BANFF – Banff’s elected officials have approved a financial program to encourage development of accessory dwelling units like basement suites and backyard cabins to deal with the community’s housing crunch.
The program, however, is contingent on getting approval for the Housing Accelerator Fund (HAF) – a $4 billion nationwide federal initiative aimed at driving housing construction across the country that Banff is hoping to tap into.
Mayor Corrie DiManno voiced strong support for the program, noting accessory dwellings increase housing options for residents and provide income for property owners.
“For the ones that are already existing, we need to ensure they they’re safe, livable places, and in terms of creating net new, this is a very prevalent way that folks have housing in our community,” she said during a service review meeting in December.
“It’s a really great way to gently increase density and it also helps with homeowners in terms of affordability. Now they have a rental that can help them with the cost of living.”
The tiered incentive program includes $30,000 to encourage new accessory dwelling units; $10,000 for existing unapproved units to become legal; and $5,000 for condo association bylaw amendments to allow for accessory dwellings.
Administration is anticipating the incentive program will allow Banff to realize 10 additional accessory dwelling units per year, beyond the existing number of accessory dwelling units built annually.
The grant program is expected to be in effect for three years from 2024-26 at a cost of $265,000 per year.
Darren Enns, director of planning and environment for the Town of Banff, said there are typically about three applications per year for accessory dwellings.
“On average, they’re fairly low,” he said.
“They plateaued about five years ago at six applications per year and then sort of dropped off.”
Banff has an estimated housing shortage of between 700-1,000 units.
DiManno acknowledged 10 additional accessory dwellings over the next three years may seem low, “but every roof over a head is going to count.”
“We have well positioned ourselves with how much ground we have covered through our Housing Accelerator Fund action plan and now is the time to start putting our money where our mouth is,” she said.
The rationale for the grant amounts is based on administration’s estimates on the cost to create an accessory dwelling – $65,000 to $315,000 with $4,000 to $30,000 of refundable costs.
For net new accessory dwellings, eligible costs include safety items like fire rating, windows and alarm systems; landscaping and site servicing; and basic construction costs such as plumbing, electrical, HVAC and framing.
Ineligible costs include appliances, furniture, flooring and window coverings.
The philosophy behind the eligible items is direct investment toward tenant safety.
“An effective incentive must be financially meaningful, easy to access and administer, and aimed at investments that are directly related to the suite construction,” said Enns.
If the Town of Banff is not successful in tapping into the HAF program, DiManno said she is open to revisiting the financial incentive program regardless.
“I believe it is still worthwhile,” she said.
“Of course, that number becomes a little harder to see in the operating budget, but we will cross that bridge when we get there.”
The governance and finance committee has also tentatively approved an accessory dwelling unit application assistance and promotion program. The cost is $42,500, which is also contingent on HAF.
“It’s one thing to have the program, but we also need to be able to promote that we have it,” said DiManno.
“We know this is going to likely drum up a lot of interest, a lot of questions and we also need to have the in-house resources to be able to keep up that interest.”
