Summerside updates affordable housing incentive, rebates on property tax

The City of Summerside is making changes to its affordable housing incentive program in the wake of a review, and is highlighting exactly what developers who build affordable housing in the city can expect.

Council voted unanimously to make changes to the program on Monday night.

"It's something the city does in order to promote the development of affordable housing in our community," said Summerside Mayor Dan Kutcher.

"The goal here is to try to encourage the development of affordable housing in our community."

Developers who build affordable housing units in the city can expect a property tax rebate starting at 90 per cent and falling to 30 per cent over 10 years from the date the building is occupied.

Property tax rebate:

"One of the most important things is to be … clear," said Kutcher.

"Anyone developing or in business has to know 'what is it going to cost me, or where I can make some cost saving to get these projects done.'"

When the program was first adopted in 2019 the housing climate was a bit different, Kutcher said.

"Today we've got lots of build happening in Summerside and we want to continue to do that, but we also as a city have to do that smartly and make sure we can keep up with all the costs that go along with building any kind of unit," he said.

"This is a more measured approach and one that will continue to help get housing built in Summerside."

The program also includes a 50 per cent rebate of building and development fees for new housing developments — a change from 2019, when development fees weren't charged.

Kutcher said he doesn't think that change will impact development activity too greatly.

"We really tried to align our program with what other municipalities are doing here in P.E.I. in order to have a fair playing field for everyone," Kutcher said.