Council approves new supportive housing projects, seeks provincial funding for operations
City council has unanimously approved $21.6 million for the construction of nearly 140 supportive housing units, but a lack of provincial funding for operating costs could reduce the capacity for support.
Council decided at its meeting on Aug. 16 to add the funding to the operating budget of the city's social development branch, with $14.9 million originating from the federal government's Rapid Housing Initiative (RHI) that was committed in March 2021. The remaining $6.7 million comes from the city's housing reserve.
The funding will facilitate the conversion of two hotels into supportive housing, one with 53 units and the other with 85 units. Supportive housing includes supports meant to maintain residents' independence such as the presence of medical clinics, professional development opportunities, financial coaching, and others services dependent on tenant needs. The location of the two hotels is being kept confidential until they are purchased by third-party housing providers and construction can begin.
The funding, however, does not cover the cost to maintain supportive housing operations. Instead, administration said it is continuing discussions about operational funding commitments with the "appropriate ministries" in the provincial government.
"What we're seeing is the federal government and cities stepping up to increase investment, trying to get us over the finish line, and really focusing on supportive housing," Christel Kjenner, the city's director of affordable housing, told Taproot.
"What we're just hoping for is an increase in investment from the province, as well, to match the renewed leadership from cities."
Kjenner acknowledged the province's "challenging financial decision," but identified the cost-benefit analysis to Alberta joining forces with city and federal governments.
"There certainly are benefits to investing in (supportive housing), and a lot of it is a sustainable solution. From that perspective, I'm optimistic that eventually, all parties will be aligned."