Housing affordability and availability have long been critical concerns in Alberta. Bill 205: The Housing Statutes Amendment Act aims to modify existing housing legislation to improve access to affordable housing, clarify housing rules and regulations and enhance protections for tenants. 

Introduced in the Alberta Legislature on December 5, 2023, Bill 205 represents a significant step toward reforming the province’s housing policy, particularly in the wake of increasing rental and homeownership costs. Let’s look at the bill's key provisions, its intended impact and the broader context of housing reform in Alberta.

Context and motivation for Bill 205

Like many other provinces, Alberta’s housing market has experienced dramatic fluctuations over the past few years. Rising demand for affordable housing, particularly in urban centers like Edmonton and Calgary, has left many Albertans struggling to find suitable accommodations. According to housing advocates, vacancy rates have remained low while rental costs continue to rise, exacerbating the financial strain on lower- and middle-income families.

As Alberta’s economy rebounds, the need for lasting housing reform became clear. Bill 205 was introduced to respond to some of these long-standing concerns and adapt the province’s housing legislation to meet current challenges.

Key provisions of Bill 205

• Strengthens affordable housing programs ─ A central component of Bill 205 is its focus on improving the delivery of affordable housing in Alberta. It mandates reforms to the way the government allocates funding for affordable housing projects, including a provision for setting an annual minimum number of social and affordable housing units and requiring the housing minister to publish these numbers each year.
• Introduces rent controls ─ The bill specifies caps on rent increases and a maximum allowable rent increase. Specifically, it limits increases in rent to 2% during the first two years of implementation and legislates that subsequent rent increases must be in line with inflation, based on the consumer price index, and cannot exceed 5%. Vacant units would also be subject to these restrictions.
• Adds tenant protections ─ Under Bill 205, landlords will be required to provide more notice before increasing rent, doubling the current notice period from 90 to 180 days. If landlords want to charge higher rents, they would need to take their case to the Dispute Resolution Service.

Impact on housing in Alberta

The introduction of Bill 205 has been largely welcomed by housing advocates, although some have expressed concerns about the bill’s ability to address Alberta’s long-term housing needs. Proponents of the bill argue that its focus on increasing affordable housing, coupled with tenant protections, is a necessary step in addressing the province’s housing crisis. By expanding the availability of affordable homes and creating a more robust framework for rental properties, the bill aims to alleviate some of the pressure that many Albertans face in securing stable housing.

Critics of the bill, however, contend that it may not go far enough to tackle the root causes of the housing crisis, such as speculative real estate investment and skyrocketing property prices. Some experts have called for more comprehensive reforms, including rent control measures and stronger government intervention in the housing market.

In closing

While Bill 205 may not solve all of Alberta’s housing challenges overnight, it is a significant step toward creating a more equitable and sustainable housing system. The success of the bill will depend on its implementation, as well as the continued collaboration between government, developers and community organizations.