Why the cost of a supportive housing project can look unexpected
Supportive housing is often compared to the price of a house. The two figures are built from different parts. Remove the parts a house price does not include.
How to use this page
Changing a control changes the figures next to it.
Where the figures come from
Published project totals, city and Homeward Trust records, and news coverage. Every source is in section 13.
What is estimated
Anything calculated from a published percentage range is marked as an estimate. Project totals are announcement figures and several are published as approximate.
Differences aren't always apparent
- The apartment building is built under Part 3 of the building code. A house is built under Part 9, and section 3 shows the two side by side.
- Between 15 and 30 per cent of the units are fully accessible.
- Floor drains, seamless flooring and surfaces rated for repeated deep cleaning are required in supportive housing.
- Staff are on site 24 hours a day and need office and storage space in the building.
- Each resident has a self contained unit and an individual lease. Several adults sharing one house is a different arrangement.
These five items are not priced separately in the figures published for these projects. Sections 3 and 4 set out what each one requires.
Housing is primarily a provincial responsibility
Municipalities hold only the powers a province grants them. In Alberta those powers are set out in the Municipal Government Act.
The City of Edmonton does not build supportive housing
A non-profit developer builds and owns the building. The city contributes a capital grant, and on some projects land.
The City of Edmonton does not operate supportive housing
A non-profit operator runs the programs inside. Operating funding comes from the Government of Alberta.
Do you want to know more?
Housing is not named in the Constitution Act, 1867. It falls to the provinces through their authority over property and civil rights. Section 92(8) of the same act gives provinces authority over municipal institutions. Municipalities are therefore creatures of the province in law, and hold only the powers granted by provincial statute.
The federal government takes part through funding programs delivered by the Canada Mortgage and Housing Corporation, such as the Rapid Housing Initiative, rather than through jurisdiction over housing.
The municipal role in these projects is land use planning and permits, a capital grant under a program with published criteria, and in some cases land. Section 9 sets out each responsibility and who holds it.
What supportive housing is
Supportive housing is permanent housing with staff and services in the same building. It differs from a shelter and from an ordinary apartment building.
Who lives there
- Adults leaving long term homelessness.
- Residents are referred through Homeward Trust coordinated access.
- Many residents have health, mental health or addiction needs that require on site support.
What a resident gets
- A self contained unit with a door that locks.
- An individual lease under the Residential Tenancies Act.
- Staff on site 24 hours a day.
What happens in the building
- A non-profit operator delivers 24 hour support, health and wellness services and life skills programming.
- Health services are delivered on site where the building is licensed as Supportive Living, as at McArthur Place.
- Cultural programming runs in the building. Ambrose Place II includes a ceremonial room for medicine picking and beading.
What is in the total
The opening panel removes the parts of a project total one step at a time. This section says what each of those parts is.
- Construction, 60 to 70 per cent, or $18.4 to $21.5 million.
- Design, permits, levies, insurance, financing during construction, GST and contingency, or $9.2 to $12.3 million.
Land is usually 10 to 20 per cent of a project total. The city sold this site for $1, so construction and development costs make up all of this one.
- Apartments, 70 to 85 per cent of the floor area.
- Corridors, stairs, elevators, mechanical rooms, staff offices, program space and the commercial kitchen.
The drawing shows one arrangement of that space. It is not this building's plan.
Why the layers matter
- A total development cost is the sum of construction, design fees, permits and levies, insurance, interest on money borrowed during construction, GST, contingency and land.
- Development costs are higher on subsidized projects, because each funder requires a separate application, reporting and audit.
- Supportive housing is at the upper end of the range for service space, because these buildings also hold staff offices and program rooms.
Two different rulebooks
A house and a five storey residential building are built under different parts of the building code.
Part 9 requirements
Do you want to know more?
Part 3 applies to buildings above three storeys or above a set floor area. Elevator service follows from the barrier free requirements that apply to Part 3 buildings.
These requirements are set before any decision is made about finishes or fixtures, so they are not a product of how a project is specified or who builds it.
What has to be in the building
Supportive housing must meet requirements that do not apply to ordinary rental housing. Switch a requirement off to see what changes in the building.
What each requirement does
Do you want to know more?
