Casual Legal: Exempting social & affordable housing from municipal taxes

By Michael E. Swanberg
Reynolds Mirth Richards Farmer LLP
Alberta Municipalities Casual Legal Service Provider

The Social and Affordable Housing Accommodation Exemption Regulation came into force (Alta Reg 12/2022) on April 20, 2022. This Regulation makes some consequential changes to how property tax exemptions are determined for properties and units formerly owned by the Alberta Social Housing Corporation (“ASHC”).

Section 3 of the Regulation confirms that any property or unit owned by the ASHC is entirely exempt from municipal taxation, which is carried forward from the Regulation’s predecessor, the Alberta Social Housing Corporation Exemption Regulation. ASHC properties have been exempt from municipal taxation since 2018, and this exemption continues under the new Regulation.

Section 4 of the Regulation introduces new provisions concerning properties that were formerly owned by the ASHC and are sold to an affordable housing provider or management body. Such properties will now be entirely exempt from municipal taxation (and will not otherwise need to meet other requirements to qualify for exemptions found in the MGA and the Community Organizations Property Tax Exemption Regulation) in the following circumstances:

• If the property or unit continues to be used for affordable or social housing accommodations, it will remain exempt from taxation 
• If the affordable housing provider or management body needs to renovate or repair a property or unit for use as affordable or social housing accommodations, the Minister can exempt it from taxation for any period of time that is reasonably required
• If the property or unit is vacant but is intended to be used for affordable or social housing, it will be exempt from taxation for any period of time the Minister considers reasonable.

The new provisions under section 4 of the Regulation ensure that any properties or units that were formerly owned by the ASHC will continue to be exempt from municipal taxation if they are sold to a recognized affordable housing provider or management body and continue to be used for social or affordable housing. This Regulation applies to the 2022 and subsequent taxation years, and municipalities do not have the jurisdiction to make such properties taxable via bylaw.

To access Alberta Municipalities Casual Legal Helpline, Alberta Municipalities members can call toll-free to 1-800-661-7673 or send an casuallegal [at] abmunis.ca (email) to reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please call 310-MUNI (6864) or send an riskcontrol [at] abmunis.ca (email) to speak to Alberta Municipalities Risk Management staff. Any Regular or Associate member of Alberta Municipalities can access the Casual Legal Service.

DISCLAIMER: This article is meant to provide information only and is not intended to provide legal advice. You should seek the advice of legal counsel to address your specific set of circumstances. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this article to be outdated.