City relaunches popular Downtown Development Incentive Program with ambitious focus on housing

The City of Calgary is re-opening its successful Downtown Development Incentive Program on Sept. 19, 2024, with a strategic emphasis on converting vacant office spaces into much-needed housing for Calgarians. This initiative directly supports our shared vision for a revitalized downtown and supports the objectives of The City’s Housing Strategy and Greater Downtown Plan.

With the program’s relaunch, eligible developers can receive up to $75 per square foot for office to residential conversion projects, with a maximum of $15 million per property. With new support from the Housing Accelerator Fund, an additional $52.5 million will be used to directly address Calgary’s growing need for housing, while continuing to breathe new life into the downtown core.

First launched in 2021, the Downtown Development Incentive Program quickly exceeded expectations, prompting a temporary pause on applications as high demand exceeded available funding. To date, 11 projects have been approved under the program, creating 1,500 new residential units downtown. The program’s first completed project, The Cornerstone, opened in April 2024 and delivered 112 modern rental units for Calgarians.

“Transforming unused office space into homes for Calgarians is not only a practical solution but a transformative one,” says Mayor Jyoti Gondek. “By partnering with the private sector, we’re boosting the number of downtown residents, energizing local businesses and enhancing public spaces. This initiative strengthens our economy, improves public safety and addresses the critical need for housing."

The City of Calgary has earned international recognition for the Downtown Development Incentive Program since it launched. In addition to a financial incentive, a dedicated team is provided to support developers throughout the permit and approval process to enable the faster delivery of housing. With an original investment of $147 million through the approval of the Greater Downtown Plan, the program has been identified as a catalyst for investment. The program has secured $3 of private investment for every $1 of City funding, demonstrating that co-investment projects provide significant value to all Calgarians.

This initiative is one of four incentive programs playing a pivotal role in transforming downtown Calgary. Developers and investors can also apply for incentives to offset costs associated with demolition and redevelopment, creating downtown post-secondary campuses and maintenance of Plus 15 infrastructure.

With an updated Terms of Reference approved by City Council in July, applications for eligible projects will be accepted from Sept. 19-Oct. 31, 2024. Developers and investors can visit calgary.ca/DTS to find out more about the application process, eligibility criteria and approval process guidelines.

About The City of Calgary’s Downtown Strategy Team: Downtown is the economic and cultural heart of Calgary. It’s our central hub for business, innovation, and creativity. Calgary needs a strong core to grow our economy, create jobs and fund the City services we rely on every day. We are working to address the challenges downtown is facing and transform vacancy to vibrancy.