A tax incentive for construction of multi-unit rental apartments could help ease the housing crunch in Warman.
“There’s a definite need for more entry-type housing,” said Warman Mayor Gary Philipchuk. “One of our goals is to have more rental opportunities in Warman. To help achieve that the city has put in place an incentive program for new construction of rental type properties with a minimum of 12 and a maximum of 200 suites. Projects that qualify get an exemption from municipal property taxes for five years.”
Under the incentive program, the residential units must be purpose built as rentals, and they must remain as rentals for the five-year period of the incentive. The program applies to various types of multi-unit rentals including apartment buildings, townhouses and four-plexes. Several residential units are currently being constructed under the program in Warman.
Philipchuk said the program was put in place by city council about a year ago as part of a strategy to encourage economic growth and business investment.
“There are challenges for businesses looking to hire entry-level employees, particularly during daytime hours,” said Philipchuk. “Workers, especially recent high-school and college graduates, need housing that they can afford, and that generally starts with rentals of some kind.”
Philipchuk said affordable housing needs to be available in the same community where entry-level workers are employed.
“Right now there’s not a lot on the market,” said Philipchuk. “Even if there is rental housing available in Saskatoon, it may not be that easy for them to commute to Warman from there.”
Philipchuk said there needs to be a mix of solutions, with a role for both private rentals and government-subsidized social housing.
“Affordable housing is one of the issues that is always raised at the Saskatchewan City Mayors Caucus meetings,” said Philipchuk. “A major concern is the vacancy rate for Saskatchewan Housing Corporation (SHC) units in larger centres. We want to see all the available housing being repaired and utilized and not standing empty.
“We’re supportive of the call for additional social housing, because there’s definitely a need.”
But, he added, the role of the municipality is to help ensure the SHC rental units are well-maintained.
“It’s difficult to ask for additional units if the ones already there are not being utilized,” he said. “Clearly, with a vacancy rate of zero in Warman, that shows the units here are being well-maintained.”
Philipchuk noted that city officials do not have any jurisdiction over SHC-owned rental units in their municipalities.
“Ultimately, the local housing authorities are responsible to the Ministry of Social Services,” said Philipchuk.
The Ministry of Social Services (MSS) said in an email dated December 12, 2022, to the Gazette that municipalities are encouraged to reach out to the ministry to discuss their housing needs.
“We work closely with our municipal and federal partners, along with Indigenous and community partners, to address housing needs and have social housing units available in many communities offering Saskatchewan people a safe and affordable place to live,” stated the MSS email.