Halifax Introduces New Affordable Housing Strategy to Tackle Rising Prices
Halifax has unveiled a new affordable housing plan aimed at continuing to support the non-profit sector. However, officials acknowledge that while beneficial, the strategy may not fully address the overarching issue of high housing costs in the city.
Recently presented to the community planning and economic development council committee, the proposed strategy includes maintaining the city’s current affordable housing grant programs, waiving permit fees, and providing tax relief for non-profit housing organizations once federal funding for staff support expires. The plan also calls for the addition of two new staff positions in the 2027-28 city budget, with an estimated annual cost of around $242,950 each.
Councillor Becky Kent highlighted the importance of independent agencies and services already contributing to affordable housing efforts, emphasizing the need to strengthen existing support mechanisms.
Over the past few years, municipal programs and federal funding through initiatives like the Rapid Housing Initiative have helped create 1,400 non-market or deeply affordable housing units. This new strategy represents the final phase of Halifax’s obligations under the Housing Accelerator Fund, which has allocated $80 million in federal funding since 2023 to various housing initiatives.
Aaron Murnaghan, overseeing the HAF program, informed councillors that Halifax is on track to exceed its target of 2,600 additional housing starts by October, leading to a total of over 15,460 units within three years, with more than 333 designated as affordable.
Despite these efforts, Murnaghan acknowledged that challenges such as construction costs, financing issues, material shortages, and geographic complexities, including extensive excavation and blasting requirements, have slowed down housing completions.
Murnaghan underlined the prolonged nature of the affordability crisis, noting that while the city can facilitate construction, the private sector and provincial and federal governments play crucial roles in addressing housing supply challenges.
In response to concerns from some councillors regarding the strategy’s limited impact on market affordability, staff emphasized ongoing advocacy efforts to introduce additional measures, such as a vacant land tax, waiver of development charges for affordable housing, and adjustments to the deed transfer tax.
Looking ahead, the city is exploring options like repurposing municipal facilities for affordable housing and considering alternative models, including establishing a municipal housing corporation or formal partnerships with non-profit groups, to further enhance housing accessibility in the years to come.
The finalized strategy is set to undergo approval by the regional council in the near future.