Housing Capital Initiative (HCI)
Housing Capital Initiative (HCI)
As part of the Nov 2023 adjustments to The City’s Service Plans and Budgets, Council approved a $60M investment that is intended to be used by our partners to leverage capital funding from other orders of government to support the creation of new non-market housing.
Program details
The City is providing $60 million in funding for capital expenses over 3 years. 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.
HCI Information Session
We hosted two virtual information sessions on the Housing Capital Initiative for interested applicants. Download the information session PDF file to see what was discussed at the sessions.
Check our frequently asked questions section below.
Application period is closed
For more information please email cpaffordablehousing@calgary.ca.
Please note: We have revised Section 6 of the Applicant guide to provide more clarity on project eligibility. All units must have a self-contained bathroom(s) and kitchen, and be subject to the residential tenancy agreements within of the Residential Tenancies Act (Alberta).
HCI Background
The City has identified the need to increase non-market housing supply as a top priority. The funding will be delivered through a new, competitive capital funding program called the Housing Capital Initiative (HCI).
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.
Frequently asked questions
Does this program prioritize For Indigenous By Indigenous projects?
The HCI supports applications from Indigenous organizations. If there are essential design elements and application considerations, such as For Indigenous, By Indigenous, the Intake Application provides the space to include a maximum one-page attachment under the section Additional Project Features, where this information can be provided.
In addition to meeting the eligibility criteria and application requirements, projects may have unique features that further support tenants or non-market housing developments, and these projects may prioritized. Some examples include:
- Serving equity-deserving populations
- Having partnerships/collaborations that may benefit tenants
- On-site support made available for tenants
- Proximity of project to transit, amenities, and community supports
- Project alignment with additional City of Calgary priorities or strategies
- Integration of technology that improves tenant experience
Please include this information as a one-page attachment with the intake application to qualify.
Delivering units "quickly" often relates to how quickly the DART team can process approvals. Will approval applications be prioritized during the planning process?
Yes, projects submitted under the HCI will be prioritized, just like other affordable housing developments. The City currently provides expedited review and approvals during the development process for affordable housing and will also offer this support for successful projects approved under the HCI.
Would you consider a mixed model of market and non-market units and what ratio could that be?
All units within a project must have a rental rate at or below $1,592.50 per unit per month. Please refer to Sections 4 and 12 for more information on this requirement.
For more information, please check Housing Needs Assessment.
Are lodges or assisted living versus apartments eligible, and is there a per-unit versus per-bed cost?
The HCI program is intended to support the delivery of permanent rental housing. Residential units delivered through the HCI program must contain a bathroom with either a shower or tub and a kitchen within the unit. There are no minimum unit size requirements. Units must adhere to the accessibility requirements as outlined in the Applicant Guide.
Is there a maximum number of projects that can receive funding, or is it just until the $60M funding runs out?
Council approved a $60M investment in the HCI over the next three years, and the program will support projects until the $60M approved budget is committed.
Will the city return to applicants to offer a lower amount than requested?
The HCI is a competitive process, and projects will be prioritized based on criteria outlined in the Applicant Guide. The City will review applications as they are received, and decisions on potential funding will be made on a case-by-case basis. We encourage applicants to contact The City to learn more.
What qualifies as a building conversion? Will a retrofit work?
Eligible project types include conversion of non-residential buildings to residential units. Examples include hotels, offices, commercial, or industrial uses. Retrofits of existing residential units do not qualify. Applicants must demonstrate that the project has created new residential rental units where these did not exist prior.
What kind of security will The City take for this funding?
The City will require successful applicants to enter into housing and funding agreements. This will be project-specific and determined based on the circumstances of the applicant and the project and any funding that may be in place for the project. The City will work with other orders of government, lenders, and applicants on terms/conditions of agreements associated with the funding for each project.
What does "the total funding request from all City programs cannot exceed 30%" mean? Does this mean, for example, that the collective amount received from the NMLS fund, HIP funding, Capital Initiative, etc., can't exceed 30% of the total project cost?
Yes, the combined support from all City of Calgary programs cannot exceed 30% of the total project costs (including land).
Are basement suites eligible?
For project types where the addition of new residential units to existing buildings or properties is proposed, a minimum of five net new residential units must be delivered in any project. Secondary suites would not meet this requirement.
The City's Secondary Suite Incentive Program provides qualifying homeowners up to $10,000 to build and register a secondary suite. The incentive applies to suites built within the main dwelling, not backyard or detached suites. Visit this page for more information on this program.
What level of commitment from other government sources is needed for the application?
A proforma template must be submitted with the application, and detailed information about sources of funding and whether this funding is committed or anticipated will need to be included.
Projects that can demonstrate an ability to achieve occupancy faster will be prioritized.
What type of housing is eligible for the program?
Purpose-built residential housing units along with approved support spaces directly used by tenants are eligible for funding (page 4 of the Applicant Guide). Each unit must include a private bathroom and kitchen.
This includes units in the Social Housing and Affordable Rental Housing segment of the housing continuum as shown in the image below.
Eligible project types are construction of new units, acquisition of existing residential buildings, conversion of non-residential buildings to residential units, and addition of new residential units to existing buildings or properties.
