The City of Moose Jaw has unveiled a new housing incentive policy to help address housing needs and is urging developers to take advantage of the new enticements.
City council approved the new policy during its 2023 budget deliberations in December.
“Moose Jaw has experienced a surge in economic growth over the last few years and that is starting to put pressure on our housing market,” said Mayor Clive Tolley. “We need new housing to keep up with the rising demand and we believe this new policy will help spur new construction.”
Developers can pursue two policy incentives: property tax exemptions and capital grants.
With property tax exemptions, housing projects may be eligible to receive a five-year tax phase-in — 100 per cent, 80 per cent, 60 per cent, 40 per cent, 20 per cent — or a five-year, 100-per-cent exemption, the policy says.
With capital grants, housing projects may be eligible to receive a base grant of $3,000 per housing unit. City administration may approve a capital grant of up to $5,000 per housing unit if the project uses multiple municipal housing objectives, to a maximum of $25,000.
Capital grants are provided as funding sufficiency allows.
There are three eligible project categories: secondary suites, infill and replacing housing, and approved federal and provincial projects.
The installation of new secondary suites or the legalization of existing suites in infill areas are eligible for a capital grant to a maximum of $3,000.
Replacement and infill housing must be located within existing and previously developed infill areas, the policy says. The city has some of these lots for sale, so property developers should contact city hall’s planning and development department at 306-694-4443 or planning@moosejaw.ca for more information.
Meanwhile, any project that creates new housing units or beds and has been approved for financial or other support under a federal or provincial housing-related program may be eligible for incentives at council’s discretion.
Mixed housing projects that include a minimum of 50-per-cent affordable or supportive housing units may be eligible for the capital grant or a five-year, 100-per-cent tax exemption.
To apply, developers should review the municipality’s housing incentive policy to understand if their project is eligible for a tax exemption and/or capital grant. If applicable, developers should complete their application and submit it simultaneously with their development and building permit.
The planning and development department will review the application, and if approved, developers will receive a housing incentive pre-approval letter with the approved permit. Developers can then commence construction of their project.
If the building permit for the subject project expires, the pre-approved housing incentive becomes null and void.
Once the city’s building official deems the project substantially complete — occupancy granted — the municipality will enter into a tax exemption and/or capital grant agreement with the property owner.
Registered non-profit organizations may request to have the capital grant provided before construction to assist with land purchases.
“Priority will be given to projects that incorporate multiple housing and municipal objectives, are inclusive and integrated with the surrounding community, and align with priorities under the national housing strategy and are eligible for funding through this strategy,” the policy adds.
