Affordable Housing Partnership Program Guidelines
Introduction
The Affordable Housing Partnership Program is a major capital initiative introduced by the Government of Alberta (GoA) to fund and expand affordable housing across the province. Released in November 2025, these guidelines are designed to operationalize Alberta’s 10‑year housing strategy, Stronger Foundations. Unlike traditional public‑private partnerships (P3s) where the government retains ownership, the AHPP requires that all funded housing developments be owned by private or non‑profit organizations. This approach aligns with recommendations from Alberta’s Affordable Housing Review Panel and represents a significant shift toward leveraging private and non‑profit sector efficiency while maintaining public purpose.
The ultimate goal of the AHPP is ambitious: to help serve an additional 25,000 households in core housing need by the end of the decade. Specifically, the program targets the creation of 13,000 new affordable housing units, complemented by 12,000 new rent supplements. The guidelines are intended to be read alongside the broader Affordable Housing Partnership Framework, which outlines the high‑level policy direction, while the AHPP Guidelines focus on concrete eligibility, evaluation, and funding criteria.
Key Terminology and Core Concepts
To properly understand the AHPP, it is essential to define several recurring terms. Core housing need refers to households whose housing fails to meet one or more federal standards for adequacy (major repairs), suitability (enough bedrooms), or affordability (costing 30% or more of before‑tax income), and who cannot access acceptable local housing without spending that same threshold. Affordable housing under the program means housing where shelter costs (rent or mortgage plus utilities) are below market rates. Social housing is a regulated subset where rents are set at 30% of household income, including utilities except electricity, phone, and TV.
A distinguishing feature of the AHPP is its promotion of mixed‑income, mixed‑tenure, and mixed‑use developments. Mixed‑income housing includes households with varying earnings, from low to moderate and even higher incomes, reducing the stigma often associated with concentrated poverty. Mixed‑tenure developments combine rental and ownership options. Mixed‑use projects incorporate office, retail, or commercial space alongside residential units, creating revenue streams that support the financial sustainability of the overall development while providing residents with amenities and employment access. Other critical terms include minimum rent units (set at 60% of median market rent as defined by CMHC) and specialized housing for targeted populations such as Indigenous peoples, seniors, or persons with disabilities.
Program Objectives and Target Population
The AHPP has one primary objective: to increase the supply of affordable housing for Albertans in core housing need. Secondary outcomes include embedding affordable housing into communities, integrating social and health supports where possible, ensuring long‑term financial viability, leveraging funding from other governments and the private sector, and encouraging innovative development models.
The target population is individuals and families living in core housing need who face barriers to accessing adequate, safe, and suitable housing on their own. Proposals must demonstrate alignment with a local housing needs assessment, where available. The GoA gives priority to communities with the highest documented need. Eligible projects include mixed‑income developments with an affordable or social housing component, mixed‑use developments, and specialized housing. Notably, shelters (short‑term crisis accommodation) are not a focus of this capital program.
Provincial Funding Structure
Provincial contributions come in two forms: capital grants and capital contributions of land or buildings owned by the Alberta Social Housing Corporation (ASHC). The ASHC is the provincial corporation that administers the social housing asset portfolio. A key financial benchmark: affordable housing developments (new construction, renovation, or redevelopment) may receive a provincial contribution of up to one‑third of total eligible project costs. The guideline states a benchmark average cost of 85,000 per unit. If the GoA contributes land, its appraised value counts toward that one‑third limit, though the Minister reserves the right to consider exceptional circumstances where the land value exceeds that share.
The ASHC will not fund operational or ongoing capital maintenance costs; projects must be financially sustainable without ongoing provincial operating support. In return for funding, ASHC places an encumbrance on the property title for the period units must remain affordable, with a minimum of 20 years. The exact term, funding level, and type of contribution depend on local housing needs.
Stacking of provincial funds is allowed if permitted by other grant programs. Applicants must secure the balance of capital costs from federal (e.g., CMHC), municipal, private, or donation sources. Acceptable municipal contributions include cash, land, fee reductions, or property tax exemptions, provided evidence of commitment exists.
Development and Eligibility Criteria
To be considered for funding, projects must result in a minimum of five net new affordable housing units. Eligible activities include additions to or renovations of existing housing, conversion of non‑rental buildings (e.g., hotels), redevelopment involving demolition and new construction, or entirely new builds. For renovation or conversion proposals, a third‑party building condition assessment is mandatory.
Eligible expenses cover land acquisition, permits, re‑zoning, architectural fees, construction materials and labour, demolition for reconstruction, appraisal and legal fees, geotechnical assessments, insurance, bonding, required professional reports, and site improvements like landscaping. Critically, the recipient bears all costs, including overruns.
Ineligible expenses are equally important: costs incurred before the Minister’s approval letter, initial planning (seed funding), schematic design, furnishings and fixtures, amortization, financing costs, administrative or internal staff costs, support services or operating costs, fines, losses on other projects, and any ongoing maintenance or renewal costs. All ineligible expenses must be covered by the applicant from non‑AHPP sources.
