The pilot helps remove a common barrier to building new homes in established communities. It provides funding for unexpected water and wastewater upgrades that are needed to support new housing.

Normally, the first developer requiring these upgrades must pay the full cost. Through this pilot, if the upgrade is eligible for reimbursement, The City may reimburse eligible upgrade costs, helping make housing projects more viable.

Some housing projects require upgrades to local water or wastewater pipes before they can proceed. These upgrades also benefit future development in the area, but the first developer is usually responsible for the full cost, known as the “first-in issue”.

By helping cover these costs, the pilot will:

• Support more housing development
• Reduce financial risk for developers
• Increase infrastructure capacity that supports future growth
• Address a known utility servicing barrier

The pilot is funded through City utility rates and the Canada Mortgage and Housing Corporation's (CMHC) Housing Accelerator Fund.

A project may be eligible if:

• It is located within Calgary's Established Area
• It adds new residential units
• The property already has utility servicing in place
• Growth from the project requires a local water or wastewater pipe upgrade

Generally, local water pipes are smaller than 500 mm and local sanitary pipes are smaller than 600 mm. Stormwater infrastructure and standard site servicing requirements are not eligible for this pilot.

Eligible applicants may receive reimbursement of up to:

• $1 million per application
• $2,100 per linear meter of pipe upgrade
• $35,000 for an offsite hydrant
• $100,000 for a hot tap into a water feedermain

Funding is available on a first-come, first-served basis and is subject to available funding. Applicants may still be responsible for costs that exceed funding limits.

Reimbursement takes place when a Construction Completion Certificate (CCC) is issued for the water or wastewater upgrade. The developer must provide:

• an actual invoice of the final costs of construction
• Development Permit approval date
• Building Permit submission date

A reimbursement invoice in the amount shown in the Letter of Commitment 

The requirement is identified during the typical development review process. Through the development application detailed reviews of fire flow calculations or sanitary servicing studies, an upgrade may be required depending on the size of the proposed development and existing capacity within the public systems. If an upgrade is required, the developer may be eligible for this pilot and the upgrade must be constructed before development can proceed.

Applicants submit a reimbursement request online as part of the development process on the Established Area Linear Levy Pilot webpage.

The City reviews the application, cost estimates, and construction drawings to confirm eligibility. Eligible applicants receive a funding commitment letter.

To qualify for reimbursement:

• The developer has to submit their development application by September 1, 2026
• Construction must be completed by October 27, 2027

Funding commitments are made on a first-come, first-served basis. Reimbursement is made in accordance with the terms of the signed Letter of Commitment.

In most cases, developers construct the required upgrades as part of their project under an Indemnification Agreement with The City.

In some situations, such as complex off-site upgrades, The City may undertake the design and construction work.

The City will monitor:

• Housing development activity
• Funding usage
• Number of infrastructure upgrades completed
• Industry’s response on the pilots’ value

Results will help determine whether a long-term funding approach should be considered.