Medicine Hat has decided not to apply for new federal housing money because criteria would force bylaw changes and costly infrastructure needs, officials say. Framing for a new home lays on the ground in this file photo.--NEWS FILE PHOTO
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The City of Medicine Hat will take a pass on applying for a second round of federal Housing Accelerator funds after planning officials said required conditions on grants could trigger expensive infrastructure requests.
Council voted to take no action Tuesday night on what had been called another chance to access money to tackle housing affordability in the city.
That was after planning department officials said conditions require the city to alter its land-use bylaw to allow four-unit buildings on any residential lot.
That would give the ability for any lot zoned as low-density residential (either a single-family home or duplex) to host a new four-plex.
Such a situation, say planners, could likely require the need to upgrade utility servicing – such as water, sewer, gas or power lines – to the larger structure, with no clear indication of who would cover the cost.
“It could get quite expensive very quickly,” said Robert Sissons, the city’s planning manager, who said potential grants of several million dollars, if won, would be positive, but much lower than potential costs of upgrading infrastructure.
“I’m really torn on this, because it would get housing built,” said Mayor Linnsie Clark, before council members declined to further an application by a 9-0 vote. “But it does seem to have to be some mismatches in terms of context of technical standards, and being out of sync with the general planning that our staff does.”
Much was made in the spring, when the city was denied federal funding after putting together several potential actions that planners say would spur new housing.
Sissons said the city’s original application to the program included cash that would be dedicated to upgrade services on lots with infill potential, buy derelict properties for demolition and resale.
The city still plans to implement some programs outlined in the rejected application, such as offering free-of-charge blueprints for infill dwellings and backyard suites, as well as streamlining certain application processes.
Sissons said a forthcoming update to the land-use bylaw will seek to increase density in specific zones where it is deemed appropriate and cost effective.
“With the restrictions and the focus (of the federal program), it really seems targeted to high growth areas, and that’s not us,” said Coun. Ramona Robins. “I’d hate to see positives lost.”
Medicine Hat had been denied funding in an initial $4-billion portion of the program, but officials have been working with the Canada Mortgage and Housing Corporation on reapplying in a second $400-million round this summer.
That appears to line up with criticism launched by the provincial government when Alberta’s allotment of funding was announced last spring, when Airdrie was the only mid-sized Alberta city to receive funding.
It also appears to go against a “Strong Towns” philosophy from the consulting group currently working with the city’s planning department that aims to open up zoning to more intense use “by right” rather than by subject of council or development authority approval on a case-by-case basis.
MP Glen Motz hosted a local round table in the summer with federal Conservative Party housing critic Scott Aitchison, who panned the program.
“We’ve heard from other communities on similar issues … that it sounds good on the surface in some places, but could cost more,” Motz said Wednesday. “It’s troubling, because we obviously need to build more affordable homes, and the need is pretty consistent across the country.”