Minimum Requirements (Compliance Stage)
Proposals are evaluated in two stages. The first is a compliance check. To pass, a proposal must:
Provide at least five net new affordable housing units.
Demonstrate financial viability and sustainability.
For specialized housing, show funding is in place for onsite social or mental health support workers.
Have support from other sources (municipal, federal, Indigenous governments, financing, or private donations).
Provide a minimum equity contribution of 15% of total development cost, which can be in cash, land, existing buildings, or eligible pre‑development costs already incurred.
Have a rental band mix: at least 10% of units at minimum rent (60% of median market rent) and a maximum of 30% at market or near‑market rent (above 90% of MMR). Mid‑range rent (60–90% of MMR) occupies the balance.
Demonstrate capacity to develop, deliver, and operate the project. Applicants with less than three years of experience must partner with a more experienced organization.
Align with a local housing needs assessment where applicable.
Commit that affordable units will remain affordable for a minimum of 20 years, or longer as agreed.
Evaluation Stage and Scoring
Proposals that meet minimum requirements advance to a scoring stage. ASHC evaluates each based on capital costs, level of committed funding from other partners, amount of GoA funding requested, value for money, financial and operational capacity, alignment with local needs, accessibility, and environmental sustainability. Specific indicators include life cycle costs and return on investment, project readiness (land secured, design completion, zoning approval), financial and operational planning, economic impacts, proximity to transit and services, and sustainability features.
Applicants must outline the number of units by rental band, the specific rates based on CMHC data, and the number of years each band will be maintained. The table in the guidelines clearly defines: Minimum Rent = 60% of MMR (targeting lowest income households); Mid‑Range = >60% to <90% of MMR; Market/Near Market = >90% of MMR (capped at 30% of total units).
Preferential Consideration and Streamlined Application
Priority may be given to projects that:
Are located in areas of high housing need.
Require less than the maximum one‑third provincial contribution.
Include a higher proportion of minimum rent units.
Align with strategic GoA priorities.
Commit to affordability beyond 20 years.
Incorporate innovation (e.g., pre‑fabricated homes).
Are construction‑ready, meaning land is secured (or ASHC land requested), design complete, Class A or B cost estimate available, at least two‑thirds of development cost confirmed, community engagement done, a clear schedule in place, and zoning approved if land is already owned.
To reduce administrative burden, the GoA’s application form is designed to align with CMHC’s Affordable Housing Fund requirements. Applications may be shared with federal or municipal partners to determine eligibility for other funding. A cross‑ministry evaluation team may assess proposals, including representatives from Alberta Assisted Living and Social Services (ALSS), Treasury Board, Infrastructure, and Children’s and Family Services.
Decision‑Making, Timelines, and Lobbying
Proposals are assessed through an annual intake period. Housing management bodies can submit through their annual business plans. Successful applicants are notified within three months of the application deadline. Applicants must inform ALSS of any material changes to project scope or approvals during that period. Additional ad‑hoc intake periods may be announced at ALSS’s sole discretion.
A strict anti‑lobbying clause applies once a proposal is submitted. Applicants, team members, advisors, or key individuals cannot engage in any political or other lobbying related to the assessment process. Non‑compliance can result in immediate rejection.
Funding Agreement and Reporting Requirements
Approved projects require a formal agreement between ASHC and the successful applicant. The agreement specifies: number of households supported by below‑market rents, rental bands and thresholds, the duration of affordability (minimum 20 years), populations to be served, and tenant selection rules (fair, lawful, non‑discriminatory). It also details the GoA funding contribution and milestone‑based payment schedule for capital grants, contributions from other funders, services to be delivered, insurance, indemnity, reporting, audit, inspection, termination, and default provisions. ASHC places an encumbrance on the property title for the entire affordability period.
Annual reporting is required for the term of the agreement. Reports must include: number of units allocated to those in core housing need, annual household income and composition by non‑market unit, number and size of units by rental band, occupancy status, an attestation of compliance, and a statement of revenue and expenses.
Conclusion
The Affordable Housing Partnership Program represents a fundamental shift in how Alberta delivers affordable housing. By moving away from government ownership and toward partnerships with private and non‑profit organizations, the AHPP aims to create more financially sustainable, mixed‑income, and well‑integrated communities. The guidelines are detailed and prescriptive, with clear minimum requirements (five net new units, 15% equity, 20‑year affordability, specific rental band limits) and a transparent two‑stage evaluation process.
For developers, non‑profits, and housing providers, success will depend on demonstrating not just need, but also financial readiness, operational capacity, and a genuine commitment to long‑term affordability. The program’s emphasis on leveraging other funding sources, aligning with local needs assessments, and rewarding construction‑ready proposals makes it a competitive but powerful tool to address Alberta’s housing crisis.
Also Read: 10 Year's Affordable Housing Delivery and Financial Strategy