St. Albert Housing Society has won the right to have the property tax bill for 12 Nevada Place reconsidered.
In a possibly precedent setting decision, Justice Donna Shelley ruled that St. Albert’s composite assessment review board should have taken into account that the affordable housing units are rented out at less than market rates.
The society has a partial ownership at 12 Nevada Place, part of the Big Lake Pointe development, for affordable housing units there.
St. Albert Housing Society and Big Point Developments decided to fight the property tax assessment for the years 2014 and 2015. The property was assessed based on market rental rates, but the affordable housing units have to be rented out at least 10 per cent below the average rental market rate.
After hearing arguments on behalf of the City of St. Albert and the housing society in court in February, the justice issued her decision on April 7. The city still has the chance to appeal.
Shelley agreed with the housing society’s lawyer, David McGreer, that the property should be assessed at a rate that takes the less-than-market rental rates into account. She granted the judicial review sought and quashed the previous decision of the composite assessment review board. The assessment review board will have to take her ruling into account.
“It’s basically the court saying to the St. Albert Composite Assessment Review Board that they do have to take into account that this building that is subject to tax, that it’s different from other market apartment rental buildings, and the differences have to be taken into account,” said McGreer of the decision. He said that should translate into a lower assessed value for tax purposes.
“St. Albert is a high tax environment when you compare it to surrounding municipalities, so it makes it hard to operate affordable housing in St. Albert,” McGreer said. This decision should make it easier for the housing society as well as other organizations and even private corporations to make more affordable housing available here.
Property tax makes up a large chunk of the operating cost of affordable housing units, he said. He estimated it could be close to a third of the cost.
“We think it will help in the future to make more affordable housing possible in St. Albert,” he said, adding it could have implications for affordable housing property tax assessment across the province as well.
“This decision breaks new ground as far as that goes,” McGreer said.
However, the city could still appeal the justice’s ruling.
“The change in assessment that the housing society seeks is significant, and the city is considering its options,” said Gene Klenke, city solicitor, in an email provided by city communications advisor Marci Ng.
Tash Taylor, the executive director of the housing society, noted the ruling shows the impact volunteers can have in the community.
“Without this (legal) work being done on a volunteer basis, the society would not have had the means to pursue fairness and justice. As a result, the results of our case will have potential impacts across the province,” Taylor said in an email.
