Below Market Housing Incentive Grant Program

Program Criteria

In order to qualify for this program, a project must:

• Be located within the town of Okotoks;
• Be on a parcel that is designated for residential development as per the Town of Okotoks Land Use Bylaw;
• Result in the construction of new self-contained residential townhouse, row house or apartment dwelling units;
• Not have a pre-existing sale value that is subsidized by another level of government;
• Have no more than 25% of the total building and/or development as affordable housing eligible for grant funding as defined in the administrative guidelines;
• Be located in approved locations which will be determined at the discretion of the Development Authority – and not concentrated in one geographic area;
• Be supported through a partnership with a non-profit housing agency that will purchase and/or operate the units at 20% below market rates for a period of at least 20 years;
• Be located on a property that has no outstanding taxes, municipal utilities, or any other municipal charge;
• Not participate in any other Town of Okotoks incentive program.

Funding Criteria

Funding will be awarded based on the following criteria:

• Qualified projects are eligible to receive up to $15,000 per new qualified dwelling unit.
• A complete application must be received before a project will be placed in the queue through pre-approval by the Grant Administrator for both the initial and complete application.
• A project will only qualify for a grant from one Town program at a time.  No grant stacking from the Town will be allowed on a project.
• Projects will not receive funding if the application does not adhere to the established funding criteria.
• Funding is subject to availability.  Applications will be held in a queue and processed in chronological order of their submission date if additional funding becomes available.
• Self-contained residential dwelling units under eligibility consideration will only receive funding if an approved Occupancy Permit is received.
• Funding is dependent on current Development or Construction permits.  Any lapses in permits will also result in the project losing its place in the funding queue.
• A project which has lost its eligibility must reapply and requalify to enter the queue for funding.

This grant program is founded on partnerships between builders and non-profit housing providers to get below market units built, and to ensure that units are owned and/or operated by a non-profit housing provider to ensure the units are rented at 20% below market rates, a key condition of grant funding.  A builder may approach a non-profit housing provider and vice versa to establish a partnership.  Prospective builders or non-profit housing providers may also contact the Town for assistance in facilitating connections with potential partners.

Once a partnership has been established the partners can work together to establish a site location and determine project details such as number of units, unit type, size, configuration, etc. to support a grant application.

Submit a Grant Application, which is to include a project description that is supported by a site plan, floor plan and façade details.  Projects will be reviewed on first come first serve basis and will be evaluated based on the quality of site and building design, how the project addresses affordability gaps in the community, proposed green building strategies to lower operating costs, alignment with policies in the Municipal Development Plan, and strategies to ensure units are rented at below market rents for the duration of the grant agreement.

The application form is currently under development. Please contact Community Growth & Investment if you wish to submit an application for this grant program.

If the grant application is approved the Town will enter into an agreement with the builder and non-profit housing provider to outline the funding terms.

Once a funding agreement has been reached, the builder may apply for the necessary development permits and building permits.

Complete all of the necessary construction and apply for final occupancy from the safety codes officer.

Submit a request, in writing, to the grant administrator to receive funds as outlined in the grant agreement. At this time, and prior to releasing funds, the Town will register a caveat on the title to ensure the units are rented at below market rents as stipulated in the grant agreement. 

Annual reporting will be required to demonstrate that units receiving funding under this program are being rented at below market rates as per the terms of the grant agreement and associated caveat that will be registered on title.