BC Housing design standards are used across the sector as a reference. The standard requires floor drains with trap primers in all supportive housing, at risk housing and shelter projects, and non slip resilient sheet flooring in all bathrooms. For other project types the same document treats floor drains as an option for the design team.
Alberta Accommodation Standards under the Continuing Care Regulation apply to sites licensed as Supportive Living, including NiGiNan's McArthur Place.
What comparable projects cost
Total development cost divided by unit count, across ten projects.
Conversions cost less per unit than new builds
- Hotel conversions cost between $166,000 and $252,000 per unit. New builds cost between $380,000 and $516,000.
- The Edmonton new builds were approved by different funders in different years, and three of them do not involve NiGiNan Housing Ventures.
Do you want to know more?
Cost per unit is a blunt measure. Unit sizes, accessible unit ratios and the amount of shared space vary between projects. Cost per square foot would compare them properly, and those figures were not located in the sources reviewed here.
The Metro Vancouver figure was reported by Western Investor, a publication critical of spending on social housing. The Washington figure is in United States dollars and describes ordinary affordable housing rather than supportive housing. It appears here because a developer published it as their average.
Ambrose Place II
Why costs vary between projects
Seven factors account for most of the spread in the chart above.
Building type
Who pays what share
The City of Edmonton contribution ranges from 17 per cent of one project in this set to 85 per cent of two others.
A high total does not mean a high city contribution
- Ambrose Place II has the highest total development cost per unit in this set. It also draws one of the two smallest city contributions per unit, alongside Prairie Manor.
- The city contributed 85 per cent of Canora and Garneau. The Garneau federal application was unsuccessful, so the city funded the gap.
- The city contributed 17 per cent of Ambrose Place II. The remaining $25.5 million comes from other funders.
- Grants from other orders of government are approved for a specific project and cannot be moved to another one.
How the city grant works
City capital grants are set as a percentage of the project cost rather than as a fixed amount.
What a percentage cap does
- The cap is 25 per cent of total capital costs. The city states that grants of up to 40 per cent will be considered for proposals that include deep subsidies for priority groups, such as women and children fleeing domestic violence, exceed energy efficiency targets, and provide larger units.
- The Affordable Housing Investment Program has a general stream and an Indigenous Housing stream. The second is open to organizations at least 51 per cent Indigenous owned and controlled.
- At the 25 per cent cap, an additional million dollars of budget adds $250,000 to the city grant and adds $750,000 to the amount the developer must raise elsewhere.
- Below market rents are a condition of the grant. Trade reporting on the program gives the commitment as 25 to 40 years. The city registers the funding agreement on the title of the project land.
- The approved city grant for Ambrose Place II is $5.2 million, 17 per cent of the total and below the cap.
Do you want to know more about the two streams?
Both streams start at the same 25 per cent, and the higher rate is not granted for being in one stream or the other. The city's page lists the three conditions for it with the word and, which reads as all three together. One trade publication describes them as alternatives. Which reading the program applies is worth confirming with administration before anyone relies on it.
The city opened the Indigenous Housing stream in 2023. In its grant award reports the city states the stream advances reconciliation and responds to the need for culturally appropriate affordable and supportive housing for Indigenous individuals and families. Applicants must be an Indigenous organization with at least 51 per cent Indigenous ownership and control. They must also be able to own the project land, because the city registers the funding agreement on the title.
Indigenous people are about 5 per cent of Edmonton's population and about 60 per cent of the people experiencing houselessness in the city.
Do you want to know more about the federal conditions?
The federal Rapid Housing Initiative applied separate conditions. Round one required monthly quantity surveyor reports sent directly to CMHC, a fixed price contract with an experienced general contractor, and a demonstrated ability to absorb cost increases.
Projects had to be complete within 12 months of a signed agreement, and unused funds were reallocated to other projects. The program would not fund non residential space. The original rounds closed in March 2023, and successor streams now run under the Affordable Housing Fund.
Who does what
Six responsibilities in a supportive housing project. The City of Edmonton appears in two of them.
The short version
- The city contributes capital grants and sometimes land. It does not build these buildings and does not operate them.
- Homeward Trust or another non-profit owns and develops the building.
