s chief housing officer, recognizes the complexities of the market, stating, "We have to work with the market that we’re in." While suburban growth is important for offering diverse housing options, it often overlooks the pressing needs of lower-income residents.

Similarly, in Edmonton, more than 80% of the mid-range housing permits have been granted in developing neighborhoods on the outskirts. In theory, this encourages growth; in practice, it creates a disconnect from wealth-generating areas and the public amenities required to support a sustainable lifestyle.

The Dire Need for Affordable Housing

Both Calgary and Edmonton are striving to meet their affordable housing targets by 2026. Presently, Calgary has met only 51% of its affordable housing target, resulting in a mere 746 dwellings, while Edmonton has permitted 870 affordable units, falling 1,070 homes short of its objective.

To address these gaps, Edmonton plans to allocate $99 million from its HAF allotment to develop affordable homes on surplus school sites, while Calgary intends to utilize a portion of its funding to build 520 non-market homes downtown. However, even if they achieve these modest targets, more than 100,000 low- and moderate-income households will still find their needs unmet.

The Broader National Picture

Alberta’s challenges are indicative of a national trend; a recent report emphasizes the need for at least 4.4 million homes that are affordable for Canadians earning less than the median income. Addressing this issue will require a substantial federal investment — some propose an annual allocation of $40 billion to build at least 200,000 non-market homes on government-owned land within the next decade.

Whitzman argues for a more focused and mission-driven approach to housing development, especially to meet the financial capabilities of lower-income Canadians. She stresses that the current market-driven initiatives may not adequately solve the affordability crisis.

Conclusion

While Alberta’s Housing Accelerator Fund has successfully accelerated building permits, achieving the intended goal of providing adequate housing remains elusive. Without a strong focus on affordability, accessibility, and community needs, the advantages gained through policy may serve only to exacerbate existing disparities.

As the pressing need for affordable housing continues to grow, the question remains: will Alberta’s progressive steps be enough to pave the path toward a more equitable housing landscape? Addressing these complexities is not just a local concern but a national imperative that deserves immediate and sustained attention.