Federal-provincial agreement aims to ease housing pressures in Edmonton, Calgary, and smaller communities
The federal and Alberta governments have announced a joint investment of $203 million to support the construction of more than 2,300 affordable housing units across the province.
The funds, cost-matched under the Canada–Alberta Bilateral Agreement through the National Housing Strategy, will be distributed via Alberta’s Affordable Housing Partnership Program (AHPP).
According to June housing data from the Alberta Real Estate Association, the market is tightening in several key regions. Year-over-year sales fell 4.2%, with row housing and apartments experiencing declines for a fourth straight month.
Inventory levels rose 19.1% compared to the same period last year. Grande Prairie, Medicine Hat, and Lethbridge currently report the lowest supply in the province, each with less than 1.6 months of inventory. These same regions led Alberta in annual average price growth, with Grande Prairie posting an 18% increase.
The $203 million investment aims to address affordability pressures in both urban and smaller centres. Projects were selected based on community need, value for taxpayer money, and potential impact on Albertans with low income. Eligible developments include new builds, mixed-income or supportive housing, additions or redevelopments with a minimum of five net new units, and conversions of non-rental properties.
"Our government's bilateral agreement with the government of Alberta has allowed us to work together to build a new and better generation of community and social housing across the province,” said Eleanor Olszewski, federal minister of emergency management and community resilience. “Complex issues demand innovative solutions, and this strong partnership is necessary for quickly building homes that Canadians need now."
Funded projects span across major cities and smaller communities. In Edmonton, support includes $20 million for Civida’s mixed-income housing project and $6.69 million for Brentwood Family Housing Society. In Calgary, $30.5 million will go to Onward Homes Society for three separate developments, while $13 million will help convert a vacant office tower into housing.
Other allocations include $14.5 million for Homeland Housing in St. Albert, $6.43 million for the Town of Banff, and $5.53 million for phase two of the Municipality of Jasper’s housing project. A land transfer in Fort Saskatchewan will enable the Heartland Housing Foundation to build additional units.
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The announcement forms part of the National Housing Strategy, a decade-long, $115 billion federal initiative to build and repair affordable housing. As of March, the federal government has committed $65.84 billion to support more than 166,000 new units and the repair of over 322,000 existing homes.
Priority is being given to vulnerable populations including seniors, Indigenous Peoples, individuals experiencing or at risk of homelessness, and women and children fleeing violence.
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