Impact of Exempting Affordable Housing from Property Tax

ABmunis wants to hear from you about how exempting affordable housing from property taxes will affect your municipality.

Bill 20, the Municipal Affairs Statutes Amendment Act, was passed in May 2024. One of the many changes brought about by this legislation is the full exemption of non-profit subsidized affordable housing from property taxation, starting in the 2025 tax year.

The Alberta Housing Act defines “affordable housing accommodation” as “a housing accommodation designated by the Minister of Seniors, Community and Social Services as an affordable housing accommodation.” Any residences that are designated by the Minister of Seniors, Community and Social Services as “affordable housing accommodations” will automatically be exempt from municipal taxation. Ministerial Order 2024-11 further requires that to be designated as “affordable housing”, a housing accommodation must:

• Be subject to an agreement between the owner or operator of the housing accommodation and the Government of Canada, Province of Alberta, or a municipality
• Have rental rates which are below market rates
• Be owned or operated by a not-for-profit organization.

Note that a municipal council will be enabled, by bylaw, to make affordable housing accommodations subject to municipal property taxes. However, the property will remain exempt from paying provincial requisitions regardless of whether council makes the property subject to municipal taxation by bylaw.

So, please let us know how much tax revenue would your municipality lose as a result of this change. Does your municipality plan to pass a bylaw to require affordable housing accommodations to pay property taxes? Share your thoughts with us by sending an email to ABmunis’ kelly [at] abmunis.ca (Kelly Santarossa), Senior Policy Advisor.