Housing is the top priority for town council in La Ronge. (Derek Cornet/larongeNOW Staff)

By Derek Cornet

affordability

Potential housing incentives discussed by town council

Mar 26, 2025 | 4:28 PM

Discussion continued at a regular town council meeting this week on how to encourage more developers to build affordable housing in the community.

It included a development fee review as part of the municipality’s Housing Action Plan. In regards to the $1.1 million federal contribution agreement to encourage housing construction, the town must undertake various initiatives, which includes a review of development fees with a focus on affordable housing projects.

Further housing supports could include the implementation of several policies such as a universal building permit fee exemption, affordable housing building permit fee exemption, affordable housing cash incentives, ad hoc affordable housing building permit fee exemptions, and an affordable housing tax abatement.

“I think with the options presented Number Three and Five sort of stand out to me as the most logical because it could be seen more from like an equitable playing field because then we’re not dealing with or trying to decide what’s affordable, what’s not affordable, so I really like maybe increasing the housing cash incentive policy,” said La Ronge Coun. Viviana Ruiz Arcand.

“It’s not like it is a significant amount of money, and then the housing tax abatement policy, I really like that, so those two appeal to me. I think that would be a good motivator for anyone looking at adding housing in the community.”

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The affordable housing cash incentives policy option would provide a cash incentive premium for affordable housing projects. For example, the $10,000 and $15,000 per unit incentives established in the Town’s current policy could be increased by 20 per cent for affordable housing projects.

The additional money to fund these incentives would still be derived from the federal contribution being used for the cash incentives, which eliminates any town budget implication but would reduce funding available for other projects. The municipality would still need to develop definitions and terms for qualifying for such a program.

The potential affordable housing tax abatement policy states that instead of providing a building permit fee exemption, council could provide a tax abatement program as an incentive for affordable housing projects. This would be done by extending or enhancing the residential development tax abatement that is already in place.

Given tax abatement agreements of this type are approved on a case-by-case basis, this would allow a portion of taxes to be abated proportionate to the time period the unit is maintained as affordable and based on the level of affordability provided. This would be consistent with tax abatements already in place for shelters and similar housing projects in town.

Residential development is the top strategic priority for council, who have identified a number of initiatives totalling an estimated $4.8 million in the 2025-34 Capital Plan. These initiative include Robertson Drive Phase 2 servicing at $1.6 million, Robertson Drive Phase 3 planning at $60,000, Studer Street infill lot servicing at $1.5 million, Hastings Street service extension at $42,000, proposed daycare lot servicing on Studer Street at $15,000, and general to be determined initiatives at $1.6 million.

The $1.1 million being offered by the federal government will be paid in four equal instalments (two in 2025, one in 2026, and one in 2027), and is conditional upon completing initiatives outlined in the town’s Housing Action Plan. Key among the initiatives is the issuance of permits for 58 new dwellings units by Dec. 23, 2027.

Failure to fully meet this condition could mean a reduction in the overall contribution amount.

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derek.cornet@pattisonmedia.com