CANMORE – An idea where money collected from Canmore’s soon-to-be vacant home tax could see it directed into six different housing-related initiatives.
An update to the Town’s committee of the whole would have funding go toward incentivizing purpose-built rentals, increasing the non-market housing supply, funding affordability programs, buying land, incentivizing the building of accessory dwelling units and covering administrative costs.
“The funds collected under the program are designed to be used for non-market housing initiatives. … Being clear on what the money is going to be used for from the outset will make sure the initiatives are actually advancing your objectives,” said Katherine Van Keimpema, the Town’s financial strategy manager, at the Sept. 17 meeting.
A staff report from Keimpema outlined uses by Vancouver, Toronto and Ottawa, which include housing incentive programs, looking at buying land and affordable housing initiatives.
The funds would be collected after council’s update of the division of class 1 property bylaw in August, which included the creation of a new tax program to benefit full-time residents and remove the tourist home personal use tax subclass.
The bylaw has four subclasses, including the new primary residential subclass that council can set at a specific collection rate. The program will have homeowners declare themselves as primary residents or incur the larger municipal property tax.
The Alberta government doesn’t have legislation that allows municipalities to specifically create a vacancy tax similar to ones established in Vancouver, Ottawa or Toronto. However, the Municipal Government Act permits tax subclasses, with rates eligible to be set for each one.
The collected funds would be put into a new livability reserve, though “just because something falls in with the criteria, does not mean it automatically gets funding,” Keimpema said.
Coun. Wade Graham asked to monitor the rental vacancy rate and rental price average, particularly since the phasing out of tourist homes could see more inventory added to local residential supply.
“Average value will see how we’re affecting values in town. Average rents will see what the rate increase on rent is and how that is affecting affordability in town,” he said.
“I believe if we’re bringing inventory on and we’re seeing rents increase at a rapid rate then maybe we need to use increased tools. If we see vacancy rates staying at zero per cent or if they’re hitting 10 per cent, we’ll know if we’re ratcheting things up too far or not enough.”
Keimpema noted monitoring such information was “maybe problematic” due to freedom of information laws.
Sally Caudill, the Town’s CAO, reminded council the program is intended to create more housing inventory rather than specifically address affordability.
“That may or may not be a byproduct, and council may remember there was recently a study about similar projects like this in other communities, and it did not affect affordability,” she said. “It just created more inventory, so we could collect that data. … It will be really difficult to link it to this particular program. It’s not the express intent of the program.”
Graham also asked to include specific examples of infrastructure that funding could be used to support such as water piping or a pedestrian overpass or underpass.
Whitney Smithers, the Town’s general manager of municipal infrastructure, said the intent was to set “goalposts” rather than get too into the weeds.
“This would be acknowledging housing – non-market, affordable, market – doesn’t exist in a vacuum,” she said. “It requires utility connections, it requires sidewalks, it requires … bike infrastructure, it requires viable transit networks, pedestrian connectivity. … To me, this guideline is really looking for confirmation from council would that be an acceptable use of the funds that would be generated.”
The vacancy tax – which was originally called the primary residency property tax program and changed to the livability tax program by Town staff – is intended to incentivize long-term residents and full-time use of residential units.
Mayor Sean Krausert noted that more initiatives were considered, but some were knocked off during the agenda review that involves senior staff, the mayor and deputy mayor in the weeks leading up to a public meeting.
“During agenda review, there were more of them and some of the feedback was really getting down to the main ones we wanted to do and I think a good job was done in narrowing down,” he said.
The key performance indicators will be included in an updated Town reserve policy, according to the report, which will return to council later this year. However, the enforcement indicators are approved by the CAO and council approval isn’t needed, according to the report.
“Determining performance metrics and setting targets for the program are keys to understanding the extent to which the program is achieving its desired goals,” stated the report. “The focus of the initial years will be collecting data that can then be used to set specific targets in the future and make potential process improvements.”
Among the indicators are getting a count of properties used and not used by full-time residents, owner versus tenant occupied units, tourist homes converted to residential use, properties that are exempt and second homeownership compared to other residential properties.
The indicators for enforcement would be the number of annual audits, fines issued, complaints that are valid or not valid and false declarations found from an audit. Coun. Jeff Mah raised having an indicator for potential repeat offenders who break the bylaw.
An annual report would be completed each year, while Keimpema noted the municipal enforcement and education aspect will be vital in the community.
“Another aspect of effectiveness is leading others to comply. The effectiveness of the program depends on it,” Keimpema said. “If you can’t get people to comply, you’re not going to be meeting your goals and your objectives.”
