Regina to apply for fund that could provide $36M, drive 1,100 new housing unit permits by 2026

Regina's executive council has approved a plan to try to take part in the federal government's Housing Accelerator Fund (HAF), which could allow the cityto access $36.2 million and drive 1,100 permit approvals for housing units in the city over the next three years.

The plan must now beapproved by city council next week, as the application must be submitted to the federal government's Canada Mortgage and Housing Corporation (CMHC)byJune 14, 2023.

The HAF is a federal initiative aimed at increasing the housing supply across Canada. Successful applicants are expected to use the money on housing and infrastructure that supports it.It is unclear how likely Regina would be to get the funding if it applies.

The action plan approved on Wednesdaywouldhave the city adopt 11 initiatives, including:

• Enablinghigh-density development in the city centre.
• Advancing development of missing middle housing in central neighbourhoods.
• Supporting conversion of non-residential buildings to residential use.
• Reducingthe necessary council approval for housing related to discretionary use applications.
• Increasingaffordable housing stock in partnership with non-profit housing providers.

Chad Jedlic, the City of Regina's director of economic and business development, said the goal is to "build more homes, faster," primarily in the city's central neighbourhoods, while prioritizingrevitalization, affordable housing and multi-unit buildings.

Housing stock and the chance for growth

City administration said that based on2021 census data, Regina's estimated housing unit stockis100,518.

Without access to the Housing Accelerator Fund (HAF), the city believes the total number of new housing units that could be permitted by September 2026 would be 2,772.

With the HAF, that number would increase by 1,100.

Administration believes 420 of the new spaceswould bemulti-unit housing and the other680 would be missing middle housing units.

City administration says 15 per cent of the target, or 165 units, wouldbe considered affordable housing.

The proposal was endorsed byStu Niebergall, president of the Regina & Region Home Builders' Association.

On Wednesday he told council he was excited for the possibilities presented in the fund.

Aligns with city goals

Council has previously committeditself to multiple initiatives that would increase housing supply in the city centre and central neighbourhoods.

The HAFwould further those goals, according to a report presented to council on Wednesday, while also increasing housing diversity and housing supply city-wide.

If the application is successful, city administration would immediately use$1 million from the funding to develop the plan for the rest of it.

"There is plenty of work to be done on the details," said Barry Lacey, executive director of financial strategy and sustainability.

Importantly, the potential funding from CMHC would not require matching funds from the city. That's been a sticking point with council on major projects in the past.

One of the requirements of the HAF is that Regina must set a housing supply growth target. Administration says it is looking to have an average annual growth rate of at least 10 per cent, and the housing supply growth rate must exceed 1.1 per cent.

That translates to1,100 housing units being built by fall 2026.

If the proposal is accepted by CMHC, the $36.2 million in funding would be provided to the cityin four instalments.

A quarter would comethis fallonce the city finds out if its proposal is approved, with the other three quarterscoming annually in the fall until 2026.

It would be up to cityhow to best use the funding it receives, whether that beincentivization, a pilot program or some other process, city administration told council. Those details are among the other issues that will be resolved later in the process.

However, if theinitiatives or the housing supply growth target were not met, CMHC could require the city to give the money back.