Housing Capital Initiative (HCI)
Housing Capital Initiative (HCI)
The Housing Capital Initiative (HCI) program is intended to increase non-market housing supply in Calgary by delivering timely capital investment for housing projects which meet key financial and operational criteria.
Program details
The City of Calgary is providing $60 million in funding for capital expenses over three years to develop new non-market permanent rental housing units by supporting non-profit housing providers up to a maximum of 30 per cent of total eligible project costs. This will help increase the supply of affordable housing with funding from other orders of government. This initiative's main goal is to increase non-market housing supply and to support Calgary households in need of more affordable housing options.
Benefits of the program include:
- Providing financial support to housing partners to leverage funding from programs delivered by other levels of Government, public, foundations, philanthropic donors, and private industry, with the goal of increasing non-market housing supply in Calgary.
- Housing insecurity and homelessness will be reduced.
- Non-market housing supply will increase.
Access to housing helps maintain community and citizen safety for Calgarians. It contributes to mental and physical health. The HCI will improve access to affordable housing and reduce housing insecurity and homelessness for Calgarians.
Round one awarded $30.7M to seven nonprofit organizations to build 480 homes. The second round of the HCI program represents an investment of $29.3M in non-market housing and is expected to support the delivery of 566 new non-market homes, with the successful recipients comprising a range of project types.
This investment concludes the intent of the HCI program to deliver the total capital investment of $60M into 1,046 non-market homes, with 11 different non-profit organizations and 15 diverse projects.
The HCI is designed to support the objectives of The City’s Housing Strategy by providing support to housing partners to access funding. This initiative supports Outcome 1 of The City’s Housing Strategy, which is to increase the supply of housing to meet demand and increase affordability.
HCI Funding Allocations
The second round of the HCI program represents an investment of $29.3M in non-market housing and is expected to support the delivery of 566 new non-market homes, with the successful recipients comprising a range of project types.
| Recipient | Project | Site Address | Community – Ward | Expected units* | HCI Funds Awarded* |
|---|---|---|---|---|---|
| Trellis Foundation for Community Impact | Avenue 15 | 938 15 Avenue SW | Beltline - 8 |
24 units:
|
$1,680,000 |
| Trellis Foundation for Community Impact | Bowness | 6623 Bowness Road NW | Bowness - 1 |
50 units:
|
$3,902,306 |
|
Multi-Generational Housing and Community Centre (Generations Calgary) |
Generations Calgary | 100 Skyview Ranch Dr NE | Skyview Ranch - 5 |
68 units:
|
$5,737,050 |
| Liberty Housing Organization | Boro Block | 11 Haddon Road SW | Haysboro - 11 |
196 units:
|
$4,910,166 |
| Norfolk Housing Association | Pemberton | 607 9A Street NW | Sunnyside - 7 |
59 units:
|
$4,071,000 |
| HomeSpace Society | 1000 8 Ave SW Office Conversion | 1000 8 Ave SW | Downtown West End - 7 |
64 units:
|
$3,038,000 |
| Onward Homes Society | Franklin Building 3 | 2734 Radcliffe Drive SE | Albert Park / Radisson Heights - 9 |
60 units:
|
$5,552,100 |
| HomeSpace Society | Eversyde | 2525 Eversyde Ave SW | Evergreen - 13 |
45 townhomes:
|
$1,377,675 |
|
Totals |
566 |
$30,268,298 |
| Recipient | Community | Expected number of units | HCI Funds Awarded |
|---|---|---|---|
| Silvera for Seniors | Livingstone | 16 | $1,878,260 |
| Liberty Housing Organization | Parkdale | 57 | $974,368 |
| HomeSpace | Horizon | 52 | $7,300,000 |
| Attainable Homes Calgary | Downtown West End | 84 | $5,500,000 |
| Metis Calgary Family Services | Erin Woods | 24 | $6,019,900 |
| Calgary Heritage Housing | Spruce Cliff | 199 | $5,640,000 |
| Victory Foundation | Forest Lawn | 48 | $3,393,542 |
Frequently asked questions
How will these second round of projects help increase non-market housing in Calgary?
The eight successful projects will provide 566 non-market housing units throughout the city. These units will be offered at below market rates when complete.
How did The City decide which applicants were awarded funding?
All HCI funding recipients are non-profit organizations. The City used a competitive process of assessing applicants based on their experience, delivery of units in a timely manner, budgetary viability, accessibility and energy efficiency, alignment of project and organizational priorities and financial capacity.
How will the applicants use this funding?
All recipients will use these funds to leverage additional funding from other orders of government, such as Canada Mortgage and Housing Corporation (CMHC) and the Affordable Housing Partnership Program (AHPP). Often, secured funding is a criterion of approval from these funds; HCI was designed to extend funding early and help address some of these barriers to entry.
What is affordable housing?
Housing is considered "affordable" if it costs less than 30 per cent of a household's before-tax income. A household is determined as in need of affordable housing when it earns less than 65 per cent of the Calgary area median income and spends more than 30 per cent of its gross income on shelter costs. Funding from the HCI will only support units with rents of $1,592.50 and below. Projects that provide deeper average levels of affordability and rent below minimum criteria were prioritized.
Will there be more HCI program funds awarded?
The City has now committed all of the $60M investment originally approved in 2023 for delivery under the HCI.
From here we continue in the process of disbursing the funds committed through rounds one and now of round two of the HCI, as the 15 successful projects receive HCI funding to deliver 1,046 non-market housing units.
Some of the projects received funding through other City grants, why does the City allow grant stacking?
Programs like the Downtown Development Incentive, the Non-Market Conversion Grant and the Housing Accelerator Fund work together to meet housing demand. As long as criteria are met, allowing non-profits to access funds from more than one programs helps ensure project viability and deliver the greatest benefit to Calgarians.
These programs enable developers to leverage funding from other programs and levels of government to participate in city-building efforts that benefit all Calgarians.
Is the maximum occupancy date two years from the date HCI funding received?
For project which involve new construction and conversions, occupancy must be achieved within 24 months of a successful recipient executing the necessary funding agreements with The City. Where a project is for the acquisition of existing residential buildings, occupancy must be achieved within 6 months. The HCI is about investing in timely delivery of affordable homes, at the discretion of The City.
What is behind the rental baseline cap of $1,592.50?
The City of Calgary defines a household in need of affordable housing if it earns less than 65 per cent of the median income and spends 30 per cent or more of its before tax income on shelter costs.
The monthly rental cap used in HCI is calculated based on The City's definition of what people in need of affordable housing can afford, informed by published census data. Census data published in 2021 reports that Calgary Median Income before taxes is $98,000. 65% of this equates to a household income of no more than $63,700.
For a household to stay within 30% of their gross income, rent must be at or below $1,592,50.