- A separate non-profit operator runs the programs inside, selected through a request for proposals.
- The developer produces the cost estimate.
- Ongoing operating money comes from the Government of Alberta.
Do you want to know more?
The division of labour varies by project. On the five modular sites the city led development, land procurement and project management, then transferred the sites to Homeward Trust. On the hotel conversions Homeward Trust or the non-profit bought the building directly.
Building it and running it
Construction is paid for once, by the federal government and the city. Staff and services are paid for every year, by the province. A finished building houses nobody until the second decision is made.
Do you want to know more?
In February 2022 the provincial budget contained no funding to operate new permanent supportive housing, against a city request of $9 million a year across its projects. That request was $11 million a year by June 2022 as more units were added. By September 2022 two finished complexes in King Edward Park and Inglewood were empty while Homeward Trust looked for operating money by moving funds between existing programs.
In 2022 the province reported providing Homeward Trust $29 million to operate more than 400 units. Homeward Trust described that amount as covering many programs, including rental assistance for about 1,000 people, so it does not divide cleanly into a per unit operating figure.
Do you want to know more?
Round the clock coverage is organised per building, so the same number of units in more buildings requires more staff teams. Staffing is an annual cost rather than a one time cost, so scale matters most on the operating side.
NiGiNan also runs five group homes under the provincial Persons with Developmental Disabilities program, so the smaller shared model is used in Edmonton for the population it fits. Supportive housing serves adults leaving long term homelessness, who are referred through coordinated access and hold individual leases.
The Coliseum Inn conversion, 2020 to 2026
From bridge housing in 2020 to the most recent record located.
The project
- 98 units in a 45 year old hotel.
- Approved conversion funding of $18.302 million: $10.981 million from the federal Rapid Housing Initiative through CMHC, and $7.321 million from the city's Affordable Housing Reserve.
- Spending between 2022 and 2025 reached $13.403 million, with $4.899 million recommended to remain available in 2026.
- A minimum of 58 units were designated for Indigenous community members.
About 60 per cent of people experiencing houselessness in Edmonton identify as Indigenous. Indigenous people are about 5 per cent of the city's total population.
Status of the three conversions
- Prairie Manor, the former Days Inn at 10333 University Avenue: 85 self contained units, owned and operated by The Mustard Seed, open since summer 2022.
- Sands Inn and Suites on Fort Road: 53 units at $10.8 million, purchased, renovated, owned and operated by NiGiNan Housing Ventures.
- Coliseum Inn at 11845 Wayne Gretzky Drive: 98 units, listed by the city as under construction with Homeward Trust as partner.
What is often said
Six things said about supportive housing in Edmonton, each with what the public record shows. Open one to read it.
Sources
Records and links
City, provincial and federal records
- City of Edmonton, Affordable Housing DevelopmentsColiseum Inn entry, unit count, construction status, partner.
- City of Edmonton, Completed DevelopmentsPrairie Manor entry, federal and city contributions.
- City of Edmonton, report FCS03314, March 17, 2026, Attachment 2Approved funding, expenditures 2022 to 2025, unspent funding, building system issues, expected completion. Financial tables are in thousands.
- City of Edmonton, related report, March 2026Companion document to FCS03314.
- Alberta Major Projects, Coliseum Inn Affordable Housing ConversionProject stage, developer, contractor, estimated cost, permit date.
- Alberta Major Projects, Prairie Manor Affordable Housing ConversionEstimated project cost of $14.1 million, listed as completed.
- City of Edmonton, Affordable Housing Investment ProgramThe 25 per cent cap, the conditions for up to 40 per cent, the two streams, eligible project types, and the caveat registered on title.
- Canadian Real Estate Wealth, City of Edmonton offers affordable housing grants to developers, February 2025The 25 to 40 year below market rent commitment, and a description of the three conditions as alternatives.
- City of Edmonton, Indigenous Housing ProgramsEligibility for the Indigenous Housing stream, including the 51 per cent ownership and control requirement.
- City of Edmonton, Indigenous Housing stream grant guidePurpose of the stream and what a project must do to be considered for the higher rate.
- City of Edmonton, Indigenous Housing Grant Program, Fall 2024 award recommendationsThe 2023 launch of the stream and the stated purpose.
