Canmore Finalizes $10M for Affordable Housing as Council Rejects Delay to Livability Tax

Canmore has confirmed it will put $10 million over two years toward the large affordable-housing development planned for the Moustache Lands, a major financial commitment that will be drawn from the town’s new Livability Reserve. The reserve is funded by the upcoming livability tax, which is expected to generate about $10.3 million a year once implemented.

At the same time, councillors were sharply divided over whether the tax should be collected in 2026 as planned or delayed to 2027 due to political uncertainty at the provincial level. A motion to postpone the tax for one year was brought forward and debated at length, but ultimately defeated.

The decisions together set the stage for how Canmore intends to pay for one of the largest housing projects in its history while navigating a shifting provincial landscape.

A Ten Million Dollar Commitment

In a presentation to the Finance Committee, administration confirmed that the Moustache Lands project led by YWCA Banff will receive $5 million in 2026 and another $5 million in 2027 from the Livability Reserve.

The plan proposes up to 330 affordable units, along with commercial space. The YWCA is responsible for raising $150 million in development funds, while the Town is contributing seed funding to help make the financial model viable.

Administration described the project as aligned with the town’s established housing priorities and confirmed that the funding would come from the livability tax program that begins in 2026.

What the Livability Tax Is Meant to Do

The livability tax was created in late 2024 and is intended to fund affordability, housing, community infrastructure, and related projects. It is expected to raise about $10.3 million per year once implemented, according to the Town’s own budget documentation.

This dedicated tax stream is what fills the Livability Reserve. The Moustache Lands contribution is the largest allocation from that reserve to date.

But whether the tax should begin in 2026 or be delayed to 2027 became the center of a highly charged debate.

Attempt to Delay the Tax Sparks Debate

Councillor Tanya Foubert brought forward a motion to delay collecting the livability tax in 2026 and postpone all livability-funded capital projects by one year.

Her argument focused on uncertainty created by the Premier’s mandate letter directing changes to the Municipal Government Act. Those changes could affect Canmore’s ability to levy the tax.

Foubert warned that moving forward now could mean developing a budget the Town cannot fully implement.

“I don't believe we’ll be able to collect the tax in the way it is represented in the budget currently,” Foubert said. “To move ahead with a budget that includes this tax now would be placing our organization and ourselves at risk.”

Councillor Jen Marran supported the delay, emphasizing that residents are currently “in limbo” while waiting to see what happens with the tax and the projects tied to it.

Mayor and Majority Reject Delay

Mayor Sean Krausert and a majority of councillors opposed the motion.

Krausert argued that delaying the tax would also delay key affordability projects, including the Moustache Lands work. He said the Town would still have multiple “off-ramps” before the tax bills go out, giving council enough flexibility to adjust if the Province changes the rules.

He also pushed back on the assumption that the Province would act punitively.

“I do not believe that the provincial government will act vindictively,” the mayor said, adding that discussions with Minister Williams suggested no surprise that Canmore was moving ahead.

Other councillors echoed the urgency of advancing housing work.

Councillor Jeff Mah noted that delaying could hurt those “struggling the most” in the community, saying they “are looking to this council to accelerate housing as quickly as possible.”

Ultimately, the motion was defeated.

The Numbers

Here is what residents need to know about the financial picture:

• Livability Tax Revenue: Expected to raise about $10.3 million annually.

• Contribution to Moustache Lands: $5 million in 2026 and $5 million in 2027, for a total of $10 million.

• Project Scale: Up to 330 units + commercial space; $150 million total cost led by YWCA Banff.

• Related Reserve: All funding comes from the Livability Reserve

Despite the debate, council is proceeding with the livability tax starting in 2026, unless a future meeting reverses course in response to any provincial decisions.

What Happens Next

The Town and YWCA are finalizing agreements for the Moustache Lands development. The $5 million installment for 2026 will be formally approved when council adopts the budget and passes the updated utility and tax bylaws in December.

On the provincial side, changes to the Municipal Government Act are expected in the spring session. Those changes may shape how municipalities can collect or structure new taxes, including Canmore’s livability tax.

For now, the Town’s biggest housing project is moving ahead, backed by the largest financial commitment Canmore has ever made to affordable housing.