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Funding cut for social housing

The Town of Okotoks says local taxpayers will end up shouldering the cost of property taxes for social housing developments in town if the NDP government doesn’t reverse cuts to provincial grants.
The Province will not be reinstating Grants in Place of Taxes funding for provincially-owned social housing like Sheep River House in Okotoks this year, which is expected to
The Province will not be reinstating Grants in Place of Taxes funding for provincially-owned social housing like Sheep River House in Okotoks this year, which is expected to cost the Town $30,000.

The Town of Okotoks says local taxpayers will end up shouldering the cost of property taxes for social housing developments in town if the NDP government doesn’t reverse cuts to provincial grants.

In 2015, the former Progressive Conservative government announced plans to eliminate the Grants in Place of Taxes funding municipalities received to offset the municipal share of property taxes on provincially-owned properties. The NDP government has confirmed it will not be reinstating the funding, leaving municipalities to cover the costs of property taxes for social housing properties.

The move is expected to cost the Town of Okotoks $30,000.

John Archer, spokesperson for Alberta Seniors and Housing, said the decision was driven by the current economy.

“The unprecedented collapse in global oil prices means that we need to make fiscally responsible decisions, and we are not in a position to restore every cut made by the previous government,” said Archer.

According to Okotoks CAO Rick Quail, 28 properties in Okotoks fall under social housing and will not pay property taxes though they still receive municipal services.

“It amounts to a government agency having to meet their policy objectives with social housing and then announcing they’re not going to pay the property taxes on these sites,” said Quail. “We have to absorb the property taxes as a municipality. They’re imposing property taxes on us.”

The $30,000 will have to be spread across the rest of the tax base, he said, so the municipal portion of property taxes for Okotoks residents will rise to cover the cost.

He said the Town’s budget, and municipal tax rate was set in December and the Province’s decision to not provide the grant has essentially left the Town holding the bag.

“They announce their budget for the fiscal year into the second quarter of our fiscal year,” said Quail. “We’re basically budgeting with the expectation of receiving certain funds from the government, and then we find out we won’t be receiving the municipal portion of property taxes for these 28 homes.”

Archer said the Grants in Place of Taxes funding had been received for many years but was never mandatory under either the Alberta Housing Act or the Municipal Government Act.

He said provincially-owned assets, including social housing owned by Alberta Social Housing Corporation, are not subject to municipal taxation.

The loss of funding should be balanced by programs like the Municipal Sustainability Initiative and increased investment in infrastructure like roads and bridges, he said.

“Our government is making significant investments in municipalities…which will support municipalities by helping them get shovels in the ground on key projects,” said Archer.

Although property taxes will for the 28 sites in Okotoks will have to be covered by other town residents, Archer said the government’s actions are supporting Albertan families.

“In challenging times like these, one way to support families is to make fiscally-responsible decisions with their tax dollars,” said Archer. “That’s why we are not in a position to restore every cut made by the previous government.”

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