- CMHC, New supportive housing for Edmonton residents, December 20, 2022Prairie Manor federal and city contributions.
- Statistics Canada, Building Construction Price IndexesQuarterly contractor prices by city and building type.
- Statistics Canada, Building construction price indexes, second quarter 2025Increases in plumbing, heating and ventilation, utilities and structural steel framing, with tariff effects noted.
- Statistics Canada, Building construction price indexes, third quarter 2025Structural steel and metal fabrication increases attributed partly to import tariffs.
Operators, providers and coverage
- Homeward Trust, Supportive HousingSite list, project funding splits, unit counts, accessible unit counts, partner roles.
- Homeward Trust, Requests for ProposalsOperator selection process. The hotel operator request for proposals closed May 22, 2023.
- Homeward Trust, Emergency Response and SheltersIdentifies the shelter at the former Coliseum Inn.
- Enoch Cree Nation, Wihcihaw Maskokamik SocietyEmergency shelter, up to 100 beds, meals, housing assistance and cultural supports.
- The Mustard Seed, Prairie ManorOwnership, unit count and opening.
- City and CMHC opening announcement, December 20, 2022Corroborates the Prairie Manor figures.
- CBC, Coliseum Inn could be converted to permanent housing in $18M city plan, February 2022Funding split, unit count, committee vote, project leadership.
- CBC, Edmonton plans to convert four hotels into new supportive housing units, August 2021The $15 million city commitment and the 360 unit target.
- CBC, Edmonton struggling to find funds to operate specialized housing units, March 2022Operating funding gap and the $9 million annual request.
- CBC, New Edmonton supportive housing complexes ready for tenants but remain vacant, September 2022Completed buildings held empty for lack of operating funding.
- CBC, Coliseum Inn to offer temporary housing, April 2020Start of bridge housing use.
- Global News, East Edmonton residents raise crime concerns after supportive housing opens in Capilano, August 2024Resident and business accounts near Terrace Heights, the police service figures on calls within 1,000 metres, and the operator response.
- CBC, Edmonton city councillors give nod to Westmount permanent supportive housing, March 2021Concerns raised at committee about property values and proximity to a school.
- Ontario Human Rights Commission, Overcoming opposition to affordable housingThe Canadian study of 146 supportive housing sites and the Toronto study on property values and crime.
Figures not linked above
- Ambrose Place II: 60 units, $30.7 million estimate, $5.2 million city grant, land sold for $1, Executive Committee vote of 5 to 0 on August 13, 2025.CBC and CFWE coverage, Taproot, and the city report to Executive Committee.
- Canora and Garneau totals, funding splits and approval dates.Homeward Trust project pages. Both totals are published as approximate.
- Five modular sites: 210 units at $79.8 million from three governments.Homeward Trust. Individual site pages add to 215 units rather than 210.
- Horizon 12 hotel conversion in Calgary: 33 units at $8.3 million.City of Calgary Rapid Housing Initiative record.
- Metro Vancouver Rapid Housing projects at roughly $500,000 per unit.Western Investor.
- Washington area average of $516,263 in United States dollars.True Ground, a developer's published average for ordinary affordable housing.
- Cost structure ranges: hard construction 60 to 70 per cent, soft costs 20 to 30 per cent, land 10 to 20 per cent, building efficiency 70 to 85 per cent.Shelterforce, Brookings and the Harvard Joint Center for Housing Studies, and standard planning references.
- Floor drains with trap primers, non slip resilient sheet flooring, and deep clean rated surfaces.BC Housing technical bulletin and design guidance.
- Alberta Accommodation Standards for licensed Supportive Living sites.Continuing Care Regulation.
- Part 3 and Part 9 requirements.National and Alberta building code structure.
- Rapid Housing Initiative rules: 12 month completion, reallocation of unused funds, monthly quantity surveyor reporting, no funding for non residential space.CMHC program material and the federal announcement.
- Edmonton detached home average of $578,442 in July 2025.REALTORS Association of Edmonton.
- Constitutional and legislative basis for municipal powers.Constitution Act, 1867, section 92, and the Municipal Government Act of Alberta.