City brings back tax incentives for multi-family housing

By Medicine Hat News on June 27, 2025.

@MedicineHatNews

The city has reintroduced a system of tax breaks that officials hope will spur multi-family unit construction.

Starting in July, developers can apply to have portions of increased tax assessments paused for periods of time after they build new duplexes, row housing and apartment blocks.

A portion of the difference between pre- and post-build assessment values would be discounted on future tax bills depending on size and location.

Projects must be located in the city, be newly built and be fully completed, as proven by an occupancy permit.

“By providing an incentive for developers to build new housing, especially in priority areas, we’re helping to meet the growing demand for housing while also revitalizing neighbourhoods and supporting local jobs,” said city economic development director Selena McLean-Moore.

According to the Canadian Housing and Mortgage Corporation, the number of rental suites in the city has remained stagnant for five years.

The new incentive would see a 50-unit or larger infill project shielded from assessment change fully for three years, then by decreasing amounts until fully taxable after seven years.

Building with five to 49 units would see a similar schedule, but with only two years of full exemption.

New infill buildings under five unites would see a full exemption be reduced by one fifth each year until fully taxable.

Small projects in new neighbourhoods would receive a full exception in year No. 1, then half in year No. 2 and one quarter in year No. 3.

The Alberta government allowed such incentives in 2024 after updating a previous program that allowed similar breaks on only hard to redevelop or contaminated properties, and only by specific bylaw for each application.

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