Private sector engagement in affordable new rental construction in Calgary

Abstract

Within the past decade the responsibility for affordable rental housing has increasingly shifted from the federal and provincial levels of government to the municipal level. With an increase in demand for affordable housing, governments have had to consider alternative approaches to increase the production of affordable rental housing, such as engaging the private sector. The MOP examines how to best engage the private sector to increase the production of affordable rental housing in Calgary context by analysing the most effective combination of government interventions. These interventions could be in the form of regulatory, fiscal, financial or institutional measures which are analyzed based on the effect of the intervention on a private developers' bottom line, the necessary infrastructure required to implement the intervention, which would affect the likelihood of the responsible organization or government to actually implement it and the amount of production the intervention could leverage. Key informant interviews add additional perspective on barriers and opportunities for the private sector to increase production of affordable rental housing. A combination of the interviews and analysis of potential interventions within the context of the rental housing market within the City of Calgary and the private development industry provides the foundation for all recommendations.