Affordable housing strategy not about privatization, minister says

The Alberta government plans to sell off and transfer ownership of provincially-owned affordable housing units but says it isn't privatizing the system.

Instead it says it is only entering into agreements with third parties to create more capacity.

"It's a partnership. It's not privatization," Seniors and Housing Minister Josephine Pon said Monday before tabling Bill 78, the Alberta Housing Amendment Act.

The proposed legislation enables components of the United Conservative government's 10-year affordable housing strategy.

A key part of the strategy is changing the role of the government from an owner of affordable housing to a regulator and funder. 

The province owns about 3,000 affordable housing units. Many are at least 35 years old and need renovations. 

Pon said there are two options for handling the housing stock. 

In the first scenario, units that are unusable due to their poor condition or inadequate size could be sold at market value, with the proceeds used to finance new affordable housing. 

In the second scenario, the province would transfer ownership of the asset to a third party such as a non-profit organization or for-profit developer.

Pon said a caveat would be placed on the title to ensure the property is only used for affordable housing. 

Bill 78 also includes changes existing legislation, giving the Alberta Social Housing Corporation the ability to set up private-public partnerships to build new affordable units and renovate existing housing stock.  

The province plans to encourage construction of new units by offering financial incentives to developers that include affordable units in mixed-income housing projects. 

The program aims to create 13,000 affordable housing units and provide rent assistance to 12,000 more households. 

The new program is based on recommendations from the 2020 affordable housing review panel chaired by Calgary-Cross UCP MLA Mickey Amery.